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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>As filed with the Securities and Exchange Commission on
    April&#160;15, 2010</B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><!-- /XBRL,dc -->Registration
    <FONT style="white-space: nowrap">No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</DIV>

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    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION<BR>
    </FONT><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;S-1</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">REGISTRATION STATEMENT UNDER
    THE SECURITIES ACT OF 1933</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt">GENESIS FLUID SOLUTIONS
    HOLDINGS, INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Exact name of registrant as
    specified in its charter)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
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    <TD width="32%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
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<TD nowrap align="center" valign="top">
    <B>Delaware</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>3531</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>98-0531496</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or other jurisdiction<BR>
    of incorporation or organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer<BR>
    Identification Number)</FONT></I><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">830 Tender Foot Hill Road
    #301</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Colorado Springs, CO
    80906</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt"><FONT style="white-space: nowrap">(719)&#160;332-7447</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address, including zip code,
    and telephone number, including area code, of registrant&#146;s
    principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Michael Hodges</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Interim Chief Executive
    Officer</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">830 Tender Foot Hill Road
    #301</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Colorado Springs, CO
    80906</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt"><FONT style="white-space: nowrap">(719)&#160;332-7447</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 9pt">Copies to:</FONT></I></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Harvey J.
    Kesner,&#160;Esq.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Benjamin S.
    Reichel,&#160;Esq.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Sichenzia Ross Friedman Ference
    LLP</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">61 Broadway, 32nd
    Floor</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">New York, New York
    10006</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Telephone:
    <FONT style="white-space: nowrap">(212)&#160;930-9700</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale to the
    public:</B>&#160;&#160;As soon as practicable after the
    effective date of this registration statement.
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule&#160;415 under the Securities Act of 1933, check the
    following
    box.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    please check the following box and list the Securities Act of
    1933 registration statement number of the earlier effective
    registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indicate by a check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange Act. (Check One):
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">Large
    Accelerated
    Filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">
    Accelerated
    Filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">
    Non-Accelerated
    Filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">
    Smaller Reporting
    Company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>
    </FONT></TD>
</TR>

</TABLE>

<DIV align="center" style="margin-left: 32%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">(Do not check if a smaller
    reporting company)
    </FONT>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>



<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amount to be<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate Offering<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amount of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Title of Each Class of Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Registered(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Registration Fee</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common stock, par value $0.001 per share
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    7,027,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    3.40
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    (2)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    23,893,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    1,703.61
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common stock, par value $0.001 per share, upon exercise of
    warrants issued to investors
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    3,412,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    3.40
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    (3)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    11,602,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    827.26
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common stock, par value $0.001 per share, currently being held
    in escrow
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    1,300,000
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    3.40
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    (2)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    4,420,000
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    315.15
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common stock, par value $0.001 per share, upon exercise of
    warrants issued to the placement agents
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    107,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    3.40
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    (3)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    365,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    26.06
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    11,847,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    3.40
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    40,281,500
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    2,872.07
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Pursuant to Rule&#160;416 under the
    Securities Act, the shares of common stock offered hereby also
    include an indeterminate number of additional shares of common
    stock as may from time to time become issuable by reason of
    anti-dilution provisions, stock splits, stock dividends,
    recapitalizations or other similar transactions.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">With respect to the shares of
    common stock offered by the selling stockholders named herein,
    estimated at $3.40 per share, the average of the high and low
    prices of the common stock as reported on the OTC
    Bulletin&#160;Board on April&#160;12, 2010, for the purpose of
    calculating the registration fee in accordance with
    Rule&#160;457(c) under the Securities Act.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Estimated at $3.40 per share, the
    average of the high and low prices of the common stock as
    reported on the OTC Bulletin&#160;Board on April&#160;12, 2010,
    for the purpose of calculating the registration fee in
    accordance with Rule 457(g)(3) under the Securities Act.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON
    SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE
    DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH
    SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL
    THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION&#160;8(a)
    OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION
    STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION,
    ACTING PURSUANT TO SAID SECTION&#160;8(a), MAY DETERMINE.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 10pt; font-family: Arial, Helvetica; color: #E8112D">The
information in this prospectus is not complete and may be
changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these
securities and we are not soliciting an offer to buy these
securities in any state where the offer or sale is not
permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="color: #E8112D">SUBJECT TO COMPLETION, DATED
    APRIL 15, 2010</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="color: #E8112D">PRELIMINARY PROSPECTUS
    </FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">11,847,500&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="y83884y8388400.gif" alt="(GENESIS LOGO)"><FONT style="font-size: 14pt">
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">Genesis Fluid Solutions
    Holdings, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus relates to the sale by the selling stockholders
    identified in this prospectus of up to 11,847,500&#160;shares of
    our common stock, which includes (i)&#160;7,027,500&#160;shares
    issued to investors in a private placement;
    (ii)&#160;3,412,500&#160;shares issuable upon the exercise of
    warrants with an exercise price of $2.00 per share;
    (iii)&#160;1,300,000&#160;shares issued in connection with the
    Merger, which are being held in escrow for three years in order
    to cover certain potential claims, indebtedness and liabilities,
    including potential tax liabilities, of Genesis Fluid Solutions;
    and (iv)&#160;107,500&#160;shares issuable upon the exercise of
    warrants with an exercise price of $1.25 per share. All of these
    shares of our common stock are being offered for resale by the
    selling stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prices at which the selling stockholders may sell shares
    will be determined by the prevailing market price for the shares
    or in negotiated transactions. We will not receive any proceeds
    from the sale of these shares by the selling stockholders.
    However, we will receive proceeds from the exercise of the
    warrants if they are exercised for cash by the selling
    stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will bear all costs relating to the registration of these
    shares of our common stock, other than any selling
    stockholders&#146; legal or accounting costs or commissions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock is quoted on the regulated quotation service of
    the OTC Bulletin&#160;Board under the symbol
    &#147;GSFL.OB&#148;. The last reported sale price of our common
    stock as reported by the OTC Bulletin&#160;Board on
    April&#160;12, 2010, was $3.40 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in our common stock is highly speculative and
    involves a high degree of risk. You should carefully consider
    the risks and uncertainties described under the heading
    &#147;Risk Factors&#148; beginning on page&#160;8 of this
    prospectus before making a decision to purchase our common
    stock.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or passed upon the accuracy or adequacy of this
    prospectus. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date of this prospectus
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>Prospectus Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Special Note Regarding Forward Looking
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Market for Our Common Stock and Related
    Stockholder Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Dividend Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Business</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Management</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Executive Compensation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Certain Relationships and Related Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Security Ownership of Certain Beneficial Owners
    and Management</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Selling Stockholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Description of Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>Where You Can Find Additional Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>Index to Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y83884exv23w1.htm">EX-23.1: Consent of Davis Accounting Group</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y83884exv23w2.htm">EX-23.2: Consent of Salberg & Company</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
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</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained in this
    prospectus. We have not authorized any other person to provide
    you with different information. If anyone provides you with
    different or inconsistent information, you should not rely on
    it. We are not making an offer to sell these securities in any
    jurisdiction where an offer or sale is not permitted. You should
    assume that the information appearing in this prospectus is
    accurate only as of the date on the front cover of this
    prospectus. Our business, financial condition, results of
    operations and prospects may have changed since that date.</B>
</DIV>
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    <BR>
    2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following summary highlights information contained
    elsewhere in this prospectus. This summary may not contain all
    of the information that may be important to you. You should read
    this entire prospectus carefully, including the sections
    entitled &#147;Risk Factors&#148; and &#147;Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations&#148; and our historical financial statements and
    related notes included elsewhere in this prospectus. In this
    prospectus, unless otherwise noted, the terms &#147;the
    Company,&#148; &#147;we,&#148; &#147;us,&#148; and
    &#147;our&#148; refer to Genesis Fluid Solutions Holdings, Inc.,
    and its subsidiary, Genesis Fluid Solutions, Ltd.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are engaged in the design and development of waterway
    restoration and water remediation technologies for the
    environmental, mining and paper industries. Our patented Rapid
    Dewatering System (RDS) removes different types of debris,
    sediments, and contaminates from waterways and industrial sites,
    which assists in the recovery of lakes, canals, reservoirs and
    harbors. The RDS system separates water from the solid materials
    that are dredged, a process that is known as dewatering. Because
    of the scalability of the equipment, the small footprint
    required, and our own real time rapid dewatering capabilities,
    our RDS can remove thousands of cubic yards of sediment per day,
    and return clear water to waterways at rates of two thousand or
    more gallons per minute. We believe we accomplish this at
    significantly lower costs than our competitors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After demonstrating proof of concept on a port restoration
    project in California, we were acknowledged by the Water Board
    for the State of California, the United States Environmental
    Protection Agency and the United States Army Corps of Engineers
    as having an innovative technology acceptable for the
    restoration of both contaminated and non-contaminated waterways.
    We believe our technologies have a variety of benefits for both
    industry and the environment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    History</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our wholly-owned subsidiary, Genesis Fluid Solutions, Ltd.,
    began operations in 1994 as a sole proprietorship owned by our
    founder, Michael Hodges, and was incorporated in Colorado in
    2005. Genesis Fluid Solutions is engaged in the design and
    development of waterway restoration and water remediation
    technology and equipment for the environmental, mining and paper
    industries. Genesis Fluid Solutions holds various United States
    and international patents and patent applications on water
    restoration and remediation technology, seeks to license the
    technology and equipment to others, and seeks to enter into
    contracts for the performance of water restoration and
    remediation. To date, Genesis Fluid Solutions has not generated
    material revenues or earnings as a result of its activities. As
    a result of the Merger, Genesis Fluid Solutions became a
    wholly-owned subsidiary of the Company and the Company succeeded
    to the business of Genesis Fluid Solutions as its sole line of
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, we filed an Amended and Restated
    Certificate of Incorporation in order to, among other things,
    change our name from &#147;Cherry Tankers Inc.&#148; to
    &#147;Genesis Fluid Solutions Holdings, Inc.&#148; and authorize
    a class of &#147;blank check&#148; preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, we entered into an Agreement of Merger
    and Plan of Reorganization with Genesis Fluid Solutions, Ltd., a
    privately held Colorado corporation (&#147;Genesis Fluid
    Solutions&#148;), and Genesis Fluid Solutions Acquisition Corp.,
    our newly formed, wholly-owned Delaware subsidiary
    (&#147;Acquisition Sub&#148;). Upon closing of the transaction
    contemplated under the Agreement of Merger and Plan of
    Reorganization (the &#147;Merger&#148;), Acquisition Sub merged
    with and into Genesis Fluid Solutions. Genesis Fluid Solutions,
    as the surviving corporation, became a wholly-owned subsidiary
    of the Company, and the Company succeeded to the business of
    Genesis Fluid Solutions as its sole line of business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the closing of the Merger, each share of Genesis Fluid
    Solutions&#146; common stock issued and outstanding immediately
    prior to the closing of the Merger was exchanged for the right
    to receive 10&#160;shares of our common stock. To the extent
    that there were fractional shares, the fractional shares were
    rounded to the nearest whole share. Accordingly, an aggregate of
    9,481,000&#160;shares of our common stock were issued to the
    holders of Genesis Fluid Solutions&#146; common stock. Of the
    9,481,000&#160;shares issued in the Merger,
    1,300,000&#160;shares issuable to Michael Hodges, the founder
    and former chief executive officer of Genesis Fluid Solutions,
    were agreed to be set aside in
</DIV>
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    <BR>
    3
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    escrow and held for three years in order to provide for certain
    liabilities, including potential tax liabilities, of Genesis
    Fluid Solutions (the &#147;Escrow Agreement,&#148; as more fully
    described below).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the closing of the Merger, the Company issued
    273&#160;units in a private placement (the &#147;Private
    Placement&#148;), consisting of an aggregate of
    7,027,500&#160;shares of the Company&#146;s common stock and
    three-year callable warrants to purchase an aggregate of
    3,412,500&#160;shares of common stock exercisable at $2.00 per
    share, for $25,000 per unit. Colorado Financial Service
    Corporation, WFG Investments, Inc., Legend Merchant Group, and
    Jesup&#160;&#038; Lamont Securities Corp. (the &#147;Placement
    Agents&#148;) served as the Company&#146;s placement agents for
    certain of the investors in the Private Placement, and received
    two-year warrants, exercisable at $1.25 per share, to purchase
    33,000, 14,000, 8,000 and 2,500&#160;shares of common stock,
    respectively, equal to 2% of the number of shares investors
    purchased through the respective Placement Agents. GarWood
    Securities LLC received two-year warrants, exercisable at $1.25
    per share to purchase 50,000&#160;shares of common stock. All of
    the shares issued in the Private Placement, as well as the
    shares of common stock underlying the warrants issued to
    investors and the Placement Agents, are subject to a
    registration rights agreement under which we are obligated to
    seek registration of the shares within 180&#160;days of the
    final closing date of the Private Placement. Holders of our
    shares issued in the Private Placement also have the right to
    seek &#147;piggyback&#148; registration of their shares in
    certain circumstances, other than with respect to registration
    of shares held under the Escrow Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the closing of the Merger, Reuven Gepstein and Yael Alush
    resigned as our officers and directors and, simultaneously with
    the Merger, a new board of directors and new officers were
    appointed. The new board of directors consists of Michael
    Hodges, Mary Losty, John Freshman, and Robert Stempel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, immediately following the closing of
    the Merger and the initial closing of Private Placement, under
    an Agreement of Conveyance, Transfer and Assignment of Assets
    and Assumption of Obligations (the &#147;Conveyance
    Agreement&#148;), we also transferred all of our pre-Merger
    assets and liabilities to our wholly-owned subsidiary, Cherry
    Tankers Holdings, Inc. (&#147;SplitCo&#148;). Thereafter,
    pursuant to a stock purchase agreement (the &#147;Stock Purchase
    Agreement&#148;), we transferred all of the outstanding capital
    stock of SplitCo to certain of our stockholders in exchange for
    the cancellation of 12,545,000&#160;shares of our common stock
    (the &#147;Split-Off&#148;), with 1,160,000&#160;shares of
    common stock held by persons who were stockholders of ours prior
    to the Merger remaining outstanding. These 1,160,000&#160;shares
    constitute our &#147;public float,&#148; are our only shares of
    registered common stock and, accordingly, are our only shares
    available for resale without further registration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing description of certain changes to our Certificate
    of Incorporation, the Merger and the Split-Off does not purport
    to be complete and is qualified in its entirety by reference to
    the complete text of (i)&#160;the Amended and Restated
    Certificate of Incorporation, which is filed as Exhibit&#160;3.1
    hereto, (ii)&#160;the Agreement of Merger and Plan of
    Reorganization, which is filed as Exhibit&#160;2.1 hereto,
    (iii)&#160;the Escrow Agreement, which is filed as
    Exhibit&#160;10.19 hereto, (iv)&#160;the Conveyance Agreement,
    which is filed as Exhibit&#160;10.12 hereto, and (v)&#160;the
    Stock Purchase Agreement, which is filed as Exhibit&#160;10.13
    hereto, each of which is incorporated herein by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing description of the Private Placement does not
    purport to be complete and is qualified in its entirety by
    reference to the complete text of the (i)&#160;Form of
    Subscription Agreement, which is filed as Exhibit&#160;10.1
    hereto, (ii)&#160;Form of Warrant, which is filed as
    Exhibit&#160;10.2 hereto, (iii)&#160;Form of Placement Agent
    Warrant, which is filed as Exhibit&#160;10.7 hereto, and
    (iv)&#160;Form of Registration Rights Agreement, which is filed
    as Exhibit&#160;10.3 hereto, each of which is incorporated
    herein by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following (i)&#160;the closing of the Merger, (ii)&#160;the
    final closing of the Private Placement for an aggregate of
    $6,825,000 (which includes the conversion of $675,000 of bridge
    notes), and (iii)&#160;the cancellation of
    12,545,000&#160;shares in the Split-Off, there were
    17,668,500&#160;shares of common stock issued and outstanding.
    Approximately 53.9% of the issued and outstanding shares were
    held by the former stockholders of Genesis Fluid Solutions,
    approximately 39.6% were held by the investors in the Private
    Placement, and approximately 6.5% were held by investors in
    shares of our registered common stock. The foregoing percentages
    exclude warrants to purchase 3,520,000&#160;shares of common
    stock issued to investors and the Placement Agents in connection
    with the Private Placement, and 4,542,000&#160;shares of common
    stock reserved for issuance under our 2009 Equity Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither we nor Genesis Fluid Solutions had any outstanding
    options or warrants to purchase shares of capital stock
    immediately prior to the closing of the Merger. However, prior
    to the Merger, we adopted the 2009 Equity
</DIV>
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    <BR>
    4
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<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Incentive Plan and reserved 4,542,000&#160;shares of common
    stock for issuance as awards to officers, directors, employees,
    consultants and others. Upon the closing of the Merger, the
    Company issued options under the 2009 Equity Incentive Plan to
    purchase an aggregate of 3,222,000&#160;shares of our common
    stock to a total of ten individuals. Each of the options expires
    10&#160;years from the award date and has an exercise price of
    either $0.90, $0.99 or $1.00 per share. The recipients of the
    options received awards in recognition of services
    <FONT style="white-space: nowrap">and/or</FONT>
    cancellation of shares of stock of Genesis Fluid Solutions they
    owned, and included: (i)&#160;Michael Hodges, who received
    options to purchase 600,000&#160;shares, (ii)&#160;Larry
    Campbell, who received options to purchase 600,000&#160;shares,
    and (iii)&#160;Carol Shobrook, who received options to purchase
    400,000&#160;shares, each of whom was an executive officer of
    Genesis Fluid Solutions prior to the Merger and of the Company
    following the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of our common stock issued to former holders of
    Genesis Fluid Solutions&#146; stock in connection with the
    Merger, and the shares of our common stock and warrants issued
    in the Private Placement, were not registered under the
    Securities Act of 1933, as amended (the &#147;Securities
    Act&#148;), in reliance upon an exemption from registration
    provided by Section&#160;4(2) under the Securities Act and
    Regulation&#160;D thereof. These securities may not be
    transferred or sold without registration under or an applicable
    exemption from the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the closing of the Merger, an aggregate of
    9,481,000&#160;shares of our common stock were issued to the
    holders of Genesis Fluid Solutions&#146; common stock. Of the
    9,481,000&#160;shares issued in the Merger,
    1,300,000&#160;shares issuable to Michael Hodges have been
    agreed to be registered in the name of the escrow agent, set
    aside in escrow and held for three years in order to provide for
    certain claims, indebtedness and liabilities, including
    potential tax liabilities, of Genesis Fluid Solutions. Upon
    receipt of written instructions from the chief financial officer
    of the Company, the escrow agent is permitted to sell shares to
    cover any of these liabilities. The escrow agent has complete
    and absolute discretion as to the method and timing of any
    related sale of shares of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the Escrow Agreement, (i)&#160;Michael
    Hodges may at any time exchange cash for escrowed shares at a
    rate of $1.00 per share, (ii)&#160;the Escrow Agent will provide
    a voting proxy to Michael Hodges to vote the escrowed shares,
    and (iii)&#160;the Company has agreed to file a registration
    statement covering the escrowed shares as soon as practicable
    following the closing of the Merger.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    OFFERING</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Common stock offered by selling stockholders</TD>
    <TD></TD>
    <TD valign="bottom">
    This prospectus relates to the sale by certain selling
    stockholders of 11,847,500&#160;shares of our common stock
    consisting of:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -24pt; margin-left: 24pt">
    &#160;&#160;(i)&#160;7,027,500&#160;shares of our common stock
    issued to investors in the Private Placement;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -22pt; margin-left: 22pt">
    &#160;&#160;(ii)&#160;3,412,500&#160;shares of our common stock
    issuable upon the exercise of warrants issued to investors in
    the Private Placement;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -25pt; margin-left: 25pt">
    &#160;&#160;(iii)&#160;1,300,000&#160;shares of our common stock
    issued in connection with the Merger that are currently being
    held in escrow for three years in order to cover certain claims,
    indebtedness and liabilities, including potential tax
    liabilities of Genesis Fluid Solutions; and</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -24pt; margin-left: 24pt">
    &#160;&#160;(iv)&#160;107,500&#160;shares of our common stock
    issuable upon the exercise of warrants issued to the Placement
    Agents in the Private Placement.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Offering price</TD>
    <TD></TD>
    <TD valign="bottom">
    Market price or privately negotiated prices.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common stock outstanding before the offering</TD>
    <TD></TD>
    <TD valign="bottom">
    17,751,500&#160;shares(1)</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common stock to be outstanding after the offering</TD>
    <TD></TD>
    <TD valign="bottom">
    21,271,500&#160;shares(2)</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We will not receive any proceeds from the sale of the common
    stock by the selling stockholders. However, we will receive the
    exercise price, if the cashless exercise feature is not used,
    upon exercise of the warrants by the selling stockholders. We
    expect to use the proceeds received from the exercise of the
    warrants, if any, for general working capital purposes.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    OTB Bulletin&#160;Board Symbol</TD>
    <TD></TD>
    <TD valign="bottom">
    GSFL.OB</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Risk Factors</TD>
    <TD></TD>
    <TD valign="bottom">
    You should carefully consider the information set forth in this
    prospectus and, in particular, the specific factors set forth in
    the &#147;Risk Factors&#148; section beginning on page&#160;9 of
    this prospectus before deciding whether or not to invest in our
    common stock.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the number of shares of our common stock outstanding
    as of April&#160;15, 2010. Excludes
    (i)&#160;4,542,000&#160;shares of our common stock issuable upon
    exercise of options granted or reserved under the 2009 Equity
    Incentive Plan; and (ii)&#160;3,520,000&#160;shares of our
    common stock issuable upon exercise of outstanding warrants.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 3,520,000&#160;shares of our common stock issuable upon
    exercise of outstanding warrants, which shares are offered for
    sale in this prospectus. Excludes 4,542,000&#160;shares of our
    common stock issuable upon exercise of options granted or
    reserved under the 2009 Equity Incentive Plan.</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SPECIAL
    NOTE&#160;REGARDING FORWARD LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus contains forward-looking statements within the
    meaning of Section&#160;27A of the Securities Act and
    Section&#160;21E of the Securities Exchange Act of 1934, as
    amended (the &#147;Exchange Act&#148;). Such statements include
    statements regarding our expectations, hopes, beliefs or
    intentions regarding the future, including but not limited to
    statements regarding our market, strategy, competition,
    development plans (including acquisitions and expansion),
    financing, revenues, operations, and compliance with applicable
    laws. Forward-looking statements involve certain risks and
    uncertainties, and actual results may differ materially from
    those discussed in any such statement. Factors that could cause
    actual results to differ materially from such forward-looking
    statements include the risks described in greater detail in the
    following paragraphs. All forward-looking statements in this
    document are made as of the date hereof, based on information
    available to us as of the date hereof, and we assume no
    obligation to update any forward- looking statement. Market data
    used throughout this prospectus is based on published third
    party reports or the good faith estimates of management, which
    estimates are based upon their review of internal surveys,
    independent industry publications and other publicly available
    information. Although we believe that such sources are reliable,
    we do not guarantee the accuracy or completeness of this
    information, and we have not independently verified such
    information.
