Monday, May 18, 2009 – Pre-Market Open
Green Baron Updated “Stock Alert”
(OTCBB:
VSPC - .0269 per share)
www.VIASPACE.com
Common Shares Outstanding / 846,931,000
Estimated Float / 333,000,000
Current Market Cap / $22.9 million
52-Week High / $.05 per share
52-Week Low / $.008 per share
All Time High / $5.36 per share
Average Price / $.0196 (50-day) .0187
(200-day)
Average Volume / 3,615,200 (50-day)
1,969,100 (200-day)
VIASPACE Fuel Cartridge Powers SAMSUNG
High-Performance Direct Methanol Fuel Cell
for Military Applications – Plans to Expand
Platform Include Mobile Electronics like
Notebook Computers and Industrial Equipment
Worldwide License to China Giant King Grass
is Suitable for Both Cellulosic Biofuels and
as Animal Feed; Fast-Growing Grass Nicknamed
“Grassoline”
News Released Today:
VIASPACE Reports Q1 2009 Financial Results –
Sharply Higher Revenues, Expense Reductions
Lower Net Loss; Green Baron Updated Report
still Views VSPC Attractive
Exactly two months ago on March 18th, 2009,
The Green
Baron Report issued its initial
profile that focused on VIASPACE Inc. (BB:
VSPC) as a new “Stock Alert” at .009 per
share. We stated that “due to its recent
acquisition, the Company now operates three
businesses that should contribute strongly
to profitability over the coming years.” We
believed VSPC had bottomed, and in the first
week after release of our profile VSPC went
to as high as .014 per share.
Subsequently over the next month, and
particularly when VSPC announced it had
further strengthened its partnership with
SAMSUNG to develop its direct methanol fuel
cell on April 14th, 2009, VSPC stock staged
an impressive rally on record volume.
VSPC hit a high on April 15th of .0475 per
share, a move of over 427% from our profile
price of .009 per share less than one month
earlier on March 18th.
Today, The
Green Baron Report issues this
updated Green Baron “Stock Alert” on
VIASPACE Inc. (BB: VSPC).
Results will again be compiled from the most
recent trade possible prior to dissemination
of this report to the subsequent high and
will be monitored at
www.thegreenbaron.com through email
updates to members.
TRADER’S NOTES:
Over the past month, VSPC stock has been
trading in a range primarily between .024
and .032 per share. Volume has remained
extremely active with an average of
2,931,829 shares traded per day over the
past 10 trading sessions. The spread on
VSPC is typically less than a tenth of a
penny making it extremely attractive for
active traders. Since VSPC is quoted on The
Bulletin Board, it is easy for most
investors to find Level II market maker
quotes on the stock.
Today’s earnings release confirms to us that
VIASPACE is headed in the right direction,
and we view the report as solid evidence of
its commitment to sharply increase revenues
and reduce expenses. At the current rate of
growth, VSPC should become profitable on a
net basis by year end.
The Green Baron
Report expects further
improvement in the current quarter as well
due to the sale of another non-core business
(the humidity sensor line announced April
23, 2009) and growth of its three primary
business units listed below.
1.
VIASPACE Renewable Energy - Biofuels and
Animal Feed – “Grassoline”
VIASPACE’s renewable energy business is
based on a worldwide license, obtained
through the acquisition of IPA, to cultivate
and sell Giant King Grass, a natural hybrid,
non-genetically modified, fast-growing,
perennial grass for livestock feed as well
as a feedstock for non-food crop biofuel
production. This grass grows to four meters
in height in two months and produces four
crops a year in tropical and subtropical
areas of the world. VIASPACE has initially
planted 1.2 million seedlings on leased
cropland in China, holds options to lease
additional acreage in China, and plans to
expand the grass business into other areas
of the world.
Giant King Grass supports China’s top three
national initiatives: improved agriculture
to feed its people, alternative energy and a
cleaner environment. Burning a grass-based
biofuel produces carbon dioxide; however,
this grass crop absorbs carbon dioxide. The
net process is very green.
VIASPACE Chief Executive Dr. Carl Kukkonen
spoke at the Renewable Energy Finance Forum
held May 12-13 in Beijing and gave a
presentation titled, "Grassoline:
Fast-Growing Grass for Cellulosic Biofuels
and Animal Feed."
