Note 14 - Fair Value
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

14.          FAIR VALUE


The following tables summarize the bases used to measure financial liabilities that are carried at fair value on a recurring basis in the consolidated balance sheets.


           

Basis of fair value measurement

 
   

Balance at

December 31,
2013

   

Quoted prices in
active markets for
identical assets

(Level 1)

   

Significant other
observable inputs

(Level 2)

   

Significant
unobservable inputs

(Level 3)

 

Liabilities

                               

Interest rate swap

  $ 460,000     $ —     $ 460,000     $ —  

Contingent payments related to sale of wind farm project

    600,049       —       —       600,049  

Total liabilities

  $ 1,060,049     $ —     $ 460,000     $ 600,049  

           

Basis of fair value measurement

 
   

Balance at

December 31,
2012

   

Quoted prices in
active markets for
identical assets

(Level 1)

   

Significant other
observable inputs

(Level 2)

   

Significant
unobservable inputs

(Level 3)

 

Liabilities

                               

Interest rate swap

  $ 1,123,509       —     $ 1,123,509       —  

Total liabilities

  $ 1,123,509     $ —     $ 1,123,509     $ —  

The Company determines the fair value of the interest rate swap by using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the instrument. The analysis reflects the contractual terms of the swap agreement, including the period to maturity and uses observable market-based inputs and uses the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments.


Management estimates the probable term of the contingent payments related to sale of wind farm project to be 20 years, which is the term of the PPA. The interest rate used to discount the estimated royalty payments is 10.8%, which is comprised of the Company’s incremental borrowing rate of approximately 5.8% for secured positions plus a consideration of an estimated payment risk premium of 5.0% attributable to similar unsecured long-term borrowings that the Company could otherwise obtain in the marketplace.