Annual report pursuant to section 13 and 15(d)

NOTES RECEIVABLE

NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2011

NOTE 6 – NOTES RECEIVABLE

Notes receivable balances at December 31 were:

	2011		2010

Note with processing customer (A)	$	-	$	35,111
Less discount		-		(684	)
		-		34,427

Less current portion		-		34,427
Total long-term notes receivable, less current portion	$	-	$	-

(A) The Company had notes receivable from a long term processing customer for capital costs incurred in making adjustments to the processing unit at their request. The payment term was 5 years with interest imputed at a rate of 8%. Payments of $7,137 were due monthly.