Lincolnway Energy Update and SEC Filing Note

Lincolway Update 11 Feb 2011

A Complaint for Patent Infringement was filed against Lincolnway Energy and certain other parties on May 3, 2010 by GS CleanTech Corporation, a wholly owned subsidiary of GreenShift Corporation. The Complaint was filed in the United States District Court for the Northern District of Iowa, Western Division, as Case No. 5:10-cv-04036. The Complaint alleges, in general, that the corn oil extraction equipment and related processes used by Lincolnway Energy and the other parties infringes upon one or more of the claims under certain patents held by GS CleanTech Corporation. The Complaint seeks injunctive relief, an award of damages with interest, and any other remedies available under certain patent statutes or otherwise under law. The Complaint claims damages of at least a reasonable royalty rate and lost profits. The Complaint also alleges that the alleged infringing conduct by Lincolnway Energy is willful, resulting in the right to recover treble damages and attorney fees pursuant to 35 U.S.C. §284. The case has been transferred to the United States District Court for the Southern District of Indiana pursuant to Multi-District Litigation proceedings. Lincolnway Energy is unable to determine at this time if the Complaint will have a material adverse effect on Lincolnway Energy.  (page 22)
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We have read about the GreenShift "marketing arm" in recent PRs.  The SkunK doesn't know how that business is revenued.  However in the Lincolnway filing we see one example of how they have it set up for 5%:

Lincolnway Energy began extracting corn oil from syrup which is produced in the production of ethanol in April, 2008. Lincolnway Energy estimates that it will produce approximately 3,000 tons of corn oil per year. Lincolnway Energy's corn oil is marketed by FEC Solutions, L.L.C. (page 13)

Lincolnway Energy's corn oil production is sold to FEC Solutions, LLC (FECS). For corn oil, title passes upon the loading of the corn oil into the trucks. The purchase price payable by FECS for each shipment of corn oil is the FOB sales price less a marketing and technical assistance fee in an amount equal to 5% of the FOB sales price. (page 18)

[From the department of:  "Are we supposed to laugh or cry?"]
Are GreenShift Lawyers going to ask if patent infringement helped in this "low cost basis" boast?
Lincolnway Energy was able to implement the processes to collect corn oil and carbon dioxide gas on a low cost basis. (page 13)
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Potential new Customer?
This from a new 11 Feb 2011 ADVANCED BIOENERGY, LLC filing:

We are also improving the rail facilities at the Huron plant location, and evaluating adding corn oil extraction technology to one or more of our facilities. (page18)

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GERS SEC Filings
The next required GERS filing is the 10-K Annual Report for 2010.  The 4Q will be combined with that report.  It is due 31 March, although the 15 day automatic extension is normally taken.  If that 15th day is a weekend - it is released on the first business day following.  Over the last five years (2010, 2009, 2008, 2007, 2006) the report has been released on 15, 16, 07, 17 and 17 of April respectively.  This year April 15th is on a Friday so we can expect it that day.  Notice that in 2008 we had a release on the 7th so there is no guarantee we will take the entire 15 day extension.

SkunK