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Touchpoint Metrics, Inc.
10-Q
--12-31
13132302
3820000
false
0001535079
Yes
No
Smaller Reporting Company
No
2012
Q3
2012-09-30
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">1.    
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">NATURE OF
ORGANIZATION</font></font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. is a for profit corporation established under
the corporation laws in the State of California, United
States of America on December 14, 2001. The corporation
operated as The Innes Group, Inc., dba MCorp Consulting until
filing a Certificate of Amendment to the Articles of
Incorporation renaming the company Touchpoint Metrics, Inc.,
effective October 18, 2011.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. maps and improves the touchpoints between
organizations and their customers. Their focus assists
companies who wish to improve business performance by
measuring and transforming the ways they interact with
customers.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. services a wide variety of industries and
customer size.</font>
</div><br/>
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">2.      
   <font style="DISPLAY: inline; TEXT-DECORATION: underline">SIGNIFICANT
ACCOUNTING POLICIES</font></font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
accompanying interim balance sheet as of September 30,
2012, the interim income statements for the three and nine
months ended September 30, 2012 and 2011, the interim
statements of cash flows for the nine months ended
September 30, 2012 and 2011 and the related footnote
disclosures are unaudited. These unaudited interim financial
statements have been prepared in accordance with U.S. GAAP.
This requires management to make estimates and assumptions
that affect the reported amounts and disclosures at the date
of the financial statements and during the reporting period.
Actual results could differ from those estimates.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">In
management’s opinion, the unaudited interim financial
statements have been prepared on the same basis as the
audited financial statements and include all adjustments of a
normal recurring nature necessary for the fair presentation
of the company’s statement of financial position and
operating results for the periods presented. The results for
the three and nine months ended September 30, 2012 and
September 30, 2011 are not necessarily indicative of the
results expected for the full fiscal year or any future
period.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
financial statements of Touchpoint Metrics, Inc. are
presented on the accrual basis. The significant accounting
policies followed are described below to enhance the
usefulness of the financial statements to the reader.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">CASH,
CASH EQUIVALENTS, AND CREDIT RISK</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Cash
and cash equivalents are comprised of highly liquid
investments with original maturity dates of less than three
months that are not reported as investments. While Touchpoint
Metrics, Inc. may maintain cash and cash equivalents in bank
deposit accounts, which at times exceed Federal Deposit
Insurance Corporation insured limits, they have not
experienced any losses in such accounts.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Portions
of the bank deposit accounts are held in Canadian banks on a
Canadian and US Dollar basis. The balances in these accounts
at times exceed Canada Deposit Insurance Corporation insured
limits. They have not experienced any losses in these
accounts.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Management
believes it is not exposed to any significant credit risk on
cash and cash equivalents.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">INVESTMENTS</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. reports marketable investments at published
market or fair value with gains and losses reported in the
income statements.</font>
</div><br/><div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">For
investments without a readily available market, valuation is
recorded at historical cost and tested for impairment as of
each reporting period.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">DISCLOSURES
ABOUT FAIR VALUE OF ASSETS AND LIABILITIES</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Effective
July 1, 2009, Touchpoint Metrics, Inc. adopted Accounting
Standards Codification Topic 820, <font style="FONT-STYLE: italic; DISPLAY: inline">Fair Value
Measurements</font> (ASC 820). ASC 820 defines fair value,
establishes a framework for measuring fair value, and expands
disclosures about fair value measurements.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">ASC
820 defines fair value as the price that would be received to
sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement
date. ASC 820 also establishes a fair value hierarchy, which
requires Touchpoint Metrics, Inc. to maximize the use of
observable inputs and minimize the use of observable inputs
and minimize the use of unobservable inputs, when measuring
fair value. The standard describes three levels of inputs
that may be used to measure fair value:</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Level
1 Quoted prices in active markets for identical assets or
liabilities.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Level
2 Observable inputs other than Level 1 prices, such as quoted
prices for similar assets or liabilities; quoted prices in
markets that are not active; or other inputs that are
observable or can be corroborated by observable market data
for substantially the full term of the assets or
liabilities.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Level
3 Unobservable inputs that are supported by little or no
market activity and that are significant to the fair value of
the assets or liabilities.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Following
is a description of the valuation methodologies used for
instruments measured at fair value on a recurring basis and
recognized in the accompanying financial statements, as well
as the general classification of such instruments pursuant to
the valuation hierarchy.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Cash
and Cash Equivalents</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
carrying amounts approximate Level 1 fair value.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Petro
Portfolio Investment</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
Petro Portfolio investment is stated at Level 3 historical
cost with adjustments for asset impairment.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Property,
Improvements, and Depreciation</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Property
and equipment are stated at cost or estimated historical cost
through appraisal. Betterments, renewals, and extraordinary
repairs over $1,000 that extend the life of the assets are
capitalized; other repairs and maintenance are
expensed.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
cost and accumulated depreciation applicable to assets
retired are removed from the accounts, and the gain or loss
on disposition is recognized as other income or expense.
