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1. Significant Accounting Policies and Nature of Operations: Revenue Recognition (Policies)

9 Months Ended

Sep. 30, 2013

Revenue Recognition

Revenue Recognition

We recognize revenue from our tire fuel processing and storage facility in three ways:

Disposal fees (“tipping fees”) for waste tires are fully earned when accepted at the facility

Tire Derived Fuel and other processed tire revenues are fully earned when the product is accepted at the purchaser’s facility.

Sales of unprocessed whole tires are recognized when delivered to the end user

Revenue from sales of our Thermal Gasifier will be recognized upon completion, delivery and customer acceptance, using the completed contract method of accounting. Revenues from other Waste-to-Energy related products or services provided for projects will be recognized when the products are delivered to the end customer, or when services are completed.

During the quarter ended March 31, 2013 the Company began construction of a pilot waste-to-energy project in the northeastern US. The project is being funded entirely by an outside party. The Company is receiving payments in advance of services being performed and finished products being delivered to the project site. As such, these advance payments are being accounted for as deferred revenue in the Company’s financial statements. When products are purchased or services performed, these transactions will be recorded as deferred expenses in the Company’s financial statements. For the quarter ended September 30, 2013, the company recorded $208,000 in deferred revenue and $34,970 in deferred expenses for this project.

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

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