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Investing in our common stock involves a high degree of risk.
    Prospective investors should carefully consider the risks
    described below, together with all of the other information
    included or referred to in this prospectus, before purchasing
    shares of our common stock. There are numerous and varied risks
    that may prevent us from achieving our goals. If any of these
    risks actually occurs, our business, financial condition or
    results of operations may be materially adversely affected. In
    such case, the trading price of our common stock could decline
    and investors in our common stock could lose all or part of
    their investment.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not be able to adequately protect our proprietary rights, which
    would have an adverse effect on our ability to competitively
    conduct our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We rely on our patented technology, both domestically and
    internationally, to deliver our equipment and services. To
    protect our proprietary rights, we rely on a combination of
    patent and trade secret laws, confidentiality agreements, and
    protective contractual provisions. Despite these efforts, our
    patents and intellectual property relating to our business may
    not provide us with any competitive advantages. Additionally,
    another party may obtain a blocking patent and we would need to
    either obtain a license or design around the patent in order to
    continue to offer the contested item in our products and
    services. Further, effective protection of intellectual property
    rights may be unavailable or limited in some foreign countries.
    Our inability to adequately protect our proprietary rights would
    have an adverse impact on our ability to competitively
    manufacture, distribute and use our products on a worldwide
    basis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    could become involved in intellectual property disputes that
    create a drain on our resources and could ultimately impair our
    assets.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not knowingly infringe on patents, copyrights or other
    intellectual property rights owned by other parties; however, in
    the event of an infringement claim, we may be required to spend
    a significant amount of money to defend a claim, develop a
    non-infringing alternative or to obtain licenses. We may not be
    successful in developing an alternative or obtaining licenses on
    reasonable terms, if at all. Any litigation, even if without
    merit, could result in substantial costs and diversion of our
    resources and could materially and adversely affect our
    business, financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Since
    we have a somewhat limited operating history, it is difficult
    for potential investors to evaluate our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We began research and development operations in the mid-1990s
    and have completed 12 projects to date. Our somewhat limited
    operating history makes it difficult for potential investors to
    evaluate our business or prospective operations. Since our
    formation, we have generated only limited and sporadic revenues.
    As an early stage company, we are subject to all the risks
    inherent in the initial organization, financing, expenditures,
    complications and delays inherent in a new business.
    Accordingly, our business and success faces risks from
    uncertainties faced by developing companies in a competitive
    environment. There can be no assurance that our efforts will be
    successful or that we will ultimately be able to attain
    profitability.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    dependent upon key personnel whose loss may adversely impact our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We rely heavily on the expertise, experience and continued
    services of Michael Hodges, our Chairman and Interim Chief
    Executive Officer. The loss of Mr.&#160;Hodges and the inability
    to attract or retain other key individuals, could materially
    adversely affect us. We seek to compensate and motivate our
    executives, as well as other personnel, through competitive
    salaries and bonus and equity incentive plans, but there can be
    no assurance that these programs will allow us to attract or
    retain personnel. If Mr.&#160;Hodges were to leave, we could
    face substantial difficulty in hiring a qualified successor and
    could experience a loss in productivity while any successor
    obtains the necessary training and experience. We have not
    entered into an employment agreement with Mr.&#160;Hodges.
</DIV>
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    <BR>
    8
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    face risks associated with our anticipated international
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to establish, and to expand over time, international
    commercial or licensing operations and activities in various
    countries. These international business operations will be
    subject to a variety of risks associated with conducting
    business internationally. We do not know the impact that these
    regulatory, geopolitical and other factors may have on our
    international business in the future, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in or interpretations of foreign regulations that may
    adversely affect our ability to perform services or repatriate
    profits to the United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the imposition of tariffs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    economic or political instability in foreign countries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    imposition of limitations on or increase of withholding and
    other taxes on remittances and other payments by foreign
    subsidiaries or joint ventures or customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conducting business in places where business practices and
    customs are unfamiliar and unknown;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the imposition of restrictive trade policies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the existence of inconsistent laws or regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the imposition or increase of investment requirements and other
    restrictions or requirements by foreign governments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    uncertainties relating to foreign laws and legal proceedings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fluctuations in foreign currency and exchange rates; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance with a variety of U.S.&#160;laws, including the
    Foreign Corrupt Practices Act.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    need additional financing to execute our business plan and fund
    operations, which additional financing may not be available on
    reasonable terms or at all.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have limited funds. Even with the aggregate proceeds of
    $6,150,000 from the recent private placement (the &#147;Private
    Placement&#148;), we may not be able to execute our current
    business plan and fund business operations long enough to
    achieve profitability. Our ultimate success may depend upon our
    ability to raise additional capital. There can be no assurance
    that additional funds will be available when needed from any
    source or, if available, will be available on terms that are
    acceptable to us. We may be required to pursue sources of
    additional capital through various means, including joint
    venture projects and debt or equity financing. Future financing
    through equity investments is likely to be dilutive to existing
    stockholders. Also, the terms of securities we may issue in
    future capital transactions may be more favorable to new
    investors than our current investors. Newly issued securities
    may include preferences, superior voting rights, the issuance of
    warrants or other derivative securities, and the issuance of
    incentive awards under employee equity incentive plans, which
    may have additional dilutive effects. Further, we may incur
    substantial costs in pursuing future capital
    <FONT style="white-space: nowrap">and/or</FONT>
    financing, including investment banking fees, legal fees,
    accounting fees, printing and distribution expenses and other
    costs. We may also be required to recognize non-cash expenses in
    connection with certain securities we may issue, such as
    convertible notes and warrants, which will adversely impact our
    financial condition and results of operations. Our ability to
    obtain needed financing may be impaired by factors, including
    the condition of the economy and capital markets, both generally
    and specifically in our industry, and the fact that we are not
    profitable, which could impact the availability or cost of
    future financing. If the amount of capital we are able to raise
    from financing activities, together with our revenues from
    operations, is not sufficient to satisfy our capital needs, even
    to the extent that we reduce our operations accordingly, we may
    be required to cease operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be subject to fines for the non-payment of payroll taxes in
    prior quarters and, if we are unable to repay the amounts owed,
    some of our assets could be taken away.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may be subject to both federal and state fines for the
    non-payment of payroll taxes, penalties and interest for certain
    quarters in 2007 through 2009. We have agreed with Michael
    Hodges to set aside in escrow
</DIV>
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    <BR>
    9
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1,300,000&#160;shares of our common stock, that were to be
    delivered to him as consideration in the Merger, to cover these
    and other potential liabilities, but this may not be sufficient
    to cover, and we may not otherwise have sufficient funds or be
    able to obtain sufficient funds to repay, these liabilities. If
    we are unable to repay the amounts owed, the Internal Revenue
    Service and various state taxing agencies may levy liens against
    our assets and acquire ownership of our assets. The enforcement
    of a lien could have a material adverse affect on our business.
    In addition, the Internal Revenue Service can seek reimbursement
    from our officers and directors that have or have had a direct
    relationship over our cash resources
    <FONT style="white-space: nowrap">and/or</FONT>
    signature authority on checks.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    independent auditors have expressed doubt about our ability to
    continue as a going concern.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In their report dated April&#160;14, 2010, our current
    independent registered public accounting firm stated that our
    consolidated financial statements for the year ended
    December&#160;31, 2009 were prepared assuming that we would
    continue as a going concern, and that they have doubt about our
    ability to continue as a going concern. In their report dated
    November&#160;11, 2009, our former independent registered public
    accounting firm stated that our consolidated financial
    statements for the year ended December&#160;31, 2008 were
    prepared assuming that we would continue as a going concern, and
    that they have doubt about our ability to continue as a going
    concern. Our auditors&#146; doubts are based on our recurring
    losses, accumulated deficits and negative cash flows from
    operations. We continue to experience net operating losses and
    negative cash flows from operating activities. Our ability to
    continue as a going concern is subject to our ability to
    generate profits
    <FONT style="white-space: nowrap">and/or</FONT>
    obtain necessary funding from outside sources, including by the
    sale of our securities, or obtaining loans from lenders, where
    possible. Our continued net operating losses and our
    auditors&#146; doubts increase the difficulty of our meeting
    these goals, and our efforts to continue as a going concern may
    not prove successful.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    depend on our ability to continue to obtain government dredging
    contracts, and are therefore greatly impacted by the amount of
    government funding for dredging projects. A reduction in this
    funding could materially limit future revenues and
    profits.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that a material portion of our revenues will be
    derived from government dredging contracts. Therefore, if there
    is a reduction in government funding for dredging contracts, it
    could limit future revenues and profits.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business is subject to significant operating risks and hazards
    that could result in damage or destruction to persons or
    property, which could result in losses or liabilities to
    us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dredging business is generally subject to a number of risks
    and hazards, including environmental hazards, industrial
    accidents, encountering unusual or unexpected geological
    formations, cave-ins below water levels, collisions, disruption
    of transportation services and flooding. These risks could
    result in damage to, or destruction of, dredges, transportation
    vessels and other maritime structures and buildings, and could
    also result in personal injury, environmental damage,
    performance delays, monetary losses or legal liability to third
    parties. Although we have general liability and equipment
    insurance, if our insurance policies do not cover all of the
    potential different risks
    <FONT style="white-space: nowrap">and/or</FONT>
    liability amounts, the resulting liabilities could be costly to
    us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adverse
    weather may cause us to incur additional costs and decreased
    profit margins.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our ability to perform a contract may depend on weather
    conditions. Inclement weather can delay the completion of a
    project, thereby causing us to incur additional costs. As part
    of bidding on fixed-price contracts, we make allowances,
    consistent with historic weather data, for project downtime due
    to adverse weather conditions. In the event that we experience
    adverse weather beyond these allowances, we may incur additional
    costs and decreased profit margins on these projects.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Seasonality
    makes it harder for us to manage our business and for investors
    to evaluate our performance.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations may be affected by seasonal fluctuations due to
    weather and budgetary cycles influencing the timing of
    customers&#146; spending for remediation activities. Typically,
    during the first quarter of each calendar year there is less
    demand for our services due to weather related reasons,
    particularly in the northern and mid-western
</DIV>
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    <BR>
    10
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    United States and Canada, and an increased possibility of
    unplanned weather related stoppages. This seasonality in our
    business makes it harder for us to manage our business and for
    investors to evaluate our performance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Environmental
    regulations could force us to incur significant capital and
    operational costs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are subject to various environmental laws and
    regulations relating to, among other things, dredging
    operations; the disposal of dredged material; protection of
    wetlands; storm water and waste water discharges; and,
    transportation and disposal of hazardous substances and
    materials. We are also subject to laws designed to protect
    certain marine species and habitats. Compliance with these
    statutes and regulations can delay performance of particular
    projects and increase related project costs. These delays and
    increased costs could have a material adverse effect on our
    results of operations and cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our projects may involve transportation and disposal of
    hazardous substances and materials. Various laws strictly
    regulate the removal and transportation of hazardous substances
    and materials, and impose liability for human health effects and
    environmental contamination caused by these materials. Services
    rendered in connection with hazardous substance and material
    removal may involve professional judgments by licensed experts
    about the nature of soil conditions and other physical
    conditions, including the extent to which hazardous substances
    and materials are present, and about the probable effect of
    procedures to mitigate or otherwise affect those conditions. If
    these judgments and the recommendations based upon these
    judgments are incorrect, we may be liable for resulting damages
    that we or our customers incur, which may be material. The
    failure of certain contractual protections, including any
    indemnification from our customers or subcontractors, to protect
    us from incurring this liability could have a material adverse
    effect on our business, financial condition, results of
    operations and cash flows.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Difficult
    conditions in the global capital markets and the economy
    generally may materially adversely affect our business and
    results of operations, and we do not expect these conditions to
    improve in the near future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our results of operations are materially affected by conditions
    in the global capital markets and the economy generally, both in
    the U.S.&#160;and elsewhere around the world. The stress
    experienced by global capital markets that began in the second
    half of 2007 continued and substantially increased during the
    third and fourth quarter of 2008 and is continuing. Recently,
    concerns over inflation, energy costs, geopolitical issues, the
    availability and cost of credit, the U.S.&#160;mortgage market,
    and a declining real estate market in the U.S.&#160;have
    contributed to increased volatility and diminished expectations
    for the economy and the markets going forward. These factors,
    combined with volatile oil prices, declining business and
    consumer confidence and increased unemployment, have
    precipitated an economic slowdown and a global recession.
    Domestic and international equity markets have been experiencing
    heightened volatility and turmoil. These events and the
    continuing market upheavals may have an adverse effect on our
    business. In the event of extreme prolonged market events, such
    as the global credit crisis, we could incur significant losses.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to Our Organization and Our Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be unable to register for resale all of the shares of common
    stock and shares of common stock underlying the warrants
    included within the units sold in the Private Placement, in
    which case purchasers in the Private Placement will need to rely
    on an exemption from registration requirements in order to sell
    their shares.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the Private Placement, we entered into a
    registration rights agreement, pursuant to which we are
    obligated to file a &#147;resale&#148; registration statement
    with the Securities and Exchange Commission (the
    &#147;SEC&#148;) that covers all of the common stock and shares
    of common stock underlying the warrants included within the
    units sold in the Private Placement (the &#147;Warrant
    Shares&#148;) and to have the &#147;resale&#148; registration
    statement declared effective by the SEC no later than
    180&#160;days after the final closing of the Private Placement.
    Nevertheless, it is possible that the SEC may not permit us to
    register all of the shares of common stock for resale. In
    certain circumstances, the SEC may take the view that the
    Private Placement requires us to register the resale of the
    securities as a primary offering. It is possible that, if
    registration is barred by current or future rules and
    regulations, rescission of the Private Placement could be sought
    by investors or an offer of rescission may be mandated by the
</DIV>
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    11
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SEC, which would result in a material adverse effect on us. In
    addition, our shares of public float are limited and are held by
    persons who acquired those shares under an effective
    registration filed prior to the Merger. Investors should be
    aware of the existence of risks that interpretive positions
    taken with respect to Rule&#160;415, or similar rules or
    regulations including those that may be adopted subsequent to
    the date of this prospectus, could impede the manner in which
    the common stock and Warrant Shares may be registered or our
    ability to register the common stock or Warrant Shares for
    resale at all, or the trading in our securities. If we are
    unable to register some or all of the common stock or Warrant
    Shares, or if shares previously registered are not deemed to be
    freely tradeable, these shares would only be able to be sold
    pursuant to an exemption from registration under the Securities
    Act, such as Rule&#160;144, that currently permits the resale of
    securities by holders who are not affiliated with the issuer
    following twelve months from November&#160;16, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">As a
    result of the Merger, Genesis Fluid Solutions became a
    subsidiary of ours and, we are subject to the reporting
    requirements of federal securities laws. Such reporting
    requirements can be expensive and may divert resources from
    other projects, thus impairing our ability to
    grow.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the Merger, Genesis Fluid Solutions became a
    subsidiary of ours and, accordingly, is subject to the
    information and reporting requirements of the Exchange Act, and
    other federal securities laws, including compliance with the
    Sarbanes-Oxley Act of 2002. The costs of preparing and filing
    annual and quarterly reports, proxy statements and other
    information with the SEC (including reporting of the Merger) and
    furnishing audited reports to stockholders will cause our
    expenses to be higher than they would have been if Genesis Fluid
    Solutions had remained privately held and did not consummate the
    Merger. In addition, we will incur substantial expenses in
    connection with the preparation of the registration statement
    and related documents required under the terms of the Private
    Placement that require us to register the shares of common stock
    included in the units and the Warrant Shares. It may be time
    consuming, difficult and costly for us to develop and implement
    the internal controls and reporting procedures required by the
    Sarbanes-Oxley Act of 2002. We will need to hire additional
    financial reporting, internal controls and other finance
    personnel in order to develop and implement appropriate internal
    controls and reporting procedures. If we are unable to comply
    with the internal controls requirements of the Sarbanes-Oxley
    Act of 2002, then we may not be able to obtain the independent
    accountant certifications required by that act, which may
    preclude us from keeping our filings with the SEC current, and
    interfere with the ability of investors to trade our securities
    and our shares to continue to be quoted on the OTC
    Bulletin&#160;Board or our ability to list our shares on any
    national securities exchange.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    fail to establish and maintain an effective system of internal
    controls, we may not be able to report our financial results
    accurately or prevent fraud. Any inability to report and file
    our financial results accurately and timely could harm our
    reputation and adversely impact the trading price of our common
    stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective internal controls are necessary for us to provide
    reliable financial reports and prevent fraud. If we cannot
    provide reliable financial reports or prevent fraud, we may not
    be able to manage our business as effectively as we would if an
    effective control environment existed, and our business and
    reputation with investors may be harmed. As a result, our small
    size and any current internal control deficiencies may adversely
    affect our financial condition, results of operations and access
    to capital. We have not performed an in-depth analysis to
    determine if historical undiscovered failures of internal
    controls exist, and may in the future discover areas of our
    internal controls that need improvement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Public
    company compliance may make it more difficult to attract and
    retain officers and directors.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Sarbanes-Oxley Act of 2002 and rules implemented by the SEC
    have required changes in corporate governance practices of
    public companies. As a public company, we expect these rules and
    regulations to increase our compliance costs in 2010 and beyond
    and to make certain activities more time consuming and costly.
    As a public company, we also expect that these rules and
    regulations may make it more difficult and expensive for us to
    obtain director and officer liability insurance and we may be
    required to accept reduced policy limits and coverage or incur
    substantially higher costs to obtain the same or similar
    coverage. As a result, it may be more difficult for us
</DIV>
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    <BR>
    12
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    to attract and retain qualified persons to serve on our board of
    directors or as executive officers, and to maintain insurance at
    reasonable rates, or at all.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    we became public by means of a reverse merger, we may not be
    able to attract the attention of major brokerage
    firms.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There may be risks associated with us becoming public through a
    &#147;reverse merger.&#148; Securities analysts of major
    brokerage firms may not provide coverage of us since there is no
    incentive to brokerage firms to recommend the purchase of our
    common stock. No assurance can be given that brokerage firms
    will, in the future, want to conduct any offerings on behalf of
    our post-Merger company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    stock price may be volatile.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price of our common stock is likely to be highly
    volatile and could fluctuate widely in price in response to
    various factors, many of which are beyond our control, including
    the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in our industry;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    competitive pricing pressures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to obtain working capital financing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    additions or departures of key personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limited &#147;public float&#148; following the Merger, in the
    hands of a small number of persons whose sales or lack of sales
    could result in positive or negative pricing pressure on the
    market price for our common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sales of our common stock (particularly following effectiveness
    of the resale registration statement required to be filed in
    connection with the Private Placement);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to execute our business plan;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    operating results that fall below expectations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    loss of any strategic relationship;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    regulatory developments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    economic and other external factors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    period-to-period fluctuations in our financial results;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our inability to develop or acquire new or needed technology.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the securities markets have from time to time
    experienced significant price and volume fluctuations that are
    unrelated to the operating performance of particular companies.
