Annual report pursuant to Section 13 and 15(d)

Note Receivable

v2.4.0.6
Note Receivable
 12 Months Ended
Dec. 31, 2011
Note Receivable  
Note Receivable
6. 
Note Receivable

On June 16, 2010, Amarex, LLC ("Amarex") executed a note payable to the Company in settlement of a contract dispute.  The Company settled the case with Amarex for $100,000 less a balance owed of $43,953.  The principal sum of the note was $56,047, and is included in other income in the Company's statement of operations.  Monthly payments of $2,335 began on September 1, 2010 and will continue until August 1, 2012 at which time the balance is expected to be paid in full.  The note does not bear interest. Pursuant to the note, Amarex shall pay a late charge of five percent (5%) of any past due installment payments if any installment payment is not paid within 10 days of its due date.  As of December 31, 2011, all payments were made as scheduled.

As of December 31, 2011, the principal amortization of the note is shown below:
 
   
Expected
  
Principal Amortization
  
Payment
  
Within 1 year
   $ 18,682