Depreciation and amortization is computed on various methods
as follows:</font>
</div><br/><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Depreciable
Asset Class</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Method</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Depreciable
Life</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Software
Design & Development</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Straight
Line</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3-Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Organization
Costs</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Straight
Line</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3-Years</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Real
Property Improvements</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">150
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">15-Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Computer
Equipment</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">200
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5-Years</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Furniture
and Fixtures</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">200
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">7-Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Leasehold
Improvements</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Straight
Line</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">15-Years</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Machinery
and Equipment</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">200
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">7-Years</font>
</div>
</td>
</tr>
</table><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">REVENUES
AND EXPENSES</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Revenues
are traditionally derived from consultation and research
engagements. Consultation and research engagements normally
span a period of 45 to 120 days in duration and may be fixed
price, or time and materials engagements. Other revenue is
earned from reimbursable expense revenues that are incidental
to the consultation and research efforts. Those project
related expenses consist of costs incurred by the company on
behalf of the customer. This will generally consist of travel
costs or products and services purchased as a convenience for
the customer.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
company enters into engagements with one of two contracted
payment arrangements. The contracts call for a deposit to be
made at the time of contract signing and payment as project
milestones are achieved or no deposit and payment as project
milestones are achieved.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">For
engagements where a deposit is received, the company reports
the deposit amount as unearned revenue on the balance sheet.
Revenue is recognized and reported as project milestones are
achieved. The revenue for production and product sales are
recognized as incurred.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Time
and material engagements are not common for the company, but
when such an engagement is entered into, contractual terms
are arranged that provide for the company to submit periodic
invoices to the customer as per the contract terms for the
time and materials used during the period for the
customer’s benefit. The contracts will generally
specify the rate for specific types of functions to be
performed.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
company has added SaaS (Software as a Service) technology to
its offerings. SaaS is a subscription based offering that
includes nonrefundable setup fees, subscription fees,
professional services, and consulting fees related to
implementation, customization, configuration, training, and
other value added services. The company accounts for
multiple-element arrangements by following ASC 605-25, <font style="FONT-STYLE: italic; DISPLAY: inline">Revenue
Recognition: Multiple-Element Arrangements</font>, as amended
by Accounting Standards Update (ASU) 2009-13, <font style="FONT-STYLE: italic; DISPLAY: inline">Multiple-Deliverable
Revenue Arrangements</font>. At the inception of the
arrangement, and again as each element is delivered, the
company evaluates all deliverables in the offering to
determine whether they represent separate units of accounting
based on the following criteria: 1) the items have value to
the customer on a standalone basis and 2) if the arrangement
includes a general right of return relative to the delivered
item, delivery or perfor­mance of the undelivered item
or items is considered probable and substantially in the
control of the company.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
company determines the relative selling price for a
deliverable based on vendor-specific objective evidence of
selling price (“VSOE”), if available, third-party
evidence (“TPE”), if VSOE is not available; and
best estimate of selling price (“BESP”), if
neither VSOE nor TPE is available.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt"><font style="FONT-STYLE: italic; DISPLAY: inline">VSOE.</font> The
company determines VSOE based on historical pricing and
discounting practices for the specific solution when sold
separately. In determining VSOE, it is required that a
substantial majority of the selling prices for these services
fall within a reasonably narrow pricing range. Due to the
introduction of new services, the non-refundable set-up fee
and the SaaS subscription have not been not historically
priced. As a result, VSOE has been used to allocate the
selling price of deliverables in limited
circumstances.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt"><font style="FONT-STYLE: italic; DISPLAY: inline">TPE.</font> When
VSOE cannot be established for deliverables in multiple
element arrangements, the company applies judgment with
respect to whether it can establish selling price based on
TPE. TPE is determined based on competitor prices for similar
deliverables when sold separately. It has been determined
that TPE is not a practical alternative due to differences in
service offerings compared to other parties and the
availability of relevant third-party pricing
information.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt"><font style="FONT-STYLE: italic; DISPLAY: inline">BESP.</font>
When the company is unable to establish selling price using
VSOE or TPE, BESP is used to determine selling price of
significant deliverables. The objective of BESP is to
determine the price at which the company would transact a
sale if the service were sold on a stand-alone
basis.  The process for determining BESP for
deliverables without VSOE or TPE involves management’s
judgment. BESP was determined by considering overall pricing
objectives and market conditions. Significant pricing
practices taken into consideration include the
company’s discounting practices, the size and volume of
transactions, the customer demographic, and market
strategy.  If the facts and circumstances
underlying the factors considered change or should future
facts and circumstances lead the company to consider
additional factors, BESPs could change in future
periods.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
guidance of SEC Codification of Staff Accounting Bulletins
Topic 13(A)(3)(f) is followed in accounting for nonrefundable
setup fees.  Each of the revenue areas relating to
the SaaS offering may or may not be sold as part of a sale to
a customer, with the exception of the nonrefundable set-up
fee and SaaS technology subscription. Each of the items,
except for the set-up fee and SaaS technology subscription,
can and often are sold separately and will have value to a
customer on a standalone basis. The nonrefundable set-up fee
and the SaaS subscription are the only two revenue streams
that do not exist without each other. The subscription and
services provided are essential to the customer receiving the
expected benefit of the set-up fee.  Therefore, the
set-up fee is earned and recognized as the related services
are delivered and performed over the term of the
subscription.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
SaaS subscriptions are sold with three payment options. The
subscription can be paid annually, quarterly, or monthly and
are all payable prior to services being provided. The company
determines fair value for the individual elements in these
arrangements as the estimated relative selling price charged
for each individual element when sold on a standalone
basis.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">As
payments are received for any of the subscription options,
the revenue is reported as unearned revenue on the balance
sheet and recognized at the end of each monthly period as
service is provided.  The company measures and
allocates the arrangement consideration to the individual
elements based on the relative estimated selling price of
each item as sold on a standalone basis.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
non-refundable setup fees are recognized over the term of the
initial subscription period. The professional services and
consulting fees included in the offering follow the same
revenue recognition process as the consultation and research
services.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Subscription
agreements provide service-level commitments of 99.5% uptime
per period, excluding scheduled maintenance and any
