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Viaspace Home Page OTCQB Stock Symbol: VSPC
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Business & Financial Strategies

VIASPACE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil fuels and other high-pollutant energy sources. Through its subsidiaries, the Company provides raw material for cellulosic biofuels; develops and markets fuel cartridges, products and technology for methanol fuel cells; markets rechargeable lithium-ion batteries; and is developing security-related monitoring and detection technology and systems for military/defense and commercial applications.

Business Strategy

VIASPACE is developing streams of recurring revenue from targeted segments of the renewable and alternative energy markets.

For the renewable energy markets, Company subsidiary VIASPACE Green Energy is cultivating Giant King Grass, a proprietary, fast-growing perennial grass for the production of non-food, low carbon liquid biofuels for transportation, and as a renewable, low-carbon substitute or replacement for coal now being burned as the heat source in stationary electricity generating power plants.

VIASPACE Green Energy is pursuing long-term contracts to supply Giant King Grass as a feedstock for green energy production. As an example of recurring revenue, a single modest 30 megawatt (MW) grass-powered electricity generating plant requires 460 tons of grass every day for its estimated 30 to 50 year life.

For the alternative energy market, VIASPACE subsidiary Direct Methanol Fuel Cell Corporation develops and manufactures disposable fuel cartridges for fuel cell powered electronic devices such as notebook computers, mobile phones and military systems. Fuel cells are electrochemical devices that efficiently and cleanly convert a fuel, such as methanol, into electricity without burning. The advantages of a fuel cell are longer operating time, compared to a rechargeable battery, and instantaneous recharging by simply replacing the disposable fuel cartridge. A fuel cell powered notebook computer is projected to use 100 disposable fuel cartridges over its lifetime, so the notebook computer market alone represents a potentially significant and recurring revenue stream. Direct Methanol Fuel Cell Corporation is a cartridge partner with Samsung and other companies engaged in fuel cell development and applications.

Giant King Grass, a proprietary, fast-growing perennial grass.

As part of its comprehensive alternative energy strategy, VIASPACE is also partnered with leading suppliers of rechargeable lithium-ion batteries. These batteries will be used in hybrid applications with fuel cells and also for electric bicycles, scooters and vehicles, as well as conventional uses in electronic devices and power tools.

VIASPACE subsidiary Ionfinity will continue working with Caltech, JPL and NASA and other technology leaders to develop devices and systems for monitoring and detecting hazardous substances: explosives, toxic gases, drugs and chemical/biological weapons. Current development contracts with the US Navy and US Army indicate the potential for future military, as well as commercial, contracts.

Financial Strategy

VIASPACE has moved aggressively to support and focus on its core green energy business. To improve its financial position, the Company has reduced operating expenses, executed an acquisition with positive cash flow, and sold unprofitable non-core business lines.

In 2008 VIASPACE acquired Inter-Pacific Arts (IPA), a profitable framed art business, for its material ongoing revenue, net income and positive cash flow; and for its proprietary license to grow and sell Giant King Grass. To generate additional near-term revenue, crops of Giant King Grass will be sold as animal feed for dairy cows, cattle, pigs, sheep, poultry and fish. The company is pursuing long-term supply contracts for animal feed.

In order to increase its focus on renewable and alternative energy, VIASPACE soldfor cash and debt forgivenessits non-core businesses in security products and humidity sensors. These strategic moves streamlined operations, cut expenses, and released resources to dedicate to energy projects.

These financial steps have made a positive impact on the Companys balance sheet and income statement.

CEO Summary

"We believe that VIASPACE has an excellent opportunity to establish a significant presence in the markets for renewable and alternative energy. Giant King Grass has much higher productivity than competing grasses, and it represents three separate and distinct large-market opportunities: as a feedstock for low carbon liquid biofuels known as Grassoline; as a carbon neutral replacement for coal in electricity generating power plants; and as feed for animals and fish. We believe that Giant King Grass can provide both food and fuel to the world."

Disposable fuel cartridges for fuel cell powered portable electronics also represent a very large and recurring market opportunity. VIASPACE and its partners are establishing the global infrastructure to manufacture, fill and distribute fuel cartridges.