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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 1.   Organization</font></div><div style="text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Technical Industries & Energy, Corp. (the Company) (TIE) was formed November 29, 2006 under the laws of the State of Delaware in order to acquire and to take over the assets and business of Technical Industries, Inc. (TII) a Louisiana Corporation established on May 12, 1971.  On that date, the Company issued 125,000,000 shares of common stock to American Interest, LLC, in exchange for founder services rendered.  The fair value of these services was considered immaterial, and no amounts were recognized in the financial statements.  At the time the shares were issued to American Interest, LLC, TIE had no assets, operations, or cash flows.  As such, the stock had no value at the time TIE was established.  The par value was arbitrarily established in order to comply with the State of Delaware laws.  In order to reflect the par value of the shares issued, the Company recognized a discount on capital stock as a contra-equity account within the equity section of the consolidated balance sheets.  On January 3, 2007, the Company entered into a Stock Exchange Agreement and Share Exchange (the Agreement) whereby the sole shareholder of TII exchanged all of the outstanding shares of the TII to the Company in exchange for 50,000,000 shares of Company stock.  Accordingly, TII became a wholly-owned subsidiary of the Company.  The assets acquired and liabilities assumed were recorded at the carrying value to TII since TII and the Company was under common control prior to the acquisition.  </font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline;">TII specializes in the non-destructive testing of vessels, </font>oilfield pipe, tools<font style="display: inline; color: #0000ff;"> </font><font style="display: inline;">and equipment, including ultrasonic testing, utilizing the latest technologies.  These technologies enable TII to (i) provide detailed information to customers regarding each pipe tested, and (ii) reach energy reserves present technology cannot reach without extra cost to the oil and gas companies.  Because of the intense scrutiny applied to each section of pipe, TII is able to generate data which allows the pipe to be used in the most extreme conditions, and has been proven especially useful in deep water drilling operations in the Gulf of Mexico.</font></font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">On August 29, 2008, the Company effected a name change from Technical Industries & Energy Corp. to Energy & Technology, Corp. to better reflect the nature of the Company’s business.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 2.   Summary of Significant Accounting Policies</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Basis of Presentation and Consolidation</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Technical Industries, Inc., the accounts of Energy Pipe, LLC (a variable interest entity), and Energy Technology Manufacturing and Threading LLC (a variable interest entity).  All significant intercompany balances and transactions have been eliminated.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of financial information for the interim periods presented.  These adjustments are of a normal recurring nature and include appropriate estimated provisions.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Basis of Accounting</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Assets, liabilities, revenues and expenses are recognized on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Use of Estimates</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements.  Accordingly, actual results could differ from those estimates due to information that becomes available subsequent to the issuance of the financial statements or for other reasons.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Revenue Recognition</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Revenue for inspection services is recognized upon completion of the services rendered.  Revenue for the sales of pipe is recognized when:  a) pipe is delivered and the customer takes ownership and assumes the risks of loss, b) collection of the relevant receivable is probable, c) persuasive evidence of an arrangement exists, and d) the sales price is fixed or determinable.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Trade Receivables</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Trade accounts receivable are carried at their estimated collectible amounts.  Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition.  Provisions for uncollectible amounts are determined based on management’s estimate of collectability.  Provisions for uncollectible amounts were $14,640 and $205,480 for the nine months ending September 30, 2012 and 2011, respectively.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Inventory</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Inventory is stated at the lower of cost determined by the specific identification method or market.  At September 30, 2012 and at December 31, 2011, inventory consisted of tubing, casing, and drill pipe available for sale.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Property and Equipment</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Property and equipment are stated at cost.  Expenditures for property and
equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.  The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Based on management’s intentions, investment property, which is held for the purposes of earning rental income and capital appreciation, is distinguished from property owned and occupied by the Company.  The Company is not currently depreciating the property held as investment, nor has any rental income been earned.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Valuation of Long-Lived Assets</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of Financial Accounting Standards Board (FASB) ASC 360-10-35.  Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Credit Risk</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. For the nine months ended September 30, 2012, three customers made up approximately 57% of the Company’s revenues, and three customers made up approximately 52% of the Company’s receivable balance at September 30, 2012.  For the nine months ended September 30, 2011, three customers made up approximately 33% of the Company’s revenues, three customers made up approximately 76% of the Company’s receivable balance at September 30, 2011.  </font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company maintains cash balances at several financial institutions, and periodically maintains cash in bank accounts in excess of insured limits.  The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Advertising</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company charges the costs of advertising to expense as incurred. For the nine months ended September, 2012 and 2011, $2,865 and $5,282, respectively, was expensed.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Cash and Cash Equivalents</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Income Taxes</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company recognizes income taxes in accordance with FASB ASC 740, “Income Taxes” (formerly Statement of Financial Accounting Standards (SFAS) No. 109, <font style="font-style: italic; display: inline;">Accounting for Income Taxes</font>).  ASC 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities.  Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify;
