0001099910-12-000220.txt : 20120824 0001099910-12-000220.hdr.sgml : 20120824 20120824173057 ACCESSION NUMBER: 0001099910-12-000220 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20120630 FILED AS OF DATE: 20120824 DATE AS OF CHANGE: 20120824 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENVIRO VORAXIAL TECHNOLOGY INC CENTRAL INDEX KEY: 0001043894 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 830266517 STATE OF INCORPORATION: ID FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-30454 FILM NUMBER: 121055339 BUSINESS ADDRESS: STREET 1: 821 NW 57TH PLACE CITY: FORT LAUDERDALE STATE: FL ZIP: 33309 BUSINESS PHONE: 9549589968 MAIL ADDRESS: STREET 1: 821 NW 57TH PLACE CITY: FORT LAUDERDALE STATE: FL ZIP: 33309 10-Q/A 1 evtn_10qa1.htm AMENDMENT NO.1 TO QUARTERLY REPORT evtn_10qa1.htm
U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A
(Amendment No. 1)

(Mark One)

[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

[    ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _____________ to ______________
 
Commission File Number: 0-27445
 
Enviro Voraxial Technology, Inc.
(Exact name of Small Business Issuer as specified in its Charter)
 
IDAHO
82-0266517
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)

 
821 NW 57th Place, Fort Lauderdale, Florida 33309
(Address of principal executive offices)

(954) 958-9968
(Issuer's telephone number)

_________________________________________________________
(Former Name, former address and former fiscal year, if changed since last Report.)

Check mark whether the Issuer (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files). Yes x No ¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ¨                                                                                                Accelerated filer ¨
Non-accelerated filer  ¨ (Do not check if a smaller reporting company)                          Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨   No x
 
APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: August 14, 2012, we had 33,464,497 shares of our Common Stock outstanding.
 
 
 

 
Explanatory Note:
 
The purpose of this Amendment No. 1 to Enviro Voraxial Technology, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 14, 2012 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

Under Rule 405(a)(2)(ii) of Regulation S-T, this Exhibit 101 is permitted to be furnished by amendment within 30 days of the original filing date of the Form 10-Q.

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934.
 
Item 6.   Exhibits

   Exhibits required by Item 601 of Regulation S-K
 
31.1
Form 302 Certification of Chief Executive Officer*
31.2
Form 302 Certification of Principal Financial Officer*
32.1
Form 906 Certification of Chief Executive Officer and Principal Financial Officer*
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document

*  These exhibits were previously included or incorporated by reference in the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 14, 2012

 
 
 

 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned as a duly authorized officer of the Registrant.

Enviro Voraxial Technology, Inc.


By: /s/ John A. Di Bella
     John A. DiBella
  Chief Executive Officer and
  Principal Financial Officer


