(8)

Notes Payable

	March 31, 2012		December 31, 2011
Convertible, unsecured promissory note, due 2012 (4.0%)	$	2,832,301	$	2,832,301
Less current portion		500,000		375,000
Total debt, less current portion	$	2,332,301	$	2,457,301

For the three months ended March 31, 2012, the Company had and made no scheduled principal repayments. On March 31, 2011, the Company made its final payment of $80,000 on seller notes associated with the acquisition of Innovative Power Systems, Inc. For the three months ended March 31, 2011, the Company made principal repayments of $19,479.

Line of Credit

On November 8, 2011, the Company and its subsidiaries Innovative Power Systems, Inc., VTC, L.L.C., Total Site Solutions Arizona, LLC, and Alletag Builders, Inc. (together with the Company, collectively, “Borrowers”) obtained a credit facility (the “Credit Facility”) from Wells Fargo Bank, National Association (“Lender”) pursuant to a Credit Agreement by and among Borrowers and Lender (the “Credit Agreement”). Borrowers’ obligations under the Credit Facility are joint and several. The maximum amount of the Credit Facility is $2,000,000. The Credit Facility is subject to a borrowing base of 80% of eligible accounts receivable. Borrowings under the Credit Facility will bear interest at the London interbank offered rate plus 2.25% per annum. The Credit Facility matures on November 1, 2012. The obligations under the Credit Facility are secured by substantially all of Borrowers’ assets.

For the three months ended March 31, 2012, the Company failed to comply with the financial covenants requiring (a) a maximum ratio of total liabilities to tangible net worth as set forth in the Credit Agreement; and (b) a minimum debt service coverage ratio as set forth in the Credit Agreement. While we have no outstanding borrowings under the Credit Facility, we are unable to borrow under the Credit Facility because of our failure to comply with these financial covenants. In an effort to restore borrowing capacity under the Credit Facility, the Company is in discussions with its bank to modify the terms of the Credit Facility through a covenant waiver, amendment of covenants, or combination thereof. At this time, however, there is no assurance that the terms of the Credit Facility will be modified.