    These market fluctuations may also materially and adversely
    affect the market price of our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have not paid dividends in the past and do not expect to pay
    dividends in the future. Any return on investment may be limited
    to the value of our common stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have never paid cash dividends on our common stock and do not
    anticipate doing so in the foreseeable future. The payment of
    dividends on our common stock will depend on earnings, financial
    condition and other business and economic factors affecting us
    at the time as our board of directors may consider relevant. If
    we do not pay dividends, our common stock may be less valuable
    because a return on your investment will only occur if our stock
    price increases.
</DIV>
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    <BR>
    13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    shares of common stock are very thinly traded, the price may not
    reflect our value, and there can be no assurance that there will
    be an active market for our shares of common stock either now or
    in the future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our shares of common stock are very thinly traded, only a small
    percentage of our common stock is available to be traded and is
    held by a small number of holders, and the price, if traded, may
    not reflect our actual or perceived value. There can be no
    assurance that there will be an active market for our shares of
    common stock either now or in the future. The market liquidity
    will be dependent on the perception of our operating business,
    among other things. We will take certain steps including
    utilizing investor awareness campaigns, press releases, road
    shows and conferences to increase awareness of our business, and
    any steps that we might take to bring us to the awareness of
    investors may require we compensate consultants with cash
    <FONT style="white-space: nowrap">and/or</FONT>
    stock. There can be no assurance that there will be any
    awareness generated or the results of any efforts will result in
    any impact on our trading volume. Consequently, investors may
    not be able to liquidate their investment or liquidate it at a
    price that reflects the value of the business, and trading may
    be at an inflated price relative to the performance of the
    Company due to, among other things, availability of sellers of
    our shares. If a market should develop, the price may be highly
    volatile. Because there may be a low price for our shares of
    common stock, many brokerage firms or clearing firms may not be
    willing to effect transactions in the securities or accept our
    shares for deposit in an account. Even if an investor finds a
    broker willing to effect a transaction in the shares of our
    common stock, the combination of brokerage commissions, transfer
    fees, taxes, if any, and any other selling costs may exceed the
    selling price. Further, many lending institutions will not
    permit the use of low priced shares of common stock as
    collateral for any loans. A significant number of shares have
    been issued to our counsel and others as payment for services.
    In the aggregate, 1,160,000&#160;shares of freely trading stock
    were available for trading immediately following closing of the
    Merger. Our counsel serves as escrow agent under the Escrow
    Agreement, under which 1,300,000&#160;shares may be registered
    for resale. Those shares, in addition to other shares issued to
    our counsel, may from time to time be sold in open market
    transactions, or in privately negotiated transactions. In the
    event we are required to pay any liability or claim under the
    Escrow Agreement, the escrow agent will have discretion in
    determining the timing and manner of those sales, as well as the
    timing and manner of sale of other shares issued to our counsel
    for services.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    is currently a very limited trading market for our common stock
    and we cannot ensure that one will ever develop or be
    sustained.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To date there has been a very limited trading market for our
    common stock. We cannot predict how liquid the market for our
    common stock might become. We anticipate having our common stock
    continue to be quoted for trading on the OTC
    Bulletin&#160;Board, however, we cannot be sure that these
    quotations will continue. As soon as is practicable, we
    anticipate applying for listing of our common stock on the NYSE
    Amex, The NASDAQ Capital Market or another national securities
    exchange, assuming that we can satisfy the initial listing
    standards of the exchange. We currently do not satisfy the
    initial listing standards, and cannot ensure that we will be
    able to satisfy the listing standards or that our common stock
    will be accepted for listing on any exchange. Should we fail to
    satisfy the initial listing standards of an exchange, or our
    common stock is otherwise rejected for listing and remains
    listed on the OTC Bulletin&#160;Board or suspended from the OTC
    Bulletin&#160;Board, the trading price of our common stock could
    suffer and the trading market for our common stock may be less
    liquid and our common stock price may be subject to increased
    volatility. Furthermore, for companies whose securities are
    traded in the OTC Bulletin&#160;Board, it is more difficult
    (1)&#160;to obtain accurate quotations, (2)&#160;to obtain
    coverage for significant news events because major wire services
    generally do not publish press releases about these companies,
    and (3)&#160;to obtain needed capital. We are not required to
    register for sale the warrants, and do not intend to register
    the warrants for resale by the holders. As a result, the only
    value in the warrants will be in the &#147;spread&#148; between
    the trading price of our common stock and the exercise price of
    the warrants.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    common stock may be deemed a &#147;penny stock,&#148; which
    would make it more difficult for our investors to sell their
    shares.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock may be subject to the &#147;penny stock&#148;
    rules adopted under Section&#160;15(g) of the Exchange Act. The
    penny stock rules generally apply to companies whose common
    stock is not listed on The NASDAQ Stock Market or another
    national securities exchange and trades at less than $4.00 per
    share, other than companies that
</DIV>
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    <BR>
    14
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    have had average revenues of at least $6,000,000 for the last
    three years or that have tangible net worth of at least
    $5,000,000 ($2,000,000 if the company has been operating for
    three or more years). These rules require, among other things,
    that brokers who trade penny stock to persons other than
    &#147;established customers&#148; complete certain
    documentation, make suitability inquiries of investors and
    provide investors with certain information concerning trading in
    the security, including a risk disclosure document and quote
    information under certain circumstances. Many brokers have
    decided not to trade penny stocks because of the requirements of
    the penny stock rules and, as a result, the number of
    broker-dealers willing to act as market makers in these
    securities is limited. If we remain subject to the penny stock
    rules for any significant period, it could have an adverse
    effect on the market, if any, for our securities. If our
    securities are subject to the penny stock rules, investors will
    find it more difficult to dispose of our securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Offers
    or availability for sale of a substantial number of shares of
    our common stock may cause the price of our common stock to
    decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If our stockholders sell substantial amounts of our common stock
    in the public market, including shares issued in the Private
    Placement upon the effectiveness of the registration statement
    required to be filed, upon the expiration of any statutory
    holding period under Rule&#160;144, upon expiration of
    <FONT style="white-space: nowrap">lock-up</FONT>
    periods applicable to outstanding shares, or shares issued upon
    the exercise of outstanding options or warrants, it could create
    a circumstance commonly referred to as an &#147;overhang&#148;
    and, in anticipation of which, the market price of our common
    stock could fall. The existence of an overhang, whether or not
    sales have occurred or are occurring, also could make more
    difficult our ability to raise additional financing through the
    sale of equity or equity-related securities in the future at a
    time and price that we deem reasonable or appropriate. The
    shares of common stock issued in the Merger to the current and
    former officers and directors of Genesis Fluid Solutions are
    subject to a
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement prohibiting sales of these shares for a period of
    12&#160;months following the Merger. Following that date, all of
    those shares will become freely tradable, subject to securities
    laws and SEC regulations regarding sales by insiders. In
    addition, the shares of common stock sold in the Private
    Placement and the Warrant Shares will be freely tradable upon
    the earlier of (i)&#160;effectiveness of a registration
    statement covering these shares; and, (ii)&#160;the date on
    which these shares may be sold without registration pursuant to
    Rule&#160;144 (or other applicable exemption) under the
    Securities Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    apply the proceeds of the Private Placement to uses that
    ultimately do not improve our operating results or increase the
    value of your investment.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to use a portion of the net proceeds from the Private
    Placement, including proceeds received upon the exercise of the
    warrants, for general working capital purposes. Therefore, our
    management will have broad discretion in how we use these
    proceeds. These proceeds could be applied in ways that do not
    ultimately improve our operating results or otherwise increase
    the value of the investment in our common stock or warrants.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    our directors and executive officers are among our largest
    stockholders, they can exert significant control over our
    business and affairs and have actual or potential interests that
    may depart from those of our other stockholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our directors and executive officers own or control a
    significant percentage of the common stock following the Merger
    and completion of the Private Placement. Additionally, the
    holdings of our directors and executive officers may increase in
    the future upon vesting or other maturation of exercise rights
    under any of the options or warrants they may hold or in the
    future be granted or if they otherwise acquire additional shares
    of our common stock. Following the Merger, our executive
    officers and directors, in the aggregate, beneficially own
    5,729,920&#160;shares of our common stock, which represents
    approximately 32.6% of the voting power of all of our
    outstanding shares of stock. Our President, Michael Hodges,
    beneficially owns 2,833,800&#160;shares of our common stock
    (including the right to vote 1.3&#160;million shares held in
    escrow pursuant to the escrow agreement, which he has the right
    to re-acquire), and will be able to vote an additional
    1,231,120&#160;shares under voting agreements with the
    beneficial owners of the shares, until the beneficial owners no
    longer own such shares, or a total of approximately 28.3% of the
    voting power of all our outstanding shares of stock. Our Senior
    Vice President-Field Operations, Larry Campbell, beneficially
    owns 600,000&#160;shares of our common stock (consisting of
    600,000&#160;shares of our common stock issuable upon exercise
    of currently exercisable options). Mary Losty, a director of
    ours, beneficially owns 1,030,000&#160;shares of our common
</DIV>
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    <BR>
    15
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    stock (including 20,000&#160;shares of our common stock
    purchased in the Private Placement and 10,000&#160;shares of our
    common stock underlying warrants issued in the Private
    Placement. John Freshman, a director of ours, beneficially owns
    35,000&#160;shares of our common stock. As a result, in addition
    to their board seats and offices, such persons will have
    significant influence over and control all corporate actions
    requiring stockholder approval, irrespective of how the
    Company&#146;s other stockholders, including purchasers in the
    Private Placement, may vote, including the following actions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to elect or defeat the election of our directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to amend or prevent amendment of our Certificate of
    Incorporation or By-laws;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to effect or prevent a merger, sale of assets or other corporate
    transaction; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to control the outcome of any other matter submitted to our
    stockholders for vote.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, these persons&#146; stock ownership may discourage
    a potential acquirer from making a tender offer or otherwise
    attempting to obtain control of the Company, which in turn could
    reduce our stock price or prevent our stockholders from
    realizing a premium over our stock price.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Exercise
    of options and warrants may have a dilutive effect on our common
    stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the price per share of our common stock at the time of
    exercise of any warrants, options, or any other convertible
    securities is in excess of the various exercise or conversion
    prices of these convertible securities, exercise or conversion
    of these convertible securities would have a dilutive effect on
    our common stock. As of April&#160;15, 2010, we had
    (i)&#160;outstanding warrants to purchase 3,412,500&#160;shares
    of our common stock at an exercise price of $2.00 per share,
    (ii)&#160;outstanding Placement Agent warrants to purchase
    107,500&#160;shares of our common stock at an exercise price of
    $1.25 per share, (iii)&#160;outstanding options to purchase
    770,000&#160;shares of our common stock at an exercise price of
    $0.99 per share, (iv)&#160;outstanding options to purchase
    1,852,000&#160;shares of our common stock at an exercise price
    of $0.90 per share, and (v)&#160;outstanding options to purchase
    600,000&#160;shares of our common stock at an exercise price of
    $1.00 per share. Further, any additional financing that we
    secure may require the granting of rights, preferences or
    privileges senior to those of our common stock and which result
    in additional dilution of the existing ownership interests of
    our common stockholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    certificate of incorporation allows for our board of directors
    to create new series of preferred stock without further approval
    by our stockholders, which could adversely affect the rights of
    the holders of our common stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has the authority to fix and determine
    the relative rights and preferences of preferred stock. Our
    board of directors also has the authority to issue preferred
    stock without further stockholder approval. As a result, our
    board of directors could authorize the issuance of series of
    preferred stock that would grant to holders the preferred right
    to our assets upon liquidation, the right to receive dividend
    payments before dividends are distributed to the holders of
    common stock and the right to the redemption of the shares,
    together with a premium, prior to the redemption of our common
    stock. In addition, our board of directors could authorize the
    issuance of series of preferred stock that have greater voting
    power than our common stock or that are convertible into our
    common stock, which could decrease the relative voting power of
    our common stock or result in dilution to our existing
    stockholders.
</DIV>
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    <BR>
    16
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling stockholders will receive all of the proceeds from
    the sale of the shares offered by them under this prospectus. We
    will not receive any proceeds from the sale of the shares by the
    selling stockholders covered by this prospectus. We will,
    however, receive proceeds from the exercise of the warrants if
    the warrants are exercised for cash. Proceeds received by us, if
    any, will be used for working capital and general corporate
    purposes.
</DIV>

<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MARKET
    FOR OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock has been quoted on the OTC Bulletin&#160;Board
    under the symbol GSFL.OB since November&#160;23, 2009. Prior to
    November&#160;23, 2009, there was no active market for our
    common stock. Trading of our common stock commenced on
    November&#160;23, 2009. As of April&#160;12, 2010, there were
    approximately 214 holders of record of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the high and low bid prices for
    our common stock for the periods indicated, as reported by the
    OTC Bulletin&#160;Board. The quotations reflect inter-dealer
    prices, without retail
    <FONT style="white-space: nowrap">mark-up,</FONT>
    mark-down or commission, and may not represent actual
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Period</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November&#160;23, 2009 through December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January&#160;1, 2010 through March&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The last reported sales price of our common stock on the OTC
    Bulletin&#160;Board on April 12, 2010 was $3.40 per share.
</DIV>

<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not declared nor paid any cash dividend on our common
    stock, and we currently intend to retain future earnings, if
    any, to finance the expansion of our business, and we do not
    expect to pay any cash dividends in the foreseeable future. The
    decision whether to pay cash dividends on our common stock will
    be made by our board of directors, in their discretion, and will
    depend on our financial condition, results of operations,
    capital requirements and other factors that our board of
    directors considers significant.
</DIV>
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    <BR>
    17
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND<BR>
    RESULTS OF OPERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion and analysis should be read in
    conjunction with our consolidated financial statements and
    related notes appearing elsewhere in this prospectus. In
    addition to historical information, this discussion and analysis
    contains forward-looking statements that involve risks,
    uncertainties, and assumptions. Our actual results may differ
    materially from those anticipated in these forward-looking
    statements as a result of certain factors, including but not
    limited to those set forth under &#147;Risk Factors&#148;.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Company
    Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Genesis Fluid Solutions began operations in 1994 as a sole
    proprietorship owned by our founder, Michael Hodges and was
    incorporated in Colorado in 2005. We are engaged in the design
    and development of waterway restoration, mining, and paper mill
    (water) remediation technologies. Our patented Rapid Dewatering
    System (RDS) removes different types of debris, sediments, and
    contaminates from waterways and industrial sites, which assists
    in the recovery of lakes, canals, reservoirs and harbors. The
    RDS system separates water from the solid materials that are
    dredged, a process that is known as dewatering. Because of the
    scalability of the equipment, the small footprint required, and
    our own real-time rapid dewatering capabilities, RDS can remove
    thousands of cubic yards of sediment per day, and return clear
    water to waterways at rates of thousands of gallons per minute.
    We believe we accomplish this at significantly lower costs than
    our competitors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Domestically, we have secured two contracts under which we will
    perform the work directly. These waterway dredging projects are
    due to begin in 2010. Our performance under such contracts is
    presently not anticipated to commence until June 2010 and
    September 2010, respectively, as the projects are currently
    completing permitting requirements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Results
    of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our revenues are derived from professional services contracts to
    dewater dredged material, including fine-grained sediment, for
    lake and waterway restoration.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Year
    Ended December&#160;31, 2009 Compared with Year Ended
    December&#160;31, 2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenues</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company recognized no revenue for the year ended
    December&#160;31, 2009 as compared to $35,097 of revenue for the
    year ended December&#160;31, 2008. The decrease is primarily due
    to the effects of accounting for revenues under the completed
    contract method whereby the company defers revenue until
    completion of the project. In addition, the two projects we
    currently have contracts for were delayed. The development of
    our business was further hindered by a general lack of private
    and public financing for the dewatering projects to which we
    market and sell our services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of our sales for the year ended December&#160;31, 2008, were
    to customers in the United States.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Operating
    Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Selling,
    General and Administrative Expenses</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Selling, general and administrative expenses were $1,941,484 for
    the year ended December&#160;31, 2009 as compared to $713,424
    for the year ended December&#160;31, 2008, an increase of 172%.
    Utilizing the proceeds received from financing activities (see
    below), we began implementing our business plan and thus, our
    selling, general and administrative expenses increased
    accordingly. Our selling, general and administrative expenses
    consist of expenses paid for payroll and related costs,
    consultant and professional fees, stock-based compensation,
    insurance, impairments on long-lived assets, equipment
    maintenance, depreciation expense, and other general operating
    costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect our costs for personnel, consultants and other
    operating costs to increase as we implement our business plan.
    Thus, our selling, general and administrative expenses are
    likely to increase significantly in future reporting periods.
</DIV>
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    <BR>
    18
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Income (Expense)</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other income (expense) for the year ended December&#160;31, 2009
    was $306,283 compared to $496,241 for the year ended
    December&#160;31, 2008, a decrease of 38.3%. The decrease was
    primarily attributable to the fact that the prior year included
    a loss on disposal of property and equipment of $174,125.
    Interest expense (which includes $101,250 of stock-based
    interest) also decreased by $44,537 primarily due to the
    decrease in interest-bearing liabilities (most notably
    convertible notes payable decreased by $713,190). The decrease
    in interest expense is significantly offset by an increase in
    inducement expense on debt conversion of $40,759.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Net
    Loss</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net loss for the year ended December&#160;31, 2009 was
    $2,247,767 compared to a net loss of $1,568,251 for the year
    ended December&#160;31, 2008. The change was attributable to an
    increase in operating expenses of $1,228,060, offset by a
    decrease in other expenses of $189,958.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in operations during the year ended
    December&#160;31, 2009 totaled $1,737,841 and resulted primarily
    from a net loss of $2,247,767, an increase in prepaid expenses
    and other current assets of $124,805 and a gain on settlement of
    accounts payable of $118,910, partially offset by stock-based
    compensation of $284,714, an increase in accounts payable of
    $215,592, impairment of patents pending of $119,896,
    depreciation of property and equipment of $112,345, and
    stock-based interest expense of $101,250.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in investing activities during the year ended
    December&#160;31, 2009 totaled $69,721 and resulted from $47,922
    of purchases of property and equipment and $21,799 of patent
    costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by financing activities during the year ended
    December&#160;31, 2009 totaled $6,661,531 and resulted primarily
    from proceeds of $5,909,750 from sales common stock and warrants
    (net of offering costs), proceeds of $773,500 from issuances of
    convertible notes payable, and capital contributions of
    $491,374, partially offset by principal payments of $202,034 on
    capital leases, principal payments of $158,179 on convertible
    notes payable, and principal payments of $116,662 on a secured
    note payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, we had working capital of $3,232,419,
    including $4,873,912 in cash and cash equivalents. We had
    minimal revenue generating activities in 2009 and are
    transitioning to a new business model. We anticipate that
    revenues will resume in June 2010 as we begin to provide
    services under waterway dredging contracts. Our cash used in
    operating activities during the year ended December&#160;31,
    2009 totaled $1,737,841. Our auditors have expressed a going
    concern in our consolidated financial statements. Nonetheless,
    the Company expects that it has sufficient cash and borrowing
    capacity to meet its working capital needs for at least the next
    12&#160;months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, we have financed our working capital and capital
    expenditure requirements primarily from notes payable and the
    sales of our equity securities. We may seek additional equity
    <FONT style="white-space: nowrap">and/or</FONT> debt
    financing in order to implement our business plan. We completed
    a Private Placement, commencing October&#160;30, 2009 through
    December&#160;29, 2009, whereby we received net proceeds of
    $5,909,750, which we believe will fund our operations at least
    through December 2010. We do not have any lines of credit or
    borrowing facilities to meet our cash needs. As a result, we may
    not be able to continue as a going concern, without further
    financing, following December 2010. It is reasonably possible
    that we will not be able to obtain sufficient financing to
    continue operations. Furthermore, any additional equity or
    convertible debt financing will be dilutive to existing
    shareholders and may involve preferential rights over common
    shareholders. Debt financing, with or without equity conversion
    features, may involve restrictive covenants.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No related party transactions had a material impact on our
    operating results. See Notes&#160;14 and 19 to our consolidated
    financial statements.