DATED: August 24, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

EX-101.INS 2 evtn-20120630.xml false --12-31 Q2 2012 2012-06-30 10-Q 0001043894 33464497 Smaller Reporting Company ENVIRO VORAXIAL TECHNOLOGY INC. <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Interim Financial Statements</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The interim financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company&#39;s annual financial statements, notes and accounting policies included in the Company&#39;s annual report on Form 10-K for the year ended December 31, 2011 as filed with the SEC. In the opinion of management, all adjustments which are necessary to provide a fair presentation of financial position as of June 30, 2012 and the related operating results and cash flows for the interim period presented have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year.</div> <!--EndFragment--></div> </div> P3M P12M <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE B - GOING CONCERN</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company has experienced net losses, a working capital deficiency, and has had to raise capital to sustain operations. There is no assurance that the Company&#39;s sales and marketing efforts will be successful enough to achieve a level of revenue sufficient to provide cash inflows to sustain operations; however, the Company has begun commercializing the Voraxial and is experiencing an increase in revenues that is forecast to continue in 2012. The Company will continue to require the infusion of capital until operations become profitable. During the remainder of 2012, the Company anticipates seeking additional capital for growth and the increase in sales of the Voraxial Separator. As a result of the above, there is a substantial doubt about our ability to continue as a going concern and the accompanying condensed unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Recent Accounting Pronouncements</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> In December 2011, FASB issued Accounting Standards Update 2011-11, Balance Sheet - Disclosures about Offsetting Assets and Liabilities" to enhance disclosure requirements relating to the offsetting of assets and liabilities on an entity&#39;s balance sheet. The update requires enhanced disclosures regarding assets and liabilities that are presented net or gross in the statement of financial position when the right of offset exists, or that are subject to an enforceable master netting arrangement. The new disclosure requirements relating to this update are retrospective and effective for annual and interim periods beginning on or after January 1, 2013. The update only requires additional disclosures, as such; we do not expect that the adoption of this standard will have a material impact on our results of operations, cash flows or financial condition.</div> <!--EndFragment--></div> </div> 1 200000 300000 400000 200000 100000 100000 100000 300000 1000000 950000 8050000 475019 P18M P6M 33214497 27201762 33197464 27201762 782156 721246 113521 375463 552506 14708281 14138963 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Advertising Costs</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Advertising costs are expensed as incurred and are included in general and administrative expenses.</div> <!--EndFragment--></div> </div> 400000 12800000 13200000 782653 999351 644601 849975 224190 147198 153315 442812 76992 -289497 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Cash and Cash Equivalents</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate limits.</div> <!--EndFragment--></div> </div> 400000 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE G - COMMITMENTS AND CONTINGENCIES</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-INDENT: 0pt"> On or about November 17, 2011, a claim was filed in the Broward County Circuit Court in Fort Lauderdale, Florida against the company by Raw Energy Tech, LLC. The plaintiff alleges oral contract between the parties for the alleged design, fabrication and construction of a prototype power pack. The amount of damages sought are approximately $58,000. We have moved to dismiss the complaint and intend to vigorously defend this action as we believe this claim is without merit. We have accrued an amount in the financial statements to cover our legal expenses as of June 30, 2012.</div> <!--EndFragment--></div> </div> 0.001 0.001 42750000 42750000 33214497 32864497 33214497 32864497 33115 32865 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE H - MAJOR CUSTOMERS</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> During the six months ended June 30, 2012, we recorded 58% of our revenue from Customer A, 26% from Customer B and 12% of our revenue from Customer C. As of June 30, 2012, 58% of our accounts receivable was due from Customer A and 42% was due from Customer B.</div> <!--EndFragment--></div> </div> 0.58 0.26 0.12 0.58 0.42 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Principles of Consolidation</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The consolidated financial statements include the accounts of the parent company, Enviro Voraxial Technology, Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated.</div> <!--EndFragment--></div> </div> 8865 239123 100472 484970 32000 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE D - NOTES PAYABLE</div> <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="50%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="2%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> As of</div> </td> <td valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> As of</div> </td> </tr> <tr> <td valign="top" width="50%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="2%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: center" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center; TEXT-INDENT: 0pt"> June 30,</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center; TEXT-INDENT: 0pt"> 2012 (Unaudited)</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> December 31,</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 2011</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="PADDING-BOTTOM: 2px" valign="top" width="50%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Notes payable to finance companies, due in monthly</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> installments of $3,695, including principal and interest at</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> prime plus .25% collateralized by certain equipment</div> </td> <td valign="top" width="2%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> $</div> </td> <td style="PADDING-BOTTOM: 2px" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 14,522</div> </td> <td style="PADDING-BOTTOM: 2px" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $ 32,107</div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="50%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="2%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="16%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="14%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> </tr> <tr bgcolor="#cceeff"> <td style="PADDING-BOTTOM: 2px" valign="top" width="50%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Less current portion</div> </td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="2%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 14,522</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 32,107</div> </td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="top" width="50%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Long term debt</div> </td> <td style="BORDER-BOTTOM: black 4px double" valign="top" width="2%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> $</div> </td> <td style="BORDER-BOTTOM: black 4px double" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0</div> </td> <td style="BORDER-BOTTOM: black 4px double" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $ 0</div> </td> </tr> </table> </div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company has recorded interest expense of $3,888 and $4,496 for the three months and six months ended June 30, 2012.</div> <!--EndFragment--></div> </div> 0.0025 3695 0.15 0.18 0.2 47500 266000 11324 11309 -0.01 0.0 -0.03 0.0 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Net Income (Loss) Per Share</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Basic and diluted income (loss) per share has been computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding. The warrants and stock options have been excluded from the calculation since they would be anti-dilutive.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> As of June 30, 2012, such equity instruments may have a dilutive effect in the future and include the following potential common shares:</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%" bgcolor="white"> <tr bgcolor="#cceeff"> <td width="37%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">Warrants</font> </td> <td width="63%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">400,000</font> </td> </tr> <tr bgcolor="white"> <td width="37%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> Stock options</font> </td> <td width="63%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; TEXT-DECORATION: underline"> 12,800,000</td> </tr> <tr bgcolor="#cceeff"> <td width="37%" style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">&nbsp;</td> <td width="63%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; TEXT-DECORATION: underline"> 13,200,000</td> </tr> </table> </div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Fair Value of Instruments</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The carrying amounts of the Company&#39;s financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at June 30, 2012, approximate their fair value because of their relatively short-term nature.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> "Disclosures about Fair Value of Financial Instruments," requires disclosures of information regarding the fair value of certain financial instruments for which it is practicable to estimate the value. For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale of liquidation.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Level 3-inputs are generally unobservable and typically reflect management&#39;s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of June 30, 2012.</div> <!--EndFragment--></div> </div> 262002 237716 488379 511942 77741 460292 310498 938300 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Accounting for the Impairment of Long-Lived Assets</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company has no such assets and, therefore, no impairments of long-lived assets were recorded as of June 30, 2012.</div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Income Taxes</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.</div> <!--EndFragment--></div> </div> 92910 70817 -261942 329864 -20424 261665 3888 1912 4496 3372 4496 3371 306890 327314 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Inventory</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Inventory consists of components for the Voraxial Separator and is priced at lower of cost or market. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of June 30, 2012, there were no such components held by third parties.</div> <!--EndFragment--></div> </div> 828678 753353 782653 999351 828678 753353 58000 -17585 -19458 94577 -270039 -244362 40792 -1080091 29657 -3888 -1912 -4496 -3372 14522 32107 14522 32107 318215 417588 1386093 905271 -240474 42704 -1075595 33029 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; TEXT-INDENT: 0pt"> NOTE A - ORGANIZATION AND OPERATIONS</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Organization</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Enviro Voraxial Technology, Inc. (the "Company") is a provider of environmental and industrial separation technology. The Company has developed, and now manufactures and sells its patented technology, the Voraxial(R) Separator, a technology that efficiently separates liquid/liquid, liquid/solid or liquid/liquid/solid fluid streams with distinct specific gravities. Current and potential commercial applications and markets include oil exploration and production, oil refineries, mining, manufacturing, waste-to-energy and food processing industry.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Florida Precision Aerospace, Inc. (FPA) is the wholly-owned subsidiary of the Company and is used to manufacture, assemble and test the Voraxial Separator.</div> <!--EndFragment--></div> </div> 13695 13695 10000 10000 97948 788068 195896 124357 135681 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Fixed Assets</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets (5-10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal.</div> <!--EndFragment--></div> </div> 10 5 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE E - RELATED PARTY TRANSACTIONS</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> For the three and six months ended June 30, 2012, the Company incurred salary expenses from the Chief Executive Officer of the Company of $76,250 and $152,500, respectively. Of these amounts, $10,000 has been paid for the three months and six months ended June 30, 2012. The total unpaid balance as of June 30, 2012 is $552,506 and is included in accounts payable and accrued expenses.</div> <!--EndFragment--></div> </div> 17585 19458 56213 81924 109646 197433 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Research and Development Expenses</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Research and development costs, which includes travel expenses, consulting fees, subcontractors and salaries are expensed as incurred.</div> <!--EndFragment--></div> </div> -14739921 -13659830 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Revenue Recognition</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company derives its revenue from the sale and short-term rental of the Voraxial Separator. The Company presents revenue in accordance with FASB new codification of "Revenue Recognition in Financial Statements". Under Revenue Recognition in Financial Statements, revenue is realized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Revenues that are generated from sales of equipment are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. There were no agreements with such provisions as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company recognizes revenue from the short term rental of equipment, ratably over the life of the agreement, which is usually three to twelve months.</div> <!--EndFragment--></div> </div> 76250 152500 86606 699415 410970 1423270 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%" bgcolor="white"> <tr bgcolor="#cceeff"> <td width="37%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">Warrants</font> </td> <td width="63%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">400,000</font> </td> </tr> <tr bgcolor="white"> <td width="37%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> Stock options</font> </td> <td width="63%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; TEXT-DECORATION: underline"> 12,800,000</td> </tr> <tr bgcolor="#cceeff"> <td width="37%" style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">&nbsp;</td> <td width="63%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; TEXT-DECORATION: underline"> 13,200,000</td> </tr> </table> </div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="50%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="2%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> As of</div> </td> <td valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> As of</div> </td> </tr> <tr> <td valign="top" width="50%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="2%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: center" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center; TEXT-INDENT: 0pt"> June 30,</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center; TEXT-INDENT: 0pt"> 2012 (Unaudited)</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> December 31,</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 2011</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="PADDING-BOTTOM: 2px" valign="top" width="50%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Notes payable to finance companies, due in monthly</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> installments of $3,695, including principal and interest at</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> prime plus .25% collateralized by certain equipment</div> </td> <td valign="top" width="2%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> $</div> </td> <td style="PADDING-BOTTOM: 2px" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 14,522</div> </td> <td style="PADDING-BOTTOM: 2px" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $ 32,107</div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="50%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="2%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="16%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> <td valign="top" width="14%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> &nbsp;</td> </tr> <tr