2Q is Out!

(Skunk's thinkin in red)
Increased Sales

As of the date of this second quarter report, we have executed new license agreements for use of our patented and patent-pending corn oil extraction technologies that we expect will generate royalties in excess of our break-even costs and, possibly, at a level sufficient to realize profitability depending on the amount of oil produced by our licensees and the market value of that oil. We expect that we will start realizing these increased revenues upon the completion of assembly and installation of the equipment and components needed to apply our patented technologies at the relevant licensed ethanol plants. In addition, we are currently in discussions with a number of producers with respect to new settlement and license agreements and we expect to achieve our previously stated goal of executing new license agreements this year with ethanol producers corresponding to an aggregate capacity of at least 1 billion gallons per year of ethanol.
(This says, with even no new contracts - when the Great Green Plains COES build out is done by end of 1q 2011 - we should be at break-even-and possibly even profitable.   ". . . currently in discussions with a number of producers with respect to new settlement . . ." The word "settlement" is is great news because it implys that more companies that are currently under litigation - or the threat of litigation may soon become customers.  No production wait in etiher case. )

We recently entered into license agreements with ethanol producers corresponding to about 840,000,000 gallons of ethanol production, which brings our total licensed production to 1,010,000,000 gallons of annual ethanol production, or about 8% of the U.S. ethanol industry. These agreements provide for royalties payable to GreenShift based on the use by each ethanol producer of our patented and patent-pending corn oil extraction technologies

Revenues

Total revenues for the six months ended June 30, 2010 were $3,300,818 representing an increase of $1,573,285, or about 91%, over the six months ended June 30, 2009 revenues of $1,727,533. Revenue for the six months ended June 30, 2010 included $3,300,818 in licensing sales. In the comparable period of last year, our revenues were comprised of $1,465,586 from licensing activities.

The number of outstanding shares of common stock as August 23, 2010 was 1,826,864,030.

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 its affiliated companies and subsidiaries with more than $14,432,307 in cash between January 1, 2005 and June 30, 2010. Viridis, the Kreisler Trust and our chairman collectively loaned $8,329,355 of this cash amount, about half of which was subsequently canceled, forgiven and contributed to shareholders' equity.

The Company estimates that as many as 40 ethanol producers are infringing the Company’s patents. In their opposition to GS CleanTech's motion for preliminary injunction, neither Cardinal Ethanol, Big River Resources Galva, nor Big River Resources West Burlington (each of which use an ICM extraction system and each of which is being indemnified and defended by ICM) affirmatively deny that their respective extraction facilities are being used in a manner covered by one or more claims of the '858 Patent, but rather rely upon arguments that the '858 Patent is invalid based primarily upon prior art that has been considered and rejected by the PTO during the prosecution of the patent application that led to the '858 Patent. GEA Westfalia’s pleadings also suggest that one or more claims of the '858 Patent cover processes utilized by ethanol producers that have purchased GEA Westfalia’s equipment. The Company intends to file additional lawsuits involving any and all infringing use of the Company’s patents. The Company’s position is that any infringing ethanol producer is liable for a minimum of reasonable royalties for any infringing use of the Company’s patented technologies beginning on the publication date of the application that led to the ‘858 Patent. The Company intends to seek additional relief for instances of intentional infringement.


SEE HERE

SkunK