NONCONTROLLING INTEREST IN CONSOLIDATED SUBSIDIARIES

12 Months Ended

Dec. 31, 2016

NONCONTROLLING INTEREST IN CONSOLIDATED SUBSIDIARY

15.

NONCONTROLLING INTEREST IN CONSOLIDATED SUBSIDIARIES

Ecosphere Mining, LLC

In October 2013, the Company’s subsidiary, Ecosphere Mining, LLC, granted to its directors an aggregate of 5% ownership in Ecosphere Mining, LLC. Further in June 2015, the Company granted a note holder a 2.5% interest in Ecosphere Mining, LLC. Accordingly, the Company is presenting noncontrolling interests as a component of equity on its consolidated balance sheets and reported noncontrolling interest net income or loss under the heading “Net (income) loss applicable to noncontrolling interest in consolidated subsidiaries” in the consolidated statements of operations.


Balance, December 31, 2014	$	(13,117	)
Noncontrolling interest in loss		(16,448	)
Balance, December 31, 2015	$	(29,565	)
Noncontrolling interest in loss		(17,159	)
Balance, December 31, 2016	$	(46,724	)

Sea of Green Systems, Inc.

In 2014, the Company’s subsidiary, SOGS, issued 80,000,000 shares of common stock to ETI as founder’s shares in exchange for a capital contribution of $10. From November 10, 2014 through August 2015, the Company was the sole shareholder. During the year ended December 31, 2015, SOGS issued a stock dividend payable to ETI in the amount of 21,262,800 shares of common stock. During 2015, ETI sold portions of its interest in SOGS for cash and issued its own shares to third parties for services benefiting ETI. At December 31, 2015, ETI owned 69.49% of SOGS. In 2016, ETI issued its own shares as bonuses to ETI employees and to convertible note holders as consideration for one-year debt extensions. In addition, SOGS issued shares as consultant fees in lieu of a cash payment. At December 31, 2016, ETI owned 59.92% of SOGS. Accordingly, the Company is presenting noncontrolling interests as a component of equity on its consolidated balance sheets and reported noncontrolling interest net income or loss under the heading “Net (income) loss applicable to noncontrolling interest in consolidated subsidiaries” in the consolidated statements of operations.


Balance, December 31, 2014	$	—
Change in noncontrolling interest from sales of subsidiary common stock		(154,387	)
Noncontrolling interest in loss		(117,488	)
Balance, December 31, 2015	$	(271,875	)
Noncontrolling interest in loss		(481,609	)
Balance, December 31, 2016	$	(753,484	)

ECOSPHERE TECHNOLOGIES INC 10-K