(OTCBB: VSPC)
www.VIASPACE.com
www.ViaspaceGreenEnergy.com
VIASPACE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil fuels and other high-pollutant energy sources. Through its subsidiaries, the Company provides raw material for cellulosic biofuels; develops and markets fuel cartridges, products and technology for methanol fuel cells; markets rechargeable lithium-ion batteries; and is developing security-related monitoring and detection technology and systems for military/defense and commercial applications.Business StrategyVIASPACE is developing streams of recurring revenue from targeted segments of the renewable and alternative energy markets.For the renewable energy markets, Company subsidiary VIASPACE Green Energy is cultivating Giant King Grass, a proprietary, fast-growing perennial grass for the production of non-food, low carbon liquid biofuels for transportation, and as a renewable, low-carbon substitute or replacement for coal now being burned as the heat source in stationary electricity generating power plants.VIASPACE Green Energy is pursuing long-term contracts to supply Giant King Grass as a feedstock for green energy production. As an example of recurring revenue, a single modest 30 megawatt (MW) grass-powered electricity generating plant requires 460 tons of grass every day for its estimated 30 to 50 year life.For the alternative energy market, VIASPACE subsidiary Direct Methanol Fuel Cell Corporation develops and manufactures disposable fuel cartridges for fuel cell powered electronic devices such as notebook computers, mobile phones and military systems. Fuel cells are electrochemical devices that efficiently and cleanly convert a fuel, such as methanol, into electricity without burning. The advantages of a fuel cell are longer operating time, compared to a rechargeable battery, and instantaneous recharging by simply replacing the disposable fuel cartridge. A fuel cell powered notebook computer is projected to use 100 disposable fuel cartridges over its lifetime, so the notebook computer market alone represents a potentially significant and recurring revenue stream. Direct Methanol Fuel Cell Corporation is a cartridge partner with Samsung and other companies engaged in fuel cell development and applications
As part of its comprehensive alternative energy strategy, VIASPACE is also partnered with leading suppliers of rechargeable lithium-ion batteries. These batteries will be used in hybrid applications with fuel cells and also for electric bicycles, scooters and vehicles, as well as conventional uses in electronic devices and power tools.VIASPACE subsidiary Ionfinity will continue working with Caltech, JPL and NASA and other technology leaders to develop devices and systems for monitoring and detecting hazardous substances: explosives, toxic gases, drugs and chemical/biological weapons. Current development contracts with the US Navy and US Army indicate the potential for future military, as well as commercial, contracts.
Financial Strategy
VIASPACE has moved aggressively to support and focus on its core green energy business. To improve its financial position, the Company has reduced operating expenses, executed an acquisition with positive cash flow, and sold unprofitable non-core business lines.In 2008 VIASPACE acquired Inter-Pacific Arts (IPA), a profitable framed art business, for its material ongoing revenue, net income and positive cash flow; and for its proprietary license to grow and sell Giant King Grass. To generate additional near-term revenue, crops of Giant King Grass will be sold as animal feed for dairy cows, cattle, pigs, sheep, poultry and fish. The company is pursuing long-term supply contracts for animal feed.In order to increase its focus on renewable and alternative energy, VIASPACE sold—for cash and debt forgiveness—its non-core businesses in security products and humidity sensors. These strategic moves streamlined operations, cut expenses, and released resources to dedicate to energy projects.These financial steps have made a positive impact on the Company’s balance sheet and income statement.
CEO Summary
"We believe that VIASPACE has an excellent opportunity to establish a significant presence in the markets for renewable and alternative energy. Giant King Grass has much higher productivity than competing grasses, and it represents three separate and distinct large-market opportunities: as a feedstock for low carbon liquid biofuels known as Grassoline; as a carbon neutral replacement for coal in electricity generating power plants; and as feed for animals and fish. We believe that Giant King Grass can provide both food and fuel to the world."“Disposable fuel cartridges for fuel cell powered portable electronics also represent a very large and recurring market opportunity. VIASPACE and its partners are establishing the global infrastructure to manufacture, fill and distribute fuel cartridges.”
