PATENTS

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 6. PATENTS

In fiscal 2005, the Company started the patent process for additional WATER$AVR® products. Patents associated with these costs were granted in 2006 and they have been amortized over their legal life of 17 years.

Of the patent costs listed below, $77,844 (2010 - $79,582) are not subject to amortization as at December 31, 2011, as the patents are still in the process of being approved.

	2011 Cost		Accumulated Amortization		2011 Net
Patents	$	260,680	$	52,474	$	208,206
	2010 Cost		Accumulated Amortization		2010 Net
Patents	$	266,530	$	41,350	$	225,180

Decrease in 2011 cost was due to currency conversion. 2011 cost in Canadian dollars - $265,102 (2010 - $265,102 in Canadian dollars).

Amount of depreciation for 2011: $11,124 (2010: $13,582).

Estimated depreciation expense over the next five years is as follows:

2012	$	12,033
2013		12,033
2014		12,033
2015		12,033
2016		12,033