bgcolor="#cceeff"> <td style="PADDING-BOTTOM: 2px" valign="top" width="50%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Less current portion</div> </td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="2%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 14,522</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 32,107</div> </td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="top" width="50%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Long term debt</div> </td> <td style="BORDER-BOTTOM: black 4px double" valign="top" width="2%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> $</div> </td> <td style="BORDER-BOTTOM: black 4px double" valign="top" width="16%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0</div> </td> <td style="BORDER-BOTTOM: black 4px double" valign="top" width="14%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $ 0</div> </td> </tr> </table> </div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Outstanding</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Range of</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercisable</div> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="12%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="15%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="19%">&nbsp;</td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, December 31, 2011</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 400,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.60</div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: center" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center; TEXT-INDENT: 0pt"> 400,000</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Issued</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Expired</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Forfeited</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 400,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.60</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 400,000</div> </td> </tr> </table> </div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Outstanding at</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Weighted</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Average</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Remaining</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Contractual</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Life</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Weighted</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Average</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -5.4pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -5.4pt; text-align: center; TEXT-INDENT: 0pt"> Exercisable at</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -5.4pt; text-align: center; TEXT-INDENT: 0pt"> June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Weighted</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Average</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise Price</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.15</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 5,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 6.63</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.15</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 5,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.15</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.18</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 6,050,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 4.73</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.18</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 6,050,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.18</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.20</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 4.78</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.20</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.20</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Total</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> </table> </div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Outstanding</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Range of</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercisable</div> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="12%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="15%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="19%">&nbsp;</td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, December 31, 2011</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,850,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,850,000</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Issued</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.20</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Expired</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> (1,000,000)</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $(0.40)</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> (1,000,000)</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Forfeited</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.17</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> </tr> </table> </div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Expected volatility 115.31%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Expected lives 3.5 -5 Years</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Risk-free interest rate 0.4%-0.89%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Expected dividend yield None</div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Expected volatility 115.31%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Expected lives 5 Years</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Risk-free interest rate 0.86%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Expected dividend yield None</div> <!--EndFragment--></div> </div> 0 0 788068 209707 1400000 0.38 0 0 5 1 5 3.5 1.1531 1.1531 0.55 0.0086 0.05 0.0089 0.004 400000 400000 12800000 12850000 1000000 0.4 950000 950000 0.2 400000 400000 400000 12800000 12850000 0.6 0.6 0.6 0.17 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Stock-Based Compensation</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company adopted ASC Topic 718 formerly Statement of Financial Account Standard (SFAS) No. 123(R) effective January 1, 2006. This statement requires compensation expense relating to share-based payments to be recognized in net income using a fair-value measurement method. Under the fair value method, the estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. The company elected the modified prospective method as prescribed in ASC Topic 718 formerly SFAS No. 123 (R) and therefore, prior periods were not restated. Under the modified prospective method, this statement was applied to new awards granted after the time of adoption, as well as to the unvested portion of previously granted equity-based awards for which the requisite service has not been rendered as of January 1, 2006.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Prior to January 1, 2006, the Company accounted for stock-based employee compensation under Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations. The Company has adopted the disclosure-only provisions of ASC Topic 718 formerly SFAS No. 123, "Accounting for Stock-Based Compensation," and SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure," which was released in December 2002 as an amendment of ASC Topic 718 Formerly SFAS No. 123. The Company currently accounts for stock-based compensation under the fair value method using the Black-Scholes option pricing model as indicated in Note F.</div> <!--EndFragment--></div> </div> 0.15 0.18 0.2 5800000 6050000 950000 12800000 5800000 6050000 950000 12800000 0.15 0.18 0.2 6.63 4.73 4.78 0 10000 25000 100000 250000 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Interim Financial Statements</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The interim financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company&#39;s annual financial statements, notes and accounting policies included in the Company&#39;s annual report on Form 10-K for the year ended December 31, 2011 as filed with the SEC. In the opinion of management, all adjustments which are necessary to provide a fair presentation of financial position as of June 30, 2012 and the related operating results and cash flows for the interim period presented have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Principles of Consolidation</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The consolidated financial statements include the accounts of the parent company, Enviro Voraxial Technology, Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Estimates</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ. Significant estimates include allowance for doubtful accounts, allowance for inventory obsolescence and valuation of stock-based compensation.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Revenue Recognition</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company derives its revenue from the sale and short-term rental of the Voraxial Separator. The Company presents revenue in accordance with FASB new codification of "Revenue Recognition in Financial Statements". Under Revenue Recognition in Financial Statements, revenue is realized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Revenues that are generated from sales of equipment are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. There were no agreements with such provisions as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company recognizes revenue from the short term rental of equipment, ratably over the life of the agreement, which is usually three to twelve months.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Fair Value of Instruments</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The carrying amounts of the Company&#39;s financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at June 30, 2012, approximate their fair value because of their relatively short-term nature.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> "Disclosures about Fair Value of Financial Instruments," requires disclosures of information regarding the fair value of certain financial instruments for which it is practicable to estimate the value. For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale of liquidation.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Level 3-inputs are generally unobservable and typically reflect management&#39;s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Cash and Cash Equivalents</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate limits.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Inventory</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Inventory consists of components for the Voraxial Separator and is priced at lower of cost or market. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of June 30, 2012, there were no such components held by third parties.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Fixed Assets</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets (5-10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Net Income (Loss) Per Share</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Basic and diluted income (loss) per share has been computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding. The warrants and stock options have been excluded from the calculation since they would be anti-dilutive.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> As of June 30, 2012, such equity instruments may have a dilutive effect in the future and include the following potential common shares:</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%" bgcolor="white"> <tr bgcolor="#cceeff"> <td width="37%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">Warrants</font> </td> <td width="63%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">400,000</font> </td> </tr> <tr bgcolor="white"> <td width="37%"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt"> Stock options</font> </td> <td width="63%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; TEXT-DECORATION: underline"> 12,800,000</td> </tr> <tr bgcolor="#cceeff"> <td width="37%" style="FONT-FAMILY: times new roman; FONT-SIZE: 12pt">&nbsp;</td> <td width="63%" style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; TEXT-DECORATION: underline"> 13,200,000</td> </tr> </table> </div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Income Taxes</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Research and Development Expenses</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Research and development costs, which includes travel expenses, consulting fees, subcontractors and salaries are expensed as incurred.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Advertising Costs</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Advertising costs are expensed as incurred and are included in general and administrative expenses.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Stock-Based Compensation</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company adopted ASC Topic 718 formerly Statement of Financial Account Standard (SFAS) No. 123(R) effective January 1, 2006. This statement requires compensation expense relating to share-based payments to be recognized in net income using a fair-value measurement method. Under the fair value method, the estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. The company elected the modified prospective method as prescribed in ASC Topic 718 formerly SFAS No. 123 (R) and therefore, prior periods were not restated. Under the modified prospective method, this statement was applied to new awards granted after the time of adoption, as well as to the unvested portion of previously granted equity-based awards for which the requisite service has not been rendered as of January 1, 2006.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Prior to January 1, 2006, the Company accounted for stock-based employee compensation under Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations. The Company has adopted the disclosure-only provisions of ASC Topic 718 formerly SFAS No. 123, "Accounting for Stock-Based Compensation," and SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure," which was released in December 2002 as an amendment of ASC Topic 718 Formerly SFAS No. 123. The Company currently accounts for stock-based compensation under the fair value method using the Black-Scholes option pricing model as indicated in Note F.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Accounting for the Impairment of Long-Lived Assets</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company has no such assets and, therefore, no impairments of long-lived assets were recorded as of June 30, 2012.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Recent Accounting Pronouncements</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> In December 2011, FASB issued Accounting Standards Update 2011-11, Balance Sheet - Disclosures about Offsetting Assets and Liabilities" to enhance disclosure requirements relating to the offsetting of assets and liabilities on an entity&#39;s balance sheet. The update requires enhanced disclosures regarding assets and liabilities that are presented net or gross in the statement of financial position when the right of offset exists, or that are subject to an enforceable master netting arrangement. The new disclosure requirements relating to this update are retrospective and effective for annual and interim periods beginning on or after January 1, 2013. The update only requires additional disclosures, as such; we do not expect that the adoption of this standard will have a material impact on our results of operations, cash flows or financial condition.</div> <!--EndFragment--></div> </div> 69549 -46025 245998 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE F - CAPITAL TRANSACTIONS</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Common stock</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> On January 1, 2012, the Company issued an aggregate of 100,000 shares of common stock to a consultant in consideration of services to be provided for 18 months with a fair value of $10,000. The expense will be amortized over the life of the agreement. The securities were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act. The securities may not be transferred absent registration or applicable exemption.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> On January 1, 2012, the Company issued 250,000 shares of common stock to a consultant in consideration for consulting services with a fair value of $25,000. The expense will be amortized over six month life of the agreement. The shares of common stock were issued under the exemption from registration provided by Section 4(2) of the Securities Act. The shares issued contain a legend restricting their transferability absent registration or applicable exemption.