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

FANR Projects

The total accounts receivable from the FANR contracts was approximately $0.4 million at June 30, 2014 and December 31, 2013. These amounts due from FANR represent approximately all of the total accounts receivable reported at June 30, 2014 and December 31, 2013. Approximately 77% and 100% of the total revenues reported for the six months ended June 30, 2014 and 2013, respectively, were from the FANR contracts. One other contract constituted 17% of the total revenues reported for the six months ended June 30, 2014.

Total unbilled accounts receivable included in the accompanying consolidated balance sheets and reported in accounts receivable of approximately $0.1 million at June 30, 2014 and December 31, 2013, and is for work that was billed to our clients in July 2014 and January 2014, respectively. Foreign currency transaction exchange losses and translation gains and losses for the three months and six months ended June 30, 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, and totaled approximately $0.1 million for the three month and six month periods ended June 30, 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 June 30, 2014 and December 31, 2013.

Under these agreements with ENEC and FANR, 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.