PATENTS

3 Months Ended

Mar. 31, 2012

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 patents costs listed below, $79,354 (2011 - $77,844) are not subject to amortization as of March 31, 2012, as the patents are still in the process of being approved.

	March 31, 2012 Cost		Accumulated Amortization		March 31, 2012 Net
Patents	$	265,763	$	56,567	$	209,196
	December 31, 2011 Cost		Accumulated Amortization		December 31, 2011 Net
Patents	$	260,680	$	52,474	$	208,206

Increase in 2012 cost was due to currency conversion. 2012 cost in Canadian dollars - $265,102 (2011 - $265,102 in Canadian dollars).

Amount of depreciation for 2012 - $3,056 (2011 - $2,932)

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

2012	$	12,269
2013		12,269
2014		12,269
2015		12,269
2016		12,269