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Effective April 30, 2010, the Company issued restricted stock grants to acquire an aggregate of 1,400,000 shares of restricted common stock to John DiBella. The shares subject to the grant are subject to forfeiture as follows: 200,000 shares on April 30, 2012, 300,000 shares on April 30, 2013, 400,000 shares on April 30, 2014 and 200,000 shares on April 30, 2015, in the event John DiBella is no longer a full time employee on such dates. The remaining 300,000 stock grants are subject to forfeiture as follows: 100,000 shares on April 30, 2012, 100,000 shares on April 30, 2013, 100,000 shares on April 30, 2014. The stock grants were valued at $.38 per share and are amortized over the term of the stock grant. The securities were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act. The securities may not be transferred absent registration or applicable exemption. On January 1, 2012, the Company vested 100% of the remaining unvested shares to John DiBella.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Warrants</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> In September 2011 the Company issued 400,000 warrants to investors to purchase an aggregate of 400,000 shares of common stock for a period of one year. The warrants expire in September 2012. The purchase price of these warrants is $0.60 per share. The Company calculated the fair value of the extended warrants by using the Black-Scholes option-pricing model with the following weighted average assumptions: no dividend yield for all the years; expected volatility of 55%; risk-free interest rate of 5% and an expected life of one year.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Information with respect to warrants outstanding and exercisable at June 30, 2012 is as follows:</div> <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Outstanding</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Range of</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercisable</div> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="12%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="15%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="19%">&nbsp;</td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, December 31, 2011</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 400,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.60</div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: center" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center; TEXT-INDENT: 0pt"> 400,000</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Issued</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Expired</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Forfeited</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 400,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.60</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 400,000</div> </td> </tr> </table> </div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Stock Options</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Company follows the provisions of ASC Topic 718, "Compensation - Stock Compensation." ASC Topic 718 establishes standards surrounding the accounting for transactions in which an entity exchanges its equity instruments for goods or services. ASC Topic 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> On January 10, 2012, the Company granted 950,000 stock options with a total fair value of $69,549 to an employee and a consultant. The shares vested immediately and were valued using the Black-Scholes option pricing model. We used the following assumptions for options granted during the six months ended June 30, 2012:</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Expected volatility 115.31%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Expected lives 5 Years</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Risk-free interest rate 0.86%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 126pt"> Expected dividend yield None</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> In January 2012, the Company modified the terms of 8,050,000 previously issued stock options to officers and employees. Per ASC Topic 718, this exchange of stock options was treated as a modification. The incremental value of $475,019, measured as the excess of the fair value of the modified award over the fair value of the original award immediately before the modification, and using the Black-Scholes option pricing model, was expensed immediately as all the options vested on the date of the exchange. We used the following assumptions for options for the six months ended June 30, 2012:</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Expected volatility 115.31%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Expected lives 3.5 -5 Years</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Risk-free interest rate 0.4%-0.89%</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 126pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Expected dividend yield None</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company&#39;s stock options and warrants have characteristics different from those of its traded stock, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management&#39;s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of such stock options. The risk free interest rate is based upon quoted market yields for United States Treasury debt securities with a term similar to the expected term. The expected dividend yield is based upon the Company&#39;s history of having never issued a dividend and management&#39;s current expectation of future action surrounding dividends. Expected volatility was based on historical data for the trading of our stock on the open market. The expected lives for such grants were based on the simplified method for employees and officers.</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> Information with respect to options outstanding and exercisable at June 30, 2012 is as follows:</div> <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Outstanding</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Range of</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercisable</div> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="31%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="12%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="15%">&nbsp;</td> <td style="BORDER-BOTTOM: black 2px solid; DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 12pt" valign="top" width="19%">&nbsp;</td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, December 31, 2011</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,850,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,850,000</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Issued</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.20</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Expired</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> (1,000,000)</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $(0.40)</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> (1,000,000)</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Forfeited</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="31%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Balance, June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="15%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> $0.17</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="19%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> </tr> </table> </div> The following table summarizes information about the stock options outstanding at June 30, 2012: <div> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Outstanding at</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Weighted</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Average</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Remaining</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Contractual</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Life</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Weighted</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Average</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Price</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -5.4pt; text-align: center; TEXT-INDENT: 0pt"> Number</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -5.4pt; text-align: center; TEXT-INDENT: 0pt"> Exercisable at</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -5.4pt; text-align: center; TEXT-INDENT: 0pt"> June 30, 2012</div> </td> <td style="BORDER-BOTTOM: black 2px solid; BORDER-TOP: black 0.75pt solid" valign="bottom" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Weighted</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Average</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Exercise Price</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.15</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 5,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 6.63</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.15</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 5,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.15</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.18</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 6,050,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 4.73</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.18</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 6,050,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.18</div> </td> </tr> <tr bgcolor="#cceeff"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.20</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 4.78</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.20</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 950,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 0.20</div> </td> </tr> <tr bgcolor="white"> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> Total</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="12%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> 12,800,000</div> </td> <td style="BORDER-BOTTOM: black 2px solid" valign="top" width="13%"> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: center; TEXT-INDENT: 0pt"> -</div> </td> </tr> </table> </div> <!--EndFragment--></div> </div> 1739000 250000 45000 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> NOTE I - SUBSEQUENT EVENTS</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> On July 1, 2012, the Company entered into a six month agreement with a consultant. As compensation for services is provided, the Company will issue 250,000 shares of common stock, with a fair value of $45,000.</div> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: left; TEXT-DECORATION: underline; TEXT-INDENT: 0pt"> Estimates</div> <div style="DISPLAY: block; FONT-FAMILY: times new roman; FONT-SIZE: 12pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; text-align: justify; TEXT-INDENT: 0pt"> The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ. Significant estimates include allowance for doubtful accounts, allowance for inventory obsolescence and valuation of stock-based compensation.</div> <!--EndFragment--></div> </div> xbrli:shares xbrli:pure ISO4217:USD ISO4217:USD xbrli:shares 0001043894 us-gaap:NewContractMember 2012-07-01 2012-07-31 0001043894 us-gaap:ChiefExecutiveOfficerMember 2012-04-01 2012-06-30 0001043894 2012-04-01 2012-06-30 0001043894 us-gaap:StockOptionsMember 2012-01-09 2012-01-10 0001043894 evtn:EmployeeAndConsultantGrantsMember 2012-01-01 2012-06-30 0001043894 evtn:ExercisePriceThreeMember 2012-01-01 2012-06-30 0001043894 evtn:ExercisePriceTwoMember 2012-01-01 2012-06-30 0001043894 evtn:ExercisePriceOneMember 2012-01-01 2012-06-30 0001043894 us-gaap:MinimumMember 2012-01-01 2012-06-30 0001043894 us-gaap:MaximumMember 2012-01-01 2012-06-30 0001043894 us-gaap:ChiefExecutiveOfficerMember 2012-01-01 2012-06-30 0001043894 us-gaap:WarrantsMember 2012-01-01 2012-06-30 0001043894 us-gaap:WarrantsMember 2012-01-01 2012-06-30 0001043894 us-gaap:StockOptionsMember 2012-01-01 2012-06-30 0001043894 us-gaap:StockOptionsMember 2012-01-01 2012-06-30 0001043894 2012-01-01 2012-06-30 0001043894 us-gaap:StockOptionsMember 2012-01-01 2012-01-31 0001043894 evtn:ConsultantTwoMember 2011-12-30 2012-01-02 0001043894 evtn:ConsultantOneMember 2011-12-30 2012-01-02 0001043894 2011-11-16 2011-11-17 0001043894 us-gaap:WarrantsMember 2011-09-01 2011-09-30 0001043894 2011-04-01 2011-06-30 0001043894 2011-01-01 2011-06-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember evtn:SecondForfeitureAprilThirtyTwoThousandFourteenMember 2010-04-29 2010-04-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember evtn:SecondForfeitureAprilThirtyTwoThousandThirteenMember 2010-04-29 2010-04-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember evtn:SecondForfeitureAprilThirtyTwoThousandTwelveMember 2010-04-29 2010-04-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember evtn:FirstForfeitureAprilThirtyTwoThousandFifteenMember 2010-04-29 2010-04-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember evtn:FirstForfeitureAprilThirtyTwoThousandFourteenMember 2010-04-29 2010-04-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember evtn:FirstForfeitureAprilThirtyTwoThousandThirteenMember 2010-04-29 2010-04-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember evtn:FirstForfeitureAprilThirtyTwoThousandTwelveMember 2010-04-29 2010-04-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember 2010-04-29 2010-04-30 0001043894 2012-08-14 0001043894 evtn:ExercisePriceThreeMember 2012-06-30 0001043894 evtn:ExercisePriceTwoMember 2012-06-30 0001043894 evtn:ExercisePriceOneMember 2012-06-30 0001043894 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember evtn:MajorCustomerBMember 2012-06-30 0001043894 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember evtn:MajorCustomerAMember 2012-06-30 0001043894 us-gaap:ChiefExecutiveOfficerMember 2012-06-30 0001043894 us-gaap:WarrantsMember 2012-06-30 0001043894 us-gaap:StockOptionsMember 2012-06-30 0001043894 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember evtn:MajorCustomerCMember 2012-06-30 0001043894 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember evtn:MajorCustomerBMember 2012-06-30 0001043894 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember evtn:MajorCustomerAMember 2012-06-30 0001043894 2012-06-30 0001043894 us-gaap:RestrictedStockUnitsRSUMember 2012-01-02 0001043894 us-gaap:WarrantsMember 2011-12-31 0001043894 us-gaap:StockOptionsMember 2011-12-31 0001043894 2011-12-31 0001043894 us-gaap:WarrantsMember 2011-09-30 0001043894 2011-06-30 0001043894 2010-12-31 EX-101.SCH 3 evtn-20120630.xsd 0011 - 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Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Forfeitures In Period Forfeited The number of shares under exercisable options that were cancelled during the reporting period as a result of occurrence of a terminating event specified in contractual agreements pertaining to the stock option plan. Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Grants In Period Gross Issued Gross number of share options (or share units) granted during the period for exercisable options. Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number Balance, December 31, 2011 Balance, June 30, 2012 Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period Expired Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price Expired Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period Forfeited Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price Forfeited Issued Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price Issued Balance, December 31, 2011 Balance, June 30, 2012 Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] Number Outstanding Balance, December 31, 2011 Balance, June 30, 2012 Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] Number Exercisable EX-101.PRE 7 evtn-20120630_pre.xml ZIP 8 0001099910-12-000220-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001099910-12-000220-xbrl.zip M4$L#!!0````(`.B+&$&<>1J= MY"3G&(P>O#PSV<6`';(V>`TS2>ZWMM1`)T+BZF',_O6WJEL""03(-K+QQ)NS M"5:_ZE=5W57]JO[TSX>I1>Z9ZW''_EQ02N4"8;;AF-P>?RY\&12;@U:W6R"> M3VV36H[-/A=LI_#/G_[^MT__4RS>:+^=WUX1QR9W;$*M$7%&I-.^;-Z2@6,% M/M3ID8GOS\Y.3^?S>6FF/=RY5LEPIL5B6$/8--%+T#99?IZYCAD8S,2JU;*B M%LOUHEHF_R+*F5XA-]0LZR=8O(=]5B4'5/YCOS<1MX8J_P3?VHE\L\UD5MI-!JG(G69=8.4 M1%9,C;*:;$6#:-]C1FGLW)]"`B)4BF6EJ"E1]L`KCBF=+8N,J' MLA$1C#C#&C\7/#Z=6$FY\+B2\E1:G5JZ7RZI\",1S;9P_^+58^U"(UM%(;B M/XVHY;%/IQN-KVAJ!:Z+'[EG4.MW1MV.;;:ISP1YVQ)SH+18A'1-D;1N:W=% M=MLQ@NDRRPW(UC$OX)LGZ-Z:F@/A_U$ES5O;W$8TXMI&\C(M!X(Q/8WD99N; M!$LT<)#G1[B;!0^BA"3KQ0P[D*>7B?Y*$84,K>CJVS_U%"[Z[ MU.K:)GOX-UL(PE)3J.6@+:#J'6<%]QB;@LT:.RX<;$DON<@E`$@@!;(+9LYKH],!:IGU%[$ M@22(6*?\EHVY!R*T_1Z=LACIR80<:._TOG9O^^1K_[;Y6[=Y18:=UL^]_E7_ M\G?2[;5*<01)6B0$M)!GY]3C7G_4-`PGL!'_C6-Q8R'_/03BSBT0GT"5+6L. 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CAPITAL TRANSACTIONS (Schedule of Fair Value of Options Using Black-Scholes Model) (Details
6 Months Ended
Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected volatility 115.31%
Expected lives, years, minimum 3.5
Expected lives, years, maximum 5
Risk-free interest rate, minimum 0.40%
Risk-free interest rate, maximum 0.89%
Expected dividend yield 0.00%
Employee And Consultant Grants [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected volatility 115.31%
Expected lives, years 5
Risk-free interest rate 0.86%
Expected dividend yield 0.00%
XML 11 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTES PAYABLE
6 Months Ended
Jun. 30, 2012
NOTES PAYABLE [Abstract]  
NOTES PAYABLE
NOTE D - NOTES PAYABLE
   
