On April 3, 2012, Delta sold the assets of DSWSI as discussed in Note 1.

The assets of DSWSI are classified as assets held for sale and associated liabilities of assets held for sale in the consolidated balance sheets as of March 31, 2012 and December 31, 2011 in accordance with Presentation of Financial Statements - Discontinued Operations (ASC 205-20). DSWSI's net loss of $922,517 for the three months ended March 31, 2012, and net income of $144,200 for the three months ended March 31, 2011 are included in discontinued operations.

On April 22, 2011, American entered into a stock purchase agreement, whereby Joe Hoover, President of Downhole Completion Products, Inc. ("DCP), purchased for $5,000 American's 80% ownership of DCP's assets and associated liabilities. DCP's net loss of $4,410 for the three months ended March 31, 2011 is included in discontinued operations. Additionally, American forgave the $55,000 promissory note owed by Joe Hoover and this is included as a loss in discontinued operations for the three months ended March 31, 2011.

The carrying amounts of the major classes of assets and liabilities for DSWSI at March 31, 2012 and December 31, 2011 are summarized below:


	March 31, 2012		December 31, 2011
Assets held for sale
Current assets:
Cash and cash equivalents	$	92,334	$	10,655
Trading securities		92		105
Accounts receivable, less allowance for doubtful accounts
of $55,087		1,969,263		1,469,406
Inventories		1,448,349		1,862,098
Prepaid expenses and other current assets		139,772		235,076
Total current assets held for sale		3,649,810		3,577,340

Property and equipment, net of accumulated depreciation		1,630,323		1,701,186
Other assets		6,500		6,500
Total assets held for sale	$	5,286,633	$	5,285,026
Liabilities associated with assets held for sale
Current liabilities:
Accounts payable and accrued expenses	$	1,725,499	$	486,684
Bank overdrafts		-		81,392
Short-term notes payable		22,270		89,080
Current installments of long-term debt		1,992,891		2,106,701
Total current liabilities associated with assets held for sale		3,740,660		2,763,857

Long-term debt, less current installments		44,306		49,843
Total liabilities associated with assets held for sale	$	3,784,966	$	2,813,700

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

	Three Months Ended March 31,
	2012			2011
Revenues
DSWSI	$	3,598,374		$	2,622,699
DCP		-			246,131
Total revenues from discontinued operations	$	3,598,374		$	2,868,830
Net income (loss) before income tax
DSWSI		(883,373	)		150,576
DCP		-			(4,410	)
Net loss before income tax	$	(883,373	)	$	146,166
Income (loss) on disposal of discontinued operations	$	-		$	(55,000	)