1Q Released!

Key Highlights

The following summarizes important recent developments:

Commodity Sales We produced 673,218 gallons of corn oil at our owned corn oil extraction facilities during the first quarter 2010, and another 2,352,574 gallons during the year ended December 31, 2009; this oil was sold for $1,271,501 and $3,301,473 during the respective periods.

Debt Repayment We satisfied $1,629,527 in convertible debt during the first quarter 2010, and another $5,670,000 during the year ended December 31, 2009, through the issuance of common stock.

Working Capital We received $908,726 in net cash proceeds from financing activities during the first quarter of 2010 and another $3,821,670 during the year ended December 31, 2009, which funds were used for general working capital purposes.

Patent Protection We have initiated legal action to defend against infringing use of our patented technologies. We estimate that as many as 40 ethanol producers are infringing on our patented technologies today; we recently initiated suit against 15 of these producers.

Proven Win-Win Alternative We have demonstrated that infringement is counter-productive, and that ethanol producers can make more money by working with us to take advantage of our process knowledge and expertise to maximize the benefits and minimize the costs of using our patented technologies.

New Agreements We recently entered into license agreements with two ethanol producers corresponding to about 220 million gallons of annual ethanol production. These agreements provide for royalties payable to GreenShift based on the use by the relevant ethanol producers of our patented and patent-pending corn oil extraction technologies. Together, these ethanol producers are currently producing more than 350,000 gallons of corn oil per month and more than 4.2 million gallons of corn oil per year with our patented technologies.
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We received proceeds from financing activities totaling $1,254,243 during the quarter ended March 31, 2010. Viridis Capital, LLC ("Viridis"), Minority Interest Fund (II), LLC ("MIF"), Acutus Capital, LLC("Acutus"), and management personnel continue to provide us with the cash resources we require for our overhead needs, including all legal expenses incurred in the prosecution of infringing use of our patented technologies. Viridis is owned by our chairman, MIF is owned by a family member of our chairman, and Acutus is owned by our chairman's attorney and former professor. These investors collectively provided us with a total of $3,821,670 during the year ended December 31, 2009 and another $1,254,243 during the first quarter of 2010.


In total, Viridis (along with our chairman personally and an entity held in trust for the benefit of our chairman's wife (the "Kreisler Trust")), MIF, Acutus and current management have provided GreenShift and it's affiliated companies and subsidiaries with more than about $12,670,769 in cash between January 1, 2005 and March 31, 2010. Viridis, the Kreisler Trust and our chairman collectively loaned $8,175,980 of this cash amount, about half of which was subsequently canceled, forgiven and contributed to shareholders' equity.

The number of outstanding shares of common stock as May 20, 2010 was 13,608,278,721.

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More to come,
SkunK