As of
As of
   
June 30,
2012 (Unaudited)
December 31,
2011
Notes payable to finance companies, due in monthly
installments of $3,695, including principal and interest at
prime plus .25% collateralized by certain equipment
$
14,522
$ 32,107
       
Less current portion
 
14,522
32,107
Long term debt
$
0
$ 0
The Company has recorded interest expense of $3,888 and $4,496 for the three months and six months ended June 30, 2012.
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MAJOR CUSTOMERS (Details) (Customer Concentration Risk [Member])
Jun. 30, 2012
Customer A [Member] | Sales Revenue, Goods, Net [Member]
 
Concentration Risk [Line Items]  
Concentration risk percentage 58.00%
Customer A [Member] | Accounts Receivable [Member]
 
Concentration Risk [Line Items]  
Concentration risk percentage 58.00%
Customer B [Member] | Sales Revenue, Goods, Net [Member]
 
Concentration Risk [Line Items]  
Concentration risk percentage 26.00%
Customer B [Member] | Accounts Receivable [Member]
 
Concentration Risk [Line Items]  
Concentration risk percentage 42.00%
Customer C [Member] | Sales Revenue, Goods, Net [Member]
 
Concentration Risk [Line Items]  
Concentration risk percentage 12.00%
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COMMITMENTS AND CONTINGENCIES (Details) (USD $)
0 Months Ended
Nov. 17, 2011
COMMITMENTS AND CONTINGENCIES [Abstract]  
Damages sought $ 58,000
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SUBSEQUENT EVENTS (Details) (Agreement [Member], USD $)
1 Months Ended
Jul. 31, 2012
Agreement [Member]
 
Subsequent Event [Line Items]  
Shares issued, shares 250,000
Shares issued, value $ 45,000
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2012
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interim Financial Statements
The interim financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company's annual financial statements, notes and accounting policies included in the Company's annual report on Form 10-K for the year ended December 31, 2011 as filed with the SEC. In the opinion of management, all adjustments which are necessary to provide a fair presentation of financial position as of June 30, 2012 and the related operating results and cash flows for the interim period presented have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year.
Principles of Consolidation
The consolidated financial statements include the accounts of the parent company, Enviro Voraxial Technology, Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated.
Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ. Significant estimates include allowance for doubtful accounts, allowance for inventory obsolescence and valuation of stock-based compensation.
Revenue Recognition
The Company derives its revenue from the sale and short-term rental of the Voraxial Separator. The Company presents revenue in accordance with FASB new codification of "Revenue Recognition in Financial Statements". Under Revenue Recognition in Financial Statements, revenue is realized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured.
Revenues that are generated from sales of equipment are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. There were no agreements with such provisions as of June 30, 2012.
The Company recognizes revenue from the short term rental of equipment, ratably over the life of the agreement, which is usually three to twelve months.
Fair Value of Instruments
The carrying amounts of the Company's financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at June 30, 2012, approximate their fair value because of their relatively short-term nature.
"Disclosures about Fair Value of Financial Instruments," requires disclosures of information regarding the fair value of certain financial instruments for which it is practicable to estimate the value. For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale of liquidation.
The company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:
Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of June 30, 2012.
Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of June 30, 2012.
Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of June 30, 2012.
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate limits.
Inventory
Inventory consists of components for the Voraxial Separator and is priced at lower of cost or market. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of June 30, 2012, there were no such components held by third parties.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets (5-10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal.
Net Income (Loss) Per Share
Basic and diluted income (loss) per share has been computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding. The warrants and stock options have been excluded from the calculation since they would be anti-dilutive.
As of June 30, 2012, such equity instruments may have a dilutive effect in the future and include the following potential common shares:
Warrants 400,000
Stock options 12,800,000
  13,200,000
Income Taxes
Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Research and Development Expenses
Research and development costs, which includes travel expenses, consulting fees, subcontractors and salaries are expensed as incurred.
Advertising Costs
Advertising costs are expensed as incurred and are included in general and administrative expenses.
Stock-Based Compensation
The Company adopted ASC Topic 718 formerly Statement of Financial Account Standard (SFAS) No. 123(R) effective January 1, 2006. This statement requires compensation expense relating to share-based payments to be recognized in net income using a fair-value measurement method. Under the fair value method, the estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. The company elected the modified prospective method as prescribed in ASC Topic 718 formerly SFAS No. 123 (R) and therefore, prior periods were not restated. Under the modified prospective method, this statement was applied to new awards granted after the time of adoption, as well as to the unvested portion of previously granted equity-based awards for which the requisite service has not been rendered as of January 1, 2006.
Prior to January 1, 2006, the Company accounted for stock-based employee compensation under Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations. The Company has adopted the disclosure-only provisions of ASC Topic 718 formerly SFAS No. 123, "Accounting for Stock-Based Compensation," and SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure," which was released in December 2002 as an amendment of ASC Topic 718 Formerly SFAS No. 123. The Company currently accounts for stock-based compensation under the fair value method using the Black-Scholes option pricing model as indicated in Note F.
Accounting for the Impairment of Long-Lived Assets
The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company has no such assets and, therefore, no impairments of long-lived assets were recorded as of June 30, 2012.
Recent Accounting Pronouncements
In December 2011, FASB issued Accounting Standards Update 2011-11, Balance Sheet - Disclosures about Offsetting Assets and Liabilities" to enhance disclosure requirements relating to the offsetting of assets and liabilities on an entity's balance sheet. The update requires enhanced disclosures regarding assets and liabilities that are presented net or gross in the statement of financial position when the right of offset exists, or that are subject to an enforceable master netting arrangement. The new disclosure requirements relating to this update are retrospective and effective for annual and interim periods beginning on or after January 1, 2013. The update only requires additional disclosures, as such; we do not expect that the adoption of this standard will have a material impact on our results of operations, cash flows or financial condition.
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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 30, 2012
Dec. 31, 2011
CURRENT ASSETS:    
Cash and cash equivalents $ 224,190 $ 147,198
Accounts receivable, net 113,521 375,463
Inventory, net 306,890 327,314
Total current assets 644,601 849,975
FIXED ASSETS, NET 124,357 135,681
OTHER ASSETS 13,695 13,695
Total assets 782,653 999,351
CURRENT LIABILITIES:    
Accounts payable and accrued expenses 782,156 721,246
Customer deposits 32,000   
Current portion of note payable 14,522 32,107
Total current liabilities 828,678 753,353
Total liabilities 828,678 753,353
COMMITMENTS AND CONTINGENCIES (See Note G)      
SHAREHOLDERS' (DEFICIENCY) EQUITY:    
Common stock, $.001 par value, 42,750,000 shares authorized; 33,214,497 and 32,864,497 shares issued and outstanding as of June 30, 2012 and December 31, 2011 33,115 32,865
Additional paid-in capital 14,708,281 14,138,963
Deferred compensation (47,500) (266,000)
Accumulated deficit (14,739,921) (13,659,830)
Total shareholders' (deficiency) equity (46,025) 245,998
Total liabilities and shareholders' (deficiency) equity $ 782,653 $ 999,351
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ORGANIZATION AND OPERATIONS
6 Months Ended
Jun. 30, 2012
ORGANIZATION AND OPERATIONS [Abstract]  
ORGANIZATION AND OPERATIONS
NOTE A - ORGANIZATION AND OPERATIONS
Organization
Enviro Voraxial Technology, Inc. (the "Company") is a provider of environmental and industrial separation technology. The Company has developed, and now manufactures and sells its patented technology, the Voraxial(R) Separator, a technology that efficiently separates liquid/liquid, liquid/solid or liquid/liquid/solid fluid streams with distinct specific gravities. Current and potential commercial applications and markets include oil exploration and production, oil refineries, mining, manufacturing, waste-to-energy and food processing industry.
Florida Precision Aerospace, Inc. (FPA) is the wholly-owned subsidiary of the Company and is used to manufacture, assemble and test the Voraxial Separator.
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RELATED PARTY TRANSACTIONS (Details) (Chief Executive Officer [Member], USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Chief Executive Officer [Member]
   