unavailability caused by defined circumstances beyond
reasonable control. Failure to meet this availability
commitment requires a credit to qualifying customers equal to
the value of the time unavailable, up to a maximum of one
month of subscription fees. Reserves equal to the maximum
potential credits are recorded on the balance sheet and are
treated as a reduction in revenue.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Revenue
is recorded net of applicable sales, use, and excise
taxes.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Expenses
are reported in accordance with accrual basis accounting.
Direct labor and materials for consulting or research
projects are reported as Work-In-Process on the balance sheet
until the associated revenue is recognized. The indirect
costs are considered immaterial and are reported as selling,
general, and administrative expenses.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Certain
software costs for the development and delivery of the SaaS
services are capitalized when the preliminary project stage
is completed and it is probable that the software will be
used as intended.  Capitalized costs include only
direct external costs of materials and services as well as
compensation and benefits for employees directly associated
with the software project.</font>
</div><br/>
<table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Depreciable
Asset Class</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Method</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Depreciable
Life</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Software
Design & Development</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Straight
Line</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3-Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Organization
Costs</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Straight
Line</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3-Years</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Real
Property Improvements</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">150
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">15-Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Computer
Equipment</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">200
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5-Years</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Furniture
and Fixtures</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">200
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">7-Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Leasehold
Improvements</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Straight
Line</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">15-Years</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Machinery
and Equipment</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">200
DB HY</font>
</div>
</td>
<td valign="bottom" width="12%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">7-Years</font>
</div>
</td>
</tr>
</table>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">3.    
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">PROPERTY
AND IMPROVEMENTS</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Property
and improvements consist of:</font>
</div><br/><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="76%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">September
30, 2012</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">December
31, 2011</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Computers
& Hardware</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$43,028.91</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$43,028.91</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Software
Design & Development</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">38,645.98</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">38,645.98</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Equipment</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">2,359.34</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">2,359.34</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Furniture
& Fixtures</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">31,730.60</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">31,730.60</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Leasehold
Improvements</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">95,608.48</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">95,608.48</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Intangible
Assets</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">1,377.19</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">1,377.19</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Real
Estate Improvements</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">4,000.00</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">4,000.00</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Real
Estate (Land)</font>
</div>
</td>
<td valign="bottom" width="2%" style="BORDER-BOTTOM: black 1pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">85,000.00</font>
</div>
</td>
<td valign="bottom" width="2%" style="BORDER-BOTTOM: black 1pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">85,000.00</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Total
Property and Improvements</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">301,750.50</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">301,750.50</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Less:
Accumulated Depreciation and Amortization</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(147,134.15)</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(141,296.19)</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%" style="PADDING-BOTTOM: 4px">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Net
Property and Improvements</font>
</div>
</td>
<td align="right" valign="bottom" width="2%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">154,616.35</font>
</div>
</td>
<td align="right" valign="bottom" width="2%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">160,454.31</font>
</div>
</td>
</tr>
</table><br/>
<table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="76%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">September
30, 2012</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">December
31, 2011</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Computers
& Hardware</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$43,028.91</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$43,028.91</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Software
Design & Development</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">38,645.98</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">38,645.98</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Equipment</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">2,359.34</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">2,359.34</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Furniture
& Fixtures</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">31,730.60</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">31,730.60</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Leasehold
Improvements</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">95,608.48</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">95,608.48</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Intangible
Assets</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">1,377.19</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">1,377.19</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Real
Estate Improvements</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">4,000.00</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">4,000.00</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Real
Estate (Land)</font>
</div>
</td>
<td valign="bottom" width="2%" style="BORDER-BOTTOM: black 1pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">85,000.00</font>
</div>
</td>
<td valign="bottom" width="2%" style="BORDER-BOTTOM: black 1pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">85,000.00</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Total
Property and Improvements</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">301,750.50</font>
</div>
</td>
<td align="right" valign="bottom" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">301,750.50</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="76%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 20pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Less:
Accumulated Depreciation and Amortization</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(147,134.15)</font>
</div>
</td>
<td valign="bottom" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(141,296.19)</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="76%" style="PADDING-BOTTOM: 4px">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Net
Property and Improvements</font>
</div>
</td>
<td align="right" valign="bottom" width="2%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">154,616.35</font>
</div>
</td>
<td align="right" valign="bottom" width="2%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">160,454.31</font>
</div>
</td>
</tr>
</table>
2359.34
2359.34
31730.60
31730.60
1377.19
1377.19
4000.00
4000.00
85000.00
85000.00
301750.50
301750.50
-147134.15
-141296.19
154616.35
160454.31
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">4.    