1. VIASPACE Green Energy (VGE) – Renewable EnergyThe VIASPACE Green Energy majority-owned subsidiary grows and markets proprietary Giant King Grass, a renewable cellulosic non-food resource for: 1) producing low-carbon liquid biofuels for transportation, such as cellulosic ethanol, methanol and green gasoline (“grassoline”); and 2) a full or partial substitute for coal to reduce carbon emissions from electricity-generating power plants. It can also be used to generate bio methane through anaerobic digestion, and Green Log firelogs made from Giant King Grass have just entered the US marketplace.Giant King Grass is a perennial fast-growing plant that grows up to 4 m tall and can be harvested several times a year in tropical and subtropical regions with yields up to 156 metric tons (wet) per acre per year. Giant King Grass has much higher yield than competing grasses such as switchgrass and miscanthus. VIASPACE Green Energy has 279 acres of Giant King Grass under cultivation on its plantation of leased land near Guangzhou in Guangdong province in southern China. Initial harvests have been used as nursery stock to provide seedlings, which have supported expansion of planted acreage. This expanded nursery is capable of providing seedlings that could develop more than 10,000 acres of Giant King Grass fields. 
Multiple independent analyses conducted by potential customers show that Giant King Grass has excellent energy content of 7,900 BTU per bone-dry pound and also has superior methane production in bio-digesters of more than 1.6 standard cubic feet of methane per pound of fresh grass. Its physical properties are similar to corn straw (stover), and Giant King Grass is suitable to be burned directly in biomass power plants and made into energy pellets that can be co-fired with coal in existing coal-fired power plants. Giant King Grass can also be used to produce second-generation cellulosic biofuels that do not use food crops such as corn for their feedstock.Giant King Grass is considered a renewable and environmentally friendly alternative to fossil fuels. Burning grass or a biofuel made from grass releases carbon dioxide into the atmosphere. However the next crop of grass 60 days later absorbs the carbon dioxide during its growth and the process can be carbon neutral over a 60 day growing cycle. Additional carbon dioxide can be released by the trucks that transport the grass and the processes used to make the biofuel. If these are carefully managed, Giant King Grass can be a very low carbon fuel source.
Giant King Grass is also a potential replacement for food crop-based energy sources like corn. The US Department of Agriculture estimated that one third of the US corn crop was dedicated to ethanol production. The World Bank is concerned that using biofuels made from food is increasing food prices and causing world hunger. Since grass is a non-food crop, production of biofuels made from grass should have much less impact on food crops and therefore food prices. Several countries including China have banned biofuels made from food crops.Transportation applications such as automobiles and trucks require liquid fuels which are easy to store on the vehicle. Giant King Grass can be made into liquid biofuels by gasification or by advanced enzyme fermentation. Biofuels made from nonfood crops are called cellulosic biofuels because the cellulose content is used rather than the sugar content in food crops. Liquid biofuels made from grass have been termed “GRASSOLINE”. Giant King Grass is a feedstock for cellulosic biofuels.Giant King Grass is also considered a viable alternative to coal for firing electrical energy generating plants. Many existing coal-fired power plants can be straightforwardly modified to accept up to 30% grass as the feedstock in place of coal in a process referred to as co-firing. This would reduce the carbon emissions of the power plant immediately and is the most near-term solution to beginning to clean up coal-fired power plants. It is a proven approach and available now, whereas other clean coal technologies such as carbon sequestration are years away and very expensive.