</DIV>
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    <BR>
    19
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Pronouncements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Note&#160;2 to our consolidated financial statements for a
    discussion of recent accounting pronouncements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Critical
    Accounting Estimates</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management&#146;s discussion and analysis of financial condition
    and results of operations is based upon our consolidated
    financial statements, which have been prepared in accordance
    with accounting principles generally accepted in the United
    States of America. The preparation of these consolidated
    financial statements requires us to make estimates and
    assumptions that affect the reported amounts of assets,
    liabilities, revenues, and expenses, and related disclosure of
    contingent assets and liabilities. On an ongoing basis, we
    evaluate our estimates and assumptions, including, but not
    limited to, those related to the estimates of depreciable lives
    and valuation of property and equipment, valuation and
    amortization periods of intangible assets, valuation of
    derivatives, valuation of payroll tax contingencies, valuation
    of share-based payments, and the valuation allowance on deferred
    tax assets.
</DIV>
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    <BR>
    20
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<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are engaged in the design and development of waterway and
    water remediation technologies for the environmental, mining and
    paper industries. Our patented Rapid Dewatering System (RDS)
    removes different types of debris, sediments, and contaminates
    from waterways and industrial sites, which assists in the
    recovery of lakes, canals, reservoirs and harbors. The RDS
    system separates water from the solid materials that are
    dredged, a process that is known as dewatering. Because of the
    scalability of the equipment, the small footprint required, and
    our own real time rapid dewatering capabilities, our RDS can
    remove thousands of cubic yards of sediment per day, and return
    clear water to waterways at rates of thousands of gallons per
    minute. We believe we accomplish this at significantly lower
    costs than our competitors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After demonstrating proof of concept on a port restoration
    project in California, we were acknowledged by the Water Board
    of the State of California, the United States Environmental
    Protection Agency and the United States Army Corps of Engineers
    as having an innovative technology acceptable for the
    restoration of both contaminated and non-contaminated waterways.
    We believe our technologies have a variety of benefits for both
    industry and the environment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Water
    Recovery Industry</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Many waterways worldwide suffer from eutrophication or
    deterioration, leading to the formation of wetlands. This
    typically results from agricultural run-off and other man-made
    causes. Some waterways are so polluted and stagnant that their
    animal and plant life die off and, in the case of rivers and
    streams, the current ceases to flow. Having continued access to
    healthy, clean lakes, rivers, marinas, shipping ports and other
    waterways is vital to maintaining affordable water supplies,
    vibrant economies and entire ecosystems. Additionally, mining
    operations and paper mills can greatly limit their water usage
    by recycling their carriage water in their industrial circuit,
    instead of discharging it into natural waterways or disposal
    sites.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cleaning a waterway often requires dredging. Dredging empties
    the water body of large quantities of
    <FONT style="white-space: nowrap">built-up</FONT>
    debris along the bottom, ranging from coarse material, such as
    shells, organic vegetation and garbage, to sand and fine grained
    sediment, such as clays, silts and organics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The methodologies currently employed in the industry to dewater
    dredged sentiment from waterways primarily fall into three
    categories: (1)&#160;upland disposal sites, (2)&#160;belt
    presses and thickeners, and (3)&#160;geo-synthetic tubes. These
    techniques have prohibitive costs and, since they are
    land-intensive, they are environmentally destructive and slow.
    Therefore, increasingly, many communities and governments either
    cannot afford to restore their waterways or are unwilling to
    accept a process that involves the destruction of one ecosystem
    to save another.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Upland Disposal Sites.</I>&#160;&#160;Unlike coarse material
    and sand, fine-grained sediment requires a long settling period
    to release even minimal water content. Historically, dredged
    sediment has been dewatered in upland disposal sites. These
    sites are created by clearing vast areas of land and building
    dykes or levees around the sites, resulting in large sludge
    lagoons to hold the sediment discharged from hydraulic dredges.
    Contained disposal facilities require purchasing land, if
    available, which is often expensive, and leveling it, so that it
    is completely flat. This construction process completely
    destroys all ecosystems in the area, including forests. The
    &#147;process rate&#148; for sun drying in containment areas is
    discouragingly slow, requiring an average drying time of seven
    or more years. Also, in many coastal areas around the world,
    ocean dumping of sediment is now prohibited.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Belt Presses and Thickeners.</I>&#160;&#160;Dredges can pump
    sludge to dewatering plants, which will slowly process it. By
    building large or numerous tank farms, the material can be
    flocculated, which is a process that facilitates the separation
    of water from solids. This process is slow. Typical ratios in
    this industry are 3:1 to 5:1. That is, three hours to five hours
    to dewater 1&#160;hour of dredge pumping. This approach pulls
    the settled flocculated material from the tank bottoms,
    generally flocculates the material a second time, then utilizes
    a belt press to squeeze the flocculated solids, wringing water
    from the solids. Belt press operations are slow and expensive
    and require additional operators.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Geo-Synthetic Tubes.</I>&#160;&#160;Geo-tubes are long and
    wide synthetic &#147;sausage&#148; tubes. Flocculated material
    from the dredge is poured into these tubes. Water slowly drains
    from numerous and small porous openings in the synthetic
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    material. Eventually the material becomes dry enough to be
    removed from the Geo-tube, which is accomplished by cutting the
    tubes open. The tubes are expensive, slow to dewater and can
    only be used once.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rapid
    Dewatering System (RDS)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have inverted the concept of settling sediment through a
    water column and instead drain water instantly away from the
    sediment through our patented system. This eliminates the need
    for vast amounts of time
    <FONT style="white-space: nowrap">and/or</FONT> land
    to dewater, and does not have the negative environmental effects
    found with the other techniques. Our process encompasses several
    stages of sediment/asset recovery prior to reaching our RDS unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This three-stage process of removing sand and coarse material
    yields a slurry of liquid and fine grained particulates that is
    suitable for polymer dosing, flocculation and instant
    dewatering. By removing heavier solids prior to polymer
    introduction, polymer is reserved for only the finest grain
    solids, resulting in significant cost savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fine grain sediment removal represents the most challenging
    aspect of waterway restoration. We believe that no other
    technology can approach the real-time capacity for high-speed
    dewatering of ultra-fine solids that we have achieved. The
    patented RDS recovers and classifies solid material down to
    ultra-fine clays, silts, and organics (7-14 angstroms in size)
    and simultaneously returns clear water (30 parts per million
    (ppm) of total suspended solids) to the waterway.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stage 1&#160;&#151; utilizes a coarse screening system to
    facilitate removal of coarse debris that may include a variety
    of obstructive materials, such as shells, beverage cans, tree
    stumps, shoes, lumber, fiberglass or fibrous plant life.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stage 2&#160;&#151; utilizes a screening unit designed to
    remove, classify and stockpile gravel. The unit we use is
    capable of classifying retrieved gravel according to client
    specifications and washing the material, which is an important
    factor in asset resale.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stage 3&#160;&#151; continues the process by salvaging the sand.
    The sand recovery system that provides the greatest flexibility
    utilizes the dual technologies of sand screws and hydro-cyclones
    working in tandem. This process also allows for the
    classification, washing and stockpiling of sand for reuse or
    sale.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Once coarse debris, gravel, and sand have been removed from the
    dredge flow, polymer is introduced into the mix. We have
    developed a precise, agile technology that continually monitors
    the slurry and provides instant response to varying flow rates
    and densities. Our state of the art technology measures the
    density of the remaining solids to be processed. This data,
    coupled with the flow rate, is fed to a programmable logic
    control system, which in turn controls a variable speed pump
    that injects polymer into the slurry at very close tolerances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The slurry and polymer are gently blended, initiating a
    flash-flocculation process that provides for polymer extension,
    contact time, and particle capture. The flocculated substrate is
    then distributed over a micro-screen system that enables water
    to drain away from the accumulated flocs, instantaneously
    separating the clear water from the accumulating cake. The
    accumulated cake, which at this point has a consistency of
    cottage cheese, is gravity fed into our dewatering boxes for
    final dewatering, if desired. The recovered cake is stackable
    dirt and ready for disposal or reuse. The turbidity of the clear
    water phase is continually monitored, as clear water is returned
    to the waterway. The speed and agility of the RDS enables the
    dewatering unit to operate in steady state balance with a
    hydraulic dredge. Thus, production and recovery occur in a
    synchronized, operational rhythm.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competition
    and Competitive Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is highly competitive. We expect to depend on
    government contracts for a significant portion of our business.
    Competition for government contracts depends upon our ability to
    satisfy bidding requirements as well as subcontracting
    requirements in the event that we are a subcontractor to a prime
    contractor. Many larger more well capitalized companies may be
    able to satisfy the financial, size, equipment, employment,
    bonding,
</DIV>
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    certification, track record, and other government regulatory
    requirements more readily than we are able to. Our typical
    competitors are represented by the following companies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Deme Environmental Contractors&#160;&#151; DEC NV (Zwijndrecht,
    Belgium) employs belt presses and plate and frame presses and
    clarifier (tank) settling systems in Europe. This company is
    associated with several large European dredging groups and
    performs dewatering operations for ports and waterways.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Dredge America, Inc. (Kansas City, Missouri) works with
    Geo-Textile tubes. These &#147;Geo-Tubes&#148; are filled with
    flocculated dredge slurry. The tubes, shaped like large
    sausages, slowly bleed out capillary moisture from the contained
    sludge until the material is relatively dry, and are then cut
    open to extricate the dewatered solids.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    PHOENIX Process Equipment Co. (Louisville, Kentucky) uses belt
    presses, screw presses and thickeners, and processes dredge flow
    through a flocculation process. This company also provides
    consulting services for mining operations and has in-house
    fabrication capability.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that our RDS gives us an advantage over our
    competitors for the following reasons:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    quicker process&#160;&#151; can dewater a dredge flow in real
    time, rather than dry the sediment under the sun over the course
    of months
    <FONT style="white-space: nowrap">and/or</FONT>
    years, so projects can be completed much quicker;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    returns clear water&#160;&#151; can simultaneously return clear,
    aerated water to the waterway, thereby providing natural,
    oxygenated water to the habitat;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    works on fine-grained solids&#160;&#151; can separate water from
    even fine-grained solids at high speeds;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lower cost&#160;&#151; is much more cost efficient since
    (i)&#160;our system is able to sustain a better ratio (dredge
    time to dewatering time) than many alternatives so that projects
    may be able to be completed sooner than other dewatering
    processes, and (ii)&#160;we do not need to utilize large amounts
    of land to spread out and dewater the dredged sediment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    environmentally friendlier&#160;&#151; is less destructive on
    the environment by immediately returning natural, clear water to
    the habitat;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    greater mobility&#160;&#151; has a small footprint, is mobile
    and scalable, which allows for quick set up and restoration of
    sites, and access to waterways that other companies&#146;
    equipment is unable to reach;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    easier to remove solids&#160;&#151; can dewater the solids to
    less than 50% moisture content, which is the equivalent of dry
    dirt, so that they can be stacked for removal, trucking, or
    reuse options such as topsoil or landfill;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    quieter&#160;&#151; uses sound attenuated equipment, so the only
    noise heard resembles a gentle waterfall;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    odorless&#160;&#151; has no odor associated with the process,
    due to the speed the sediment is dewatered; and,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cleaner&#160;&#151; designed to contain spillage, which is
    automatically reprocessed through the system, so that the entire
    staging area remains clean.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Marketing
    Strategies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our strategy includes directly marketing services to government
    and other users, and licensing our technology to others. We
    intend to initially focus our efforts on the United States,
    Europe and the Pacific Rim.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may provide the equipment and training necessary to launch
    projects while retaining ownership of equipment and intellectual
    property. By seeking to cultivate strategic relationships with
    large, established companies in various regions of the world, we
    believe we can grow more quickly than establishing offices
    throughout the world.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Government
    and Environmental Regulation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are subject to various environmental laws and
    regulations related to, among other things: dredging operations;
    the disposal of dredged material; protection of wetlands; storm
    water and waste water
</DIV>
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    <BR>
    23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    discharges; and, transportation and disposal of hazardous
    substances and materials. We are also subject to laws designed
    to protect certain marine species and habitats. Compliance with
    these statutes and regulations can delay appropriation
    <FONT style="white-space: nowrap">and/or</FONT>
    performance of particular projects and increase related
    expenses. Our projects may involve transportation and disposal
    of hazardous waste and other hazardous substances and materials.
    Various laws strictly regulate the removal, treatment and
    transportation of hazardous substances and materials and impose
    liability for human health effects and environmental
    contamination caused by these materials. We cannot predict what
    environmental legislation or regulations will be enacted in the
    future, how existing or future laws or regulations will be
    enforced, administered or interpreted, or the amount of future
    expenditures that may be required to comply with these
    environmental or health and safety laws or regulations, or to
    respond to future cleanup matters or other environmental claims.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Intellectual
    Property</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have invested significantly in the development of proprietary
    technology and also to establish and maintain an extensive
    knowledge of the leading technologies, and incorporate these
    technologies into the RDS and the services that we offer and
    provide to our customers. We hold a patent, which expires in
    2021, that covers the European Union, China, South Africa,
    Eurasia and New Zealand; a patent pending in the United States,
    which is expected in the next 12&#160;months; and, a number of
    other patent applications. We believe that we hold adequate
    rights to all intellectual property used in our business and
    that we do not infringe upon any intellectual property rights
    held by other parties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Properties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We lease our Colorado Springs headquarters, consisting of
    approximately 300&#160;square feet of office space, at $1,152.15
    per month. The lease is on a month-to-month basis and may be
    terminated by either us our landlord with 30&#160;days notice.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of April&#160;15, 2010, we had four persons engaged in
    management, marketing, sales, project development, and finance
    activities for us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Proceedings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, the Company may become involved in litigation
    relating to claims arising out of its operations in the normal
    course of business. Except as described below, no legal
    proceedings, government actions, administrative actions,
    investigations or claims are currently pending against us or
    involve the Company which, in the opinion of the management of
    the Company, could reasonably be expected to have a material
    adverse effect on its business or financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are no proceedings in which any of the directors, officers
    or affiliates of the Company, or any registered or beneficial
    stockholder, is an adverse party or has a material interest
    adverse to that of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;27, 2008, Eagle North America, Inc.
    (&#147;Eagle&#148;), which provided certain equipment and
    consulting services to the Company, filed suit against Genesis
    Fluid Solutions and its chief executive officer and director
    Michael Hodges for monies owed pursuant to an equipment lease
    agreement between Eagle and the Company. Eagle claimed damages
    of $152,103.28. The Company made counter claims against Eagle
    for a breach of representations and warranties and alleged
    damages related to the performance and operation of certain
    leased equipment and losses incurred as a result of its
    inadequate operation and maintenance of approximately $280,000.
    The two parties entered mediation in November 2008.
</DIV>
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    <BR>
    24
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;26, 2009, the parties entered into a settlement
    agreement under which Eagle dismissed its claims against the
    Company, and the Company dismissed its claims against Eagle. The
    settlement agreement provided that the Company was to pay Eagle
    the sum of $152,000 payable as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    $25,000.00 within thirty days of the settlement,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    thereafter 15 equal installments of $8,466.67 beginning on
    August&#160;26, 2009.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of April&#160;15, 2010, the Company has on a timely basis
    made all payments to date required by the settlement agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On or about March&#160;31, 2010, the Company&#146;s agent for
    service of process in Delaware notified the Company of its
    receipt of service of a partial Summons and Complaint to the
    Company. The action was commenced before the Supreme Court, New
    York County. We understand the service agent was served with an
    incomplete Summons and Complaint, missing pages. We requested a
    copy of the Court file. Plaintiff Big Fuel Communications, LLC
    seeks $41,250 in damages under various theories of recovery:
    breach of contract, quantum meruit and unjust enrichment, for
    services allegedly rendered to Genesis Fluid Solutions. The
    Company disputes the complaint&#146;s allegations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have a potential dispute concerning a letter with a potential
    joint venture partner in the Netherlands, which is more fully
    described in Note&#160;15 to our audited consolidated financial
    statements for the year ended December&#160;31, 2009. The
    parties have alleged certain damages and defenses and are
    working together to resolve the issue.
</DIV>
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    <BR>
    25
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below is certain information regarding our executive
    officers and directors. Each of the directors listed below was
    elected to our board of directors to serve until our next annual
    meeting of stockholders or until his successor is elected and
    qualified. All directors hold office for one-year terms until
    the election and qualification of their successors. The
    following table sets forth information regarding the members of
    our board of directors and our executive officers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="60%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position with the Company</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael Hodges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    59
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman and Interim Chief Executive Officer
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Larry Campbell
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    61
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President-Field Operations
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mary Losty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    50
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John Freshman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    63
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert Stempel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    77
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Michael Hodges</I>, <I>Chairman </I>and <I>Interim Chief
    Executive Officer.</I>&#160;&#160;Mr.&#160;Hodges has been
    chairman of the board of directors of the Company since October
    2009 and Interim Chief Executive Officer since March 2010. From
    October 2005 to October 2009, he was president, chief executive
    officer and director of Genesis Fluid Solutions, and founded the
    predecessor business to Genesis Fluid Solutions in 1994. He has
    30&#160;years of experience in liquid technology, which
    culminated with the Genesis Fluid Solutions Rapid Dewatering
    System. His experience includes management of lake, marina and
    other waterway restoration projects. Prior to founding Genesis
    Fluid Solutions, he worked for Black&#160;&#038; Veatch. He was
    also director and project manager for several, large refinery
    and environmental projects. As an early developer of excess
    polymer mud systems, he has expertise in working with carbon
    dioxide, hydrogen sulfide, anhydrite, and numerous other liquid
    contaminants. His extensive operations experience includes
    centrifuge, belt press, linear motion shakers, hydrocyclones,
    separators, pumping systems, polymer
    <FONT style="white-space: nowrap">make-up</FONT>
    units, programmable logic control systems, polymer injection,
    flocculation chemistry, coagulation and contaminated sediments.
    Mr.&#160;Hodges collaborates with colleagues worldwide on a
    variety of liquid and water projects and is a speaker at
    national and international forums. He has been published in
    industry journals, including Engineering News Record, Dredging
    and Port Construction, and International Dredging Review. He has
    invented a number of dewatering systems and filed several
    national and international patents. He holds qualifications in
    attapulgite, bentonitic, and montmorillonite mud systems and is
    certified in enhanced centrifuge technology. Mr.&#160;Hodges
    created &#147;Mud School,&#148; the only certification process
    in rapid dewatering technology.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Larry Campbell</I>, <I>Senior Vice President-Field
    Operations.</I>&#160;&#160;Mr.&#160;Campbell has been senior
    vice president-field operations of Genesis Fluid Solutions since
    January 2010. From October 2005 to January 2010, he was senior
    vice president and director of field operations of Genesis Fluid
    Solutions, and held a similar position with the predecessor
    business to Genesis Fluid Solutions since 1994.
    Mr.&#160;Campbell is responsible for Genesis Fluid Solutions
    dewatering operations, and works closely with Mr.&#160;Hodges in
    research and development. In this capacity, he has brought
    solutions to the field of water and waterway restoration
    projects that have resulted in Genesis Fluid Solutions being
    awarded patents on a variety of innovations, and is the
    fabricator of the Genesis Fluid Solutions Rapid Dewatering
    System and related clarifier applications and energy dampening
    equipment. He has 33&#160;years of experience in commercial
    construction management, all phases of related field activity,
    and <FONT style="white-space: nowrap">on-site</FONT>
    client relations. He has also designed coarse debris and
    manifold systems, as well as inline filters, distributive
    systems, and sand recovery units. Earlier in his career,
    Mr.&#160;Campbell designed and constructed high pressure
    snubbing tools for Kuwaiti oilfield recovery, and production
    plants for agricultural applications. He is certified as a Lead
    Operations Superintendent for contaminated sediments (including
    Haz-Mat training), closed loop mud systems, and enhanced belt
    press procedures. With expertise in all phases of centrifugal,
    positive displacement and gear pump operations,
    Mr.&#160;Campbell is also a Master Fabricator and Welder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mary Losty</I>, <I>Director.</I>&#160;&#160;Since 1998,
    Ms.&#160;Losty has been a general partner and portfolio manager
    of Cornwall Asset Management, LLC. Prior to that, she worked as
    a portfolio manager at Duggan&#160;&#038; Associates, as an
    equity research analyst and assistant portfolio manager at M.
    Kimelman&#160;&#038; Co., and at Morgan Stanley&#160;&#038;
    Company. Since May 2007, she has served on the board of
    directors of Procera Networks (AMEX:PKT), a Silicon Valley
    bandwidth management company. She is also the commissioner of
    the Cambridge, Maryland Planning and Zoning
</DIV>
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    <BR>
    26
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Commission, as well as a member of the Am Board of Directors of
    the United Nations University for Peace. Ms.&#160;Losty has a
    law degree from Georgetown University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>John Freshman, Director.</I>&#160;&#160;Mr.&#160;Freshman has
    served as a principal of Troutman Sanders Strategies, a
    full-service government relations and issue management firm
    since 2006. Prior to joining Troutman Sanders Strategies,
    Mr.&#160;Freshman served as president of Freshman Kast, Inc., a
    multi-purposed government relations and lobbying firm
    specializing in environment and natural resources, from 1981
    through 2006. Mr.&#160;Freshman helped write the original 1972
    Clean Water Act, Clean Air Act, and Endangered Species Act. He
    has contributed to wetlands protection programs and other
    federal legislative proposals and regulations. As a result, he
    has been involved in many appropriations legislation for water
    including navigation, water supply, dams, and flood control. He
    has also served in senior positions in the Senate Environment
    and Public Works Committee, the White House, and the
    Environmental Protection Agency. His first government position
    was as a staff assistant to Senator Richard Schweiker in 1969.