Related Party Transaction [Line Items]    
Salary expenses incurred $ 76,250 $ 152,500
Salaries paid 10,000 10,000
Accrued salaries $ 552,506 $ 552,506
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CAPITAL TRANSACTIONS (Schedule of Warrants Outstanding and Exercisable) (Details) (Warrants [Member], USD $)
6 Months Ended
Jun. 30, 2012
Sep. 30, 2011
Warrants [Member]
   
Number Outstanding    
Balance, December 31, 2011 400,000 400,000
Issued     
Expired     
Forfeited     
Balance, June 30, 2012 400,000 400,000
Range of Exercise Price    
Balance, December 31, 2011 $ 0.6 $ 0.6
Issued     
Expired     
Forfeited     
Balance, June 30, 2012 $ 0.6 $ 0.6
Number Exercisable    
Balance, December 31, 2011 400,000  
Issued     
Expired     
Forfeited     
Balance, June 30, 2012 400,000  
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GOING CONCERN
6 Months Ended
Jun. 30, 2012
GOING CONCERN [Abstract]  
GOING CONCERN
NOTE B - GOING CONCERN
The Company has experienced net losses, a working capital deficiency, and has had to raise capital to sustain operations. There is no assurance that the Company's sales and marketing efforts will be successful enough to achieve a level of revenue sufficient to provide cash inflows to sustain operations; however, the Company has begun commercializing the Voraxial and is experiencing an increase in revenues that is forecast to continue in 2012. The Company will continue to require the infusion of capital until operations become profitable. During the remainder of 2012, the Company anticipates seeking additional capital for growth and the increase in sales of the Voraxial Separator. As a result of the above, there is a substantial doubt about our ability to continue as a going concern and the accompanying condensed unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
XML 23 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (USD $)
Jun. 30, 2012
Dec. 31, 2011
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]    
Common stock, par value per share $ 0.001 $ 0.001
Common stock, shares authorized 42,750,000 42,750,000
Common stock, shares issued 33,214,497 32,864,497
Common stock, shares outstanding 33,214,497 32,864,497
XML 24 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTES PAYABLE (Tables)
6 Months Ended
Jun. 30, 2012
NOTES PAYABLE [Abstract]  
Schedule of Notes Payable
   
As of
As of
   
June 30,
2012 (Unaudited)
December 31,
2011
Notes payable to finance companies, due in monthly
installments of $3,695, including principal and interest at
prime plus .25% collateralized by certain equipment
$
14,522
$ 32,107
       
Less current portion
 
14,522
32,107
Long term debt
$
0
$ 0
XML 25 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Aug. 14, 2012
Document And Entity Information Abstract    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2012  
Entity Registrant Name ENVIRO VORAXIAL TECHNOLOGY INC.  
Entity Central Index Key 0001043894  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2012  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   33,464,497
XML 26 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
CAPITAL TRANSACTIONS (Tables)
6 Months Ended
Jun. 30, 2012
CAPITAL TRANSACTIONS [Abstract]  
Schedule of Warrants Outstanding and Exercisable
 
Number
Outstanding
Range of
Exercise Price
Number
Exercisable
       
Balance, December 31, 2011
400,000
$0.60
400,000
Issued
-
-
-
Expired
-
-
-
Forfeited
-
-
-
Balance, June 30, 2012
400,000
$0.60
400,000
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Fair Value of Options Using Black-Scholes Model
Expected volatility 115.31%
Expected lives 3.5 -5 Years
Risk-free interest rate 0.4%-0.89%
Expected dividend yield None
Schedule of Stock Options Outstanding and Exercisable
 
Number
Outstanding
Range of
Exercise Price
Number
Exercisable
       
Balance, December 31, 2011
12,850,000
-
12,850,000
Issued
950,000
$0.20
950,000
Expired
(1,000,000)
$(0.40)
(1,000,000)
Forfeited
-
-
-
Balance, June 30, 2012
12,800,000
$0.17
12,800,000
Schedule of Stock Options Outstanding
Exercise
Price
Number
Outstanding at
June 30, 2012
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Number
Exercisable at
June 30, 2012
Weighted
Average
Exercise Price
0.15
5,800,000
6.63
0.15
5,800,000
0.15
0.18
6,050,000
4.73
0.18
6,050,000
0.18
0.20
950,000
4.78
0.20
950,000
0.20
Total
12,800,000
-
-
12,800,000
-
Employee And Consultant Grants [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Fair Value of Options Using Black-Scholes Model
Expected volatility 115.31%
Expected lives 5 Years
Risk-free interest rate 0.86%
Expected dividend yield None
XML 27 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]        
Revenues, net $ 86,606 $ 699,415 $ 410,970 $ 1,423,270
Cost of goods sold 8,865 239,123 100,472 484,970
Gross profit 77,741 460,292 310,498 938,300
Costs and expenses:        
General and administrative 262,002 237,716 488,379 511,942
Consulting expense    97,948 788,068 195,896
Research and development 56,213 81,924 109,646 197,433
Total costs and expenses 318,215 417,588 1,386,093 905,271
Income (Loss) from operations (240,474) 42,704 (1,075,595) 33,029
Other expenses:        
Interest expense (3,888) (1,912) (4,496) (3,372)
Total other expense (3,888) (1,912) (4,496) (3,372)
Net Income (Loss) $ (244,362) $ 40,792 $ (1,080,091) $ 29,657
Weighted average number of common shares outstanding-basic and diluted 33,214,497 27,201,762 33,197,464 27,201,762
Income (Loss) per common share - basic and diluted $ (0.01) $ 0.0 $ (0.03) $ 0.0
XML 28 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2012
COMMITMENTS AND CONTINGENCIES [Abstract]  
COMMITMENTS AND CONTINGENCIES
NOTE G - COMMITMENTS AND CONTINGENCIES
On or about November 17, 2011, a claim was filed in the Broward County Circuit Court in Fort Lauderdale, Florida against the company by Raw Energy Tech, LLC. The plaintiff alleges oral contract between the parties for the alleged design, fabrication and construction of a prototype power pack. The amount of damages sought are approximately $58,000. We have moved to dismiss the complaint and intend to vigorously defend this action as we believe this claim is without merit. We have accrued an amount in the financial statements to cover our legal expenses as of June 30, 2012.
XML 29 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
CAPITAL TRANSACTIONS
6 Months Ended
Jun. 30, 2012
CAPITAL TRANSACTIONS [Abstract]  
CAPITAL TRANSACTIONS
NOTE F - CAPITAL TRANSACTIONS
Common stock
On January 1, 2012, the Company issued an aggregate of 100,000 shares of common stock to a consultant in consideration of services to be provided for 18 months with a fair value of $10,000. The expense will be amortized over the life of the agreement. The securities were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act. The securities may not be transferred absent registration or applicable exemption.
On January 1, 2012, the Company issued 250,000 shares of common stock to a consultant in consideration for consulting services with a fair value of $25,000. The expense will be amortized over six month life of the agreement. The shares of common stock were issued under the exemption from registration provided by Section 4(2) of the Securities Act. The shares issued contain a legend restricting their transferability absent registration or applicable exemption.
Effective April 30, 2010, the Company issued restricted stock grants to acquire an aggregate of 1,400,000 shares of restricted common stock to John DiBella. The shares subject to the grant are subject to forfeiture as follows: 200,000 shares on April 30, 2012, 300,000 shares on April 30, 2013, 400,000 shares on April 30, 2014 and 200,000 shares on April 30, 2015, in the event John DiBella is no longer a full time employee on such dates. The remaining 300,000 stock grants are subject to forfeiture as follows: 100,000 shares on April 30, 2012, 100,000 shares on April 30, 2013, 100,000 shares on April 30, 2014. The stock grants were valued at $.38 per share and are amortized over the term of the stock grant. The securities were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act. The securities may not be transferred absent registration or applicable exemption. On January 1, 2012, the Company vested 100% of the remaining unvested shares to John DiBella.
Warrants
In September 2011 the Company issued 400,000 warrants to investors to purchase an aggregate of 400,000 shares of common stock for a period of one year. The warrants expire in September 2012. The purchase price of these warrants is $0.60 per share. The Company calculated the fair value of the extended warrants by using the Black-Scholes option-pricing model with the following weighted average assumptions: no dividend yield for all the years; expected volatility of 55%; risk-free interest rate of 5% and an expected life of one year.
Information with respect to warrants outstanding and exercisable at June 30, 2012 is as follows:
 
