Long Term Debt

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Long Term Debt

 Long Term Debt

(a) The Company has received a non-interest bearing loan from the Department of Agriculture and Agri-Food Canada (“AAFC”). Eligible for up to $1,000,000 Canadian funds, the Company had an outstanding balance of $910,801 in Canadian funds ($910,801 US) as of September 30, 2011, on an unsecured basis. If the full amount is borrowed, the repayment schedule is as follows:

Amount Due (in CDN funds)	Payment Due Date
$200,000		January 1, 2012
$200,000		January 1, 2013
$200,000		January 1, 2014
$200,000		January 1, 2015
$200,000		January 1, 2016

b) The Company has also received a 5% simple interest loan from Agriculture Financial Services Corp. (“AFSC”). Eligible for up to $2,000,000 in Canadian funds, the Company had an outstanding balance of $1,313,410 in Canadian funds ($1,253,015 US) as of September 30, 2011. The Company was required to make interest payments until May 1, 2010 and then effective May 1, 2010 equal monthly payments of principal and interest of $15,829 in Canadian funds ($15,101 US) until May 1, 2014. The Company has pledged its building in Taber, Alberta, as well as equipment, inventory and accounts receivable (see Notes 3 and 5) as collateral.

Continuity:
Balance at December 31, 2009	$	2,285,314
Less: loan repayment		(75,642	)
Effect of exchange rate		119,129
Balance at December 31, 2010	$	2,328,801
Less: loan repayment		(94,143	)
Effect of exchange rate		(112,724	)
Balance at September 30, 2011	$	2,121,934

Outstanding balance at:		2011			2010
a)       Long term debt – AAFC	$	868,919		$	915,719
b)       Long term debt – AFSC		1,253,015			1,413,082
Long term debt	$	2,121,934		$	2,328,801
Less current portion		(330,368	)		(122,726	)
	$	1,791,566		$	2,206,075