As of December 31, 2012 and 2011, the Company had advances payable totaling $951,034 to Richard MacPherson, a director of the Company. These advances bear interest at 9% per annum, have no fixed terms of repayment and are unsecured.  Accrued interest on these advances at December 31, 2012 and 2011 was $174,099 and $87,077, respectively. Interest expense on these advances was $87,022 and $29,656 for 2012 and 2011, respectively. Interest of $57,421 on these advances was capitalized into the cost of the equipment built for the Company’s first commercial customer in 2011.