NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

NOTE 7- NOTES RECEIVABLE

Genomics USA, Inc.

In January 2007, the Company advanced $200,000 to GMS through an 8% promissory note due April 8, 2007. The note is currently convertible at the Company’s discretion into 10% of GMS’s outstanding capital stock. The Company continues to explore the possibility of further investment, and has postponed settlement of the note during this exploratory period, during which the note continued to accrue interest. The Company accrued interest of $16,000 per year on this note for the years ended December 31, 2011 and 2010.  At December 31, 2011 and 2010, the Company had interest receivable on this note of 79,689 and $63,689, respectively.