"On March 23, 2007 we entered into a short-term purchase order and working capital financing arrangement providing cash proceeds of $750,000. The lender, ASI Capital Corporation, is a Nevada based mortgage broker/banker of which Jerry E. Polis is Chairman, President and largest shareholder."

As you can see..."Backlog orders are subject to modification, cancellation or rescheduling by our customers."

With cancellation in there,  without note of penalty to customer, I have a problem with the way the note or future notes are secured....if it is indeed for purchase order .

doni