Number
Outstanding
Range of
Exercise Price
Number
Exercisable
       
Balance, December 31, 2011
400,000
$0.60
400,000
Issued
-
-
-
Expired
-
-
-
Forfeited
-
-
-
Balance, June 30, 2012
400,000
$0.60
400,000
Stock Options
The Company follows the provisions of ASC Topic 718, "Compensation - Stock Compensation." ASC Topic 718 establishes standards surrounding the accounting for transactions in which an entity exchanges its equity instruments for goods or services. ASC Topic 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions.
On January 10, 2012, the Company granted 950,000 stock options with a total fair value of $69,549 to an employee and a consultant. The shares vested immediately and were valued using the Black-Scholes option pricing model. We used the following assumptions for options granted during the six months ended June 30, 2012:
Expected volatility 115.31%
Expected lives 5 Years
Risk-free interest rate 0.86%
Expected dividend yield None
In January 2012, the Company modified the terms of 8,050,000 previously issued stock options to officers and employees. Per ASC Topic 718, this exchange of stock options was treated as a modification. The incremental value of $475,019, measured as the excess of the fair value of the modified award over the fair value of the original award immediately before the modification, and using the Black-Scholes option pricing model, was expensed immediately as all the options vested on the date of the exchange. We used the following assumptions for options for the six months ended June 30, 2012:
Expected volatility 115.31%
Expected lives 3.5 -5 Years
Risk-free interest rate 0.4%-0.89%
Expected dividend yield None
The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company's stock options and warrants have characteristics different from those of its traded stock, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of such stock options. The risk free interest rate is based upon quoted market yields for United States Treasury debt securities with a term similar to the expected term. The expected dividend yield is based upon the Company's history of having never issued a dividend and management's current expectation of future action surrounding dividends. Expected volatility was based on historical data for the trading of our stock on the open market. The expected lives for such grants were based on the simplified method for employees and officers.
Information with respect to options outstanding and exercisable at June 30, 2012 is as follows:
 
Number
Outstanding
Range of
Exercise Price
Number
Exercisable
       
Balance, December 31, 2011
12,850,000
-
12,850,000
Issued
950,000
$0.20
950,000
Expired
(1,000,000)
$(0.40)
(1,000,000)
Forfeited
-
-
-
Balance, June 30, 2012
12,800,000
$0.17
12,800,000
The following table summarizes information about the stock options outstanding at June 30, 2012:
Exercise
Price
Number
Outstanding at
June 30, 2012
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Number
Exercisable at
June 30, 2012
Weighted
Average
Exercise Price
0.15
5,800,000
6.63
0.15
5,800,000
0.15
0.18
6,050,000
4.73
0.18
6,050,000
0.18
0.20
950,000
4.78
0.20
950,000
0.20
Total
12,800,000
-
-
12,800,000
-
XML 30 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
CAPITAL TRANSACTIONS (Narrative) (Details) (USD $)
6 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 6 Months Ended 0 Months Ended 1 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2012
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
Jan. 02, 2012
Restricted Stock Units (RSUs) [Member]
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
First Forfeiture April 30, 2012 [Member]
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
First Forfeiture April 30, 2013 [Member]
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
First Forfeiture April 30, 2014 [Member]
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
First Forfeiture April 30, 2015 [Member]
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
Second Forfeiture April 30, 2012 [Member]
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
Second Forfeiture April 30, 2013 [Member]
Apr. 30, 2010
Restricted Stock Units (RSUs) [Member]
Second Forfeiture April 30, 2014 [Member]
Sep. 30, 2011
Warrants [Member]
Jun. 30, 2012
Warrants [Member]
Dec. 31, 2011
Warrants [Member]
Jan. 10, 2012
Stock Options [Member]
Jan. 31, 2012
Stock Options [Member]
Jun. 30, 2012
Stock Options [Member]
Dec. 31, 2011
Stock Options [Member]
Jan. 02, 2012
Consultant One [Member]
Jan. 02, 2012
Consultant Two [Member]
Common Stock                                      
Shares issued for services from consultants, shares                                   100,000 250,000
Value of shares issued for services from consultants, capitalized                                   $ 10,000 $ 25,000
Length of consultant service term                                   18 months 6 months
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                      
Shares granted to John DiBella, shares   1,400,000                                  
Number of shares subject to forfeiture   300,000   200,000 300,000 400,000 200,000 100,000 100,000 100,000                  
Shares granted to John DiBella, value per share   $ 0.38                                  
Percentage of unvested shares that were vested to John DiBella     100.00%                                
Warrants issued                     400,000 400,000 400,000     12,800,000 12,850,000    
Number of shares called by warrants                     400,000                
Purchase price of warrants                     $ 0.6 $ 0.6 $ 0.6     $ 0.17       
Expected volatility 115.31%                   55.00%                
Risk-free interest rate                     5.00%                
Expected lives, years                     1                
Stock options granted, shares                            950,000   950,000      
Stock options granted, fair value                           69,549          
Number of shares modified                             8,050,000        
Shares modified, incremental value                             $ 475,019        
XML 31 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)
6 Months Ended
Jun. 30, 2012
Fixed assets useful life, minimum, years 5
Fixed assets useful life, maximum, years 10
Minimum [Member]
 
Rental of equipment agreement, useful life 3 months
Maximum [Member]
 