    He holds a Political Science degree from Middlebury College.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Robert Stempel</I>,
    <I>Director.</I>&#160;&#160;Mr.&#160;Stempel began his career at
    General Motors in 1958, was promoted to President and Chief
    Operating Officer in 1987, and finally elevated to CEO and
    Chairman in 1990. From 1995 through 2007, he served as Chief
    Executive Officer and Chairman of Energy Conversion Devices,
    where he accomplished exceptional growth in advanced nickel
    metal hydride batteries and thin film solar panel technology. In
    addition, he was the Chairman of Great Lakes Industries, where
    he coordinated industry engagement in key great lakes water
    quality, environmental, and policy issues. Mr.&#160;Stempel
    earned an engineering degree from the Worcester Polytechnic
    Institute and an MBA from Michigan State University. He is a
    member of the National Academy of Engineering, a Fellow of The
    Society of Automotive Engineers and the Engineering Society of
    Detroit, and a Life Fellow of the American Society of Mechanical
    Engineers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are no family relationships among any of our directors and
    executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe Mary Losty, John D. Freshman, and Robert Stempel are
    &#147;independent directors,&#148; as that term is defined by
    listing standards of the national exchanges and SEC rules,
    including the rules relating to the independence standards of an
    audit committee and the non-employee director definition of
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    of the Exchange Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Committees
    of the Board of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to appoint persons to the board of directors and
    committees of the board of directors as required to meet the
    corporate governance requirements of a national securities
    exchange, although we are not required to comply with these
    requirements until we elect to seek listing on a national
    securities exchange. We intend to appoint directors in the
    future so that a majority of our directors will be independent
    directors, of which at least one director will qualify as an
    &#147;audit committee financial expert,&#148; within the meaning
    of Item&#160;407(d)(5) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    of the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, the board of directors appointed an
    executive committee, audit committee, compensation committee,
    nominating committee and executive committee, and adopted
    charters relative to its audit committee, compensation committee
    and nominating committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mary Losty is currently the sole member of the audit committee.
    The audit committee&#146;s duties are to recommend to our board
    of directors the engagement of independent auditors to audit our
    financial statements and to review our accounting and auditing
    principles. The audit committee reviews the scope, timing and
    fees for the annual audit and the results of audit examinations
    performed by independent public accountants, including their
    recommendations to improve the system of accounting and internal
    controls. The audit committee oversees the independent auditors,
    including their independence and objectivity. However, the
    committee members are not acting as professional accountants or
    auditors, and their functions are not intended to duplicate or
    substitute for the activities of management and the independent
    auditors. The audit committee is empowered to retain independent
</DIV>
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    27
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    legal counsel and other advisors as it deems necessary or
    appropriate to assist the audit committee in fulfilling its
    responsibilities, and to approve the fees and other retention
    terms of the advisors. Our audit committee member possesses an
    understanding of financial statements and generally accepted
    accounting principles. The Company does not currently have an
    audit committee financial expert. The Company and its board of
    directors have yet to identify a suitable candidate to serve as
    the audit committee financial expert due to the small size of
    the Company and its limited reporting history, however, the
    Company intends to appoint an audit committee financial expert
    as soon as it is practical.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mary Losty is currently the sole member of the compensation
    committee. The compensation committee has certain duties and
    powers as described in its charter, including but not limited to
    periodically reviewing and approving our salary and benefits
    policies, compensation of our executive officers, administering
    our stock option plans, and recommending and approving grants of
    stock options under those plans.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Nominating
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mary Losty is currently the sole member of the nominating
    committee. The nominating committee considers and makes
    recommendations on matters related to the practices, policies
    and procedures of the board of directors and takes a leadership
    role in shaping our corporate governance. As part of its duties,
    the nominating committee assesses the size, structure and
    composition of the board of directors and its committees,
    coordinates evaluation of board performance and reviews board
    compensation. The nominating committee also acts as a screening
    and nominating committee for candidates considered for election
    to the board of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mary Losty is currently the sole member of the executive
    committee. The executive committee has certain duties and
    powers, including but not limited to assisting the board of
    directors in fulfilling its obligations relating to its
    operational oversight of the Company. The executive committee
    also acts as a screening and nominating committee for candidates
    considered for appointment as officers of the Company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee Interlocks and Insider Participation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mary Losty is currently the sole member of the compensation
    committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of our directors or executive officers serves as a member
    of the board of directors or compensation committee of any other
    entity that has one or more of its executive officers serving as
    a member of our board of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not had compensation arrangements in place for members
    of our board of directors and have not finalized any plan to
    compensate directors in the future for their services as
    directors. We may develop a compensation plan for our
    independent directors in order to attract qualified persons and
    to retain them. We expect that the compensation arrangements may
    be comprised of a combination of cash
    <FONT style="white-space: nowrap">and/or</FONT>
    equity awards.
</DIV>
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    <BR>
    28
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    COMPENSATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below sets forth, for the last two fiscal years, the
    compensation earned by (i)&#160;each individual who served as
    our principal executive officer or principal financial officer
    during the last fiscal year and (ii)&#160;our most highly
    compensated executive officer, other than those listed in
    clause&#160;(i) above, who was serving as executive officers at
    the end of the last fiscal year (together, the &#147;Named
    Executive Officers&#148;). No other executive officer had annual
    compensation in excess of $100,000 during the last fiscal year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Salary<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Bonus<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Principal Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael Hodges,
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    279,365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    71,615
</TD>
<TD nowrap align="left" valign="bottom">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    380,980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Chairman of the Board of Directors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    66,998
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    66,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    of the Company and Interim Chief Executive Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Martin Hedley,
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Former Chief Executive Officer(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Selby Little,
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Former Chief Financial Officer(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Carol Shobrook
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,840
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    154,906
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    79,601
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    264,347
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Former Chief Operating Officer(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;$70,500 that was paid to Mr.&#160;Hodges
    for consulting services performed for Genesis Fluid Solutions
    and (ii)&#160;$1,115 in life insurance policy premiums that were
    paid by the Company on behalf of Mr.&#160;Hodges.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;$44,500 that was paid to Mr.&#160;Hodges
    for consulting services performed for Genesis Fluid Solutions
    and (ii)&#160;$22,498 miscellaneous expense reimbursement.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Hedley was appointed as the Company&#146;s Chief
    Executive Officer effective December&#160;14, 2009. Effective
    March&#160;9, 2010, Mr.&#160;Hedley is no longer serving as the
    Company&#146;s Chief Executive Officer and is no longer
    affiliated with the Company.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Little was appointed as the Company&#146;s Chief
    Financial Officer effective December&#160;15, 2009. Effective
    February&#160;14, 2010, Mr.&#160;Little is no longer serving as
    the Company&#146;s Chief Financial Officer and is no longer
    affiliated with the Company.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Shobrook was appointed as the Company&#146;s Chief
    Operating Officer effective November&#160;15, 2009. Effective
    February&#160;5, 2010, Ms.&#160;Shobrook is no longer serving as
    our Chief Operating Officer and is no longer affiliated with the
    Company.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;$50,000 that was paid to Ms.&#160;Shobrook
    for consulting services performed for Genesis Fluid Solutions
    and (ii)&#160;$29,601 in life insurance policies.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Outstanding
    Equity Awards at Fiscal Year-End</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than as set forth below, there were no outstanding
    unexercised options, unvested stock,
    <FONT style="white-space: nowrap">and/or</FONT>
    equity incentive plan awards issued to our named executive
    officers as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock Award</B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Market<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option Award</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>or Payout<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Market<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares,<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Units or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Units or<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>or Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>or Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Rights<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Rights<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>That<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>That<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>That<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>That<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Have Not<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Have Not<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Have Not<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>(#)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>(#)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Expiration<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Not<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Vested<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercisable</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unexercisable</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vested</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Michael Hodges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    600,000
</TD>
<TD nowrap align="left" valign="bottom">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    October 30, 2019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Carol Shobrook
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    October 30, 2019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Upon closing of the Merger, Michael Hodges was granted
    <FONT style="white-space: nowrap">10-year</FONT>
    options to purchase 600,000&#160;shares of our common stock at
    $1.00 per share, which options vest upon our reaching the
    following milestones:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="22%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="76%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number of Option Shares</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Milestone</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    200,000
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Company having pre-tax income of $5&#160;million during the
    first year following the closing of the Merger
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional 200,000
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Company having pre-tax income of an additional $12&#160;million
    during the second year following the closing of the Merger
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional 200,000
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Company having pre-tax income of an additional $25&#160;million
    during the third year following the closing of the Merger
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Such amounts and bonuses should be calculated on a cumulative
    basis. For example, if the Company has $0 pre-tax income in year
    1 and $17&#160;million in year 2, then options to purchase
    400,000&#160;shares would vest at the end of the second year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All options described are subject to and have been issued under
    our 2009 Equity Incentive Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has not entered into employment agreements with any
    of its personnel. Michael Hodges, our Chairman of the Board of
    Directors and Interim Chief Executive Officer, earns a salary of
    $11,000 per month. Mr.&#160;Hodges is entitled to receive such
    additional consideration, including higher salaries, bonuses
    <FONT style="white-space: nowrap">and/or</FONT>
    option grants, as determined by our Board of Directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Equity
    Compensation Plan Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Equity
    Incentive Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, our board of directors and
    stockholders adopted the 2009 Equity Incentive Plan. The purpose
    of the 2009 Equity Incentive Plan is to provide an incentive to
    attract and retain directors, officers, consultants, advisors
    and employees whose services are considered valuable, to
    encourage a sense of proprietorship, and to stimulate an active
    interest of these persons in our development and financial
    success. Under the 2009 Equity Incentive Plan, we are authorized
    to issue incentive stock options intended to qualify under
    Section&#160;422 of the Internal Revenue Code of 1986, as
    amended, non-qualified stock options, stock appreciation rights,
    performance shares, restricted stock and long term incentive
    awards. The 2009 Equity Incentive Plan will be administered by
    our board of directors until authority has been delegated to a
    committee of the board of directors. On the closing
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    date of the Merger, certain of our executive officers, directors
    and other persons were granted options to purchase common stock
    exercisable at prices ranging from $0.90 to $1.00 per share as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="35%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Vesting Schedule</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercise Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expiration</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Colleen Stiles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    770,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Six months
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael Hodges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Based on milestones
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Larry Campbell
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Paul Vette
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Carol Shobrook
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dan Lohrmeyer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Amanda Sorenson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael Whaley
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brittany Jorgenson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tim Holt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Immediate
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/30/19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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    <BR>
    31
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as set forth below, during the past three years, there
    have been no transactions, whether directly or indirectly,
    between the Company and any of its officers, directors or their
    family members.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Loans</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;28, 2008, the Company entered into a loan
    agreement with Maria Hodges, the wife of the Company&#146;s
    Chief Executive Officer, Michael Hodges for $9,800. The note
    bears an annual 4.29&#160;percent interest rate and is due on
    November&#160;28, 2018. The note does not have any conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December&#160;31, 2008, no
    principal or interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;29, 2008, the Company entered into a loan
    agreement with Maria Hodges, wife of the Company&#146;s Chief
    Executive Officer Michael Hodges for $9,000. The note bears an
    annual 4.29&#160;percent interest rate and is due on
    September&#160;29, 2019. The note does not have conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December&#160;31, 2008, no
    principal interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;17, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $5,000. The note bears an annual
    4.29&#160;percent interest rate and is due on June&#160;17,
    2018. The note does not have conversion feature and is
    unsecured. Accrued and unpaid interest is due at the termination
    of the loan. In September 2008, the Company paid Mr.&#160;Speer
    $2,925 which was recorded as a reduction of the outstanding
    principal balance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;28, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $1,075. The note had no stated interest rate
    or maturity date. The note does not have any conversion feature
    and is unsecured. In September 2008, the Company paid
    Mr.&#160;Speer $1,075 and cancelled the note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;4, 2008, the Company entered into a loan
    agreement with Greg Rankin, who has provided legal services to
    the Company, for $5,000. The note had no stated interest rate or
    maturity date. The note does not have conversion feature and was
    unsecured. On July&#160;23, 2008, the principal balance plus
    $600 of accrued and unpaid interest was converted into
    1,120&#160;shares of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;9, 2007, the Company entered into a loan
    agreement with Michael Whaley, the former Chief Financial
    Officer of the Company, for $50,000. The note originally bore an
    annual interest rate of 20&#160;percent, which was later amended
    to 80&#160;percent, and subsequently, in combination with his
    separation, was revised to a 15&#160;percent interest rate and
    was due on November&#160;5, 2007. The note does not have a
    conversion feature and is unsecured. Accrued and unpaid interest
    is due at maturity date of the loan. At December&#160;31, 2008,
    $37,500, respectively, had been repaid under the note. At
    December&#160;31, 2009, $12,500 of principal plus accrued
    interest was due on the note. On September&#160;17, 2009,
    Michael Whaley, the former chief financial officer of the
    Company, resigned. As part of his separation agreement and in
    exchange for mutual releases, the Company is required to deliver
    the following to Mr.&#160;Whaley after completion of the Merger:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;$40,000 in cash,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;$30,000&#160;shares of common stock of the
    Company,&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;payment of all amounts due under his loan agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, all of the amounts due under the
    separation agreement were outstanding as the separation
    agreement is in dispute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;9, 2007, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $25,000. The note bears an
    annual 40&#160;percent interest rate and was due on
    November&#160;10, 2007. The note does not have conversion
    feature and was unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December&#160;31, 2008, the
    Company had made payments of $22,500 of which
</DIV>
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    <BR>
    32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    approximately $13,000 had been applied against principal and the
    remaining amount recognized as interest. During 2009, principal
    and accrued interest on this note was paid in full.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;5, 2009, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $50,000. The note was
    unsecured, bore 40% interest and was due on February&#160;3,
    2009. During 2009, principal and accrued interest on this note
    was paid in full.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Intellectual
    Property Assignment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;16, 2009, Michael Hodges and Larry Campbell
    executed an assignment agreement, pursuant to which they
    assigned to Genesis Fluid Solutions all of the their rights,
    title and interest in an invention entitled Apparatus and Method
    for De-Watering of Slurries, as described
    <FONT style="white-space: nowrap">and/or</FONT>
    claimed in US Application No.&#160;11/676,699 and PCT
    Application No.&#160;PCT/GB2007/000544, and all rights of
    priority in the invention as described
    <FONT style="white-space: nowrap">and/or</FONT>
    claimed in any applications for patents based on the invention.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;30, 2009, Michael Hodges and Larry Campbell
    executed another assignment agreement, pursuant to which they
    assigned to Genesis Fluid Solutions all of the their rights,
    title and interest in all patents, whether in the United States
    or internationally, that they may have in their respective
    names, that they may have applied for, or that they will apply
    for, directly or indirectly relating to the business currently
    conducted
    <FONT style="white-space: nowrap">and/or</FONT> to be
    conducted by the Company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Release
    of Cherry Tankers Debt</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of a release dated October&#160;30, 2009,
    a third party lender forgave loans made to us in the aggregate
    amount of $42,727 and released us from any claims he may have
    against us. These loans were made to cover certain expenses
    incurred by us before the Merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Bridge
    Notes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mary Losty, a director of the Company, purchased $100,000 in
    principal amount of 10% secured promissory notes as part of our
    bridge note financing conducted from May 2009 through
    October&#160;13, 2009. Pursuant to the terms of the bridge note
    financing, Ms.&#160;Losty converted the aggregate principal
    amount of her note into units sold in the Private Placement
    which closed immediately following the Merger at a rate of
    1.3&#160;shares of common stock and warrants to purchase
    0.5&#160;shares of common stock for each $1.00 of bridge note
    converted.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information as of
    April&#160;15, 2010 regarding the beneficial ownership of our
    common stock, taking into account the consummation of the
    Merger, the Private Placement and the Split-Off, by
    (i)&#160;each person or entity who, to our knowledge, owns more
    than 5% of our common stock; (ii)&#160;our executive officers
    named in the Summary Compensation Table above; (iii)&#160;each
    director; and, (iv)&#160;all of our executive officers and
    directors as a group. Unless otherwise indicated in the
    footnotes to the following table, each person named in the table
    has sole voting and investment power and that person&#146;s
    address is
    <FONT style="white-space: nowrap">c/o&#160;Genesis</FONT>
    Fluid Solutions Holdings, Inc., 830 Tender Foot Hill
    Road&#160;#301 Colorado Springs, CO 80906&#160;Shares of common
    stock subject to options, warrants, or other rights currently
    exercisable or exercisable within 60&#160;days of April&#160;14,
    2010, are deemed to be beneficially owned and outstanding for
    computing the share ownership and percentage of the stockholder
    holding the options, warrants or other rights, but are not
    deemed outstanding for computing the percentage of any other
    stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="8%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Beneficial Owner</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Beneficially Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Beneficially Owned(1)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>5% Owners </B>:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John Liviakis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000,000
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Executive Officers and Directors </B>:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael Hodges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,064,920
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Larry Campbell
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    600,000
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mary Losty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,080,000
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John Freshman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert Stempel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All executive officers and directors as a group
    (five&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,779,920
</TD>
<TD nowrap align="left" valign="bottom">
    (3)(4)(5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Represents less than one percent.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on 17,751,500&#160;shares of our common stock outstanding
    on April&#160;15, 2010.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Does not include 234,000&#160;shares issued to certain designees
    of Liviakis Financial Communications, Inc., a company hired by
    us to provide investor relations and public relations services
    through May&#160;10, 2011.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes (i)&#160;1,231,120&#160;shares of our common stock that
    Mr.&#160;Hodges has the power to vote pursuant to certain voting
    agreements with existing stockholders, and
    (ii)&#160;1,300,000&#160;shares of our common stock that he owns
    and that are being held in escrow pursuant to the terms of the
    Merger. Does not include 600,000&#160;shares of our common stock
    issuable upon exercise of outstanding stock options that are not
    exercisable within the next 60&#160;days.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of 600,000&#160;shares of our common stock issuable
    upon exercise of currently exercisable stock options.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes (i)&#160;30,000&#160;shares of our common stock
    purchased in the Private Placement upon conversion of certain
    outstanding promissory notes and (ii)&#160;50,000&#160;shares of
    our common stock underlying warrants issued in the Private
    Placement.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELLING
    STOCKHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Up to 11,847,500&#160;shares of common stock are being offered
    by this prospectus, all of which are being registered for sale
    for the accounts of the selling security holders and include the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    7,027,500&#160;shares of common stock issued in the Private
    Placement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    3,412,500&#160;shares of common stock issuable upon the exercise
    of warrants issued to investors in the Private Placement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    1,300,000&#160;shares issued in connection with the Merger,
    which are being held in escrow for three years in order to cover
    certain potential claims, indebtedness and liabilities,
    including potential tax liabilities, of Genesis Fluid Solutions;
    and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    107,500&#160;shares of common stock issuable upon the exercise
    of warrants issued to the placement agent in connection with the
    Private Placements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the transactions by which the selling stockholders
    acquired their securities from us was exempt under the
    registration provisions of the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shares of common stock referred to above are being
    registered to permit public sales of the shares, and the selling
    stockholders may offer the shares for resale from time to time
    pursuant to this prospectus. The selling stockholders may also
    sell, transfer or otherwise dispose of all or a portion of their
    shares in transactions exempt from the registration requirements
    of the Securities Act or pursuant to another effective
    registration statement covering those shares. We may from time
    to time include additional selling stockholders in supplements
    or amendments to this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below sets forth certain information regarding the
    selling stockholders and the shares of our common stock offered
    by them in this prospectus. None of the selling stockholders
    have had a material relationship with us within the past three
    years other than as described in the footnotes to the table
    below or as a result of their acquisition of our shares or other
    securities. To our knowledge, subject to community property laws
    where applicable, each person named in the table has sole voting
    and investment power with respect to the shares of common stock
    set forth opposite such person&#146;s name.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beneficial ownership is determined in accordance with the rules
    of the SEC. Each selling stockholder&#146;s percentage of
    ownership of our outstanding shares in the table below is based
    upon 17,751,500&#160;shares of common stock outstanding as of
    April&#160;15, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership Before Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>After Offering(1)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Selling Stockholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stephen J. and Lauren Reynolds Anderson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert A. Ayerle
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy J. Barkocy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael E. and Mary P. Baroody
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,500
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,500
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael E. Baroody (IRA) fbo Michael E. Baroody(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James C., Jr. and Nancy F. Barragan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    George M. Bradvica, Trustee, Bradvica Living Trust, 7/1989(7)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cagan Capital LLC(8)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    UBS Financial Services FBO Michael T. Collins (IRA Rollover)(10)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Linden Growth Partners Master Fund&#160;LP(11)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    600,000
</TD>
<TD nowrap align="left" valign="bottom">
    (43)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    600,000
</TD>
<TD nowrap align="left" valign="bottom">
    (43)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Seth Ian Fishman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership Before Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>After Offering(1)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Selling Stockholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bruce A. Gates
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kevin Geraghty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Black Stocking Ventures, LLC(13)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy P. Hecht
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William H. Hecht
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,500
</TD>
<TD nowrap align="left" valign="bottom">
    (14)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,500
</TD>
<TD nowrap align="left" valign="bottom">
    (14)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Washington Strategies 401(K) Profit Sharing Plan, fbo William
    Jarrell(15)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Washington Strategies 401K Plan fbo Jennifer Jarrell(16)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J Robert Jesmer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frank R. Koons,&#160;III
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Edward Kowlowitz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450,000
</TD>
<TD nowrap align="left" valign="bottom">
    (18)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450,000
</TD>
<TD nowrap align="left" valign="bottom">
    (18)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Colorado Springs Orthopedic Group Profit Sharing Plan FBO
    Kenneth B. Kurica, MD(19)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John E. Kyees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Don and Marie Lamberson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,500
</TD>
<TD nowrap align="left" valign="bottom">
    (20)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,500
</TD>
<TD nowrap align="left" valign="bottom">
    (20)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ross Lamberson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105,000
</TD>
<TD nowrap align="left" valign="bottom">
    (21)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105,000
</TD>
<TD nowrap align="left" valign="bottom">
    (21)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daryl Marcus Lechner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sandor Capital Master Fund, L.P.(22)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    JSL Kids Partners(23)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Glengar International Invs Ltd(24)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    825,000
</TD>
<TD nowrap align="left" valign="bottom">
    (25)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    825,000
</TD>
<TD nowrap align="left" valign="bottom">
    (25)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel J. Mattoon, Sr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Rachel McKernan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patrick D. McSwain
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Micha Mottale
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David O. Palmer,&#160;M.D.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    The Barbara L. Kolar Family Trust- 1988(26)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    NTC&#160;&#038; CO
    <FONT style="white-space: nowrap">26-1356253</FONT>
    FBO Daniel Rivers(27)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Scott Robinson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Neil Arthur Tallo
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gordon Clements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Maria E. Henderson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,750
</TD>
<TD nowrap align="left" valign="bottom">
    (28)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,750
</TD>
<TD nowrap align="left" valign="bottom">
    (28)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James A. Lewandowski
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Staffan Lofgren
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    London Family Trust(29)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    510,000
</TD>
<TD nowrap align="left" valign="bottom">
    (30)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    510,000
</TD>
<TD nowrap align="left" valign="bottom">
    (30)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Harriet Loshin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Terry and Marci Nelson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Oman International Holdings(31)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Christopher Paasch
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    W. Thomas Rhoads
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership Before Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>After Offering(1)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Selling Stockholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ben Sparango
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael C. Brown Trust dated 6/30/2000(32)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
    (33)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
    (33)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James Burzotta
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kiana Cagan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kyla Cagan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William S. Daugherty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Keith W. Davidson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
    (37)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
    (37)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E. and Frances H. Davidson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Carl J. Domino
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jason T. and Dannette E. Evans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert and Amy Frei
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dean Gardner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas Glenndahl
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mikael Johannesson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Linda U. Kuhlman Trust dated 7/12/94(35)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Barry Thomas Lechner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David J. Lies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    330,000
</TD>
<TD nowrap align="left" valign="bottom">
    (36)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    330,000
</TD>
<TD nowrap align="left" valign="bottom">
    (36)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John Liviakis Custodian FBO Audrey Liviakis(38)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John Liviakis Custodian FBO Caroline Liviakis(39)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Janice M. Loshin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Susan E. Loshin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
    (40)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
    (40)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Andrew S. Losty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Edward J. Losty and Gretchen N. Losty JT WROS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lawrence J. Losty and Esther A. Losty JT WROS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,000
</TD>
<TD nowrap align="left" valign="bottom">
    (34)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,000
</TD>
<TD nowrap align="left" valign="bottom">
    (34)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Margaret M. Losty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,000
</TD>
<TD nowrap align="left" valign="bottom">
    (41)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,000
</TD>
<TD nowrap align="left" valign="bottom">
    (41)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mario V. Mele
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    The James Molesky Family Trust(42)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,750
</TD>
<TD nowrap align="left" valign="bottom">
    (28)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,750
</TD>
<TD nowrap align="left" valign="bottom">
    (43)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mark L. Moskowitz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Paul Francis Pelosi, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
    (37)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
    (37)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jan Pettersen
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert H. Richardson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bradley Rotter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J. Rune Sandell
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sherman Capital Group(45)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sustainable Tech Fund(46)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tarn M. Sublett
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership Before Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>After Offering(1)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Selling Stockholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles N. Travers Trustee WDT Dated Oct 24, 1988 FBO Charles N.