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">INVENTORY</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. does not carry any inventory. All products are
purchased and resold on an as needed basis.</font>
</div><br/>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">5.    
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">STOCK-BASED
COMPENSATION</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
Touchpoint Metrics, Inc. stock-based compensation program is
designed to attract and retain high quality employees while
aligning employees’ interests with the interests of the
shareholders.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
program was established in 2008. Plan Shares cannot exceed
30% of any outstanding issue or 1,515,000 shares, whichever
is the lower amount.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
company entered into two option commitments during 2011. The
first grant date was on February 7, 2011 with an option for
300,000 shares at an exercise price of $0.35. The options
carry a vesting schedule with 20% vesting on February 7, 2012
and an additional 20% vesting every six months thereafter.
The optioned shares will fully vest after 36 months on
February 7, 2014. The options will remain open for 10 years,
expiring on February 7, 2021.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
second grant date is on December 15, 2011 with an option for
20,000 shares at an exercise price of $0.25. The options
carry a vesting schedule with one-third of the total optioned
shares becoming vested every 12 months. The optioned shares
will fully vest after 36 months on December 15, 2014. The
options will remain open for 5 years, expiring on December
15, 2016.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Method
of Accounting and Assumptions</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Stock
options are valued under the fair value method of accounting
using a Black-Scholes valuation model to measure stock option
expense at the date of grant. All stock option grants have an
exercise price equal to the fair market value of our common
stock on the date of grant and have a 10-year term. The
company does not backdate, re-price or grant stock-based
compensation awards retroactively.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
Black-Sholes Values for the two options granted are $0.120
and $0.101and are amortized to expense over the vesting
period of three years.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
weighted-average Black-Scholes fair value assumptions are as
follows:</font>
</div><br/><table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="42%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Option
Grant #1</font>
</div>
</td>
<td valign="bottom" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Option
Grant #2</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="20%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="19%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Expected
life</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">10
Years</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5
Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Risk
free interest rate</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3.68%</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3.68%</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Expected
volatility</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">40.00%</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">40.00%</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Current
Stock Price</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.25</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.25</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Exercise
Price</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.35</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.25</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="20%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="19%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Black-Sholes
Value</font>
</div>
</td>
<td valign="bottom" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.120</font>
</div>
</td>
<td valign="bottom" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.101</font>
</div>
</td>
</tr>
</table><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
expected life is the period over which our employees are
expected to hold their options. The risk free interest rate
is based on the U.S. Treasury T-Bond rate at the grant date.
Volatility reflects movements in the stock price over the
most recent historical period equivalent to the expected
life.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
option grant #1 shares will incur a compensation expense of
$36,000 to be realized over 36 months beginning with the
option grant date of February 7, 2011. Option grant #2 shares
will incur a compensation expense of $2,020 over 36 months
beginning with the December 15, 2011 grant date.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">At
September 30, 2012, there was $20,561.50 of total
unrecognized compensation cost related to non-vested
share-based compensation grants.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">120,000
stock options were exercisable at September 30, 2012.</font>
</div><br/>
15150.00
300000
0.35
0.20
20000
0.25
12
36000
2020
20561.50
120000
<table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="42%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Option
Grant #1</font>
</div>
</td>
<td valign="bottom" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Option
Grant #2</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="20%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="19%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Expected
life</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">10
Years</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5
Years</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Risk
free interest rate</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3.68%</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">3.68%</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Expected
volatility</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">40.00%</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">40.00%</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Current
Stock Price</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.25</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.25</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Exercise
Price</font>
</div>
</td>
<td valign="middle" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.35</font>
</div>
</td>
<td valign="middle" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.25</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="20%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="19%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="42%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Black-Sholes
Value</font>
</div>
</td>
<td valign="bottom" width="20%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.120</font>
</div>
</td>
<td valign="bottom" width="19%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$0.101</font>
</div>
</td>
</tr>
</table>
0.0368
0.4000
0.25
0.35
0.120
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">6.    