text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Tax positions taken are not offset or aggregated with other positions.  Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority.  The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.  Interest and penalties associated with unrecognized tax benefits would be classified as additional income taxes in the statement of operations.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Recent Accounting Pronouncements</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In January 2010, the FASB issued ASU 2010-06, “<font style="font-style: italic; display: inline;">Fair Value Measurements and Disclosures” (Topic 820)</font> that requires new disclosures related to fair value measurements and clarifies existing disclosure requirements about the level of disaggregation, inputs and valuation techniques.  Specifically, reporting entities now must disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers.  In addition, in the reconciliation for Level 3 fair value measurements, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities for disclosure of fair value measurement, considering the level of disaggregated information required by other applicable U.S. GAAP guidance and should also provide disclosures about the valuation techniques and inputs used to measure fair value for each class of assets and liabilities.  The guidance was effective for financial statements issued for periods ending after December 15, 2009, except for disclosures about purchases, sales, issuances and settlements in reconciliation for Level 3 fair value measurements, which will be effective for fiscal years beginning after December 15, 2010. The adoption of this guidance affects only the disclosure requirements and had no impact on the Company’s consolidated statements of operations and condition.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In December 2010, the FASB issued authoritative guidance that modified Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts.  For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists.  In determining whether it is more likely than not  that a goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that an impairment may exist such as if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  This new authoritative guidance became effective on January 1, 2011 with no impact on the Company’s financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In April 2011, the FASB issued ASU 2011-02, which amends the guidance for evaluating whether the restructuring of a receivable by a creditor is a troubled debt restructuring (TDR). In evaluating whether a restructuring constitutes a TDR both for purposes of recording an impairment loss and for disclosure purposes, a creditor must separately conclude that both of the following exist: (<font style="font-style: italic; display: inline;">a</font>) the restructuring constitutes a concession; and (<font style="font-style: italic; display: inline;">b</font>) the debtor is experiencing financial difficulties. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructurings occurring on or after the beginning of the annual period of adoption. However, an entity should apply prospectively changes in the method used to calculate impairment. At the same time a public entity adopts ASU 2011-02, it is required to disclose the activity based information that was previously deferred by ASU No. 2011-01. The Company adopted the provisions of this ASU in preparing the consolidated financial statements as of and for the interim period ended September 30, 2011.  The adoption of this ASU did not have a material impact on Company’s consolidated financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></div>
<div
style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In May 2011, the FASB issued ASU 2011-04, “<font style="font-style: italic; display: inline;">Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”</font>. The ASU contains guidance on the application of the highest and best use and valuation premise concepts, the measurement of fair values of instruments classified in shareholders’ equity, the measurement of fair values of financial instruments that are managed within a portfolio, and the application of premiums and discounts in a fair value measurement. It also requires additional disclosures about fair value measurements, including information about the unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy, the sensitivity of recurring fair value measurements within Level 3 to changes in unobservable inputs and the interrelationships between those inputs, and the categorization by level of the fair value hierarchy for items that are not measured at fair value but for which the fair value is required to be disclosed. These amendments are to be applied prospectively for interim and annual periods beginning after December 15, 2011.  The adoption of this guidance is not expected to have a significant effect on the Company’s consolidated financial statements.</font></font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In June 2011, the FASB issued ASU 2011-05, <font style="font-style: italic; display: inline;">“Presentation of Comprehensive Income”</font>. The ASU increases the prominence of other comprehensive income in financial statements by requiring comprehensive income to be reported in either a single statement or in two consecutive statements which report both net income and other comprehensive income. It eliminates the option to report other comprehensive income and its components in the statement of changes in equity. The ASU is effective for periods beginning after December 15, 2011 and requires retrospective application. The ASU does not change the components of other comprehensive income, the timing of items reclassified to net income, or the net income basis for income per share calculations.  As this ASU is disclosure related only, the adoption of this ASU will not impact consolidated reported financial position or results of operations.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In September 2011, the FASB amended guidance pertaining to goodwill impairment testing.  The amendments permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test.  An entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount.  The guidance is effective January 1, 2012 with no significant impact expected on the Company’s financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In December 2011, the FASB issued guidance which relates to deconsolidation events. Under this amendment, when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of the default on the subsidiary’s nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20, <font style="font-style: italic; display: inline;">Property, Plant and Equipment - Real Estate Sales,</font> to determine whether it should derecognize the in substance real estate.  