Rental of equipment agreement, useful life 12 months
XML 32 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)
6 Months Ended
Jun. 30, 2012
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Interim Financial Statements
Interim Financial Statements
The interim financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company's annual financial statements, notes and accounting policies included in the Company's annual report on Form 10-K for the year ended December 31, 2011 as filed with the SEC. In the opinion of management, all adjustments which are necessary to provide a fair presentation of financial position as of June 30, 2012 and the related operating results and cash flows for the interim period presented have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year.
Principles of Consolidation
Principles of Consolidation
The consolidated financial statements include the accounts of the parent company, Enviro Voraxial Technology, Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated.
Estimates
Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ. Significant estimates include allowance for doubtful accounts, allowance for inventory obsolescence and valuation of stock-based compensation.
Revenue Recognition
Revenue Recognition
The Company derives its revenue from the sale and short-term rental of the Voraxial Separator. The Company presents revenue in accordance with FASB new codification of "Revenue Recognition in Financial Statements". Under Revenue Recognition in Financial Statements, revenue is realized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured.
Revenues that are generated from sales of equipment are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. There were no agreements with such provisions as of June 30, 2012.
The Company recognizes revenue from the short term rental of equipment, ratably over the life of the agreement, which is usually three to twelve months.
Fair Value of Instruments
Fair Value of Instruments
The carrying amounts of the Company's financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at June 30, 2012, approximate their fair value because of their relatively short-term nature.
"Disclosures about Fair Value of Financial Instruments," requires disclosures of information regarding the fair value of certain financial instruments for which it is practicable to estimate the value. For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale of liquidation.
The company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:
Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of June 30, 2012.
Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of June 30, 2012.
Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of June 30, 2012.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate limits.
Inventory
Inventory
Inventory consists of components for the Voraxial Separator and is priced at lower of cost or market. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of June 30, 2012, there were no such components held by third parties.
Fixed Assets
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets (5-10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal.
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Basic and diluted income (loss) per share has been computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding. The warrants and stock options have been excluded from the calculation since they would be anti-dilutive.
As of June 30, 2012, such equity instruments may have a dilutive effect in the future and include the following potential common shares:
Warrants 400,000
Stock options 12,800,000
  13,200,000
Income Taxes
Income Taxes
Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Research and Development Expenses
Research and Development Expenses
Research and development costs, which includes travel expenses, consulting fees, subcontractors and salaries are expensed as incurred.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred and are included in general and administrative expenses.
Stock-Based Compensation
Stock-Based Compensation
The Company adopted ASC Topic 718 formerly Statement of Financial Account Standard (SFAS) No. 123(R) effective January 1, 2006. This statement requires compensation expense relating to share-based payments to be recognized in net income using a fair-value measurement method. Under the fair value method, the estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. The company elected the modified prospective method as prescribed in ASC Topic 718 formerly SFAS No. 123 (R) and therefore, prior periods were not restated. Under the modified prospective method, this statement was applied to new awards granted after the time of adoption, as well as to the unvested portion of previously granted equity-based awards for which the requisite service has not been rendered as of January 1, 2006.
Prior to January 1, 2006, the Company accounted for stock-based employee compensation under Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations. The Company has adopted the disclosure-only provisions of ASC Topic 718 formerly SFAS No. 123, "Accounting for Stock-Based Compensation," and SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure," which was released in December 2002 as an amendment of ASC Topic 718 Formerly SFAS No. 123. The Company currently accounts for stock-based compensation under the fair value method using the Black-Scholes option pricing model as indicated in Note F.
Accounting for the Impairment of Long-Lived Assets
Accounting for the Impairment of Long-Lived Assets
The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company has no such assets and, therefore, no impairments of long-lived assets were recorded as of June 30, 2012.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In December 2011, FASB issued Accounting Standards Update 2011-11, Balance Sheet - Disclosures about Offsetting Assets and Liabilities" to enhance disclosure requirements relating to the offsetting of assets and liabilities on an entity's balance sheet. The update requires enhanced disclosures regarding assets and liabilities that are presented net or gross in the statement of financial position when the right of offset exists, or that are subject to an enforceable master netting arrangement. The new disclosure requirements relating to this update are retrospective and effective for annual and interim periods beginning on or after January 1, 2013. The update only requires additional disclosures, as such; we do not expect that the adoption of this standard will have a material impact on our results of operations, cash flows or financial condition.
XML 33 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
MAJOR CUSTOMERS
6 Months Ended
Jun. 30, 2012
MAJOR CUSTOMERS [Abstract]  
MAJOR CUSTOMERS
NOTE H - MAJOR CUSTOMERS
During the six months ended June 30, 2012, we recorded 58% of our revenue from Customer A, 26% from Customer B and 12% of our revenue from Customer C. As of June 30, 2012, 58% of our accounts receivable was due from Customer A and 42% was due from Customer B.
XML 34 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2012
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS
NOTE I - SUBSEQUENT EVENTS
On July 1, 2012, the Company entered into a six month agreement with a consultant. As compensation for services is provided, the Company will issue 250,000 shares of common stock, with a fair value of $45,000.
XML 35 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2012
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Schedule of Equity Instruments That May Have a Dilutive Effect
Warrants 400,000
Stock options 12,800,000
  13,200,000
XML 36 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTES PAYABLE (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
NOTES PAYABLE [Abstract]          
Notes payable to finance companies, due in monthly installments of $3,695, including principal and interest at prime plus .25%, collaterized by certain equipment $ 14,522   $ 14,522   $ 32,107
Less current portion 14,522   14,522   32,107
Long term debt 0   0   0
Interest expense 3,888 1,912 4,496 3,372  
Monthly installments of notes payable     $ 3,695    
Basis spread 0.25%   0.25%    
XML 37 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
CAPITAL TRANSACTIONS (Schedule of Options Outstanding and Exercisable) (Details) (Stock Options [Member], USD $)
0 Months Ended 6 Months Ended
Jan. 10, 2012
Jun. 30, 2012
Stock Options [Member]
   
Number Outstanding    
Balance, December 31, 2011   12,850,000
Issued 950,000 950,000
Expired   (1,000,000)
Forfeited     
Balance, June 30, 2012   12,800,000
Range of Exercise Price    
Balance, December 31, 2011     
Issued   $ 0.2
Expired   $ (0.4)
Forfeited     
Balance, June 30, 2012   $ 0.17
Number Exercisable    
Balance, December 31, 2011   12,850,000
Issued   950,000
Expired   (1,000,000)
Forfeited     
Balance, June 30, 2012   12,800,000
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash Flows From Operating Activities:    
Net loss $ (1,080,091) $ 29,657
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation 11,324 11,309
Stock-based compensation 788,068 209,707
Changes in assets and liabilities:    
Accounts receivable 261,942 (329,864)
Inventory 20,424 (261,665)
Accounts payable and accrued expenses 92,910 70,817
Net cash provided by (used in) operating activities 94,577 (270,039)
Cash Flows From Financing Activities:    
Repayments toward notes payable (17,585) (19,458)
Net cash used in financing activities (17,585) (19,458)
Net increase (decrease) in cash and cash equivalents 76,992 (289,497)
Cash and cash equivalents, beginning of period 147,198 442,812
Cash and cash equivalents, end of period 224,190 153,315
Supplemental Disclosures    
Cash paid during the year for interest 4,496 3,371
Cash paid during the year for taxes      
Non-cash investing and financing activities:    
Common stock issued for conversion of accrued salary    $ 1,739,000
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RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2012
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS
NOTE E - RELATED PARTY TRANSACTIONS
For the three and six months ended June 30, 2012, the Company incurred salary expenses from the Chief Executive Officer of the Company of $76,250 and $152,500, respectively. Of these amounts, $10,000 has been paid for the three months and six months ended June 30, 2012. The total unpaid balance as of June 30, 2012 is $552,506 and is included in accounts payable and accrued expenses.
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CAPITAL TRANSACTIONS (Schedule of Stock Options Outstanding) (Details) (USD $)
6 Months Ended
Jun. 30, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Number Outstanding at June 30, 2012 12,800,000
Weighted Average Remaining Contractual Life, years 0
Outstanding, Weighted Average Exercise Price   
Number Exercisable at June 30, 2012 12,800,000
Exercisable, Weighted Average Exercise Price   
0.15 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Exercise Price $ 0.15
Number Outstanding at June 30, 2012 5,800,000
Weighted Average Remaining Contractual Life, years 6.63
Outstanding, Weighted Average Exercise Price $ 0.15
Number Exercisable at June 30, 2012 5,800,000
Exercisable, Weighted Average Exercise Price $ 0.15
0.18 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Exercise Price $ 0.18
Number Outstanding at June 30, 2012 6,050,000
Weighted Average Remaining Contractual Life, years 4.73
Outstanding, Weighted Average Exercise Price $ 0.18
Number Exercisable at June 30, 2012 6,050,000
Exercisable, Weighted Average Exercise Price $ 0.18
0.20 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Exercise Price $ 0.2
Number Outstanding at June 30, 2012 950,000
Weighted Average Remaining Contractual Life, years 4.78
Outstanding, Weighted Average Exercise Price $ 0.2
Number Exercisable at June 30, 2012 950,000
Exercisable, Weighted Average Exercise Price $ 0.2
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Equity Instruments That May Have a Dilutive Effect) (Details)
6 Months Ended
Jun. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Anti-dilutive securities 13,200,000
Warrants [Member]
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Anti-dilutive securities 400,000
Stock Options [Member]
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Anti-dilutive securities 12,800,000