A growing trend is toward simply burning 100% biomass in the form of agricultural waste in power plants that have been specially designed to use agricultural feedstock--whether agricultural waste or dedicated crops like grass--instead of coal or fossil fuel. Dedicated biomass power plants are encouraged and receive substantial government subsidies in the US, China and other countries. More than 20 dedicated biomass power plants have built in China over the last three years. Coal power plants in the US are being converted to biomass. These biomass power plants use agricultural waste such as corn straw, wheat straw, cotton waste and wood chips as their fuel today. There are major problems using agricultural waste because the fuel supply type and quantity changes with the seasons; it is not consistent in quality, and the sources are not reliable. Biomass power plants would like to have a dedicated energy crop such as Giant King Grass to meet at least one half of their fuel needs and provide a consistent and reliable source.A single modest 30 megawatt grass-powered electricity generating plant would require approximately 600 tons of grass every day to meet 100% of its fuel requirements. In a tropical or subtropical area this could be produced on approximately 3500 acres of land. In China, 30 megawatts of electricity can supply the electricity needs for approximately 200,000 households.VIASPACE is pursuing joint ventures with well-known and reliable customers that have a long-term need for Giant King Grass as a fuel or feedstock. Using this focused approach, rather than simply selling seedlings to all parties, the Company expects to develop profitable business relationships that hold potential for continuing for decades. VIASPACE is pursuing business opportunities in China, Indonesia, Thailand, Philippines, Singapore, South America, India, Africa and other regions. The trend to cellulosic low-carbon biofuels is attracting strong political support. The Obama administration is calling for a national low-carbon fuel standard, and recent landmark legislation in California to reduce carbon emissions "would boost the use of biofuels" by "spurring investment in cellulosic low-carbon fuels made from switch grass and other non-food plants.Green Log™ Fireplace and Campfire LogsProduct Features· Made from Giant King Grass, a 100% renewable resource· Uses natural binder and fire starter· Lights fully in less than 3 minutes· Has a zero carbon footprint· Burns for up to 5 hours· Has campfire smell without additional chemicalsSpecifications:· Each log weighs 5 lbs (2.27 kg)· 5 lb. logs are sold in a 6-log, 30 lb. (13.6 kg) carton
2. Direct Methanol Fuel Cell Corp. (DMFCC) – Alternative EnergyDirect Methanol Fuel Cell Corporation develops and manufactures disposable methanol fuel cartridges that provide the energy source for fuel cell powered notebook computers, mobile phones, military equipment and other applications being developed by electronics OEMs, such as Samsung and Toshiba, and other companies.Fuel cells are electrochemical devices that efficiently and cleanly convert a fuel, such as methanol, into electricity without burning. The fuel cell is permanently built into a notebook computer in the space where the battery is now. A small disposable fuel cartridge is inserted into the computer which provides the fuel for the fuel cell.The advantages of a fuel cell are longer-lasting power compared to a rechargeable battery, instantaneous recharging by simply replacing the disposable fuel cartridge, non-toxic disposal, and light weight. As a result, methanol fuel cells are being developed by many companies as a new, clean alternative power source for portable electronic devices. Fuel cells offer freedom from the electrical grid which is important for many business and professional applications.Fuel cell powered notebook computers and mobile phones are projected to use approximately 100 disposable fuel cartridges during their workable lives and represent a recurring and potentially very large revenue stream. It has been projected that up to 22% of notebook computers and 2.5% of mobile phones will be powered by fuel cells in the future, which would result in demand for more than three billion cartridges per year.Methanol fuel cells and fuel cartridges are efficient, clean and safe and have been approved to be carried on airplanes by the US Department of Transportation and The International Civil Aviation Organization. These approvals are expected to encourage faster and more widespread adoption of fuel cells for portable electronic devices.Business PartnersDirect Methanol Fuel Cell Corporation and its partners are working to develop the worldwide infrastructure to manufacture, fill and distribute disposable methanol fuel cartridges. This global capability is needed to support widespread adoption of fuel cell powered devices. DMFCC’s cartridge manufacturing partners are experienced and trusted suppliers to a wide range of industries including electronics OEMs.DMFCC is partnered with Samsung and other companies engaged in fuel cell development and applications. To support the ongoing needs of our customers—including commercial introduction of liquid fuel cells as an economical and environmentally friendly alternative to traditional batteries—DMFCC is forming a worldwide supply infrastructure of cartridge manufacturing, methanol filling and