Note 3. Accounts Receivable – Project Revenue and Reimbursable Project Costs

ENEC and FANR Projects

The total accounts receivable from the ENEC and FANR contracts was approximately $0.5 million and $0.4 million at March 31, 2014 and December 31, 2013, respectively. These amounts due from ENEC and FANR represent approximately all of the total accounts receivable reported at March 31, 2014 and December 31, 2013. Approximately 86% and 95% of the total revenues reported for the three months ended March 31, 2014 and 2013, respectively, were from the ENEC and FANR contracts.

Total unbilled accounts receivable included in the accompanying consolidated balance sheets and reported in accounts receivable of approximately $0.1 million at March 31, 2014 and December 31, 2013, is for work that was billed to our clients in April 2014 and January 2014, respectively. Foreign currency transaction exchange losses and translation gains and losses for the three months ended March 31, 2014 and 2013, were not significant.

Travel costs and other reimbursable costs under these contracts are reported in the accompanying statement of operations as both revenue and cost of consulting services provided were not significant for the three months ended March 31, 2014 and 2013. The total travel and other reimbursable expenses that have not been reimbursed to us and are included in total accounts receivable reported above from our consulting contracts were not significant at March 31, 2014 and December 31, 2013.

Under these agreements, revenue will be recognized on a time and expense basis. We periodically discuss our consulting work with ENEC and FANR, who will review the work we perform, and our reimbursable travel expenses, and accept our monthly invoicing for services and reimbursable expenses. We expect the variation of revenue we earn from these contracts to continue.