ACQUISITION (Tables)

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Fair Values at Purchase Date

The following information summarizes the allocation of the fair values assigned to the assets at the purchase date.

	(in thousands)
Cash and cash equivalents	$	663
Accounts receivable		1,853
Inventory		13
Prepaid insurance		31
Property, plant and equipment		8,659
Land		1,995
Other assets		32
Intangible assets		16,255
Total identifiable net assets		29,501
Goodwill		958
Total purchase price	$	30,459
Total liabilities assumed	$	2,698

Amortizable Intangible Assets

The following table summarizes the cost of amortizable intangible assets related to the acquisition of Vertex Holdings:

	Estimated Cost (in thousands)		Useful life (years)
Customer relations	$	343		5
Vendor relations		4,064		10
H&H Oil Trademark/Trade name		775		16
TCEP Technology/Patent		11,000		15
Non-competes		73		3
Total	$	16,255

Pro-Forma Results of Operations

	Three Months Ended				Nine Months Ended
	September 30, 2012		September 30, 2012		September 30, 2012			September 30, 2011
Revenue	$	32,474	$	37,837	$	109,943		$	84,504
Cost of goods sold		27,395		33,097		96,491			69,756
Gross profit		5,079		4,741		13,452			14,748
Selling, general and administrative expenses		2,367		2,531		7,645			6,346
Income from operations		-		-		5,807			8,402
Other income and expense		-		-		(768	)		(727	)
Net income		2,711		2,209		5,039			7,675
Earnings per common share-Basic		0.30		0.18		0.50			0.88
Earnings per common share-Diluted		0.17		0.13		0.35			0.53