DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2011

DISCONTINUED OPERATIONS [Text Block]

NOTE 3 – DISCONTINUED OPERATIONS

During fiscal 2009, the Company determined to exit the electronic metering business. On January 5, 2010, the Company sold a substantial portion of its assets related to the electronic metering business. The Company had operated its electronic metering systems business through its subsidiary Flowstar Technologies Inc.

The Company also discontinued operations in its subsidiary Raider Chemical Inc. As a result the Company has left the drilling-related products and services business.

The following table summarizes the operating results of the discontinued operations for the periods September 30, 2011 and 2010 (unaudited):

		Three Months Ended					Nine Months Ended
		September 30,					September 30,
		2011			2010		2011			2010
		(unaudited)			(unaudited)		(unaudited)			(unaudited)
Revenue	$	-		$	444,422	$	-		$	1,218,833
Cost of sales		-			249,621		-			759,798
		-			194,801		-			459,035
Expenses		324			73,631		19,530			243,211
Income (loss) from discontinued operations	$	(324	)	$	121,170	$	(19,530	)	$	215,824

The following table sets forth the assets and liabilities of the discontinued operations.

		September 30,		December 31,
		2011		2010
		(unaudited)
Accounts receivable	$	-	$	11,448
Inventories		-		10,441
Prepaids		7,057		8,268
Total assets of discontinued operations	$	7,057	$	30,157
Accounts payable and accrued liabilities	$	641,172	$	687,675
Current portion of notes payable		54,995		57,441
Total liabilities of discontinued operations	$	696,167	$	745,116