Kukkonen commented: "The renewable energy
segment of our business, which is to grow
and supply the grass for the emerging
biofuels market, is now in place and
progressing according to plan. I visited the
original seedling plot in Guangzhou, China
where the Giant King Grass had grown to
approximately 10 feet high. The original 1.2
million seedlings have been propagated into
approximately 3 million new seedlings which
were planted on 112 acres of leased land
about 100 miles north of Guangzhou."
"Anticipating increasing acreage, we are in
the process of establishing supply contracts
with biofuel producers and other energy
providers, initially in China, where biomass
energy demand is substantial," Kukkonen
said. "However, we are also seeking
opportunities for more immediate sales that
exist in the animal feed market." (Note:
See balance of press May 11 release under
Recent Key Announcements).
2.
VIASPACE Energy - Direct Methanol Fuel Cell
Corp. (DMFCC)
VIASPACE owns a 71.4% stake in Direct
Methanol Fuel Cell Corporation (DMFCC) and
is engaged in the development of disposable
fuel cell cartridges for fuel-cell powered
portable electronics such as notebook
computers and mobile phones. DFMCC is also
developing the cartridge manufacturing and
distribution infrastructure. The Company
plans to leverage its strong fuel cell
patent portfolio licensed from Caltech and
USC into key strategic partnerships with
market leading OEMs and fuel cell
manufacturers by offering them required
patent protection.
Since the cartridges are a disposable
consumable item, they represent a
potentially significant ongoing recurring
revenue stream similar to razor blades or
printer cartridges.
Key Development:
On April 14th, 2009, it was announced that
SAMSUNG, one of the world's leading
electronics companies, revealed its new
military-grade fuel cell powered by a
methanol fuel cartridge developed and
delivered by VIASPACE
Inc.
SAMSUNG also revealed that it has completed
fuel cell performance tests for 72 hour
operation with the U.S. Army's CERDEC
(Communication Electronics Research and
Development Engineering Center). Plans for
mass production include fuel cells not only
for military applications but expanding the
platform to include mobile electronics, like
notebook computers, and industrial
equipment. SAMSUNG reported that Frost and
Sullivan expects sales of military fuel
cells to reach more than 100 million units
for a market value of more than $580 million
by 2013. (NOTE: See balance of April 14
release under Recent Key Announcements)
3.
Inter-Pacific Arts
Inter-Pacific Arts manufactures
high-quality, custom designed framed art and
sells to large U.S. retailers. A key to
Inter-Pacific's success in the US framed art
market is that all of the art is high
quality and purchased in the US. All
intellectual property royalties are properly
paid and there are no counterfeit products.
The art (including prints) are sent to
Inter-Pacific's manufacturing facility in
Guangzhou, China for custom matting and
framing, and containers of framed art are
sent directly to wholesalers, distributors
and large retailers. Inter-Pacific has
designers who work with the customers to
choose the art, mattes and frames. Customers
appreciate high-quality of the framing and
clear plastic corner protectors that do not
have to be removed for shelf display.
Inter-Pacific also assures customers that it
will not sell the same product design to any
of its competitors.
The previous owner of Inter-Pacific is now a
VIASPACE shareholder and has agreed to
remain with the company to grow the framed
art business. Profits from the framed art
business are reinvested into the grass
business, which is expected to become the
dominant source of revenue and income in
2010 or 2011.
Recent Key Announcements
May 18, 2009- VIASPACE Reports First-Quarter
2009 Financial Results – Sharply Higher
Revenues, Expense Reductions Reduce Net Loss
– PASADENA, Calif. - VIASPACE Inc. (OTCBB:
VSPC), a clean energy company providing
products and technology for renewable and
alternative energy, announced financial
results for the first quarter ended March
31, 2009.
Revenues for the quarter were $837,000,
including $591,000 from Inter-Pacific Arts,
Inc. (IPA), acquired during the fourth
quarter of 2008, and $246,000 from military
contracts for monitoring and detection
systems, humidity sensor products and a fuel
cell cartridge development contract with
Samsung. First-quarter revenues in 2009 were
up 680% compared to revenues of $123,000 for
first-quarter 2008. Gross profit for the
quarter was $301,000, including $256,000
related to IPA, up 478% compared to $63,000
for first-quarter 2008.
Operating expenses for the quarter declined
to $1.1 million, compared to $2.0 million in
first-quarter 2008, due to lower research
and development (R&D) expense and lower
selling, general and administrative (SG&A)
expense. Stock-based compensation expense
for the quarter was $573,000, compared to
$739,000 in first-quarter 2008.