This guidance is effective for the fiscal year ending December 31, 2013 and is not expected to have a significant impact on the Company’s financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In December 2011, The FASB issued authoritative guidance to provide enhanced disclosures in the financial statements about offsetting and netting arrangements.  The new guidance requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement.  This guidance was issued to facilitate comparison between financial statements prepared on a U.S. GAAP and IFRS reporting. The new guidance will be effective January 1, 2013 and is not expected to have a significant impact on the Company’s financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In July 2012, the FASB issued ASU 2012-2, which amends the guidance for impairment testing for goodwill and other indefinite-lived assets.  The ASU attempted to simplify how an entity tests those assets for impairment and to improve consistency in impairment testing guidance.  The new guidance allows entity’s to assess qualitative factors to determine if an asset is more likely than not impaired.  If the entity determine qualitatively that the asset is not more likely than not impaired, no further testing is required.  The adoption of this amendment is effective fiscal years beginning after
September 15, 2012.  The adoption of this ASU is not expected to have any material effect to the Company’s consolidated financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In August 2012 and October 2012, the FASB issued ASU 2012-03 and ASU 2012-04, technical corrections and improvements.  This amendment clarifies language differences between source literature (i.e. FASB Statements) and the codification.  Many times during the transition from the legacy to the codification writing styles or phrasing of the source literature did not directly translate into the codification.  Amendments with no transition guidance in this update were effective upon issuance.  Amendments with transition guidance will be effective for fiscal periods beginning after December 15, 2012.  The applicable amendments without transition guidance were adopted for the interim period ended September 30, 2012.  The adoption of these ASUs did not have a material impact on the Company’s consolidated financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 3.   Patent</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">On September 4, 2007, the Company’s chief executive officer was awarded a patent from the United States Patent and Trademark Office pertaining to his development of specialized testing procedures for drilling pipe utilized by oil-exploration companies.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company’s costs associated with its development of these testing procedures and application for patent have been capitalized and recognized as an asset in the Company’s balance sheet, and is being amortized over 20 years.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 4.   Commitments</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company leases office premises, operating facilities, and equipment under several operating leases expiring in various years through 2030.  The Company also leases land for operating purposes on a month to month basis.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 5.   Major Customers</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">For the nine months ended September 30, 2012, the Company had three customers which generated revenues in excess of 10% of the Company’s total revenues.  Revenues for these three customers were approximately 57% of total revenues, and the total balance due from these three customers at September 30, 2012 was $3,819,013.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 6.   Related Party Transactions</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Included in due to affiliates is $1,656,989 and $1,563,197 at September 30, 2012 and December 31, 2011, respectively, in acquisition debts paid by affiliates upon the acquisition of the Company in 1999.  The affiliates maintain a lien on the Company’s accounts receivable and equipment to secure this loan.  The amounts due to the affiliates have no set terms of repayment and bear interest at 8.00%.  Interest expense associated with this obligation totaled $93,792 and $86,844 for the nine month periods ended September 30, 2012 and 2011, respectively.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 7.   Earnings per Share</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The weighted average common shares outstanding amounted to 169,138,050 and 169,098,675 for the three months ended and the nine months ended September 30, 2012, and 168,958,150 and 168,898,950 for the three months ended and the nine months ended September 30, 2011, respectively.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 8.   Fair Value Disclosures</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The following methods and assumptions were used by the Company in estimating fair values for financial instruments:</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Cash and cash equivalents:</font> The carrying amount reported in the balance sheet approximates fair value.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Notes Payable:</font> The fair value of notes payable approximates the carrying amount reported in the balance sheet.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Due to Affiliates:</font>  The carrying amount approximates fair values.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">While these estimates of fair value are based on management's judgment of appropriate factors, there is no assurance that if the Company had disposed of such items at September 30, 2012 or December 31, 2011, the estimated fair values would have been achieved.  Market values may differ depending on various circumstances not taken into consideration in this methodology.  The estimated fair values at September 30, 2012 and December 31, 2011, should not necessarily be considered to apply at subsequent dates.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In addition, other assets and liabilities that are not defined as financial instruments are not included in the following disclosures, such as property and equipment.  The estimated fair values of the Company's financial instruments are as follows:</font></div><div style="text-indent: 0pt; display: block;"> </div><div align="right"><table style="width: 90%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td style="padding-bottom: 2px;" valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="22%" colspan="6"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">September 30, 2012</font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="22%" colspan="6"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">December 31, 2011</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Carrying</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Amount</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fair</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font
