1. Description of Business and Basis of Presentation
Description of Business
Solar Power, Inc., and its subsidiaries, (collectively the “Company”) is engaged in development, sales, installation and integration of photovoltaic systems and sells its contract manufactured
racking and cable, wire and mechanical assemblies.
Basis of Presentation
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted
accounting principles for interim financial information. They should be read in conjunction with the financial statements and related notes to the financial statements of the Company for the years ended December 31, 2010 appearing in the
Company’s Form 10-K/A filed with the Securities and Exchange Commission (“SEC”) on April 16, 2012. The September 30, 2011 and 2010 unaudited interim Condensed Consolidated Financial Statements on Form 10-Q have been prepared
pursuant to the rules and regulations of the SEC for smaller reporting companies. Certain information and note disclosures normally included in the annual financial statements on Form 10-K have been condensed or omitted pursuant to those rules and
regulations, although the Company’s management believes the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal recurring adjustments (except for
restatement related adjustments, see Note 3) necessary for a fair presentation of the results of operation for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative
of the results to be expected for the entire year.
The Condensed Consolidated Financial Statements include the accounts of
Solar Power, Inc. and the subsidiaries controlled by the Company, Intercompany balances, transactions and cash flows are eliminated on consolidation.