Telkonet, Inc. Annual report pursuant to Section 13 and 15(d)

NOTE I - ACCRUED LIABILITIES AND EXPENSES

12 Months Ended

Dec. 31, 2011

NOTE I – ACCRUED LIABILITIES AND EXPENSES

Accrued liabilities and expenses at December 31, 2011 and 2010 are as follows:

	2011		2010
			(As Restated)
Accrued liabilities and expenses	$	684,823	$	564,186
Accrued payroll and payroll taxes		285,048		449,271
Accrued sales taxes, penalties, and interest		1,068,314		776,671
Accrued interest		33,600		530
Warranty		104,423		100,293
Total	$	2,176,208	$	1,890,951