style="display: inline; font-weight: bold;">Value</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Carrying</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Amount</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fair</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Value</font></font></div></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Financial assets:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td style="padding-bottom: 4px; padding-left: 0pt; margin-left: 9pt;" valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  Cash and cash equivalents</font></div></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,286,477</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,286,477</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">943,894</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td
style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">943,894</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Financial liabilities:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td style="padding-left: 0pt; margin-left: 9pt;" valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  Notes Payable</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">465,442</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size:
10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">465,442</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">643,784</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">643,784</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td style="padding-bottom: 2px; padding-left: 0pt; margin-left: 9pt;" valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  Due to Affiliates</font></div></td><td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,466,854</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,466,854</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,324,977</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,324,977</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td style="padding-bottom: 4px;" valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,932,296</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,932,296</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size:
10pt;">2,968,761</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,968,761</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div>
<div style="text-indent: 0pt; display: block;"> </div>
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Note 9.   Subsequent Events</font></div>
<div style="text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In accordance with the subsequent events topic of the FASB ASC, Topic No. 855, “<font style="font-style: italic; display: inline;">Subsequent Events</font>”, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of September 30, 2012.  In preparing these financial statements, the Company evaluated the events and transactions through the date these financial statements were issued.</font></div>
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Basis of Presentation and Consolidation</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Technical Industries, Inc., the accounts of Energy Pipe, LLC (a variable interest entity), and Energy Technology Manufacturing and Threading LLC (a variable interest entity).  All significant intercompany balances and transactions have been eliminated.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of financial information for the interim periods presented.  These adjustments are of a normal recurring nature and include appropriate estimated provisions.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Basis of Accounting</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Assets, liabilities, revenues and expenses are recognized on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.</font></div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Use of Estimates</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements.  Accordingly, actual results could differ from those estimates due to information that becomes available subsequent to the issuance of the financial statements or for other reasons.</font></div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Revenue Recognition</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Revenue for inspection services is recognized upon completion of the services rendered.  Revenue for the sales of pipe is recognized when:  a) pipe is delivered and the customer takes ownership and assumes the risks of loss, b) collection of the relevant receivable is probable, c) persuasive evidence of an arrangement exists, and d) the sales price is fixed or determinable.</font></div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Trade Receivables</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Trade accounts receivable are carried at their estimated collectible amounts.  Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition.  Provisions for uncollectible amounts are determined based on management’s estimate of collectability.  Provisions for uncollectible amounts were $14,640 and $205,480 for the nine months ending September 30, 2012 and 2011, respectively.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Inventory</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Inventory is stated at the lower of cost determined by the specific identification method or market.  At September 30, 2012 and at December 31, 2011, inventory consisted of tubing, casing, and drill pipe available for sale.</font></div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Property and Equipment</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Property and equipment are stated at cost.  Expenditures for property and equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.  The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Based on management’s intentions, investment property, which is held for the purposes of earning rental income and capital appreciation, is distinguished from property owned and occupied by the Company.  The Company is not currently depreciating the property held as investment, nor has any rental income been earned.</font></div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Valuation of Long-Lived Assets</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of Financial Accounting Standards Board (FASB) ASC 360-10-35.  Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Credit Risk</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. For the nine months ended September 30, 2012, three customers made up approximately 57% of the Company’s revenues, and three customers made up approximately 52% of the Company’s receivable balance at September 30, 2012.  For the nine months ended September 30, 2011, three customers made up approximately 33% of the Company’s revenues, three customers made up approximately 76% of the Company’s receivable balance at September 30, 2011.  </font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company maintains cash balances at several financial institutions, and periodically maintains cash in bank accounts in excess of insured limits.  The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.</font></div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Advertising</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company charges the costs of advertising to expense as incurred. For the nine months ended September, 2012 and 2011, $2,865 and $5,282, respectively, was expensed.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Cash and Cash Equivalents</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Income Taxes</font></div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">The Company recognizes income taxes in accordance with FASB ASC 740, “Income Taxes” (formerly Statement of Financial Accounting Standards (SFAS) No. 109, <font style="font-style: italic; display: inline;">Accounting for Income Taxes</font>).  ASC 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities.  Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.</font></div><div style="text-align: justify; text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Tax positions taken are not offset or aggregated with other positions.  Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority.  The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.  Interest and penalties associated with unrecognized tax benefits would be classified as additional income taxes in the statement of operations.</font></div>
