10-Q
2012-09-30
false
GROTE MOLEN INC
0001456212
--12-31
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<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNICANT ACCOUNTING POLICIES</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt'><b><u>Organization</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Grote Molen, Inc. (“Grote Molen”) was incorporated under the laws of the State of Nevada on March 15, 2004.  BrownWick, LLC (“BrownWick”), a wholly-owned subsidiary, was formed in the State of Idaho on June 5, 2005.  The principal business of Grote Molen and BrownWick (collectively the “Company”) is to distribute grain mills and related accessories for home use.  </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'><b><u>Principles of Consolidation</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>The condensed consolidated financial statements include the accounts of Grote Molen and BrownWick.  All significant inter-company balances and transactions have been eliminated.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'><b><u>Basis of Presentation</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>            The accompanying condensed consolidated financial statements as of September 30, 2012 and for the three months and nine months ended September 30, 2012 and 2011 are unaudited.  In the opinion of management, all adjustments have been made, consisting of normal recurring items, that are necessary to present fairly the consolidated financial position as of September 30, 2012, the consolidated results of operations for the three months and nine months ended September 30, 2012 and 2011, and cash flows for the nine months ended September 30, 2012 and 2011 in accordance with U.S. generally accepted accounting principles.  The results of operations for any interim period are not necessarily indicative of the results expected for the full year.  The interim condensed consolidated financial statements and related notes thereto should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2011.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'><b><u>Earnings Per Share</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>The computation of basic earnings per common share is based on the weighted average number of shares outstanding during the period.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the period plus the common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the period.  Common stock equivalents are not included in the diluted earnings per share calculation when their effect is anti-dilutive.  We have not granted any stock options or warrants since inception of the Company. </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><u>Comprehensive Income (Loss)</u></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'>Comprehensive income (loss) is the same as net income (loss).</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>NOTE 2 – DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS</b></p> <p style='margin-top:0in;margin-right:262.3pt;margin-bottom:0in;margin-left:45.75pt;margin-bottom:.0001pt;margin-top:0in;margin-right:1.7pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'><font lang="EN-CA">Accounts receivable</font> consist of the following:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Trade accounts receivable – related parties</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              31,464</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            14,819</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Trade accounts receivable</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>101,638</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>30,468</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Employee advances</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>5,000</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>5,000</p> </td> </tr> <tr style='height:11.85pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:11.85pt'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0;height:11.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:11.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0;height:11.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr style='height:13.3pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:13.3pt'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:13.3pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            138,102</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:13.3pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:13.3pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            50,287</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>            Property and equipment consist of the following:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Office equipment</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              4,335</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              3,527</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Warehouse equipment</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>10,097</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>10,097</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Website development</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>2,000</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>2,000</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Construction-in-progress</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>132,500</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>-</p> </td> </tr> <tr style='height:6.0pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>148,932</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>15,624</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Accumulated depreciation</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(9,400)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(8,238)</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr style='height:12.95pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            139,532</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              7,386</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>            Intangible assets consist of the following:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Licenses</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              73,220</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            10,500</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Patent</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>100</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>100</p> </td> </tr> <tr style='height:6.0pt'> <td width="348" valign="top" style='width:261.0pt;padding:0;height:6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>73,320</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>10,600</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Accumulated amortization</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(6,833)</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(6,044)</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr style='height:12.95pt'> <td width="348" valign="top" style='width:261.0pt;padding:0;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              66,487</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              4,556</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>NOTE 3 – DEBT</b></p> <p style='margin-top:0in;margin-right:262.3pt;margin-bottom:0in;margin-left:45.75pt;margin-bottom:.0001pt;margin-top:0in;margin-right:1.7pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Notes payable – related parties are unsecured and are comprised of the following:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:center'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $               30,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $             30,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 3,500</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 3,500</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 38,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 38,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 10,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 10,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 5,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 5,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note payable to a stockholder, due on demand, with    interest at 8% per annum</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 9,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> -</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note payable to a stockholder, due on demand, with    interest at 8% per annum</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 15,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>-</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Non-interest bearing advances from stockholders,    with no formal repayment terms</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 9,127</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 9,127</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Total</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$             119,627</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$             95,627</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:262.3pt;margin-bottom:0in;margin-left:45.75pt;margin-bottom:.0001pt;margin:0in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:262.3pt;margin-bottom:0in;margin-left:45.75pt;margin-bottom:.0001pt;margin-top:0in;margin-right:1.7pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>            The notes payable of $35,000 at September 30, 2012 and December 31, 2011 are comprised of two notes payable to a non-related party, are unsecured, payable upon demand, and bear interest at 8% per annum.  Accrued interest payable on the notes payable was $3,756 and $1,656 at September 30, 2012 and December 31, 2011, respectively.</p> <p style='margin-top:0in;margin-right:262.3pt;margin-bottom:0in;margin-left:45.75pt;margin-bottom:.0001pt;margin-top:0in;margin-right:1.7pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Long-term debt – related party is comprised of the following:</p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:center'><b>(Unaudited)</b></p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:center'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due in monthly    installments of $4,000 through February 2016, with    interest at 6.97 % per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $             144,750  </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $           172,380  </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Less current portion</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(39,151)</p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(37,164)</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Long-term portion</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$             105,599</p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$           135,216</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>            </p> <p style='margin:0in;margin-bottom:.0001pt'>                Interest expense on related party debt was $4,093 and $4,505 for the three months ended September 30, 2012 and 2011, respectively, and $12,621 and $13,816 for the nine months ended September 30, 2012 and 2011, respectively.  Accrued interest payable to related parties was $26,951 and $23,463 at September 30, 2012 and December 31, 2011, respectively.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>NOTE 4 – RELATED PARTY TRANSACTIONS</b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;text-autospace:none'>Pursuant to an agreement effective in February 2011, we pay a monthly management fee to a company owned by one of the major stockholders of the Company to manage our day-to-day business activities and to provide business space.  We paid monthly management fees in varying amounts to this related party pursuant to prior agreements approved by the stockholders of the Company.  The agreement is on a month-to-month basis and can be cancelled at any time by the vote of management.  Effective February 1, 2011, the monthly fee was increased to $10,700.  Also included in management fees are monthly payments of $150 to another major stockholder of the Company for expense reimbursement.  Included in selling, general and administrative expenses were management fees totaling $32,550 for the three months ended September 30, 2012 and 2011 and $97,650 and $96,150 for the nine months ended September 30, 2012 and 2011, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;text-autospace:none'>Each of the two principal stockholders of the Company own companies that are our customers.  Sales to these related parties totaled $31,196 and $37,128 for the three months ended September 30, 2012 and 2011, respectively, or approximately 7% and 10% of total sales, respectively.  Sales to these related parties totaled $66,503 and $90,829 for the nine months ended September 30, 2012 and 2011, respectively, or approximately 5% and 7% of total sales, respectively.  Accounts receivable from these related parties totaled $31,464 and $14,819 at September 30, 2012 and December 31, 2011, respectively.  </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;text-autospace:none'>Accounts payable to these related parties totaled $150 and $0 at September 30, 2012 and December 31, 2011, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;text-autospace:none'>See Note 3 for discussion of related party debt and interest expense.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><font lang="X-NONE">NOTE 5 – CAPITAL STOCK</font></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'><font lang="X-NONE">The Company’s preferred stock may have such rights, preferences and designations and may be issued in such series as determined by our Board of Directors.  