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">ACCOUNTS
RECEIVABLE</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
Accounts Receivable balances and aging are significantly
better than many service related companies. There are no
significant Accounts Receivable balances that exceed 30
days.</font>
</div><br/><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="middle" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="4" valign="middle" width="40%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Aging
Periods</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td valign="bottom" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold"><
30 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">30
to 60 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">60
to 90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Over
90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Total
A/R</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="50%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 12-31-11</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$13,379.83</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$47,838.25</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$61,218.08</font>
</div>
</td>
</tr>
<tr>
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 09-30-12</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$38,295.38</font>
</div>
</td>
<td valign="middle" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$38,295.38</font>
</div>
</td>
</tr>
</table><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">SIGNIFICANT
CLIENTS</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. sells services to a broad range of clients
under various terms. The mix of clients ranges from start-ups
to Fortune 500 companies across multiple industries.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Sales
are concentrated among a few large clients. For the nine
months ended September 30, 2011 and September 30, 2012, the
percentage of sales and the concentration is as
follows:</font>
</div><br/><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="70%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">12/31/11</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">09/30/12</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Largest
client</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">35.82%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">41.88%</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Second
largest client</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">18.33%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">17.30%</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Third
largest client</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">12.15%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">11.05%</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Next
three largest clients</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">25.00%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">21.28%</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">All
other clients</font>
</div>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">8.7%</font>
</div>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">8.49%</font>
</div>
</td>
</tr>
<tr>
<td valign="bottom" width="70%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">100.00%</font>
</div>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">100.00%</font>
</div>
</td>
</tr>
</table><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">During
2012, the company entered a consulting services agreement
with mfifty, which is a related party.  The
President of the company is also the owner of
mfifty.  During the nine months ended September 30,
2012, the company earned revenues of approximately $44,264
from this related party.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. has strong relationships with their clients and
believes that they are credit worthy. Sales are made without
collateral and the credit-related losses have been
insignificant or non-existent. Accordingly, there is no
provision made to include an allowance for doubtful
accounts.</font>
</div><br/>
44264
<table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="middle" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="4" valign="middle" width="40%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Aging
Periods</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td valign="bottom" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold"><
30 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">30
to 60 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">60
to 90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Over
90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Total
A/R</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="50%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 12-31-11</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$13,379.83</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$47,838.25</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$61,218.08</font>
</div>
</td>
</tr>
<tr>
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 09-30-12</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$38,295.38</font>
</div>
</td>
<td valign="middle" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$38,295.38</font>
</div>
</td>
</tr>
</table>
13379.83
47838.25
61218.08
38295.38
38295.38
<table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="70%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">12/31/11</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">09/30/12</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Largest
client</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">35.82%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">41.88%</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Second
largest client</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">18.33%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">17.30%</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Third
largest client</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">12.15%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">11.05%</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Next
three largest clients</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">25.00%</font>
</div>
</td>
<td valign="middle" width="15%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">21.28%</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="70%">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">All
other clients</font>
</div>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">8.7%</font>
</div>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">8.49%</font>
</div>
</td>
</tr>
<tr>
<td valign="bottom" width="70%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">100.00%</font>
</div>
</td>
<td valign="middle" width="15%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">100.00%</font>
</div>
</td>
</tr>
</table>
0.3582
0.4188
0.1833
0.1730
0.1215
0.1105
0.2500
0.2128
0.087
0.0849
1.0000
1.0000
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">7.    
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">OTHER
ASSETS</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Other
assets are comprised of security deposits, prepaid expenses,
capitalized software development costs, and a significant
investment in Petro Portfolio.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Software
Development Costs</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Costs
incurred to develop software applications used in our
Software as a Service (SaaS) technology consist of
(a) certain external direct costs of materials and
services incurred in developing or obtaining internal-use
computer software and (b) payroll and payroll-related
costs for employees who are directly associated with, and who
devote time to, the project. These costs generally consist of
internal labor during configuration, coding and testing
activities. Research and development costs incurred during
the preliminary project stage are expensed as incurred.
