Want to know a sure way to go out of business? Be a "green tech" company in the good graces of the Obama administration. It turns out that, just like Solyndra, another alternative energy company receiving massive funds from the federal government is about to go under.
A geothermal energy company with a $98.5 million loan guarantee from the Obama administration for an alternative energy project in Nevada -- which received hearty endorsements from Energy Secretary Steven Chu and Senate Majority Leader Harry Reid -- faces financial problems, and the company's auditors have questioned whether it can stay in business.
Much like Solyndra LLC, a California solar-panel manufacturer with a $535 million federal loan guarantee that went bankrupt, Nevada Geothermal Power (NGP) has incurred $98 million in net losses over the past several years, has substantial debts and does not generate enough cash from its current operations after debt-service costs, an internal audit said.
"The company's ability to continue as a going concern is dependent on its available cash and its ability to continue to raise funds to support corporate operations and the development of other properties," NGP auditors said in a financial statement for the period ending March 31.
It appears those on the left forget one important aspect about a business... it's supposed to make a profit.