Tuesday, August 9, 2011

NEVER Seen It this Early

2Q is OUT!!

As of June 30, 2011, the Company had $1,407,149 in cash, . .

Revenue in future periods can be expected to increase sequentially at least until the second quarter of 2012 as all of our existing licensees commence and achieve full production.  

. . . we earned performance bonuses from YA Corn Oil in the amount of about $4.9 million which are included in revenue for the six months ended June 30, 2011.
Plan of Operations

Our business continues to improve. We won significant new business during the first half of 2011, increasing licensed penetration to 15% of the industry and nearly doubling the amount of production licensed to use our extraction technologies from 1.0 billion gallons per year (“BGY”) at the end of 2010 to more than about 1.9 BGY of ethanol production today. We produced about $1.3 million in operating income during the first two quarters of 2011 (excluding the impact of one-time performance bonuses), up from about $2.4 million in operating losses incurred during the first two quarters of 2010. We reduced our debt to YA Global and its affiliates by about $7 million to about $26 million, down about 21% from the balance due at the start of 2011.

After extensive third party due diligence and review, we were awarded contracts to design, build and install extraction systems for our licensees, including a state of the art new corn oil recovery facility for Sunoco, Inc. We received notification from the U.S. Patent and Trademark Office during 2011 of new patent allowances that we believe substantially strengthen our issued patents and ability to protect the competitive advantage of our licensees. And, we expanded our technology portfolio by filing new patent applications and pressing forward with new developments designed to further enhance the profitability of our licensees.
Our goals for the balance of 2011 are to work with our licensees to maximize the benefits and minimize the costs of recovering corn oil; increase our licensed penetration to facilities producing a total of 2.3 BGY of ethanol; reduce debt by a total of 33% during 2011; generate material positive cash flow from operations and operating income; and to continue to improve upon our technologies serving the ethanol industry. We expect that realization of each of these goals will enable us to begin repaying our remaining debt out of cash flow by the end of this year. Achieving this milestone is a key objective for 2011.




Anonymous said...

It's good to see revenues are almost high enough for GERS to break even, but with the Dec 31, 2012 maturity date for most of the convertible debt looming, how do they expect to get rid of all of that debt in time to eliminate additional dilution from conversion?

Skribe said...

I think the infringers should pay for this because they are taking revenues by illegal market share. If that share was signed to GreenShift the legal way this extended dilution risk from YA would not be the problem. GERS should have had far more licensees and revenues by now, the debt would most lilkely have been paid down already.

nobody12378 said...

The only reason that people have not bailed out at 0.0001 leading to a collapse of the BID is hope. They hoped for a quick settlement so there would be a cash infusion to eliminate the toxic debt. This is now very unlikely. They hoped for a great Q2 filing. That did not happen and by some perspectives it was dismal with great mystery where all the cash from ramped-up revenues went and by other perspectives OK; but certainly not great. They hoped for an indication of no more dilution after the R/S. Slash says we got that, we did not! We got the same language of the shareholder letter that was released before massive dilution and the same documentation that states that until the toxic debt is eliminated further dilution could occur. Therefore, we received absolutely no guarantee that further dilution post R/S will not occur. To my eyes based on the history here it could be concluded that dilution is likely. They had hoped for the announcement of a major license, such as Valero. Well, that's all we have left in the hope chest and even if that happens is that enough reason for the PPS to remain stable, and for it not to plummet post R/S? So, yes we could see the BID vaporize in the days ahead. Any cogent arguments against this potential outcome please state them here. Frankly, any one not wedded to this company or in so deep that bailing now is useless will probably consider doing so. What we will likely hear from KK in that event (zero BID) is the need for the R/S to right the good ship GERS; that his little struggling company with great technology to change the world is not getting the respect that it deserves. One thing we have learned about market respect -- it only respects the color of money.

nobody12378 said...

Talk about misleading verbiage; is KK implying that GERS COES technology generates SIX TIMES more revenue for ethanol producers? What have I been missing?

"Our corn oil extraction technologies are widely considered to be the quickest and best path for margin improvement for corn ethanol producers today. The current market value of corn oil recovered by our licensees is about $3.60 per gallon – more than six times higher than its value without use of our patented corn oil extraction processes. Our corn oil extraction technologies increase corn-to-biofuel yields while reducing the energy and greenhouse gas intensity of corn ethanol production for dry mill ethanol producers. These benefits correspond to increased ethanol producer income ranging from about $0.08 to more than $0.20 per gallon of ethanol produced, depending on the extent to which the producer uses our patented and patent-pending extraction technologies, and ethanol producer paybacks of less than 1 year at current market prices. No technologies have been developed, commercialized and made available to corn ethanol producers in the history of the ethanol industry that begin to approach these results."

Maybe KK should not be in such a hurry to get the filing out before he has someone outside his entourage read it.

Anonymous said...

"The current market value of corn oil recovered by our licensees is about $3.60 per gallon – more than six times higher than its value without use of our patented corn oil extraction processes."

All this is saying is corn oil is worth six time as much as what you would have without GreenShift (ddgs).

You start with lead (ddgs), run it through Greenshift's black box, and it turns to (gold)
corn oil.

It may not be alchemy, but it is damn close. It is powerful imagery for producers. Unlike alchemy, the six times figure is real.

nobody12378 said...

The purpose of this Information Statement is to notify you that the holder of shares representing a majority of the voting power of GreenShift Corporation (the “Company”) has given its written consent to a resolution adopted by the Board of Directors of the Company to amend the articles of incorporation so as to effect a reverse split of the Company’s common stock in a ratio of 1-for-1,000 . We anticipate that this Information Statement will be mailed on August 17, 2011 to shareholders of record. On or after September 6, 2011, the amendment of the articles of incorporation will be filed with the Delaware Secretary of State and will become effective.

nobody12378 said...

In addition, until we are able to fully pay off our remaining debt, our lenders will continue to have the right to receive payment upon demand in the form of common stock at a discount to its market price.

Any one interested in 0.0002s now?

nobody12378 said...


You are saying that Corn Oil is only worth sixty cents a gallon without being processed by GERS COES?

Anonymous said...

Nobody1234 are you having a brain fart or what? Corn oil and extracted ddgs generate six times the revenue of ddgs alone. It's not that hard to understand.

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