No shares of preferred stock were issued and outstanding at </font>September 30<font lang="X-NONE">, 201</font>2<font lang="X-NONE"> and December 31, 201</font>1<font lang="X-NONE">.</font></p> <p style='margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><font lang="X-NONE">NOTE 6 – SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'><font lang="X-NONE">During the </font>nine<font lang="X-NONE"> months ended </font>September 30<font lang="X-NONE">, 201</font>2<font lang="X-NONE"> and 201</font>1<font lang="X-NONE">, we had no non-cash financing and investing activities.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'><font lang="X-NONE">We paid cash for income taxes of </font><font lang="X-NONE">$</font>13,996 <font lang="X-NONE">and </font><font lang="X-NONE">$</font>5,707 <font lang="X-NONE">for the </font>nine <font lang="X-NONE">months ended </font>September 30<font lang="X-NONE">, 201</font>2<font lang="X-NONE"> and 201</font>1<font lang="X-NONE">,</font><font lang="X-NONE"> respectively.  We paid cash for interest of </font><font lang="X-NONE">$</font>9,134 <font lang="X-NONE">and </font><font lang="X-NONE">$</font>9,998 <font lang="X-NONE">for the </font>nine<font lang="X-NONE"> months ended </font>September 30<font lang="X-NONE">, 201</font>2 <font lang="X-NONE">and 201</font>1<font lang="X-NONE">,</font><font lang="X-NONE"> respectively.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><font lang="X-NONE">NOTE 7 – SIGNIFICANT CUSTOMERS</font></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'><font lang="X-NONE">In addition to the sales to related parties discussed in Note 4, we had sales to one customer that accounted for approximately </font>4<font lang="X-NONE">% </font><font lang="X-NONE">and </font>9<font lang="X-NONE">% </font><font lang="X-NONE">of total sales for the three months ended September 30, 201</font>2<font lang="X-NONE"> and 20</font>11<font lang="X-NONE">, and </font>8<font lang="X-NONE">% </font><font lang="X-NONE">and </font><font lang="X-NONE">1</font>2<font lang="X-NONE">% </font><font lang="X-NONE">for the nine months ended September 30, 201</font>2<font lang="X-NONE"> and 20</font>11<font lang="X-NONE">, respectively.</font></p> <p style='margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><font lang="X-NONE">NOTE 8 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'><font lang="X-NONE">There were no new accounting pronouncements issued during the </font>nine<font lang="X-NONE"> months ended </font>September 30<font lang="X-NONE">, 201</font>2<font lang="X-NONE"> and through the date of this filing that we believe are applicable </font>to <font lang="X-NONE">or would have a material impact on the consolidated financial statements of the Company.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><font lang="X-NONE">NOTE 9 – SUBSEQUENT EVENTS</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'><font lang="X-NONE">We have evaluated events occurring after the date of our accompanying consolidated balance sheets through the date the financial statements were issued.  We did not identify any material subsequent events requiring adjustment to or disclosure in our accompanying consolidated financial statements.</font></p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><u>Principles of Consolidation</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>The condensed consolidated financial statements include the accounts of Grote Molen and BrownWick.  All significant inter-company balances and transactions have been eliminated.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><u>Basis of Presentation</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>            The accompanying condensed consolidated financial statements as of September 30, 2012 and for the three months and nine months ended September 30, 2012 and 2011 are unaudited.  In the opinion of management, all adjustments have been made, consisting of normal recurring items, that are necessary to present fairly the consolidated financial position as of September 30, 2012, the consolidated results of operations for the three months and nine months ended September 30, 2012 and 2011, and cash flows for the nine months ended September 30, 2012 and 2011 in accordance with U.S. generally accepted accounting principles.  The results of operations for any interim period are not necessarily indicative of the results expected for the full year.  The interim condensed consolidated financial statements and related notes thereto should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2011.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><u>Earnings Per Share</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>The computation of basic earnings per common share is based on the weighted average number of shares outstanding during the period.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'>The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the period plus the common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the period.  Common stock equivalents are not included in the diluted earnings per share calculation when their effect is anti-dilutive.  We have not granted any stock options or warrants since inception of the Company. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><u>Comprehensive Income (Loss)</u></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'>Comprehensive income (loss) is the same as net income (loss).</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Trade accounts receivable – related parties</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              31,464</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            14,819</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Trade accounts receivable</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>101,638</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>30,468</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Employee advances</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>5,000</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>5,000</p> </td> </tr> <tr style='height:11.85pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:11.85pt'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0;height:11.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:11.