    and Elizabeth Hall Travers(47)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450,000
</TD>
<TD nowrap align="left" valign="bottom">
    (18)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450,000
</TD>
<TD nowrap align="left" valign="bottom">
    (18)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joseph J. and Margaret C. Trefaller
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    K. Douglas Whittington Jr. and Carol A. Whittington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frederick W. Vogel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
    (48)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
    (48)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Roberta T. and Victor Yori
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Todd A. Zuckerbrod IRA(49)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Judy R Block
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Richard Fellin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alice Ferdinand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Margaret Stone Higgins
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Timothy P. Hughes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    180,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    180,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mary M. Losty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Street Fund&#160;LP(50)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,000
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,000
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Andrew J. Jr. and Linda L. Pasden
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Robert B. Prag
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,000
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Donald Rauch
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    180,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    180,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Richard Schmitt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
    (37)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
    (37)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mary Jo Sherrock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patricia M.B. Sinnott and Robert J. Sinnott
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Susan D. Stavish
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Colorado Financial Services Corporation(51)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,700
</TD>
<TD nowrap align="left" valign="bottom">
    (52)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,700
</TD>
<TD nowrap align="left" valign="bottom">
    (52)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John Lemak
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,000
</TD>
<TD nowrap align="left" valign="bottom">
    (54)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,000
</TD>
<TD nowrap align="left" valign="bottom">
    (54)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legend Merchant(55)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,000
</TD>
<TD nowrap align="left" valign="bottom">
    (56)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,000
</TD>
<TD nowrap align="left" valign="bottom">
    (56)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jesup and Lamont(57)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    350
</TD>
<TD nowrap align="left" valign="bottom">
    (58)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    350
</TD>
<TD nowrap align="left" valign="bottom">
    (58)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gar Wood Securities(59)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
    (60)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
    (60)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dave Evanson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
    (61)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
    (61)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Scott Furman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150
</TD>
<TD nowrap align="left" valign="bottom">
    (62)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150
</TD>
<TD nowrap align="left" valign="bottom">
    (62)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mark Moskowitz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,200
</TD>
<TD nowrap align="left" valign="bottom">
    (63)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,200
</TD>
<TD nowrap align="left" valign="bottom">
    (63)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laird Cagan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,625
</TD>
<TD nowrap align="left" valign="bottom">
    (64)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,625
</TD>
<TD nowrap align="left" valign="bottom">
    (64)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel Murphy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    825
</TD>
<TD nowrap align="left" valign="bottom">
    (65)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    825
</TD>
<TD nowrap align="left" valign="bottom">
    (65)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brad Ellis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,400
</TD>
<TD nowrap align="left" valign="bottom">
    (66)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,400
</TD>
<TD nowrap align="left" valign="bottom">
    (66)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ramin J. Azar
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,250
</TD>
<TD nowrap align="left" valign="bottom">
    (44)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,250
</TD>
<TD nowrap align="left" valign="bottom">
    (44)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sichenzia Ross Friedman Ference LLP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300,000
</TD>
<TD nowrap align="left" valign="bottom">
    (53)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300,000
</TD>
<TD nowrap align="left" valign="bottom">
    (53)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the amount of shares that will be held by the selling
    stockholders after completion of this offering based on the
    assumptions that (a)&#160;all shares registered for sale by the
    registration statement of which this prospectus is part will be
    sold and (b)&#160;no other shares of our common stock are
    acquired or sold by the selling stockholders prior to completion
    of this offering. However, the selling stockholders may sell
    all, some or none of the shares offered pursuant to this
    prospectus and may sell other shares of our common stock that
    they may own pursuant to another registration statement under
    the Securities Act or sell some or all of their shares </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    pursuant to an exemption from the registration provisions of the
    Securities Act, including under Rule&#160;144. To our knowledge
    there are currently no agreements, arrangements or understanding
    with respect to the sale of any of the shares that may be held
    by the selling stockholders after completion of this offering or
    otherwise.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    12,500&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    50,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    7,500&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Michael E. Baroody, as Beneficial Owner, has voting and
    dispositive power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    25,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    George M. Bradvica, as Trustee, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Laird Cagan, as Managing Member, has voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    250,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Michael T. Collins, as beneficial owner, has voting and
    dispositive power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (11) </TD>
    <TD></TD>
    <TD valign="bottom">
    Lara Coviello, as Analyst, has voting and dispositive power over
    these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (12) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    100,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (13) </TD>
    <TD></TD>
    <TD valign="bottom">
    Garrett Gross, as Member, has voting and dispositive power over
    these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (14) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    37,500&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (15) </TD>
    <TD></TD>
    <TD valign="bottom">
    William Jarrell, as Beneficial Owner, has voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (16) </TD>
    <TD></TD>
    <TD valign="bottom">
    Jennifer Jarrell, as Beneficial Owner, has voting and
    dispositive power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (17) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    5,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (18) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    150,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (19) </TD>
    <TD></TD>
    <TD valign="bottom">
    Kenneth B. Kurica and Ashley. Wiechmann, as Trustees, have
    voting and dispositive power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (20) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    17,500&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (21) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    35,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (22) </TD>
    <TD></TD>
    <TD valign="bottom">
    John Lemak, as Manager, has voting and dispositive power over
    these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (23) </TD>
    <TD></TD>
    <TD valign="bottom">
    John S. Lemak, Lacey E. Lemak, Eleanor J. Lemak, and Bailey A.
    Lemak, as Partners, have voting and dispositive power over these
    securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (24) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ian Crosby, James Colclough, Cora Binchy, Robert Douglas, Mervyn
    Ellis, Guy Gibson, Karen Oliver, Paul Roper, Philip Dean,
    Phillippe De Salis, Simon Harvey, Nigel Mifsud, Pauline Quach,
    Daniel Recordon, Aris Tatos, Christelle Theurillat, Olivier
    Perroud, Magali Garcia, Nicola Roberts, Nicholas Bernard, Samuel
    Caporossi, Raji Karattuparambil, Corinne Jaggy, and Phillipe
    Rauber, as Authorized Signatures, have voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (25) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    275,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (26) </TD>
    <TD></TD>
    <TD valign="bottom">
    Daniel Rivers, as Trustee has voting and dispositive power over
    these securities.</TD>
</TR>

</TABLE>
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    <BR>
    39
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (27) </TD>
    <TD></TD>
    <TD valign="bottom">
    Daniel River, as Beneficial Owner, has voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (28) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    6,250&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (29) </TD>
    <TD></TD>
    <TD valign="bottom">
    Robert S. London, as Trustee, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (30) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    150,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (31) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ian Crosby, James Colclough, Cora Binchy, Robert Douglas, Mervyn
    Ellis, Guy Gilson, Karen Oliver, Paul Roper, Philip Dean,
    Phillippe De Salis, Simon Harvey, Nigel Mifsud, Pauline Quach,
    Daniel Recordon, Aris Tatos, Christelle Theurillat, Olivier
    Perroud, Magali Garcia, Nicola Roberts, Nicholas Bernard, Samuel
    Caporossi, Raji Karattuparambil, Corinne Jaggy, and Phillipe
    Rauber, as Authorized Signatures, have voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (32) </TD>
    <TD></TD>
    <TD valign="bottom">
    Michael C. Brown, as Trustee, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (33) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    75,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (34) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    15,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (35) </TD>
    <TD></TD>
    <TD valign="bottom">
    Linda U. Kuhlman, as Trustee, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (36) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    100,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (37) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    10,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (38) </TD>
    <TD></TD>
    <TD valign="bottom">
    John Liviakis, as Custodian, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (39) </TD>
    <TD></TD>
    <TD valign="bottom">
    John Liviakis, as Custodian, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (40) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    2,500&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (41) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    20,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (42) </TD>
    <TD></TD>
    <TD valign="bottom">
    James Molesky, as Trustee, has voting and dispositive power over
    these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (43) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    200,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (44) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    4,250&#160;shares of our common stock at an exercise price of
    $1.25 per share</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (45) </TD>
    <TD></TD>
    <TD valign="bottom">
    Samuel Sherman, as Manager, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (46) </TD>
    <TD></TD>
    <TD valign="bottom">
    Paul Ferreri, as CIO and Founder, has voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (47) </TD>
    <TD></TD>
    <TD valign="bottom">
    Charles N. Travers, as Trustee, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (48) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    100,000&#160;shares of our common stock at an exercise price of
    $2.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (49) </TD>
    <TD></TD>
    <TD valign="bottom">
    Todd A. Zuckerbrod, as Beneficial Owner, has voting and
    dispositive power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (50) </TD>
    <TD></TD>
    <TD valign="bottom">
    Paul Mannion, as Managing Member, has voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (51) </TD>
    <TD></TD>
    <TD valign="bottom">
    Laird Cagan, as Managing Member, has voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (52) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    33,000&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (53) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 1,300,000&#160;shares issued in connection with the
    Merger to Michael Hodges, our Chairman and Interim Chief
    Executive Officer, which are being held in escrow by Sichenzia
    Ross Friedman Ference LLP (&#147;SRFF&#148;) as escrow agent for
    three years pursuant to the terms of an escrow agreement in
    order to cover certain potential claims, indebtedness and
    liabilities, including potential tax liabilities, of Genesis
    Fluid Solutions. Pursuant to </TD>
</TR>
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    <BR>
    40
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    the escrow agreement, Mr.&#160;Hodges has voting power over the
    shares and Harvey Kesner, a member of SRFF has dispositive power
    over the shares. Does not include shares received by SRFF as
    compensation for services provided to us.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (54) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    14,000&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (55) </TD>
    <TD></TD>
    <TD valign="bottom">
    David W. Unsworth Jr., as Member, has voting and dispositive
    power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (56) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    8,000&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (57) </TD>
    <TD></TD>
    <TD valign="bottom">
    William Holub, as Chief Financial Officer, has voting and
    dispositive power over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (58) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    20,000&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (59) </TD>
    <TD></TD>
    <TD valign="bottom">
    Dennis Gerecke, as EVP and COO, has voting and dispositive power
    over these securities.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (60) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    50,000&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (61) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    2,000&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (62) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    150&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (63) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    10,200&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (64) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    11,625&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (65) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    825&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (66) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes currently exercisable warrants to purchase
    3,400&#160;shares of our common stock at an exercise price of
    $1.25 per share.</TD>
</TR>

</TABLE>
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    <BR>
    41
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF SECURITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Authorized
    and Outstanding Capital Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have authorized 125,000,000&#160;shares of capital stock, par
    value $0.001 per share, of which 100,000,000 are shares of
    common stock and 25,000,000 are shares of
    &#147;blank-check&#148; preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of April&#160;15, 2010, we had the following issued and
    outstanding securities on a fully diluted basis:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    17,751,500&#160;shares of common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    No shares of preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Warrants to purchase 3,520,000&#160;shares of common stock, of
    which (i)&#160;three-year callable warrants to purchase
    3,412,500&#160;shares of common stock at an exercise price of
    $2.00 per share were issued to investors in the Private
    Placement and (ii)&#160;two-year warrants to purchase
    107,500&#160;shares of common stock at an exercise price of
    $1.25 per share were issued to the Placement Agents in
    connection with the Private Placement; and,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Options to purchase 1,852,000&#160;shares of common stock at an
    exercise price of $0.90 per share, options to purchase
    770,000&#160;shares of common stock at an exercise price of
    $0.99 per share, and options to purchase 600,000&#160;shares of
    common stock at an exercise price of $1.00 per share.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of our common stock are entitled to one vote per
    share. In addition, the holders of our common stock will be
    entitled to receive ratably dividends, if any, declared by our
    board of directors out of legally available funds; however, the
    current policy of our board of directors is to retain earnings,
    if any, for operations and growth. Upon liquidation, dissolution
    or
    <FONT style="white-space: nowrap">winding-up,</FONT>
    the holders of our common stock will be entitled to share
    ratably in all assets that are legally available for
    distribution. The holders of our common stock will have no
    preemptive, subscription, redemption or conversion rights. The
    rights, preferences and privileges of holders of our common
    stock will be subject to, and may be adversely affected by, the
    rights of the holders of any series of preferred stock, which
    may be designated solely by action of our board of directors and
    issued in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors will be authorized, subject to any
    limitations prescribed by law, without further vote or action by
    our stockholders, to issue from time to time shares of preferred
    stock in one or more series. Each series of preferred stock will
    have the number of shares, designations, preferences, voting
    powers, qualifications and special or relative rights or
    privileges as shall be determined by our board of directors,
    which may include, among others, dividend rights, voting rights,
    liquidation preferences, conversion rights and preemptive rights.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We issued three-year warrants to purchase 3,412,500&#160;shares
    of our common stock, at an exercise price of $2.00 per share to
    investors in the Private Placement. We also issued two-year
    warrants to the Placement Agents to purchase an aggregate of
    107,500&#160;shares of our common stock, at an initial cash
    exercise price of $1.25 per share, in connection with their
    efforts as placement agents in connection with the Private
    Placement. We are prohibited from effecting the exercise of the
    warrants to the extent that as a result of the exercise the
    holder of the exercised warrants beneficially owns more than
    4.99% (or, if this limitation is waived by the holder upon no
    less than 61&#160;days prior notice to us, 9.99%) in the
    aggregate of the issued and outstanding shares of our common
    stock calculated immediately after giving effect to the issuance
    of shares of common stock upon the exercise of the warrants.
    Prior to exercise, the warrants do not confer upon holders any
    voting or any other rights as a stockholder. In the event that
    we are not in material compliance with our registration
    obligations set forth in the registration rights agreement
    entered into with the investors in the Private Placement, then
    the investors have a cashless exercise option upon exercising
    their warrants. In addition, so long as the underlying shares of
    common stock are registered in an effective registration
    statement, if and when shares of the common stock are trading at
    or above $3.50 per share for
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20&#160;consecutive trading days, we will have the option to
    redeem the three-year warrants from the investors for a purchase
    price of $0.001 per share. A holder of three-year warrants will
    have 10&#160;days following notice to convert their warrants or
    we may retire the warrants upon the payment of $0.001 per share
    underlying each warrant. The warrants contain provisions that
    protect the holders against dilution by adjustment of the
    purchase price in certain events such as stock dividends, stock
    splits and other similar events. In addition, the warrants have
    anti-dilution protection in the event we issue securities at a
    value less than $1.00 per share (see &#147;Future Stock
    Issuances&#148; below). No fractional shares will be issued upon
    exercise of the warrants. If, upon exercise of the warrants, a
    holder would be entitled to receive a fractional interest in a
    share, we may, in our discretion, upon exercise, round up to the
    nearest whole number the number of shares of our common stock to
    be issued to the warrant holder or otherwise equitably adjust
    the exercise amount and exercise price per share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of April&#160;15, 2010, we have granted options to purchase
    an aggregate of 3,222,000&#160;shares of our common stock,
    pursuant to our 2009 Equity Incentive Plan. See &#147;Equity
    Compensation Plan Information&#160;&#151; Equity Incentive
    Plan.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Right to
    Purchase</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;30, 2008, Genesis Fluid Solutions entered into a
    loan agreement providing for a secured loan in the amount of
    $200,000. The loan was secured by substantially all Genesis
    Fluid Solutions intellectual property, including its patents,
    and guaranteed by its chief executive officer, Michael Hodges.
