Notes Receivable

12 Months Ended

Dec. 31, 2011

Notes Receivable [Abstract]

Notes Receivable

Note 5 - Notes receivable

Short-term notes receivable consists of the following:

	December 31, 2011		December 31, 2010
Unsecured note receivable, interest at 3% due in semi-annual payments, principal due on or before October 1, 2014 (a)	$	-	$	601,300
Unsecured note receivable, interest at 3%, principal and interest due on March 30, 2012 (b)		62,500		-
Unsecured note receivable, interest at 10% due monthly, principal due on or before December 31, 2011 (b)		-		120,000
		62,500		721,300
Reserve due to uncertainty of collectability		-		(300,000	)
Short-term notes receivable	$	62,500	$	421,300

(a) Unsecured note receivable due October 1, 2014. This note was issued for $601,300. This note was previously owed by Southwest Gulf Coast Properties, Inc. ("SWGCP") resulting from closing costs, principal and interest paid by American on the SWGCP loan at TXCB. In February, SWGCP obtained a judgment against Kentner Shell ("Shell"), who personally guaranteed the note, for $4,193,566 for matters related to these condominiums.  On June 30, 2011, SWGCP assigned all of its interests in this judgment to American in exchange for this note and $10.  In September 2011, American and Shell entered into an agreement whereby Shell will make quarterly payments in the amount of $100,000, beginning April 1, 2012.  Further, in the event that Shell pays $400,000 on or before October 1, 2012, the debt will be considered paid in full.  In the event that Shell pays $500,000 on or before October 1, 2013, the debt will be considered paid in full.  American has not specifically discounted this note due to the $300,000 reserve due to uncertainty of collectability which has been recorded for short-term notes receivable.

(b) Unsecured note receivable due March 30, 2012.  This note replaces the $120,000 note previously owed by Lakeland Partners III, L.P.  In September 2011, American and Shell entered into an agreement whereby the $120,000 note was paid in full for the consideration of $62,500 in cash and a new note agreement for $62,500, due in full with interest on March 30, 2012.  Proceeds from the cash payment in the amount of $5,000 were applied to the note discussed in (a) above.

Long-term receivables consists of the following:

	December 31, 2011			December 31, 2010
Unsecured note receivable for sale of former subsidiary, Marald, Inc., principal and interest due monthly through September 5, 2012	$	20,359		$	59,251
Unsecured note from former subsidiary, SET, interest at 4% due monthly beginning July 1, 2011, principal payment due on June 1, 2014 (a)		-			629,205
Unsecured note receivable for sale of former subsidiary, Marald, Inc., due in monthly payments of $3,074, including interest at 4%, beginning April 1, 2011 through March 1, 2021 (b)		300,000			300,000
Unsecured note receivable purchased from Texas Community Bank, interest at 8% due monthly, principal due January 2009 (d)		300,000			300,000
Unsecured note receivable, interest at 3% due in semi-annual payments, principal due on or before October 1, 2014 (d)		596,300			-
Note secured by shares of DCP stock, interest due quarterly at 5%, principal payment due on or before September 23, 2012 (e)		-			55,000
Total notes receivable		1,216,659			1,343,456
Reserve due to uncertainty of collectability		(600,000	)		(300,000	)
		616,659			1,043,456
Less current portion		(320,359	)		(38,892	)
Long-term notes receivable	$	296,300		$	1,004,564

(a) Unsecured receivables from former subsidiary, SET.  This note originated from advances and fees charged to SET during the year ended December 31, 2010.  Stillwater National Bank is the 1st lienholder.  In August 2011, $513,933 was added to the balance owed by SET.  SET owed a note to a bank that was secured by a certificate of deposit held by American.  The bank foreclosed on the certificate of deposit to pay the note balance.  In December 2011, American received $338,761 from the settlement of SET's Chapter 11 bankruptcy proceedings and recorded the balance of $804,377 as bad debt expense.

(b) Sale of former subsidiary, Marald, Inc., principal and interest due monthly through July 2012.  The original note was for $300,000 and was discounted to $200,000 for the receipt of full payment on or before October 25, 2007.  On May 4, 2010, a new promissory note was executed in the amount of $300,000 for the note balance plus accrued interest, with the payment terms indicated above.  Since payments are currently being made on the other note receivable with Marald in accordance with note terms, no further discounting of the loan was deemed necessary as of December 31, 2011.  When the other note receivable has been paid in full, payments will begin on this note under a new extension and renewal agreement.

(c) Note purchased from Texas Community Bank with a face amount of $300,000.  This delinquent note was purchased on September 30, 2009 for $300,000 and new payment terms are being negotiated for this note receivable with the debtors, Las Vegas Premium Gold.  This note was purchased as an investment to receive the interest income from the note.  Management has assessed this note for impairment and feels that collectability is reasonably possible based on the personal guarantees of the principals. American has hired an attorney in this matter.  The attorney has secured a judgment against one of the guarantors and is pursuing collection.

(d) Unsecured note receivable due October 1, 2014. This note was issued for $601,300. This note was previously owed by Southwest Gulf Coast Properties, Inc. ("SWGCP") resulting from closing costs, principal and interest paid by American on the SWGCP loan at TXCB. In February, SWGCP obtained a judgment against Kentner Shell ("Shell"), who personally guaranteed the note, for $4,193,566 for matters related to these condominiums.  On June 30, 2011, SWGCP assigned all of its interests in this judgment to American in exchange for this note and $10.  In September 2011, American and Shell entered into an agreement whereby Shell will make quarterly payments in the amount of $100,000, beginning April 1, 2012.  Further, in the event that Shell pays $400,000 on or before October 1, 2012, the debt will be considered paid in full.  In the event that Shell pays $500,000 on or before October 1, 2013, the debt will be considered paid in full.  American has not specifically discounted this note due to the $600,000 reserve due to uncertainty of collectability which has been recorded for notes receivable.

(e) Note secured by shares of DCP stock.  On September 23, 2010, Joe Hoover, President of DCP, purchased 20% of the 1,000 shares of Common Stock of DCP held by American for $20,000 in cash and a $55,000 promissory note. On April 22, 2011, American entered into a stock purchase agreement, whereby Joe Hoover purchased for $5,000 American's 80% ownership of DCP's assets and associated liabilities.  Additionally, American forgave the $55,000 promissory note owed by Joe Hoover and this is included as a loss on discontinued operations for the year ended December 31, 2011.

At December 31, 2011, management reviewed its notes receivable for impairment.  Based on this review, American reserved a total of $600,000 due to uncertainty of collectability. American believes this reserve remains appropriate at December 31, 2011.

Interest income on notes receivable is recognized principally by the simple interest method.  During the years ended December 31, 2011 and 2010, American recognized interest income of $8,732 and $10,696, respectively.