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<div style="text-align: justify; text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Recent Accounting Pronouncements</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In January 2010, the FASB issued ASU 2010-06, “<font style="font-style: italic; display: inline;">Fair Value Measurements and Disclosures” (Topic 820)</font> that requires new disclosures related to fair value measurements and clarifies existing disclosure requirements about the level of disaggregation, inputs and valuation techniques.  Specifically, reporting entities now must disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers.  In addition, in the reconciliation for Level 3 fair value measurements, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities for disclosure of fair value measurement, considering the level of disaggregated information required by other applicable U.S. GAAP guidance and should also provide disclosures about the valuation techniques and inputs used to measure fair value for each class of assets and liabilities.  The guidance was effective for financial statements issued for periods ending after December 15, 2009, except for disclosures about purchases, sales, issuances and settlements in reconciliation for Level 3 fair value measurements, which will be effective for fiscal years beginning after December 15, 2010. The adoption of this guidance affects only the disclosure requirements and had no impact on the Company’s consolidated statements of operations and condition.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In December 2010, the FASB issued authoritative guidance that modified Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts.  For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists.  In determining whether it is more likely than not  that a goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that an impairment may exist such as if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  This new authoritative guidance became effective on January 1, 2011 with no impact on the Company’s financial statements.</font></div>
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<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In April 2011, the FASB issued ASU 2011-02, which amends the guidance for evaluating whether the restructuring of a receivable by a creditor is a troubled debt restructuring (TDR). In evaluating whether a restructuring constitutes a TDR both for purposes of recording an impairment loss and for disclosure purposes, a creditor must separately conclude that both of the following exist: (<font style="font-style: italic; display: inline;">a</font>) the restructuring constitutes a concession; and (<font style="font-style: italic; display: inline;">b</font>) the debtor is experiencing financial difficulties. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructurings occurring on or after the beginning of the annual period of adoption. However, an entity should apply prospectively changes in the method used to calculate impairment. At the same time a public entity adopts ASU 2011-02, it is required to disclose the activity based information that was previously deferred by ASU No. 2011-01. The Company adopted the provisions of this ASU in preparing the consolidated financial statements as of and for the interim period ended September 30, 2011.  The adoption of this ASU did not have a material impact on Company’s consolidated financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In May 2011, the FASB issued ASU 2011-04, “<font style="font-style: italic; display: inline;">Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”</font>. The ASU contains guidance on the application of the highest and best use and valuation premise concepts, the measurement of fair values of instruments classified in shareholders’ equity, the measurement of fair values of financial instruments that are managed within a portfolio, and the application of premiums and discounts in a fair value measurement. It also requires additional disclosures about fair value measurements, including information about the unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy, the sensitivity of recurring fair value measurements within Level 3 to changes in unobservable inputs and the interrelationships between those inputs, and the categorization by level of the fair value hierarchy for items that are not measured at fair value but for which the fair value is required to be disclosed. These amendments are to be applied prospectively for interim and annual periods beginning after December 15, 2011.  The adoption of this guidance is not expected to have a significant effect on the Company’s consolidated financial statements.</font></font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block;
margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In June 2011, the FASB issued ASU 2011-05, <font style="font-style: italic; display: inline;">“Presentation of Comprehensive Income”</font>. The ASU increases the prominence of other comprehensive income in financial statements by requiring comprehensive income to be reported in either a single statement or in two consecutive statements which report both net income and other comprehensive income. It eliminates the option to report other comprehensive income and its components in the statement of changes in equity. The ASU is effective for periods beginning after December 15, 2011 and requires retrospective application. The ASU does not change the components of other comprehensive income, the timing of items reclassified to net income, or the net income basis for income per share calculations.  As this ASU is disclosure related only, the adoption of this ASU will not impact consolidated reported financial position or results of operations.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In September 2011, the FASB amended guidance pertaining to goodwill impairment testing.  The amendments permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test.  An entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount.  The guidance is effective January 1, 2012 with no significant impact expected on the Company’s financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In December 2011, the FASB issued guidance which relates to deconsolidation events. Under this amendment, when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of the default on the subsidiary’s nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20, <font style="font-style: italic; display: inline;">Property, Plant and Equipment - Real Estate Sales,</font> to determine whether it should derecognize the in substance real estate.  