''We continue our research and development efforts toward the improved commercialization of Jatropha at our test facilities in Mexico and Belize and our commercial farm in Mexico. We are also engaged in a joint research and development effort with a leading U.S. plant sciences university to conduct plant biology and molecular genetic (genomic) research for the development of improved varieties, and optimal germination and cultivation techniques for Jatropha. We operate a state-of-the-art plant and soil science Field Research Center at our farm in Mexico where we have over 20 selected (improved) varieties under development.

The Jatropha plants that we planted during the past two years are now maturing and will, this year, start producing commercial quantities of fruit that can be harvested. Accordingly, we anticipate that revenues generated from our farms during the remainder of 2010 and thereafter in the future will significantly exceed the amount of revenues generated from our Jatropha business to date. In addition, our goal is to increase our Jatropha farm advisory consulting business, which is expected to further increase our future revenues.

Our business plan calls for significant infusion of additional capital to establish additional Jatropha farms in Mexico and other locations. Because of our negative working capital position, we currently do not have the funds necessary to acquire and cultivate additional farms. Accordingly, we will have to obtain significant additional capital through the sale of equity and/or debt securities, the forward sale of Jatropha oil and carbon offset credits, and from other financing activities, such as strategic partnerships and joint ventures. ''

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