Capitalization begins when the preliminary project stage is
complete, management with the relevant authority authorizes
and commits to the funding of the software project, it is
probable the project will be completed, and the software will
be used to perform the functions intended and certain
functional and quality standards have been met. Qualified
costs incurred during the operating stage of our software
applications relating to upgrades and enhancements are
capitalized to the extent it is probable that they will
result in added functionality, while costs that cannot be
separated between maintenance of, and minor upgrades and
enhancements to, internal-use software are expensed as
incurred. These capitalized costs are amortized on a straight
line basis over the expected useful life of the software,
which is three years. We capitalized $146,935.68 during the
nine months ended September 30, 2012. Amortization of
software development costs will commence at the end of the
fiscal year, December 31, 2012.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Petro
Portfolio Investment</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Petro
Portfolio is an online media asset with a website and
registered domain name (petroportfolio.com), newsletter, and
a database of approximately 80,000 registered
subscribers.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
asset was purchased on July 16, 2007 in a stock trade with a
related party. The asset had a valuation of $131,151 on the
trade date. 262,032 restricted common shares valued at $0.50
per share were issued to complete the purchase.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
website and newsletter remained highly active until mid-2008.
Macroeconomic events during this period created an adverse
business climate, resulting in management’s decision to
cease Petro Portfolio-related operations in late 2008,
eliminating associated costs. Petro Portfolio remains an
inactive asset at this time, and in management’s
opinion, carrying costs are negligible.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
Petro Portfolio assets were reviewed for indicators of
impairment. Three separate tests for recoverability were
conducted, with analysis resulting in a $72,000 charge for
impairment of the asset being incurred during
2010.  These tests included 1) analysis of
undiscounted future cash flows, 2) the fair market cost of
recreating the assets, and 3) an analysis of costs to return
the assets to their relative market position at the time
operations ceased, based on management's opinion. The
resulting charge for impairment was based on
management’s review of these analyses, and accurately
represents management’s opinion of current
value.</font>
</div><br/>
131151
262032
0.50
72000
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">8.     
    <font style="DISPLAY: inline; TEXT-DECORATION: underline">ACCOUNTS
PAYABLE</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. operates primarily on a pay as you go basis
using minimal credit available through trade accounts.</font>
</div><br/><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="4" valign="middle" width="40%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Aging
Periods</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td valign="bottom" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold"><
30 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">30
to 60 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">60
to 90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Over
90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Total
A/P</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="50%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 12-31-11</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$36,578.23</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$5,892.93</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$  1,300.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$3,588.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$47,359.16</font>
</div>
</td>
</tr>
<tr>
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 09-30-12</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$37,801.26</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$3,792.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$11,425.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$4,456.80</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$57,475.06</font>
</div>
</td>
</tr>
</table><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">There
is no significant concentration of the vendors used by the
company.</font>
</div><br/>
Using Minimal Credit Available Through Trade Accounts<br /><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="4" valign="middle" width="40%" style="BORDER-BOTTOM: black 1pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Aging
Periods</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td valign="bottom" width="50%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold"><
30 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">30
to 60 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">60
to 90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Over
90 Days</font>
</div>
</td>
<td valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Total
A/P</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="bottom" width="50%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt"> </font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 12-31-11</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$36,578.23</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$5,892.93</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$  1,300.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$3,588.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$47,359.16</font>
</div>
</td>
</tr>
<tr>
<td valign="middle" width="50%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of 09-30-12</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$37,801.26</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$3,792.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$11,425.00</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$4,456.80</font>
</div>
</td>
<td align="right" valign="middle" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$57,475.06</font>
</div>
</td>
</tr>
</table>
36578.23
5892.93
1300.00
3588.00
47359.16
37801.26
3792.00
11425.00
4456.80
57475.06
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">9.    
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">CURRENT
LIABILITIES</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
current liabilities carried by the company are normal
liabilities for continuing operations comprised primarily of
payroll tax payable and credit card debt.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Payroll
taxes are paid monthly as required by the IRS and the State
of California.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Credit
card debt is comprised of three corporate credit cards issued
by American Express and First National Bank. Balances are
generally paid each month.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
American Express credit card has a credit limit of $16,000
and incurs an interest rate of 15.24% Each of the First
National Bank credit cards have a credit limit of $10,000 and
incur and interest rate of 15.99% and 16.00%.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Each
credit card requires a minimum monthly payment amount that
will fluctuate depending on any balances carried into a
billing period.</font>
</div><br/>
16000
0.1524
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">10.   
