Our company expects to attract two (2) strategic business partners in Brazil. Our target partners are well established companies utilizing diesel engines to power large trucks moving goods within Brazil as well as to ports for export to other countries around the world. It is our intention to “pre sell” each strategic partner approximately 100 conversion systems during 2010 at a substantially reduced price. We also expect our strategic partners will make an additional financial commitment and will commit to 3 year schedule of conversion system installations for their fleet of trucks. Sales of system installations begin in 2011 at a purchase price of $40,000 per injection system installations and are expected to grow as follows; 2011 we anticipate 1,000 units will be sold and will generate $40 million in gross revenue; 2012 we anticipate 1,500 units sold that will generate $60 million in gross revenue and in 2013 is 2,500 systems sold will generate $100 million in gross revenue. Years 4 and 5 will see more widespread use of the products such that a total of 20,000 system installations are achieved by the end of 2015. Gross margin each year is expected to exceed 60% and other costs will not exceed 20%. Thus, pretax income margin should be in excess of 40%.
