diff --git a/transaction_processor.py b/transaction_processor.py
index a32a32c..7b08ac9 100644
--- a/transaction_processor.py
+++ b/transaction_processor.py
@@ -749,22 +749,26 @@ class LamassuTransactionProcessor:
                     else:
                         client_calculations[i % len(client_calculations)]['allocated_sats'] -= 1
             
-            # Second pass: create distributions with final amounts
+            # Second pass: create distributions with final amounts (only for clients with positive allocations)
             for calc in client_calculations:
                 client_id = calc['client_id']
                 client_sats_amount = calc['allocated_sats']
                 proportion = calc['proportion']
                 
-                # Calculate equivalent fiat value in GTQ for tracking purposes
-                client_fiat_amount = round(client_sats_amount / exchange_rate, 2) if exchange_rate > 0 else 0.0
-                
-                distributions[client_id] = {
-                    "fiat_amount": client_fiat_amount,
-                    "sats_amount": client_sats_amount,
-                    "exchange_rate": exchange_rate
-                }
-                
-                logger.info(f"Client {client_id[:8]}... gets {client_sats_amount} sats (≈{client_fiat_amount:.2f} GTQ, {proportion:.2%} share)")
+                # Only create distributions for clients with positive sats amounts
+                if client_sats_amount > 0:
+                    # Calculate equivalent fiat value in GTQ for tracking purposes
+                    client_fiat_amount = round(client_sats_amount / exchange_rate, 2) if exchange_rate > 0 else 0.0
+                    
+                    distributions[client_id] = {
+                        "fiat_amount": client_fiat_amount,
+                        "sats_amount": client_sats_amount,
+                        "exchange_rate": exchange_rate
+                    }
+                    
+                    logger.info(f"Client {client_id[:8]}... gets {client_sats_amount} sats (≈{client_fiat_amount:.2f} GTQ, {proportion:.2%} share)")
+                else:
+                    logger.info(f"Client {client_id[:8]}... gets {client_sats_amount} sats (≈0.00 GTQ, {proportion:.2%} share) - SKIPPED (zero amount)")
             
             # Verification: ensure total distribution equals base amount
             total_distributed = sum(dist["sats_amount"] for dist in distributions.values())
@@ -796,8 +800,8 @@ class LamassuTransactionProcessor:
                 # In a production system, you might want to recalculate the entire distribution
                 logger.warning("Proceeding with original distribution despite balance warnings - manual review recommended")
             
-            logger.info(f"Distribution verified: {total_distributed} sats distributed across {len(final_distributions)} clients")
-            return final_distributions
+            logger.info(f"Distribution verified: {total_distributed} sats distributed across {len(distributions)} clients (clients with positive allocations only)")
+            return distributions
             
         except Exception as e:
             logger.error(f"Error calculating distribution amounts: {e}")