distribution.3. Ionfinity – Monitoring and Detection SystemsIonfinity is developing next-generation sensors based on new mass spectrometry (MS) technology that can detect and analyze extremely small quantities (or residues) of chemicals and hazardous materials such as explosives, toxic gases, chemical/biological weapons and drugs.And with the incorporation of Ionfinity miniaturization technology, new portable monitoring devices and detection systems are being developed for homeland security, defense, biomedical, industrial process control, agricultural and environmental monitoring and safety applications.Product Development Ionfinity is developing a compact, stand-alone chemical-sensing device consisting of: 1) a new and powerful detector called a Differential Mobility Spectrometer; 2) a non-radioactive ionization method that does not fragment or multiply-ionize sampled specimens; and 3) a micro-gas chromatograph for confirmation and enhanced detection capability. The device will detect chemicals and materials of interest at ppt (parts-per-trillion) to ppb (parts-per-billion) levels after 6 seconds. The sensor is self contained with respect to power and communications.4. Inter-Pacific ArtsInter-Pacific Arts (IPA) manufactures and wholesales high quality framed art to U.S. retailers. On January 24, 2011, VSPC announced that IPA has received new customer orders for framed art for delivery in the first half of 2011. The company expects first quarter and second quarter revenues for 2011 to exceed 100% of 2010 levels. Revenues were approximately $1.4 million for IPA for the first half of 2010, so VSPC forecasts IPA revenues of at least $2.8 million for the first half of 2011. Business is stronger for IPA as the U.S. economy seems to be getting better.IPA designers work with buyers at major retailers to select custom combinations of art, mattes and frames to assure that IPA customers have a unique combination of art and frame that is not available to other retailers. All IPA artwork consists of genuine prints purchased in the U.S. or Europe, and all royalties are fully paid. The prints are then shipped to IPA’s factory in Guangzhou, China, where the custom matting and framing are completed under strict quality controls. IPA places clear plastic corner protectors on each frame to prevent damage. These plastic protectors do not obscure the corners of the art as do cardboard corners and allow full visibility in rack displays. The minimum order is 100 pieces of the same design, although typical orders exceed 500 pieces. Containers of framed artwork are shipped weekly from IPA China.IPA can accommodate requests for custom framing of any size and format and will matte and frame a customer's proprietary art upon request.
1. Giant King Grass™ - VIASPACE’s proprietary Giant King Grass is the cheapest green and renewable alternative to coal to produce electricity and to oil to produce liquid biofuels. VIASPACE Green Energy Inc. and its partners grow Giant King Grass, a dedicated, renewable, nonfood, low carbon, and extremely high yield perennial crop, and use it for producing clean energy and other green products.2. Suitable for Power Plants - Biomass is carbon neutral and is a renewable energy source that comes from plant material such as Giant King Grass. Photosynthesis converts solar energy and carbon dioxide from the atmosphere into plant material. Burning plant material in a power plant releases the carbon dioxide back into the atmosphere, but it is reabsorbed again when the next crop grows making it carbon neutral.3. Meets Emission Reduction Requirement - Giant King Grass pellets can be used to replace up to 20% of coal in existing power plants which reduces carbon emissions by 20% while preserving the large capital investment and allows power companies to meet carbon dioxide emissions reduction requirements for the next 10 to 30 years.4. Grassoline - Giant King Grass can be used as a feedstock to make Grassoline - liquid transportation biofuels such as cellulosic ethanol, butanol and green gasoline and to produce biochemicals and bio plastics.5. Green Log™ - VIASPACE Green Energy also manufactures and sells Green Log™ low carbon fireplace and campfire logs made from Giant King Grass. Manufactured fire logs represent a $400 million annual market in North America. Green Logs generate greater heat output than conventional logs, and its non-chemical, natural campfire aroma makes it an even more appealing alternative.6. Joint Ventures - VIASPACE is pursuing joint ventures throughout the world with well-known and reliable customers that have a long-term need for Giant King Grass as a fuel or feedstock. Using this focused approach, rather than simply selling seedlings to all parties, the Company expects to develop profitable business relationships that hold potential for continuing for decades.7. Valuation – VIASPACE Green Energy (OTCBB: VGREF) is a majority owned (75.7%) subsidiary of VIASPACE Inc. At $3.25 per share this holding is valued at over $20 million. The current share price of VSPC is only trading at a market cap of $11 million, and VSPC owns a majority of VGREF, DMFCC, and Ionfinity, and the framed art business (Inter-Pacific Arts). VGREF owns 100% of the framed art business (Inter-Pacific Arts).8. Technical factors – Again, we believe the technical factors support a move higher is coming. Be sure to see our new video stock chart analysis.