    <font style="DISPLAY: inline; TEXT-DECORATION: underline">LONG-TERM
DEBT</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
company entered into two long-term, non-convertible debt
instruments during 2011.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">A
$100,000 CDN note was executed with Brad Holland, an 8.09%
shareholder on September 16, 2011. The note is structured to
incur a balloon payment of the principal and 4% APR
non-compounding accrued interest. The maturity date of the
note is September 16, 2014. The principal and accrued
interest payable at maturity will be $112,000.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">A
$50,000 USD note was executed with McLellan Investment
Corporation, an unrelated party, on September 7, 2011. The
note is structured to incur a balloon payment of the
principal and 4% APR non-compounding accrued interest. The
maturity date of the note is September 7, 2014. The principal
and accrued interest payable at maturity will be
$56,000.</font>
</div><br/>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">two</font></div>
100000
0.04
112000
50000
0.04
56000
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">11.        <font style="DISPLAY: inline; TEXT-DECORATION: underline">INCOME
TAXES</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. has not made a provision for income taxes. The
company posted a significant loss for the first, second, and
third quarters of 2012 and currently has a significant
deferred tax asset primarily comprised of prior year
losses.</font>
</div><br/>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">12.        <font style="DISPLAY: inline; TEXT-DECORATION: underline">NET
INCOME PER COMMON SHARE</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Basic
net income per common share is net income available to common
shareholders divided by the weighted average of common shares
outstanding during the period. Diluted net income per common
share is calculated using the weighted average of common
shares outstanding adjusted to include the effect that would
occur if in-the-money employee stock options were
exercised.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Options
to purchase 600,000 shares were not included in the
calculation of diluted earnings per common share because
these options were out-of-the-money. Out-of-the-money options
have an exercise price of $0.35.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
computations for basic and diluted net income per common
share are as follows:</font>
</div><br/><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="middle" width="56%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="2" valign="middle" width="20%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">September
30, 2012</font>
</div>
</td>
<td valign="middle" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="2" valign="middle" width="20%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">September
30, 2011</font>
</div>
</td>
</tr>
<tr>
<td valign="middle" width="56%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Income</font>
</div>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Shares</font>
</div>
</td>
<td valign="middle" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Income</font>
</div>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Shares</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Net
income</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Dividends</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">0.00</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">0.00</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Net
income available for common</font>
</div>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">shareholders</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">13,132,302.00</font>
</div>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5,312,302.00</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%" style="PADDING-BOTTOM: 4px">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Basic
net income per common share</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0312)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0557)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td valign="middle" width="56%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Net
income available for common</font>
</div>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">shareholders</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Dilutive
securities:</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Stock
options</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">120,000.00</font>
</div>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">0.00</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Diluted</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">13,252,302.00</font>
</div>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5,312,302.00</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%" style="PADDING-BOTTOM: 4px">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Diluted
net income per common share</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0309)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0557)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
</table><br/>
600000
0.35
<table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr>
<td valign="middle" width="56%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="2" valign="middle" width="20%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">September
30, 2012</font>
</div>
</td>
<td valign="middle" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td colspan="2" valign="middle" width="20%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">September
30, 2011</font>
</div>
</td>
</tr>
<tr>
<td valign="middle" width="56%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Income</font>
</div>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Shares</font>
</div>
</td>
<td valign="middle" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Income</font>
</div>
</td>
<td valign="middle" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Shares</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Net
income</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Dividends</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">0.00</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">0.00</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Net
income available for common</font>
</div>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">shareholders</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">13,132,302.00</font>
</div>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5,312,302.00</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%" style="PADDING-BOTTOM: 4px">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Basic
net income per common share</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0312)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0557)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td valign="middle" width="56%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Net
income available for common</font>
</div>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">shareholders</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Dilutive
securities:</font>
</div>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Stock
options</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">120,000.00</font>
</div>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">0.00</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="middle" width="56%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Diluted</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(409,648.16)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">13,252,302.00</font>
</div>
</td>
<td valign="bottom" width="4%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(295,630.05)</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">5,312,302.00</font>
</div>
</td>
</tr>
<tr>
<td align="left" valign="middle" width="56%" style="PADDING-BOTTOM: 4px">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Diluted
net income per common share</font>
</div>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0309)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="4%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 4px double">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(0.0557)</font>
</div>
</td>
<td valign="bottom" width="10%" style="PADDING-BOTTOM: 4px">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
</tr>
</table>
0.00
0.00
-0.0312
-0.0557
120000.00
0.00
-409648.16
-295630.05
-0.0309
-0.0557
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">13.   
    <font style="DISPLAY: inline; TEXT-DECORATION: underline">STOCK</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. was capitalized through the sale of 5,312,302
shares of stock totaling $906,151. There are 30,000,000
shares authorized. 4,000,000 additional restricted shares
were issued for $40,000 during 2011 and 3,820,000 additional
restricted shares were issued for an additional $595,000
during the first two quarters of 2012, resulting in
13,132,302 shares issued and outstanding as of September 30,
2012.</font>
</div><br/>
5312302
906151
4000000
40000
3820000
595000
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">14.   
    <font style="DISPLAY: inline; TEXT-DECORATION: underline">LEGAL</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. has no known legal actions pending against
it.</font>
</div><br/>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">15.  
     <font style="DISPLAY: inline; TEXT-DECORATION: underline">RELATED
PARTY TRANSACTIONS</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
company has a related party transaction involving a
significant shareholder. The nature and details of the
transaction are described in Note 10. The company also has a
related party transaction with its President, the nature,
description and details of the transaction are described in
Note 6.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">IREMCO,
a controlling shareholder, provides the company with office
space on a month-to-month basis at no charge under a verbal
agreement. The office space was vacant and not in use by
IREMCO. This space provides the company with a foreign
location and will be eliminated if IREMCO has a need for the
space.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">These
related party transactions do not present any evidence of
preferential treatment for either shareholder or the
company.</font>
</div><br/>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">16.   
