Discontinued operations

12 Months Ended

Dec. 31, 2011

Discontinued operations [Abstract]

Discontinued operations

Note 16 - Assets held for sale

On September 23, 2010, Joe Hoover, President of Downhole Completion Products, Inc. ("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.  American recorded a $74,814 gain on sale of assets for this transaction.  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, which are classified as assets held for sale and associated liabilities of assets held for sale in the consolidated balance sheets as of December 31, 2010 in accordance with Presentation of Financial Statements - Discontinued Operations (ASC 205-20).  DCP's net loss of $4,410 for the year ended December 31, 2011, and net income of $10,826 for the year ended December 31, 2010  are included in discontinued operations.  During the year ended December 31, 2011, American received the $5,000 for the purchase.  This is included as income from discontinued operations for the year ended December 31, 2011.  American forgave the $55,000 promissory note owed by Joe Hoover and this is included as a loss in discontinued operations for the year ended December 31, 2011.

The carrying amounts of the major classes of assets and liabilities for DCP at December 31, 2010 are summarized below:

	December 31, 2010
Assets held for sale
Current assets held for sale:
Cash and cash equivalents	$	44,542
Accounts receivable		8,250
Accounts receivable from related parties
Inventories		166,659
Prepaid expenses and other current assets		18,546
Total current assets held for sale		237,997
Other assets		1,383
Total assets held for sale	$	239,380
Liabilities associated with assets held for sale
Current liabilities associated with assets held for sale:
Accounts payable and accrued expenses	$	228,554
Total current liabilities associated with assets held for sale		228,554
Long-term capital lease obligations, less current installments
Total liabilities associated with assets held for sale	$	228,554

On November 11, 2010, American sold the assets and associated liabilities of its wholly-owned subsidiary, Shumate Energy Technologies, Inc. ("SET") to Larry C. Shumate, President of SET, for $10,000.  Net income from discontinued operations on the consolidated statement of operations for the year ended December 31, 2010 includes the gain on deconsolidation of $2,954,974, offset by SET's net loss of $1,563,330 for the period January 1 through November 11, 2010.

	November 11, 2010
Cash received for sale of SET	$	10,000
Recovery of SET's negative paid-in-capital at December 31, 2009		420,352
Recovery of SET's cumulative net losses included in consolidated operating results		2,524,622
Income on disposal of discontinued operations		2,954,974
SET's net loss for the the period January 1 through November 11, 2010		(1,563,330	)
Net income from discontinued operations	$	1,391,644

DCP's and SET's revenues and net income (loss) before income tax are summarized below:

	Years Ended December 31,
	2011			2010
Revenues
DCP	$	246,131		$	778,486
SET		-			4,824,529
Total revenues from discontinued operations	$	246,131		$	5,603,015
Net income (loss) before income tax
DCP		(4,410	)		10,826
SET		-			(1,563,330	)
Net loss before income tax	$	(4,410	)	$	(1,552,504	)
Income (loss) on disposal of discontinued operations	$	(50,000	)	$	2,954,974