Operating loss for the quarter was $774,000,
compared to an operating loss of $2.0
million in first-quarter 2008.
For the quarter, other expense, net,
including noncontrolling interests in
consolidated subsidiaries, was $77,000,
compared to other income, net, of $14,000 in
first-quarter 2008.
For the first quarter of 2008, the Company
recorded a $357,000 loss from discontinued
operations.
Net loss for the quarter was $851,000, or
$(0.00) per share, compared to a net loss of
$2.3 million, or $(0.01) per share for
first-quarter 2008. Net loss for the first
quarter 2009 was reduced 63% compared to
2008.
The Company also reported consolidated cash
and cash equivalents on March 31, 2009, of
$1.8 million.
VIASPACE Chief Executive Dr. Carl Kukkonen
commented: “First quarter results reflect
the full quarterly contributions by IPA plus
higher contract revenues from Direct
Methanol Fuel Cell Corporation and Ionfinity.
The increase in revenue and reduction in
operating loss indicate that we are moving
in the right direction. R&D expenses are
expected to remain at low levels, since
future business activities will be focused
primarily on product marketing and
generating sales growth. During the quarter,
we used cash from operations to expand our
renewable energy operations, including
growing Giant King Grass in the PRC.”
“We expect operating results to improve in
subsequent quarters. We believe that the
groundwork we are laying now will provide
momentum for revenues and growth in 2010,
not only of our grass business but also for
fuel cell cartridge development and
monitoring and detection systems.”
May 11, 2009 - VIASPACE CEO to Present at
Renewable Energy Forum in China – To
Discuss Giant King Grass as Cellulosic
Low-Carbon Energy Source, and Alternate Use
as Animal Feed -
PASADENA, Calif. and BEIJING (PRNewswire-FirstCall)
- VIASPACE Inc., an alternative energy
company providing products and technology
for renewable and clean energy, will discuss
opportunities for Giant King Grass as a
low-carbon source for producing biofuels as
well as an alternative use -- as animal feed
-- that supports one of China's national
priorities.
VIASPACE Chief Executive Dr. Carl Kukkonen,
in Asia for business meetings, will give a
presentation, "Grassoline: Fast-Growing
Grass for Cellulosic Biofuels and Animal
Feed," at the Renewable Energy Finance Forum
to be held May 12-13 in Beijing.
Kukkonen commented: "The renewable energy
segment of our business, which is to grow
and supply the grass for the emerging
biofuels market, is now in place and
progressing according to plan. I visited the
original seedling plot in Guangzhou, China
where the Giant King Grass had grown to
approximately 10 feet high. The original 1.2
million seedlings have been propagated into
approximately 3 million new seedlings which
were planted on 112 acres of leased land
about 100 miles north of Guangzhou."
"Anticipating increasing acreage, we are in
the process of establishing supply contracts
with biofuel producers and other energy
providers, initially in China, where biomass
energy demand is substantial," Kukkonen
said. "However, we are also seeking
opportunities for more immediate sales that
exist in the animal feed market."
According to Kukkonen, a high national
priority in China is to increase the amount
of meat and dairy in the Chinese diet, so
sufficient supplies of feed for these and
other livestock are an ongoing concern.
According to Feed Industry Network's January
6, 2009, update, demand in China for feed
was growing at 12% to 15% annually before
milk contamination and economic issues
slowed demand. However, demand is expected
to recover as contamination issues have been addressed
and economic conditions are improving in
China which expects 6% growth in 2009.
"From a broader perspective," Kukkonen
added, "growth in demand for animal feed is
the result of population growth, rising
standards of living, and increasing
consumption of meat, dairy and fish, and
these trends are occurring around the world.
According to The Poultry Site, North
America, Asia and Europe are the leading
current consumers of animal feed. Demand is
also growing in Africa and India which are
well suited to grow Giant King Grass."
May 4, 2009 - VIASPACE to Demonstrate New
System for Chemical, Explosive and Toxic Gas
Detection to U.S. Army -
VIASPACE Inc., a clean energy company with
subsidiary operations in security-related
systems and technology, has scheduled a
mid-May 2009 field demonstration of its new
detection and analysis system for
identifying hazardous chemicals, explosives,
industrial toxic gases, and the chemical
components of improvised explosive devices (IEDs).