    <font style="DISPLAY: inline; TEXT-DECORATION: underline">INTERNAL
CONTROLS</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">Touchpoint
Metrics, Inc. has well documented processes and procedures.
The internal controls are comparable to a firm of like size
and configuration. The company uses outside third party
services to effect a good segregation of duties and
controls.</font>
</div><br/>
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">17.   
    <font style="DISPLAY: inline; TEXT-DECORATION: underline">RESTATEMENT
OF FINANCIAL STATEMENTS</font></font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
Company accounts for the correction of errors in previously
issued financial statements in accordance with the provisions
of ASC Topic 250, <font style="FONT-STYLE: italic; DISPLAY: inline">Accounting
Changes and Error Corrections</font> (ASC 250)<font style="FONT-STYLE: italic; DISPLAY: inline">.</font> In
accordance with the disclosure provisions of ASC 250, when
financial statements are restated to correct an error, an
entity is required to disclose that its previously issued
financial statements have been restated along with a
description of the nature of the error, the effect of the
correction on each financial statement line item and any per
share amount affected for each prior period presented, and
the cumulative effect on accumulated deficit in the
respective balance sheets, as of the beginning of the
earliest period presented.</font>
</div><br/><div style="TEXT-ALIGN: left; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">As
described in Note 7, a material adjustment related to the
company’s online media asset Petro Portfolio was made
after the financial statements were issued, resulting in an
error correction and restatement of the financial
statements.</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">All
amounts presented as of December 31, 2011 that have been
corrected are labeled “Restated”.  The
specific line-item effect of the restatement on the
company’s previously issued financial statements as of
and for the year ended December 31, 2011 is disclosed in the
following table:</font>
</div><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
of the Year Ended December 31, 2011</font>
</div><br/><table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr style="background-color: #ffffff;">
<td align="left" valign="bottom" width="65%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
Previously</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Effect
of</font>
</div>
</td>
</tr>
<tr style="background-color: #ffffff;">
<td valign="bottom" width="65%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="top" width="1%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Reported</font>
</div>
</td>
<td valign="top" width="2%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Restated</font>
</div>
</td>
<td valign="top" width="2%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Correction</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Investment
in Petro Portfolio</font>
</div>
</td>
<td align="right" valign="top" width="1%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">131,151</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">59,151</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #ffffff;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Total
other assets</font>
</div>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">146,620</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">74,620</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Total assets</font>
</div>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">420,402</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">348,402</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #ffffff;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Retained
earnings</font>
</div>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(352,038)</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(424,038)</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Total
stockholders’ equity</font>
</div>
</td>
<td align="right" valign="top" width="1%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">191,897</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">119,897</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
</table><br/><div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 40pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt">The
cumulative effect of the restatement on accumulated deficit
as of January 1, 2011 was an increase of $72,000.</font>
</div><br/>
72000
<table cellpadding="0" cellspacing="0" width="90%" style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt; FONT-SIZE: 11pt; FONT-FAMILY: times new roman">
<tr style="background-color: #ffffff;">
<td align="left" valign="bottom" width="65%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As
Previously</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">As</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Effect
of</font>
</div>
</td>
</tr>
<tr style="background-color: #ffffff;">
<td valign="bottom" width="65%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="top" width="1%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Reported</font>
</div>
</td>
<td valign="top" width="2%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Restated</font>
</div>
</td>
<td valign="top" width="2%" style="BORDER-BOTTOM: black 0.5pt solid">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td valign="bottom" width="10%" style="BORDER-BOTTOM: black 0.5pt solid">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Correction</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Investment
in Petro Portfolio</font>
</div>
</td>
<td align="right" valign="top" width="1%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">131,151</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">59,151</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #ffffff;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Total
other assets</font>
</div>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">146,620</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">74,620</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Total assets</font>
</div>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">420,402</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">348,402</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #ffffff;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Retained
earnings</font>
</div>
</td>
<td valign="top" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(352,038)</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(424,038)</font>
</div>
</td>
<td valign="top" width="2%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
<tr style="background-color: #BFBFBF;">
<td align="left" valign="bottom" width="65%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 20pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">Total
stockholders’ equity</font>
</div>
</td>
<td align="right" valign="top" width="1%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">191,897</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">119,897</font>
</div>
</td>
<td align="right" valign="top" width="2%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">$</font>
</div>
</td>
<td align="right" valign="bottom" width="10%">
<div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 11pt">(72,000)</font>
</div>
</td>
</tr>
</table>
131151
-72000
146620
74620
-72000
420402
-72000
-352038
-72000
191897
-72000