    On August&#160;31, 2009, the loan was repaid in full, and the
    collateral released from all liens. Under the loan agreement,
    Genesis Fluid Solutions granted to the lender a right to
    purchase up to the amount of principal and interest plus $40,000
    worth of its common stock at $1 per share for up to one year
    from the date of the loan&#146;s repayment. Following the
    repayment of the loan, this right to purchase allows the lender
    to purchase 280,000&#160;shares of our common stock at $1.00 per
    share until August&#160;31, 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreed to file a &#147;resale&#148; registration
    statement with the SEC covering all shares of our common stock
    included within the Units sold in the Offering and underlying
    any warrants as well as the shares underlying the Placement
    Agent warrants, on or before the date which is 90&#160;days
    after the final closing date of the Private Placement or the
    termination date, whichever occurs later (the &#147;Filing
    Deadline&#148;). We will maintain the effectiveness of the
    &#147;resale&#148; registration statement from the effective
    date through and until twelve (12)&#160;months after the final
    closing date, unless all securities registered under the
    registration statement have been sold or are otherwise able to
    be sold pursuant to Rule&#160;144. We have agreed to use
    commercially reasonable efforts to have the &#147;resale&#148;
    registration statement declared effective by the SEC as soon as
    possible and, in any event, within 180&#160;days after the final
    closing date of the Private Placement or the termination date,
    whichever occurs later (the &#147;Effectiveness Deadline&#148;).
    In addition, if the registration statement is not effective,
    then the investors in the Offering are permitted to
    &#147;piggy-back&#148; onto other registration statements that
    are filed by the Company, with certain exceptions. One of these
    exceptions is in connection with a registration statement filed
    to register the sale of certain shares held in escrow in
    connection with the Merger. We are obligated to pay to investors
    in the Offering a fee of 1% per month of the investors&#146;
    investment, payable in cash, up to a maximum of 10%, for each
    month: (i)&#160;in excess of the Filing Deadline that the
    registration statement has not been filed; and, (ii)&#160;in
    excess of the Effectiveness Deadline that the registration
    statement has not been declared effective; provided, however,
    that the Company shall not be obligated to pay any liquidated
    damages if the Company is unable to fulfill its registration
    obligations as a result of rules, regulations, positions or
    releases issued or actions taken by the SEC pursuant to its
    authority with respect to &#147;Rule&#160;415,&#148; provided
    the Company registers at that time the maximum number of shares
    of common stock permissible upon consultation with the staff of
    the SEC.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Lock-up</FONT>
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All our shares of common stock issued in the Merger to the
    officers and directors of Genesis Fluid Solutions, as well as to
    certain stockholders of Genesis Fluid Solutions, in exchange for
    their shares of common stock of Genesis Fluid Solutions, in the
    following amounts, are subject to
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements: (i)&#160;Michael Hodges&#160;&#151;
    1,533,800&#160;shares and 600,000&#160;shares underlying
    options, (ii)&#160;Mary Losty&#160;&#151; 1,000,000&#160;shares,
    (iii)&#160;Larry Campbell
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#151;&#160;600,000&#160;shares underlying options, and
    (iv)&#160;Carol Shobrook&#160;&#151; 400,000&#160;shares
    underlying options. These
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements provide that these persons may not sell or transfer
    any of their shares for a period of 12&#160;months following the
    Merger, with the exception of contributions made to non-profit
    organizations qualified as charitable organizations under
    Section&#160;501(c)(3) of the Internal Revenue Code of 1986, as
    amended, or in privately negotiated sales to persons who agree,
    in writing, to be bound to the terms of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our transfer agent is Island Stock Transfer, 100 Second Avenue
    South, Suite&#160;104N, St. Petersburg, Florida 33701.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Future
    Stock Issuances</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until the earlier of (i)&#160;the 12&#160;month anniversary of
    the initial closing date of the Private Placement or
    (ii)&#160;the date that the SEC declared a registration
    statement effective that registers the resale of the common
    stock issued in the Private Placement and the Warrant Shares
    issued in the Private Placement, should we issue or sell any
    shares of common stock or any warrants or other convertible
    security convertible into our common stock pursuant to which
    shares of our common stock may be acquired at a price less than
    $1.00 per share (except for issuances under a stock option plan,
    upon conversion or exercise of outstanding securities, or in
    connection with acquisitions or strategic transactions with a
    synergistic business), we shall promptly issue additional shares
    to each investor in the Private Placement in an amount
    sufficient that the subscription price paid in the Private
    Placement, when divided by the total number of shares issued
    will result in an actual price per share paid by each investor
    equal to the lower price (this is intended to be a &#147;full
    ratchet&#148; adjustment). For example, if an investor purchases
    one Unit in the Offering (25,000&#160;shares of common stock)
    for a purchase price of $25,000 (equals $1.00 per share) and
    then the Company issues additional shares of common stock at
    $0.50 per share during the Adjustment Period, the Company will
    issue an additional 25,000&#160;shares of common stock to the
    investor ($25,000/50,000&#160;shares = $0.50 per share). In
    addition, in the event of the issuance of securities at a price
    less than $1.00 per share, the exercise price of the warrants
    issued in the Private Placement shall be reduced to four times
    the lower price, if the resulting exercise price is less than
    $2.00 per share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Changes
    in and Disagreements with Accountants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective as of January&#160;8, 2010, we dismissed Davis
    Accounting Group,&#160;P.C. (&#147;Davis&#148;) as our
    independent registered public accounting firm. Davis had
    previously been engaged as the principal accountant to audit our
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The report of Davis on our financial statements for all periods
    prior to January&#160;8, 2010 did not contain an adverse opinion
    or disclaimer of opinion, nor was it qualified or modified as to
    uncertainty, audit scope or accounting principles, except that
    the report was qualified as to our ability to continue as a
    going concern.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From our inception through January&#160;8, 2010, there were no
    disagreements with Davis on any matter of accounting principles
    or practices, financial statement disclosure, or auditing scope
    or procedure which, if not resolved to the satisfaction of
    Davis, would have caused it to make reference to the matter in
    connection with its reports.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of January&#160;8, 2010, Salberg&#160;&#038; Company, P.A.
    (&#147;Salberg&#148;) was engaged as our new independent
    registered public accounting firm. Salberg is located at 2295 NW
    Corporate Blvd. Suite&#160;240 Boca Raton, FL
    <FONT style="white-space: nowrap">33431-7328.</FONT>
    The appointment of Salberg was approved by our board of
    directors. During our two most recent fiscal years and the
    subsequent interim periods through January&#160;8, 2010 (the
    date of engagement of Salberg), we did not consult Salberg
    regarding either: (i)&#160;the application of accounting
    principles to a specific completed or contemplated transaction,
    or the type of audit opinion that might be rendered on our
    financial statements; or (ii)&#160;any matter that was the
    subject of a disagreement as described in
    Item&#160;304(a)(1)(iv) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;145 of the Delaware General Corporation Law (the
    &#147;DGCL&#148;) provides, in general, that a corporation
    incorporated under the laws of the State of Delaware, as we are,
    may indemnify any person who was or is a party or
</DIV>
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    <BR>
    44
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    is threatened to be made a party to any threatened, pending or
    completed action, suit or proceeding (other than a derivative
    action by or in the right of the corporation) by reason of the
    fact that such person is or was a director, officer, employee or
    agent of the corporation, or is or was serving at the request of
    the corporation as a director, officer, employee or agent of
    another enterprise, against expenses (including attorneys&#146;
    fees), judgments, fines and amounts paid in settlement actually
    and reasonably incurred by such person in connection with such
    action, suit or proceeding if such person acted in good faith
    and in a manner such person reasonably believed to be in or not
    opposed to the best interests of the corporation and, with
    respect to any criminal action or proceeding, had no reasonable
    cause to believe such person&#146;s conduct was unlawful. In the
    case of a derivative action, a Delaware corporation may
    indemnify any such person against expenses (including
    attorneys&#146; fees) actually and reasonably incurred by such
    person in connection with the defense or settlement of such
    action or suit if such person acted in good faith and in a
    manner such person reasonably believed to be in or not opposed
    to the best interests of the corporation, except that no
    indemnification will be made in respect of any claim, issue or
    matter as to which such person will have been adjudged to be
    liable to the corporation unless and only to the extent that the
    Court of Chancery of the State of Delaware or any other court in
    which such action was brought determines such person is fairly
    and reasonably entitled to indemnity for such expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Certificate of Incorporation and Bylaws provide that we will
    indemnify our directors, officers, employees and agents to the
    extent and in the manner permitted by the provisions of the
    DGCL, as amended from time to time, subject to any permissible
    expansion or limitation of such indemnification, as may be set
    forth in any stockholders&#146; or directors&#146; resolution or
    by contract. In addition, our director and officer
    indemnification agreements with each of our directors and
    officers provide, among other things, for the indemnification to
    the fullest extent permitted or required by Delaware law,
    provided that no indemnitee will be entitled to indemnification
    in connection with any claim initiated by the indemnitee against
    us or our directors or officers unless we join or consent to the
    initiation of the claim, or the purchase and sale of securities
    by the indemnitee in violation of Section&#160;16(b) of the
    Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any repeal or modification of these provisions approved by our
    stockholders will be prospective only and will not adversely
    affect any limitation on the liability of any of our directors
    or officers existing as of the time of such repeal or
    modification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are also permitted to apply for insurance on behalf of any
    director, officer, employee or other agent for liability arising
    out of his actions, whether or not the DGCL would permit
    indemnification.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limitation
    of Liability of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation provides that, to the fullest
    extent permitted by the DGCL, no director of the Company will be
    personally liable to the Company or its stockholders for
    monetary damages for breach of fiduciary duty as a director.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Takeover
    Effect of Delaware Law, Certain By-Law Provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain provisions of our Bylaws are intended to strengthen the
    board of directors&#146; position in the event of a hostile
    takeover attempt. These provisions have the following effects:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to the provisions of Section&#160;203 of the
    DGCL, an anti-takeover law. In general, Section&#160;203
    prohibits a publicly held Delaware corporation from engaging in
    a &#147;business combination&#148; with an &#147;interested
    stockholder&#148; for a period of three years after the date of
    the transaction in which the person became an interested
    stockholder, unless the business combination is approved in a
    prescribed manner. For purposes of Section&#160;203, a
    &#147;business combination&#148; includes a merger, asset sale
    or other transaction resulting in a financial benefit to the
    interested stockholder, and an &#147;interested
    stockholder&#148; is a person who, together with affiliates and
    associates, owns, or within three years prior, did own, 15% or
    more of the corporation&#146;s voting stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Disclosure
    of Commission Position on Indemnification for Securities Act
    Liabilities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insofar as indemnification for liabilities arising under the
    Securities Act may be permitted to our directors, officers, and
    persons controlling us, we have been advised that it is the
    SEC&#146;s opinion that such indemnification is against public
    policy as expressed in the Securities Act and is, therefore,
    unenforceable.
</DIV>
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    <BR>
    45
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PLAN OF
    DISTRIBUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each selling stockholder and any of their pledgees, assignees
    and
    <FONT style="white-space: nowrap">successors-in-interest</FONT>
    may, from time to time, sell any or all of their shares of
    common stock on the over-the-counter market or any other stock
    exchange, market or trading facility on which the shares are
    traded, or in private transactions. These sales may be at fixed
    or negotiated prices. A selling stockholder may use any one or
    more of the following methods when selling shares:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    ordinary brokerage transactions and transactions in which the
    broker-dealer solicits purchasers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    block trades in which the broker-dealer will attempt to sell the
    shares as agent but may position and resell a portion of the
    block as principal to facilitate the transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    purchases by a broker-dealer as principal and resale by the
    broker-dealer for its account;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conducting business in places where business practices and
    customs are unfamiliar and unknown;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an exchange distribution in accordance with the rules of the
    applicable exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    privately negotiated transactions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    settlement of short sales entered into after the date of this
    prospectus;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    broker-dealers may agree with the selling stockholders to sell a
    specified number of the shares at a stipulated price per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a combination of any of these methods of sale;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through the writing or settlement of options or other hedging
    transactions, whether through an options exchange or
    otherwise;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any other method permitted pursuant to applicable law.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling stockholders may also sell shares under
    Rule&#160;144 under the Securities Act, if available, rather
    than under this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Broker-dealers engaged by the selling stockholders may arrange
    for other brokers-dealers to participate in sales.
    Broker-dealers may receive commissions or discounts from the
    selling stockholders (or, if any broker-dealer acts as agent for
    the purchaser of shares, from the purchaser) in amounts to be
    negotiated. Each selling stockholder does not expect these
    commissions and discounts relating to its sales of shares to
    exceed what is customary in the types of transactions involved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    GarWood Securities LLC, Colorado Financial Service Corporation,
    WFG Investments, Inc., Legend Merchant Group, and
    Jesup&#160;&#038; Lamont Securities Corp. are registered
    broker-dealers and FINRA member firms and listed as selling
    stockholders in this prospectus. Colorado Financial Service
    Corporation, WFG Investments, Inc., Legend Merchant Group and
    Jessup&#160;&#038; Lamont Securities Group served as placement
    agents in our recently completed Private Placement offering, and
    received, in addition to cash commissions, warrants to purchase
    an aggregate of 50,000, 33,000, 14,000, 8,000 and
    2,500&#160;shares of our common stock, respectively, with an
    exercise price of $1.25 per share. In addition, GarWood
    Securities LLC received warrants to purchase an aggregate of
    50,000&#160;shares of common stock effective on
    November&#160;10, 2009, which expire on November&#160;11, 2011.
    The registration statement of which this prospectus forms a part
    includes the shares of common stock underlying the warrants held
    by these firms and certain associated persons. The SEC has
    indicated that it is their position that any broker-dealer firm
    which is a selling stockholder is deemed an underwriter and
    therefore these firms may be deemed an underwriter with respect
    to the securities being sold by them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Of the total of 33,000 warrants held by Colorado Financial
    Service Corporation (or its associated persons as listed in the
    &#147;Selling Stockholders&#148; table above), 13,000 were
    received in connection with the Private Placement closing on
    October&#160;30, 2009 and the remainder were received in
    connection with the final closing of the Private Placement on
    December&#160;29, 2009, and expire on October&#160;30, 2011 and
    December&#160;29, 2011, respectively. The 14,000 warrants held
    by WFG Investments, Inc. (or its associated persons as listed in
    the &#147;Selling Stockholders&#148; table above) were received
    in connection with the Private Placement closing on
    October&#160;30, 2009, and expire on October&#160;30, 2011. Of
    the total of 8,000 warrants held by Legend Merchant Group (or
    its associated persons as listed
</DIV>
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    <BR>
    46
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in the &#147;Selling Stockholders&#148; table above), 2,000 were
    received in connection with the Private Placement closing on
    November&#160;19, 2009 and the remainder were received in
    connection with the final closing of the Private Placement on
    December&#160;29, 2009, and expire on November&#160;19, 2011 and
    December&#160;29, 2011, respectively. The 2,500 warrants held by
    Jesup&#160;&#038; Lamont Securities Corp (or its associated
    persons as listed in the &#147;Selling Stockholders&#148; table
    above) were received in connection with the final closing of the
    Private Placement on December&#160;29, 2009, and expire on
    December&#160;29, 2011. The 107,500&#160;shares of common stock
    issued or issuable upon conversion of Placement Agent warrants
    received by these firms (or their assignees as indicated in the
    &#147;Selling Stockholders&#148; table above) are restricted
    from sale, transfer, assignment, pledge or hypothecation or
    being the subject of any hedging, short sale, derivative, put,
    or call transaction that would result in the effective economic
    disposition of the securities by any person for a period of
    180&#160;days immediately following the effective date of the
    registration statement, of which this prospectus forms a part,
    except transfers of the warrants to officers or partners within
    these firms as allowed under FINRA Rule&#160;2710 (g)(1) and (2).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of these firms has indicated to us its willingness to act
    as selling agent on behalf of certain of the selling
    stockholders named in this prospectus under &#147;Selling
    Stockholders&#148; that purchased our privately placed
    securities. All shares sold, if any, on behalf of selling
    stockholders by these firms would be in transactions executed by
    these firms on an agency basis and commissions charged to its
    customers in connection with each transaction shall not exceed a
    maximum of 4.5% of the gross proceeds. These firms do not have
    an underwriting agreement with us
    <FONT style="white-space: nowrap">and/or</FONT> the
    selling stockholders and no selling stockholders are required to
    execute transactions through these firms. Further, other than
    their existing brokerage relationship as customers with these
    firms, no selling stockholders have any pre-arranged agreement,
    written or otherwise, with these firms to sell their securities
    through these firms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FINRA Rule&#160;2710 requires FINRA member firms (unless an
    exemption applies) to satisfy the filing requirements of
    Rule&#160;2710 in connection with the resale, on behalf of
    selling stockholders, of the securities on a principal or agency
    basis. FINRA Notice to Members
    <FONT style="white-space: nowrap">88-101&#160;states</FONT>
    that in the event a selling stockholder intends to sell any of
    the shares registered for resale in this Prospectus through a
    member of FINRA participating in a distribution of our
    securities, the member is responsible for ensuring that a timely
    filing, if required, is first made with the Corporate Finance
    Department of FINRA and disclosing to FINRA the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    it intends to take possession of the registered securities or to
    facilitate the transfer of the certificates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the complete details of how the selling shareholders shares are
    and will be held, including location of the particular accounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether the member firm or any direct or indirect affiliates
    thereof have entered into, will facilitate or otherwise
    participate in any type of payment transaction with the selling
    shareholders, including details regarding these
    transactions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the event any of the securities offered by the selling
    shareholders are sold, transferred, assigned or hypothecated by
    any selling shareholder in a transaction that directly or
    indirectly involves a member firm of FINRA or any affiliates
    thereof, that prior to or at the time of said transaction the
    member firm will timely file for review with the Corporate
    Finance Department of FINRA all relevant documents with respect
    to these transactions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FINRA has recently proposed rule changes to FINRA Rule&#160;2710
    which may, if approved, modify the requirements of its members
    to make filings under FINRA Rule&#160;2710. Further, no FINRA
    member firm may receive compensation in excess of that allowable
    under FINRA rules, including Rule&#160;2710, in connection with
    the resale of the securities by the selling shareholders, which
    total compensation may not exceed 8%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have advised the selling stockholders that the
    anti-manipulation rules of Regulation&#160;M under the Exchange
    Act may apply to sales of shares in the market and to the
    activities of the selling stockholders and their affiliates. In
    addition, we will make copies of this Prospectus available to
    the selling stockholders for the purpose of satisfying the
    Prospectus delivery requirements of the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the sale of our common stock or interests
    therein, the selling stockholders may enter into hedging
    transactions with broker-dealers or other financial
    institutions, which may in turn engage in short sales of the
    common stock in the course of hedging the positions they assume.
    The selling stockholders may also sell shares
</DIV>
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    <BR>
    47
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of our common stock short and deliver these securities to close
    out their short positions, or loan or pledge the common stock to
    broker-dealers that in turn may sell these securities. The
    selling stockholders may also enter into option or other
    transactions with broker-dealers or other financial institutions
    or the creation of one or more derivative securities which
    require the delivery to these broker-dealers or other financial
    institutions of shares offered by this prospectus, which shares
    these broker-dealers or other financial institutions may resell
    pursuant to this prospectus (as supplemented or amended to
    reflect these transactions).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling stockholders and any broker-dealers or agents that
    are involved in selling the shares may be deemed to be
    &#147;underwriters&#148; within the meaning of the Securities
    Act in connection with these sales. In this event, any
    commissions received by these broker-dealers or agents and any
    profit on the resale of the shares purchased by them may be
    deemed to be underwriting commissions or discounts under the
    Securities Act. Each selling stockholder has informed us that it
    does not have any agreement or understanding, directly or
    indirectly, with any person to distribute the common stock. In
    no event shall any broker-dealer receive fees, commissions and
    markups which, in the aggregate, would exceed eight percent (8%).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are required to pay certain fees and expenses incurred by us
    incident to the registration of the shares. We have agreed to
    indemnify the selling stockholders against certain losses,
    claims, damages and liabilities, including liabilities under the
    Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling stockholders may agree to indemnify any agent,
    dealer or broker-dealer that participates in transactions
    involving sales of the shares against certain liabilities,
    including liabilities arising under the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because selling stockholders may be deemed to be
    &#147;underwriters&#148; within the meaning of the Securities
    Act, they will be subject to the prospectus delivery
    requirements of the Securities Act. In addition, any securities
    covered by this prospectus which qualify for sale pursuant to
    Rule&#160;144 under the Securities Act may be sold under
    Rule&#160;144 rather than under this prospectus. There is no
    underwriter or coordinating broker acting in connection with the
    proposed sale of the shares by the selling stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under applicable rules and regulations under the Exchange Act,
    any person engaged in the distribution of the shares may not
    simultaneously engage in market making activities with respect
    to our common stock for a period of two business days prior to
    the commencement of the distribution. In addition, the selling
    stockholders will be subject to applicable provisions of the
    Exchange Act and the rules and regulations thereunder, including
    Regulation&#160;M, which may limit the timing of purchases and
    sales of shares of our common stock by the selling stockholders
    or any other person. We will make copies of this prospectus
    available to the selling stockholders and have informed them of
    the need to deliver a copy of this prospectus to each purchaser
    at or prior to the time of the sale.
</DIV>

<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sichenzia Ross Friedman and Ference LLP (&#147;SRFF&#148;), New
    York, New York, will pass upon the validity of the shares of our
    common stock to be sold in this offering. SRFF, as escrow agent,
    and Harvey Kesner, a member of SRFF, beneficially owns shares of
    our common stock.
