US GEOTHERMAL INC - 10-Q filing on 2013-05-13

SUBSEQUENT EVENTS	3 Months Ended
Mar. 31, 2013
SUBSEQUENT EVENTS [Text Block]	NOTE 18 - SUBSEQUENT EVENTS The Company has evaluated events and transactions that have occurred after the balance sheet date through May 13, 2013, which is considered to be the issuance date. The following events were identified for disclosure. Cash Grant Proceeds and Convertible Loan Agreement On April 3, 2013, USG Oregon LLC collected a payment of $32,749,541 from the U.S. Department of Treasury. The cash grant is for the Specified Energy Property in Lieu of Tax Credits program related to the Neal Hot Springs geothermal power plant under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009. Under the terms of the convertible loan agreement with Oregon USG Holdings, LLC and Enbridge Inc. (see note 10 for details), the collection of the grant funds by the Project is one of the conversion events; therefore, the convertible loan for $2,125,000 became due in April 2013. Management is currently making arrangements with Enbridge Inc. to satisfy the obligation. Retirement and Replacement of CEO On April 22, 2013, the Company announced that the founder, director and Chief Executive Officer Daniel Kunz will retire as chief executive and a member of the Board of Directors. Dennis Gilles was named by the Board as his successor as Chief Executive Officer. Under a succession plan, Mr. Kunz will serve as a consultant providing advisory services for one year to ensure a smooth transition. El Ceibillo Project On April 30, 2013, the Company announced that its wholly owned subsidiary, U.S. Geothermal Guatemala S.A. started drilling a test/development well. The well location was selected based upon two geophysical surveys that were completed in January and February 2013.

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2013

NOTE 18 - SUBSEQUENT EVENTS

The Company has evaluated events and transactions that have occurred after the balance sheet date through May 13, 2013, which is considered to be the issuance date. The following events were identified for disclosure.

Cash Grant Proceeds and Convertible Loan Agreement
On April 3, 2013, USG Oregon LLC collected a payment of $32,749,541 from the U.S. Department of Treasury. The cash grant is for the Specified Energy Property in Lieu of Tax Credits program related to the Neal Hot Springs geothermal power plant under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009. Under the terms of the convertible loan agreement with Oregon USG Holdings, LLC and Enbridge Inc. (see note 10 for details), the collection of the grant funds by the Project is one of the conversion events; therefore, the convertible loan for $2,125,000 became due in April 2013. Management is currently making arrangements with Enbridge Inc. to satisfy the obligation.

Retirement and Replacement of CEO
On April 22, 2013, the Company announced that the founder, director and Chief Executive Officer Daniel Kunz will retire as chief executive and a member of the Board of Directors. Dennis Gilles was named by the Board as his successor as Chief Executive Officer. Under a succession plan, Mr. Kunz will serve as a consultant providing advisory services for one year to ensure a smooth transition.

El Ceibillo Project
On April 30, 2013, the Company announced that its wholly owned subsidiary, U.S. Geothermal Guatemala S.A. started drilling a test/development well. The well location was selected based upon two geophysical surveys that were completed in January and February 2013.