Annual report pursuant to Section 13 and 15(d)

Accounts Receivable -Project Revenue and Project Costs

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Accounts Receivable -Project Revenue and Project Costs
12 Months Ended
Dec. 31, 2013
Accounts Receivable -Project Revenue and Project Costs [Text Block]

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 $0.4 million and $0.6 million at December 31, 2013 and 2012, respectively. These amounts represent approximately 89 percent and 97 percent of the total accounts receivable reported at December 31, 2013 and 2012, respectively. Approximately 95 percent and 98 percent of the total revenues reported for the years ended December 31, 2013 and 2012 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 and $0.2 million at December 31, 2013 and 2012, respectively, is for work that was billed to our clients in January 2014 and January 2013, respectively. Foreign currency transaction exchange losses and translation gains and losses for the years ended December 31, 2013 and 2012, 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 and $0.5 million for the years ended December 31, 2013 and 2012, respectively. 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 was not significant at December 31, 2013 and $0.1 million at December 31, 2012.

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.