American Energy Partners Inc (AEPT)

[Sirpeter]

Diddy, I got email from Joe...he answered my questions as follows:

The 112K of revenue is composed of 2 separte transactions. They received an 80K deposit plus 35K which was invoiced and received.

Also, the 300K purchase order was bumped up to 500K of which they received 80K leaving an accounts receivable balance of 420K on that purchase order. The Accounts Receivable balance on the balance sheet is 430K leaving a 10K difference which is inmaterial.

There's also an offsetting 420K liability (Deposit) shown on the balance sheet. Actually, I regard this as deferred income until the product is shipped. Apparently, the product wasn't yet shipped when the qtr ended. After it's shipped and 420K is received then that's shown as revenue on the income statement. That will have to wait until next qtr.

To recap: 112K was received on the 500K PO.

The way they accounted for this is a bit different for me but works.