Plan of Operations
Our business continues to improve. We won significant new business during 2011, more than doubling the amount of ethanol production licensed to use our extraction technologies from 1.0 billion gallons per year (“BGY”) at the end of 2010 to more than 2.3 BGY of ethanol production today with our licensees at full production.
We were awarded contracts to design, build and install extraction systems for several of our licensees after extensive due diligence and third party review, including a state of the art new corn oil recovery facility in Fulton, New York for Sunoco, Inc. We helped our licensees to optimize yield while minimizing costs, which enables our licensees to extract the highest percentage of corn oil than any other infringing technology. In support of our clients we have assisted in the marketing of the corn oil into diversified markets outside of biodiesel. Today, only about 65% of our licensee's sell corn oil to biodiesel producers.
New patents were allowed during 2011 that we believe substantially strengthen our issued patents and ability to protect the competitive advantage of our licensees. We expanded our technology portfolio by filing new patent applications and pressing forward with exciting new innovations designed to further enhance the profitability of our licensees. We transitioned to profitability (excluding the impact of one-time bonuses). We reduced debt by about 30% by liquidating our remaining production assets, and we have begun to service our remaining debt to our senior lender out of cash flow to supplement and offset equity conversion.
Looking forward, we will continue to work with our licensees to maximize the benefits and minimize the costs of recovering as much corn oil as possible. Our existing licensees collectively have the potential to recover more than 150 MGY of corn oil. We plan to help our licensees to achieve as much of that potential as possible while also maximizing the value and marketability of their other co-products. We will also remain focused on winning new business and increasing our licensed penetration. To do so, we will continue to provide exceptional win-win services, the highest-performing systems packages available, and access to new technologies for further dramatic gains in licensee profitability and competitive advantage.
We will continue to expand our patent portfolio. We have many additional patents pending and we will remain committed to developing new technologies to further enhance the profitability of our licensees. And, we will stay the course in our ongoing infringement litigation but plan to expand our efforts to aggressively prosecute any entity, manager or other person infringing or inducing infringement of our technologies – all with a view towards enhancing and protecting the significant competitive advantage of our licensees.
Our financial performance for the balance of 2012 and beyond can be expected to be most significantly impacted by the rate at which our existing and new licensees commence production, the amount of corn oil that our licensees produce, the market price for that corn oil, the extent to which we collect reasonable royalties, and the costs incurred in our ongoing litigation for infringement of our patents.
A number of our licensees are in various stages of deploying or optimizing the performance of the systems needed to use our technologies. Notwithstanding the impact of new license agreements that we may enter into or fluctuation in the market price for corn oil, we expect that our quarterly results of operations will continue to improve sequentially at least until the third or fourth quarter of 2012 as all of our existing licensees commence and achieve full production. In addition, future results may be improved by the impact of event-driven systems integration contracts as we continue to receive significant interest for our engineering and other services in connection with the design, construction, integration and modification of corn oil extraction systems and other new systems for existing and prospective licensees.
SkunK
HERE
MORE LATER . . .
Friday, March 30, 2012
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9 comments:
Revenues down in fourth quarter, YAGI debt increased to 38 million! and " While revenue in future periods can be expected to decrease as a result of the non-recurring nature of the results recognized in connection with the YA Corn Oil Transaction, we expect that this decrease will be offset by the concomitant decrease in costs of sales associated with the transfer of those agreements, as well as increases in revenue generated by new license agreements executed during 2011 and 2010. Revenue growth moving forward will also be affected by fluctuation in the market price for corn oil since the royalty income we generate is tied to sales of corn oil extracted by our licensees with our technologies."
Was this what we were looking for? Surprised me and most here judging from the poll results.
The math doesn't add up on this. How are they saying they have over 2.3 billion licensed and ONLINE and then reporting the revenue that they are for this past year and especially the quarter.
I know litigation is expensive but believe me, it isn't that expensive.
The only positive thing I could say is that I was surprised by how little dilution there actually was since they blocked there TA from releasing the OS. That being said, I think it is only a matter of time before they sink this tank back to triple zero's.
Only 930 holders of GERS? This has shrunk significantly as well, I suspect that we will see many heading to the exit unless there is a bright light I do not see here?
How can the revenue drop so much given the increasing number of gallons under license? I could understand earnings but not revenues. Perhaps this question has already been asked.
Where is the chatter? I suspect the lack of it is a measure of the disappointment?
Nobody is loving this and that's why he's a miserable loser. Loves to rub it in. I hope he can get some mental help. There's a reason why he's a very lonely person!!
We are profitable. What's wrong with u guys that's important doom and gloom nobody u can head for the door whenever u want
Being profitable isn't whats important. Any company could paint profitability. When you look at the core their are issues. Where is the money from all the additional COES online? Why decreasing revenue with more COES (over double to be more precise!)? Why increased debt with YAGI rather than a decrease? With all the licenses online we should be decreasing debt and revenues should have increased substantially over the last quarter.
It didn't happen and there is no explanation!
Only 930 holders of GERS?
READ the next line
The number of holders does not give effect to beneficial ownership of shares held in the street name by stock brokerage houses or clearing agents.
That means that most people have their brockerage firm hold their shares for them. 930 actualy have them assigned to them by name is all that means.
That is a required statement and it means nothing. The base is much bigger and getting bigger. The old people who have their shares in their wall safe is getting smaller. Daah
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