Dr. Carl Kukkonen: CEO, Chairman, Co-Founder
From its founding in 1998 Dr. Carl Kukkonen has led the VIASPACE team, serving as CEO of ViaSpace Technologies LLC, the predecessor of VIASPACE Inc., and serving as CEO and Chairman today. ViaSpace Technologies incubated several companies based on technologies developed at the NASA Jet Propulsion Laboratory and patents and software licensed from Caltech.Prior to founding VIASPACE Dr. Kukkonen was a Caltech employee, serving as Director of the Center for Space Microelectronics Technology (CSMT) and Manager of Supercomputing at the NASA Jet Propulsion Laboratory. At JPL from 1984 to 1998 he managed several technologies and technical subsidiaries. Dr. Kukkonen established and grew the CSMT into a 250-person operation with a $70M annual budget.From 1977 to 1984 Dr. Kukkonen worked for the Ford Motor Company as Ford's leading expert on hydrogen as an alternative automotive fuel. As a Principal Research Engineer, he also led a team that developed Ford's first turbocharged intercooled direct injection diesel engine. Dr. Kukkonen received a BS in physics from the University of California at Davis. He earned a MS and Ph.D. in physics from Cornell University and was a post-doctoral fellow at Purdue. In 1992 Dr. Kukkonen was awarded the NASA Exceptional Achievement Medal.
Stephen J. Muzi: CFO and Treasurer
Mr. Stephen J. Muzi is responsible for all accounting, financial reporting, treasury and budgeting activities. He is also responsible for ensuring that proper internal financial controls exist and that procedures are in place to safeguard company assets. Mr. Muzi joined VIASPACE in 2000.Prior to joining VIASPACE, Mr. Muzi was Corporate Controller of Southwest Water Company, a NASDAQ company with revenues in excess of $100 million. In this position, he was responsible for all SEC reporting requirements as well as Board of Director reporting. He managed the company's line of credit banking relationships, risk management program, internal audit program and income tax requirements. He also made presentations to investment brokers and analysts. Mr. Muzi was with Southwest Water Company from 1988 to 2000.From 1985 to 1987, Mr. Muzi was a senior auditor with BDO Seidman, a national CPA firm. Mr. Muzi received his BS degree from Rochester Institute of Technology and an MBA from the State University of New York at Buffalo. He is a Certified Public Accountant.
Year founded 1998VIASPACE became a public company in June 2005Ticker Symbol: OTCBB: VSPCExecutive Office AddressVIASPACE Inc.2102 Business Center Dr., Suite 130Irvine, CA 92612Tel. (800) 517-6850Fax. (626) 578-9063Contact InformationInvestor Relations ContactDr. Jan VandersandeInvestor RelationsPhone: (800) 517 8050E-mail: ir@viaspace.comTransfer AgentThe Nevada Agency and Trust Company50 West Liberty Street, Suite 880Reno, Nevada 89501Phone: (775) 322-0626
11.08.2011 (286 Days Ago)
