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Accounts Receivable
 3 Months Ended
Mar. 31, 2012
Accounts Receivable [Abstract]  
Accounts Receivable

NOTE D – ACCOUNTS RECEIVABLE

The accounts receivable balances at March 31, 2012 and December 31, 2011 were $1,507,388 and $500,626, respectively, which are net of reserves for doubtful accounts of $4,820,593 and $6,390,593, respectively. Included in the $1,507,388 is $1,285,714 which represents 18 days of a 21 day marine services charter that was completed in April. We have subsequently received payment of $1,500,000 for this 21 day charter. As described in NOTE F, Neptune Minerals, Inc. ("NMI") completed a 2011 share exchange with DOR shareholders which resulted in an executed assignment and assumption agreement, whereby NMI assumed $8,227,675 of the outstanding debt of DOR owed to us. In addition, we executed a debt conversion agreement with NMI, whereby we converted $2,500,000 of the debt for 2,500,000 shares of NMI Class B non-voting common stock. The $4,820,593 reserve at March 31, 2012 is for the remaining Neptune Minerals, Inc. ("NMI") accounts receivable assumed from DOR. The $6,390,593 reserve at December 31, 2011 was comprised of the $1,570,000 "Shantaram" and $4,820,593 for the DOR receivable that was assumed by NMI in 2011 and discussed in NOTE F.

At December 31, 2011 we had $1,200,000 of unrecognized charter revenue to Chatham based on ASC 605. During this period ending March 31, 2012, Chatham raised sufficient funds and remitted the $1,200,000 to us thus completing the requirements of ASC 605. Therefore, we recorded the $1,200,000 as revenue in the three-month period ended March 31, 2012.

During the period ended March 31, 2012, we performed marine services for Chatham Rock Phosphate, Ltd. for $1,000,000 in relation to deep-ocean surveying. The agreement permits Chatham to pay for services in either cash or common shares of their company. ASC 605 states collectability is to be reasonably assured, persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered and there is a fixed or determinable sales price must all be present in order to recognize revenue. Chatham is listed on the New Zealand Stock Exchange and they do not yet have sufficient liquidity to settle this outstanding debt with cash, however, they are currently attempting a capital raise. If they are successful, there may be sufficient funds to pay us for the services rendered. At March 31, 2012, we do not believe the customer's liquidity and capital positions are sufficient enough to permit us to recognize this revenue at this time. If and when Chatham completes their financing and remits payment to us, which we expect they will, we will then recognize this revenue since all revenue accounting criteria will be satisfied.

 

At December 31, 2011, we had a reserve for the "Shantaram" receivable of $1,570,000 owed according to the terms of sale of research for the "Shantaram" project. During the three-month period ending March 31, 2012, management offset the amount due against its reserve. According to our agreement, we have the right to receive additional participation amounts, if any, up to approximately 11% from the first £100 million and approximately 7% thereafter from recovery distributions after recovery costs.