 CommercializationTiming:GreenCell's activities and objectives are divided into two areas; short term and long term. This helps us avoid the principle pitfall of most fuel cell companies, the fact that full commercialization is just beginning and will ramp up over the next 10 years.Short term revenue Oxygen Sensors:We have the methods and technology to significantly cut the materials costs of O2 sensors while end running all the existing patents. This same technology has applications in other automotive applications. We believe this technology can be available for licensing within 2 years.Longer term revenue Fuel Cells:The development of energy-efficient, environmentally friendly fuel cell technologies. GreenCell's groundbreaking technology solves the two most persistent problems in fuel cell design - cost and durability - by replacing expensive platinum conductors with co-fired proprietary ceramic conductive layers. This is a breakthrough approach, and we are pleased to position GA at the forefront of this important effort through our joint venture with SenCer, which over the last 10 years has provided research and core ceramic materials to some of the leading developers of solid oxide fuel cells (SOFC). We believe we can generate commercial (non-government) revenue from fuel cells within 4-6 years. The fuel cell market is expected to deliver exponential growth over the next 15 years as fossil fuels are phased out in transportation applications.Revenue Model O2 Sensors:Our first revenue stream will come from licensing our O2 sensor technology.We have several differentiating features which will most definitely generate interest on the part of the world's leading O2 sensor manufacturers. First and foremost current technology requires the use of platinum, a very expensive material. Our design uses ceramic composites and Cermet materials instead. In addition, one of the principle problems in O2 sensor design is the cover of the tip. This is a coated metal with baffles that allow the exhaust gasses access to the sensing tip but not the full flow of gas pressure in the exhaust tube. These tips corrode and are a major cause of component failure. We can avoid this by creating an Ultra-Temp tip that is porous and resistant to the harsh conditions within the exhaust system. We can be ready to patent and protect our technology in less than 18 months. At that point we will show prototypes to the largest O2 sensor manufacturers and begin licensing the technology. Revenue Models Fuel Cells:Although fuel cell technology is now beginning to see genuine commercialization on a small scale, high volume demand may be as far as 10 years away depending on geopolitical and economic forces. Two of the current business models in the fuel cell industry are stack developers and IP producers. Stack developers manufacture fuel cell stacks for use by third parties. IP producers work on producing intellectual property which they lease/license to third party companies. Our model is a hybrid of both current models. We will develop and manufacture fuel cell stacks and stack components but we are also gearing to license the technology, supply the proprietary ingredients and lease the special machinery to large companies who wish to ramp up high production systems. This puts them in control of the production process and GreenCell in control of the technology.In the shorter term, we intend to approach a set of interested customers in the transportation industry to form a consortium of users of our stacks. We can then contract for both stack supply and technology transfer. In addition, GreenCell's license gives it ownership of all future developments created under the GreenCell umbrella. This is a significant potential revenue stream as technology developed under the GreenCell license can be used in many applications. 
Platinum:One of the key economic drivers for ATCs technology is the avoidance of platinum in its designs. Here is some information from the NYMEX:"Platinum is the principal metal of the six-metal group that bears its name; the other platinum group metals are palladium, rhodium, ruthenium, osmium, and iridium. All possess unique chemical and physical qualities that make them vital industrial materials. Platinum is among the world's scarcest metals; new mine production totals approximately only 5 million troy ounces a year. In contrast, gold mine production runs approximately 82 million ounces a year, and silver production is approximately 547 million ounces. Supplies of platinum are concentrated in South Africa, which accounts for approximately 80% of supply; Russia, 11%; and North America, 6%. Because of the metal's importance as an industrial material, its relatively low production, and concentration among a few suppliers, prices can be volatile." |