The demonstration is part of a phase II
contract awarded by the U.S. Army in August
2008. The contract provides up to $750,000
in funding over a two-year period.
Through its subsidiary Ionfinity, VIASPACE
is developing a new chemical-agent sensor in
joint collaboration with NASA's Jet
Propulsion Laboratory, General Dynamics,
Sionex, and Imaginative Technologies. The
program, entitled "Advanced Robotic
Detection of Chemical Agents, Toxic
Industrial Gases, and IEDs for Force Health
Protection," was awarded by the U.S.
Army's Small Business Technology Transfer (STTR)
Program. The objective of the program is to
develop and demonstrate a prototype--an
enhanced version of General Dynamics'
JUNO(TM) hand-held chemical agent detector
incorporating VIASPACE's chemical-agent
sensor--that can be mounted onto unmanned
ground vehicles for missions involving
combat-casualty care and protection of
medical personnel.
Ionfinity also has a $786,000 contract with
the U.S. Navy entitled "Miniature Electronic
Sniffer for Navy Vertical Take off Unmanned
Aerial Vehicles (VTUAVs)"
Ionfinity Chairman, Chief Operating Officer
and Principal Investigator James Weiss
said: "We believe this and other
security-related systems being developed at
Ionfinity and through VIASPACE's
collaborations will be able to meet the
ongoing needs for improved capabilities to
detect a range of hazardous chemicals and
gases, explosives and other dangerous
substances and materials. Due to the nature
and number of these threats, detection
systems also have to be easy-to-use, provide
timely and accurate readings, and be compact
and durable."
In addition to the security industry, in
which approximately $55 billion is spent
annually, Weiss sees potential for this new
detection system to be applied in chemical
analysis and monitoring for defense and
homeland security, and commercial
applications in environmental monitoring,
agriculture and medicine.
According to Company information, the
chemical-sensor system includes: 1) a
powerful new detector called a Differential
Mobility Spectrometer; 2) a non-radioactive
ionization method that does not fragment or
multiply-ionize sampled specimens; and 3) a
micro-gas chromatograph for confirmation and
enhanced detection capability. The system
will detect chemicals at anywhere from
parts-per-trillion (ppt) to
parts-per-billion (ppb) levels within 6
seconds.
April 23, 2009 - VIASPACE Inc. Sells
Humidity Sensor Line -
Strategic Sale of Non-Core Business to
Facilitate Focus on Core Growth,
Profitability
-
VIASPACE Inc. announced that it sold its
humidity sensor business line for cash to
Colton, California-based LANDTEC North
America, a privately held provider of
monitoring systems for renewable energy and
green house gas (GHG) reduction validation.
VIASPACE Chief Executive Dr. Carl Kukkonen
said: "The strategic sale of this non-core
business allows not only more efficient
operations but also full commitment of
resources to growing our core businesses in
renewable and alternative energy. As a
result of higher operating efficiency and
expected revenue growth, we believe that
VIASPACE will achieve breakeven cash flow in
2009 and quarterly profitability sometime
during 2010."
VIASPACE's renewable energy business is
focused on supplying a proprietary
fast-growing feedstock for the global $25
billion biofuels market. Its alternative
energy business includes the design and
manufacture of disposable fuel cell
cartridges for electronics OEM customers,
such as Samsung, who are developing fuel
cells as a clean power-source substitute for
batteries.
April 14, 2009 - VIASPACE Fuel Cartridge
Powers SAMSUNG High-Performance Direct
Methanol Fuel Cell for Military Applications
- SAMSUNG
Reveals New Military-Grade Fuel Cell in U.S.
Army Performance Test
- VIASPACE
Inc., an alternative energy company
providing products and technology for
renewable and clean energy, announced that
SAMSUNG, one of the world's leading
electronics companies, revealed its new
military-grade fuel cell--powered by a
methanol fuel cartridge developed and
delivered by VIASPACE
Inc. --
in a press release and at the Korea Green
Expo held last week in South Korea.
SAMSUNG also revealed that it has completed
fuel cell performance tests for 72 hour
operation with the U.S. Army's CERDEC
(Communication Electronics Research and
Development Engineering Center). Plans for
mass production include fuel cells not only
for military applications but expanding the
platform to include mobile electronics, like
notebook computers, and industrial
equipment. SAMSUNG reported that Frost and
Sullivan expects sales of military fuel
cells to reach more than 100 million units
for a market value of more than $580 million
by 2013.