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0;height:11.85pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr style='height:13.3pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:13.3pt'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:13.3pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            138,102</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:13.3pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:13.3pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            50,287</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Office equipment</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              4,335</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              3,527</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Warehouse equipment</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>10,097</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>10,097</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Website development</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>2,000</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>2,000</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Construction-in-progress</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>132,500</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>-</p> </td> </tr> <tr style='height:6.0pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>148,932</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>15,624</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Accumulated depreciation</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(9,400)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(8,238)</p> </td> </tr> <tr> <td width="342" valign="top" style='width:256.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr style='height:12.95pt'> <td width="342" valign="top" style='width:256.5pt;padding:0;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            139,532</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              7,386</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Licenses</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              73,220</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$            10,500</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Patent</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>100</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>100</p> </td> </tr> <tr style='height:6.0pt'> <td width="348" valign="top" style='width:261.0pt;padding:0;height:6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0;height:6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>73,320</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>10,600</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Accumulated amortization</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(6,833)</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:2.9pt;text-align:right'>(6,044)</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr style='height:12.95pt'> <td width="348" valign="top" style='width:261.0pt;padding:0;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt'>`</p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              66,487</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:right'>$              4,556</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:6.5pt;text-align:center'><b>(Unaudited)</b></p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:center'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $               30,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $             30,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 3,500</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 3,500</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 38,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 38,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 10,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 10,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due on demand, with    interest at 6% per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 5,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 5,000</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note payable to a stockholder, due on demand, with    interest at 8% per annum</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 9,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> -</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note payable to a stockholder, due on demand, with    interest at 8% per annum</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 15,000</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>-</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Non-interest bearing advances from stockholders,    with no formal repayment terms</font></p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 9,127</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> 9,127</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Total</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$             119,627</p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$             95,627</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in'> </p> <table border="0" cellspacing="0" cellpadding="0" width="570" style='margin-left:.5in;border-collapse:collapse'> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>September 30, 2012</b></p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>December 31, 2011</b></p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:center'><b>(Unaudited)</b></p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:center'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Note</font> payable to a stockholder, due in monthly    installments of $4,000 through February 2016, with    interest at 6.97 % per annum</p> </td> <td width="108" valign="top" style='width:81.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $             144,750  </p> </td> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> $           172,380  </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Less current portion</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(39,151)</p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(37,164)</p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="348" valign="top" style='width:261.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><font lang="EN-CA">Long-term portion</font></p> </td> <td width="108" valign="top" style='width:81.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$             105,599</p> </td> <td width="12" valign="top" style='width:9.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:.05in;text-align:right'>$           135,216</p> </td> </tr> </table>
101638
30468
5000
5000
138102
50287
4335
3527
10097
10097
2000
2000
132500
148932
15624
-9400
-8238
139532
7386
73220
10500
100
100
73320
10600
-6833
-6044
66487
4556
30000
30000
3500
3500
38000
38000
10000
10000
5000
5000
9000
15000
9127
9127
119627
95627
The notes payable of $35,000 at September 30, 2012 and December 31, 2011 are comprised of two notes payable to a non-related party, are unsecured, payable upon demand, and bear interest at 8% per annum
3756
1656
144750
172380
39151
37164
105599
135216
4093
4505
12621
13816
26951
23463
10700
150
32550
32550
97650
96150
31196
37128
0.0700
0.1000
66503
90829
0.0500
0.0700
31464
14819
150
0
13996
5707
9134
9998
0.0400
0.0900
0.0800
0.1200
0001456212
2012-01-01
2012-09-30
0001456212
2012-11-14
0001456212
2012-07-01
2012-09-30
0001456212
2012-09-30
0001456212
2011-12-31
0001456212
2011-07-01
2011-09-30
0001456212
2011-01-01
2011-09-30
0001456212
2010-12-31
0001456212
2011-09-30
0001456212
2011-02-01
iso4217:USD
shares
iso4217:USD
shares
pure
Due in monthly installments of $4,000 through February 2016, with interest at 6.97 % per annum