This guidance is effective for the fiscal year ending December 31, 2013 and is not expected to have a significant impact on the Company’s financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In December 2011, The FASB issued authoritative guidance to provide enhanced disclosures in the financial statements about offsetting and netting arrangements.  The new guidance requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement.  This guidance was issued to facilitate comparison between financial statements prepared on a U.S. GAAP and IFRS reporting. The new guidance will be effective January 1, 2013 and is not expected to have a significant impact on the Company’s financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In July 2012, the FASB issued ASU 2012-2, which amends the guidance for impairment testing for goodwill and other indefinite-lived assets.  The ASU attempted to simplify how an entity tests those assets for impairment and to improve consistency in impairment testing guidance.  The new guidance allows entity’s to assess qualitative factors to determine if an asset is more likely than not impaired.  If the entity determine qualitatively that the asset is not more likely than not impaired, no further testing is required.  The adoption of this amendment is effective fiscal years beginning after September 15, 2012.  The adoption of this ASU is not expected to have any material effect to the Company’s consolidated financial statements.</font></div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"> </div>
<div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 36pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In August 2012 and October 2012, the FASB issued ASU 2012-03 and ASU 2012-04, technical corrections and improvements.  This amendment clarifies language differences between source literature (i.e. FASB Statements) and the codification.  Many times during the transition from the legacy to the codification writing styles or phrasing of the source literature did not directly translate into the codification.  Amendments with no transition guidance in this update were effective upon issuance.  Amendments with transition guidance will be effective for fiscal periods beginning after December 15, 2012.  The applicable amendments without transition guidance were adopted for the interim period ended September 30, 2012.  The adoption of these ASUs did not have a material impact on the Company’s consolidated financial statements.</font></div>
<div style="margin-left: 30px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">In accordance with the subsequent events topic of the FASB ASC, Topic No. 855, “<font style="font-style: italic; display: inline;">Subsequent Events</font>”, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements. </font></div>
<div style="text-indent: 0pt; display: block;"> </div><div align="right"><table style="width: 90%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td style="padding-bottom: 2px;" valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="22%" colspan="6"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">September 30, 2012</font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="22%" colspan="6"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">December 31, 2011</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Carrying</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Amount</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fair</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Value</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Carrying</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Amount</font></font></div></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="text-align: center; padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td style="border-bottom: black 2px solid; text-align: center;" valign="bottom" width="10%" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fair</font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-weight: bold;">Value</font></font></div></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Financial assets:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"
nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td style="padding-bottom: 4px; padding-left: 0pt; margin-left: 9pt;" valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  Cash and cash equivalents</font></div></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,286,477</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,286,477</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">943,894</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">943,894</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font
style="display: inline; font-family: times new roman; font-size: 10pt;">Financial liabilities:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td style="padding-left: 0pt; margin-left: 9pt;" valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  Notes Payable</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">465,442</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">465,442</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">643,784</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">643,784</font></td><td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td style="padding-bottom: 2px; padding-left: 0pt; margin-left: 9pt;" valign="bottom" width="52%"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  Due to Affiliates</font></div></td><td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,466,854</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,466,854</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline;
font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,324,977</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 2px solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,324,977</font></td><td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td style="padding-bottom: 4px;" valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,932,296</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,932,296</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,968,761</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td style="border-bottom: black 4px double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td style="border-bottom: black 4px double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,968,761</font></td><td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div>
125000000
50000000
0.76
0.33
0.52
0.57
3
3
3
3
205480
14640
5282
2865
P20Y
3
0.10
0.57
3819013
1563197
1656989
86844
93792
0.08
168958150
168898950
169138050
169098675
943894
3286477
643784
465442
643784
465442
2324977
2466854
2968761
2932296
2968761
2932296
Energy & Technology, Corp. (the "Company") is filing this Amendment No. 1 to Form 10-Q (this "Amendment") to amend its Quarterly Report on Form 10-Q for the quarterly period ended October 31, 2012 (the "Form 10-Q"), originally filed with the Securities and Exchange Commission (the "Commission") on November 15, 2012. The purpose of this Amendment is to correct the Company fax number, to correct some misspellings in the comments, and to add two recent accounting pronouncements which were inadvertently omitted from the original filing of the Form 10-Q, none of which had any material effect on the Company's consolidated financial statements.