VIASPACE Chief Executive Carl Kukkonen
remarked: "We're pleased with SAMSUNG's
success and are continuing to work closely
with their research and development staffs
as they take further steps toward commercial
production for both the military and
consumer markets."
The fuel cartridge was developed by
VIASPACE's fuel cell subsidiary, Direct
Methanol Fuel Cell Corporation (DMFCC),
under a contract with SAMSUNG. Using
VIASPACE's fuel cartridge full of liquid
methanol, the fuel cell efficiently converts
the methanol into electrical energy without
burning. SAMSUNG's high efficiency military
direct methanol fuel cell (DMFC) system
produces the same energy as batteries two to
three times its weight at a
cost-per-kilowatt-hour 50% to almost 98%
lower than batteries. SAMSUNG's fuel cell
may be operated in any orientation, a key
requirement for military applications.
Kukkonen added: "Our clean energy business
is focused on designing and manufacturing
disposable fuel cartridges that supply
methanol for fuel cells, which we feel will
become a major source of power for
electronic devices such as notebook
computers and cell phones. Since a notebook
computer powered by a fuel cell is projected
to use approximately 100 fuel cartridges
during its lifetime, we see our partnerships
with Samsung and other companies as
opportunities to develop a substantial base
of recurring revenues.
Pictures of the Samsung fuel cell containing
the DMFCC cartridge are available at:
Management Team
Dr. Carl Kukkonen: CEO, Chairman, Co-Founder
–
From its founding in 1998, Dr. Carl Kukkonen
has led the VIASPACE team, serving as CEO of
ViaSpace Technologies LLC, the predecessor
of VIASPACE Inc., and serving as CEO and
Chairman today. ViaSpace Technologies
incubated several companies based on
technologies developed at the NASA Jet
Propulsion Laboratory and patents and
software licensed from Caltech.
Prior to founding VIASPACE, Dr. Kukkonen was
a Caltech employee serving as Director of
the Center for Space Microelectronics
Technology (CSMT) and Manager of
Supercomputing at the NASA Jet Propulsion
Laboratory. At JPL from 1984 to 1998, he
managed several technologies and technical
subsidiaries. Dr. Kukkonen established and
grew the CSMT into a 250-person operation
with a $70M annual budget.
Stephen J. Muzi: CFO and Treasurer –
Prior to joining ViaSpace Technologies LLC
as Controller in 2000, Mr. Muzi was a
Corporate Controller at Southwest Water
Company from 1988 to 2000, a NASDAQ company
with revenues in excess of $100 million. In
this position, he was responsible for all
SEC reporting requirements as well as Board
of Director Reporting. He managed the
company’s line of credit banking
relationships, risk management program,
internal audit program, and income tax
requirements. He also made presentations to
investment brokers and analysts.
From 1985 to 1987 Mr. Muzi was a senior
auditor with BDO Seidman, a national CPA
firm. Mr. Muzi received his BS degree from
Rochester Institute of Technology and an MBA
from the State University of New York at
Buffalo. He is a Certified Public
Accountant.
Green Baron Conclusion
VIASPACE Inc. is now a well rounded Company
that is ideal for speculative investors.
Inter-Pacific Arts provides a profitable
division and consistent revenues while the
sale of Giant King Grass “Grassoline” and
Direct Methanol Fuel Cell Corporation
demonstrate viable huge growth potential.
The Green Baron Report
is particularly impressed by the
strengthening relationship with Samsung
demonstrated in the April 14th press
release. Samsung is one of the world’s
leading electronics companies and a
household name. It is clear that Samsung
likes the high efficiency produced by the
direct methanol fuel cell, and the potential
market size is huge.
VIASPACE is in the process of establishing
supply contracts with biofuel producers and
other energy providers for its Giant King
Grass. It will also seek opportunities for
sales that exist in the animal feed market.
VIASPACE is working to acquire increased
acreage to so it can meet anticipated
demand.
After a spike rally that took VSPC stock on
a 400% move higher, the stock has
consolidated nicely at the mid .02 per share
level. VSPC has tested the 200-day moving
average, and appears ready to make another
assault at the recent high. Watch out for
new developments from VIASPACE that could
take the stock straight through the year
high.
For Further Information Contact:
VIASPACE Inc.
Dr. Jan Vandersande, Director of
Communications
(800)517-8050
IR@VIASPACE.com
Website:
www.VIASPACE.com