</DIV>

<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements as of and for the year
    ended December&#160;31, 2009 included in this prospectus have
    been audited by Salberg&#160;&#038; Company, P.A., an
    independent registered public accounting firm as set forth in
    their report, and are included in reliance upon such report
    given on the authority of such firm as experts in accounting and
    auditing. The financial statements as of and for the year ended
    December&#160;31, 2008 included in this prospectus have been
    audited by Davis Accounting Group P.C., an independent
    registered public accounting firm as set forth in their report,
    and are included in reliance upon such report given on the
    authority of such firm as experts in accounting and auditing.
</DIV>
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    <BR>
    48
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND ADDITIONAL INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1,</FONT>
    together with any amendments and related exhibits, under the
    Securities Act with respect to our shares of common stock
    offered by this prospectus. The registration statement contains
    additional information about us and our shares of common stock
    that we are offering in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports and other
    information with the SEC under the Exchange Act. Our SEC filings
    are available to the public over the Internet at the SEC&#146;s
    website at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    You may also read and copy any document we file at the
    SEC&#146;s public reference room located at
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C. 20549.
    Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the public reference rooms and their
    copy charges. You may also request a copy of those filings,
    excluding exhibits, from us at no cost. These requests should be
    addressed to us at: Michael Hodges, Interim Chief Executive
    Officer, Genesis Fluid Solutions Holdings, Inc., 830 Tender Foot
    Hill Road&#160;#301 Colorado Springs, CO 80906.
</DIV>
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    <BR>
    49
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Genesis
    Fluid Solutions Holdings, Inc. and Subsidiary</FONT></B>
</DIV>

<A name='119'>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Index to Consolidated Financial Statements</B>
</DIV>
</A><DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Financial Statements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#300'>Reports of Independent Registered Public
    Accounting Firms</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#301'>Consolidated Balance Sheets&#160;&#151;
    December&#160;31, 2009 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Consolidated Statements of Operations for the
    years ended December&#160;31, 2009 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Consolidated Statements of Changes in
    Stockholders&#146; Equity (Deficiency) for the years ended
    December&#160;31, 2009 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Consolidated Statements of Cash Flows for the
    years ended December&#160;31, 2009 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#305'>Notes to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='300'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Report of
    Independent Registered Public Accounting Firm</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Board of Directors and Stockholders&#146; of:
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Genesis Fluid Solutions Holdings, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheet of
    Genesis Fluid Solutions Holdings, Inc. and Subsidiary as of
    December&#160;31, 2009 and the related consolidated statements
    of operations, changes in stockholders&#146; equity
    (deficiency), and cash flows for the year then ended. These
    consolidated financial statements are the responsibility of the
    Company&#146;s management. Our responsibility is to express an
    opinion on these consolidated financial statements based on our
    audit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the consolidated financial
    statements are free of material misstatement. An audit includes
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the consolidated financial statements. An audit
    also includes assessing the accounting principles used and
    significant estimates made by management, as well as evaluating
    the overall consolidated financial statement presentation. We
    believe that our audit provides a reasonable basis for our
    opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the
    consolidated financial position of Genesis Fluid Solutions
    Holdings, Inc. and Subsidiary as of December&#160;31, 2009 and
    the consolidated results of its operations and its cash flows
    for the year then ended in conformity with accounting principles
    generally accepted in the United States of America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying consolidated financial statements have been
    prepared assuming the Company will continue as a going concern.
    As discussed in Note&#160;3 to the consolidated financial
    statements, the Company reported a net loss and used cash in
    operations of $2,247,767 and $1,737,841, respectively, in 2009.
    As of December&#160;31, 2009, the Company had an accumulated
    deficit of $6,217,899. In addition, the Company has minimal
    revenue generating activities in 2009 and is transitioning to a
    new business model. These matters raise substantial doubt about
    the Company&#146;s ability to continue as a going concern.
    Management&#146;s plans as to these matters are also described
    in Note&#160;3. The consolidated financial statements do not
    include any adjustments that might result from the outcome of
    this uncertainty.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Salberg
    &#038; Company, P.A.</DIV>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">SALBERG&#160;&#038;
    COMPANY, P.A.
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Boca Raton, Florida
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;14, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REPORT OF
    REGISTERED INDEPENDENT AUDITORS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Board of Directors and Stockholders of
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Genesis Fluid Solutions, Ltd.:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying balance sheet of Genesis Fluid
    Solutions, Ltd. (a Colorado corporation) as of December&#160;31,
    2008, and the related statements of operations and comprehensive
    (loss), stockholders&#146; (deficit), and cash flows for the
    year then ended. These financial statements are the
    responsibility of the Company&#146;s management. Our
    responsibility is to express an opinion on these financial
    statements based on our audit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with the standards of the
    Public Company Accounting Oversight Board (United States of
    America). Those standards require that we plan and perform the
    audit to obtain reasonable assurance about whether the financial
    statements are free of material misstatement. The Company is not
    required to have, nor were we engaged to perform, an audit of
    its internal control over financial reporting. Our audit
    included consideration of internal control over financial
    reporting as a basis for designing audit procedures that are
    appropriate in the circumstances, but not for the purpose of
    expressing an opinion on the effectiveness of the Company&#146;s
    internal control over financial reporting. Accordingly, we
    express no such opinion. An audit includes examining, on a test
    basis, evidence supporting the amounts and disclosures in the
    financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provide a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of Genesis Fluid Solutions, Ltd. as of December&#160;31, 2008,
    and the results of its operations and its cash flows for the
    year ended December&#160;31, 2008, in conformity with accounting
    principles generally accepted in the United States of America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying financial statements have been prepared
    assuming that the Company will continue as a going concern. As
    discussed in Note&#160;2 to the financial statements, the
    Company has experienced operating losses, and has negative
    working capital. These and other factors raise substantial doubt
    about the Company&#146;s ability to continue as a going concern.
    Management&#146;s plans regarding these matters are also
    described in Note&#160;2 to the financial statements. The
    financial statements do not include any adjustments that might
    result from the outcome of this uncertainty.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Respectfully submitted,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ Davis Accounting Group P.C.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cedar City, Utah,
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    November&#160;11, 2009
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    <!-- XBRL,bs --><A name='301'>CONSOLIDATED BALANCE
    SHEETS</FONT></B>
</DIV>
</A>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="9" align="center" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>ASSETS</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,873,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Costs in excess of billings on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,506
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    185,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,118,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Property and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    719,469
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    844,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Patents, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Patents pending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,097
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,838,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,069,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="9">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="9" align="center" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY (DEFICIENCY)</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    82,206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    110,524
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    476,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    771,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Warrant derivative liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    804,718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Billings in excess of costs on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    201,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Equipment payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,795
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,795
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Settlement due to vendor, current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Loan payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Obligations under capital leases, current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,428
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Convertible notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    723,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Secured note payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Notes payable&#160;&#151; related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,886,272
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,351,368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Obligations under capital leases, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    117,822
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Settlement due to vendor, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,666
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,886,272
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,553,856
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Commitments and contingencies&#160;&#151; See Note&#160;15
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Stockholders&#146; equity (deficiency):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Preferred stock, $0.001&#160;par value; 25,000,000&#160;shares
    authorized, zero shares issued and outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Common stock, $0.001&#160;par value; 100,000,000&#160;shares
    authorized, 17,668,500 and 10,000,000 issued and outstanding,
    respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,152,118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,486,609
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Accumulated other comprehensive loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,867
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,217,899
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,970,132
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    Total stockholders&#146; equity (deficiency)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,951,888
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,484,390
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total liabilities and stockholders&#146; equity (deficiency)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,838,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,069,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,bs -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying notes are an integral part of these
    consolidated financial statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    <!-- XBRL,op --><A name='302'>CONSOLIDATED STATEMENTS OF
    OPERATIONS</FONT></B>
</DIV>
</A>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December 31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December 31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,097
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    393,683
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Gross loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (358,586
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,941,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    713,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,941,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    713,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating loss from continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,941,484
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,072,010
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Change in warrant derivative liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    198
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (287,682
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (332,219
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Inducement expense on debt conversion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (40,759
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Loss on disposal of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (174,125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total other income (expense), net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (306,283
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (496,241
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss from continuing operations before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,247,767
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568,251
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,247,767
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568,251
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other comprehensive income (loss):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Gain (loss) on foreign currency translation, net of income tax
    of $0
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (445
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total other comprehensive income (loss), net of income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (445
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Comprehensive loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,236,900
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568,696
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net loss per share&#160;&#151; basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.19
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average number of common shares&#160;&#151; basic and
    diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,050,759
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying notes are an integral part of these
    consolidated financial statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- landscape -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    <!-- XBRL,se --><A name='303'>CONSOLIDATED STATEMENTS OF CHANGES
    IN STOCKHOLDERS&#146; EQUITY (DEFICIENCY)</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>For the Years Ended December&#160;31, 2009 and 2008</B>
</DIV>
</A>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stockholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-In<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Comprehensive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Loss</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deficit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Deficiency)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,230,309
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,422
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,401,881
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (171,994
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Principal stockholder contribution of cash derived from sale of
    common shares of Company stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Principal stockholder issuance of shares on behalf of company
    for conversion of convertible notes payable and accrued interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    187,940
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    187,940
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Foreign currency translation loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (445
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (445
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net loss, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568,251
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568,251
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,486,609
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,867
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,970,132
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,484,390
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Principal stockholder contribution of cash derived from sale of
    common shares of Company stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    491,374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    491,374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Principal stockholder issuance of common shares on behalf of
    company to settle debt and accrued interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    770,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    770,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Principal stockholder issuance of common shares on behalf of
    company for loan origination fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common shares returned to treasury and canceled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,232,730
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,233
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common shares returned in exchange for stock options issued
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,972,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,972
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common shares issued to settle debt and accrued interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,312
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,414
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common shares issued for nominal cash and services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,584,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,584
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,840
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Consideration paid by stockholders, on behalf of company, to
    service providers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Consideration paid by stockholders, on behalf of company, to
    settle accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common shares issued pursuant to recapitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,160,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,160
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common shares and warrants issued under private placement, net
    of offering costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,903,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,909,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common shares and warrants issued for conversions of bridge
    notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    877,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    775,372
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    776,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Stock option expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    233,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    233,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Reclassifications of warrants from equity to a liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (826,678
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (826,678
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Foreign currency translation gain
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net loss, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,247,767
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,247,767
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,668,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,152,118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (6,217,899
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,951,888
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,se -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying notes are an integral part of these
    consolidated financial statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    <!-- XBRL,cf --><A name='304'>CONSOLIDATED STATEMENTS OF CASH
    FLOWS</FONT></B>
</DIV>
</A>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December 31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December 31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash flows from operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,247,767
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568,251
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjustments to reconcile net loss from continuing operations to
    net cash used in operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    284,714
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Impairment of patents pending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    119,896
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,345
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    252,609
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Impairment of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Impairment of patents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Convertible debt inducement expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,759
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Amortization of patents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based loan fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Gain on settlement of accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (118,910
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Change in warrant derivative liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,960
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Loss on disposal of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    174,125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Changes in operating assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Decrease in accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,728
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Decrease in inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Increase in costs in excess of billings on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (59,506
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Increase in prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (124,805
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Decrease in other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Increase (decrease) in accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (144,518
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    (Decrease) increase in accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (76,533
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    320,687
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    (Decrease) increase in billings in excess of costs on
    uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,781
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Decrease in settlement due to vendor
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (67,333
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (58,984
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Net cash used in operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,737,841
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (575,443
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash flows from investing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchases of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (47,922
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,712
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Patent costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,799
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (64,290
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (69,721
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (75,002
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash flows from financing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Proceeds from common stock and warrants issued for cash, net of
    offering costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,909,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Capital contributions received
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    491,374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Proceeds from issuance of convertible notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    773,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    595,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Principal payments on convertible notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (158,179
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (94,007
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Proceeds from issuance of notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    607,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Principal payments on secured note payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (116,662
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (297,529
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Proceeds from notes payable&#160;&#151; related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,975
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Principal payments on notes payable&#160;&#151; related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (36,244
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (85,500
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Debt issuance costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Principal payments on capital leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (202,034
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (252,018
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Nominal cash received for common shares issued for services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Net cash provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,661,531
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    610,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Effect of exchange rate changes on cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (445
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net increase (decrease) in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,864,836
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (40,292
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents at beginning of year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents at end of year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,873,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,cf -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying notes are an integral part of these
    consolidated financial statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    CONSOLIDATED STATEMENTS OF CASH
    FLOWS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental disclosure of cash flow information:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    111,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income taxes paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non-cash investing and financing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Issuance of common stock to settle accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Conversion of accrued interest payable to convertible notes
    payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    129,298
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Conversion of accrued interest payable to common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,909
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Conversion of convertible notes payable to common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,457,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Reclassification of warrant derivative liability from additional
    paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    826,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying notes are an integral part of these
    consolidated financial statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    <!-- XBRL,ns --><A name='305'>NOTES&#160;TO CONSOLIDATED
    FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    </A><B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Operations and Recapitalization</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Genesis Fluid Solutions Holdings, Inc. (&#147;Holdings&#148; or
    the &#147;Company&#148;) is an environmental company that
    supplies a Rapid Dewatering System (&#147;RDS&#148;) technology
    for dredged material, including fine-grained sediment, for lake
    and waterway restoration. The Company&#146;s subsidiary, Genesis
    Fluid Solutions, Ltd (&#147;Genesis Ltd&#148;), was incorporated
    on October&#160;26, 2005 under the laws of the State of Colorado.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, Genesis Ltd. entered into and
    consummated an Agreement of Merger and Plan of Reorganization
    (the &#147;Merger Agreement&#148;) with Holdings, an inactive
    publicly-held company, and Genesis Fluid Solutions Acquisition
    Corp. (&#147;Acquisition Sub&#148;), which was Holdings&#146;
    newly formed, wholly-owned Delaware subsidiary. Upon closing of
    the transaction contemplated under the Merger Agreement (the
    &#147;Merger&#148;), Acquisition Sub merged with and into
    Genesis Ltd., and Genesis Ltd., as the surviving corporation,
    became a wholly-owned subsidiary of Holdings. On
    October&#160;30, 2009, the Company changed its name to Genesis
    Fluid Solutions Holdings, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the closing of the Merger, each share of Genesis Ltd. common
    stock that was issued and outstanding immediately prior to the
    closing of the Merger was exchanged for ten shares of
    Holdings&#146; common stock. This transaction was treated as a
    recapitalization of Genesis Ltd. with 1,160,000 common shares
    deemed issued to the pre-merger stockholders of Holdings.
    Subsequent to the merger, but prior to the same day closing of
    the first traunche of a private placement of common stock and
    warrants, the stockholders of Genesis Ltd. had approximately 89%
    voting control of the Company. The accounting effects of the
    recapitalization are reflected retroactively for all periods
    presented in the accompanying consolidated financial statements
    and footnotes (See Note&#160;16).
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Significant
    Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Use of
    Estimates</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our consolidated financial statements are prepared in accordance
    with accounting principles generally accepted in the United
    States (&#147;GAAP&#148;). These accounting principles require
    us to make certain estimates, judgments and assumptions. We
    believe that the estimates, judgments and assumptions upon which
    we rely are reasonable based upon information available to us at
    the time that these estimates, judgments and assumptions are
    made. These estimates, judgments and assumptions can affect the
    reported amounts of assets and liabilities as of the date of our
    consolidated financial statements as well as the reported
    amounts of revenues and expenses during the periods presented.
    Our consolidated financial statements would be affected to the
    extent there are material differences between these estimates
    and actual results. In many cases, the accounting treatment of a
    particular transaction is specifically dictated by GAAP and does
    not require management&#146;s judgment in its application. There
    are also areas in which management&#146;s judgment in selecting
    any available alternative would not produce a materially
    different result. Significant estimates include the estimates of
    depreciable lives and valuation of property and equipment,
    valuation and amortization periods of intangible assets,
    valuation of derivatives, valuation of payroll tax
    contingencies, valuation of share-based payments, and the
    valuation allowance on deferred tax assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Principles
    of Consolidation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements include the accounts of
    Holdings and its wholly-owned subsidiary Genesis Ltd. All
    significant inter-company balances and transactions have been
    eliminated in consolidation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cash and
    Cash Equivalents</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company considers all short-term highly liquid investments
    with an original maturity at the date of purchase of three
    months or less to be cash equivalents. There were no cash
    equivalents at December&#160;31, 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company records accounts receivable related to its
    construction contracts based on billings or on amounts due under
    the contractual terms. Accounts receivable throughout the year
    may decrease based on payments received, credits for change
    orders, or back charges incurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management reviews accounts receivable periodically to determine
    if any receivables will potentially be uncollectible.
    Management&#146;s evaluation includes several factors including
    the aging of the accounts receivable balances, a review of
    significant past due accounts, economic conditions, and our
    historical write-off experience, net of recoveries. The Company
    includes any accounts receivable balances that are determined to
    be uncollectible, along with a general reserve, in its allowance
    for doubtful accounts. After all attempts to collect a
    receivable have failed, the receivable is written off against
    the allowance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment are stated at cost less accumulated
    depreciation. Depreciation is provided for on a straight-line
    basis over the estimated useful lives of the assets per the
    following table. Expenditures for additions and improvements are
    capitalized while repairs and maintenance are expensed as
    incurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Category</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Depreciation Term</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Computer and office equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    3-5&#160;years
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Equipment and tools
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    5-10&#160;years
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Intangible
    Assets</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company records the purchase of intangible assets not
    purchased in a business combination in accordance with the
    Financial Accounting Standards Board (&#147;FASB&#148;)
    Accounting Standards Codification (&#147;ASC&#148; or
    &#147;Codification&#148;) Topic 350 &#147;Intangibles - Goodwill
    and Other&#148; and records intangible assets acquired in a
    business combination in accordance with ASC Topic 805
    &#147;Business Combinations&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company capitalizes the costs associated with the
    application for and issuance of international patents related to
    its technology. Such costs are classified as patents pending in
    the accompanying consolidated balance sheet until such time as
    the patents are issued. Upon issuance, such costs are
    reclassified to patents and subsequently amortized over the
    useful life of the related patents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Long-Lived
    Assets</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management evaluates the recoverability of the Company&#146;s
    identifiable intangible assets and other long-lived assets in
    accordance with ASC Topic 360, &#147;Property Plant and
    Equipment,&#148; which generally requires the assessment of
    these assets for recoverability when events or circumstances
    indicate a potential impairment exists. Events and circumstances
    considered by the Company in determining whether the carrying
    value of identifiable intangible assets and other long-lived
    assets may not be recoverable include, but are not limited to:
    significant changes in performance relative to expected
    operating results, significant changes in the use of the assets,
    significant negative industry or economic trends, a significant
    decline in the Company&#146;s stock price for a sustained period
    of time, and changes in the Company&#146;s business strategy. In
    determining if impairment exists, the Company estimates the
    undiscounted cash flows to be generated from the use and
    ultimate disposition of these assets. If impairment is indicated
    based on a comparison of the assets&#146; carrying values and
    the undiscounted cash flows, the impairment loss is measured as
    the amount by which the carrying amount of the assets exceeds
    the fair market value of the assets.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fair
    Value Measurements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2008, the Company adopted the provisions of
    ASC Topic 820 &#147;Fair Value Measurements and
    Disclosures&#148;. ASC Topic 820 defines fair value as used in
    numerous accounting pronouncements, establishes a framework for
    measuring fair value and expands disclosure of fair value
    measurements. Excluded from the scope of ASC Topic 820 are
    certain leasing transactions accounted for under ASC Topic 840,
    &#147;Leases.&#148; The exclusion does not apply to fair value
    measurements of assets and liabilities recorded as a result of a
    lease transaction but measured pursuant to other pronouncements
    within the scope of ASC Topic 820.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company generates revenues from professional services
    contracts. Customers are billed, according to individual
    agreements, typically based upon the amount of cubic yards of
    material processed. Revenues from professional services are
    recognized on a completed-contract basis, in accordance with ASC
    Topic
    <FONT style="white-space: nowrap">605-35,</FONT>
    &#147;Construction-Type and Production-Type Contracts.&#148;
    Under the completed-contract basis, contract costs are recorded
    to a deferred asset account and billings
    <FONT style="white-space: nowrap">and/or</FONT> cash
    received are recorded to a deferred revenue liability account
    during the periods of construction. Costs include direct
    material, direct labor and subcontract labor. All revenues,
    costs, and profits are recognized in operations upon completion
    of the contract. A contract is considered complete when all
    costs except insignificant items have been incurred and final
    acceptance has been received from the customer. Corporate
    general and administrative expenses are charged to the periods
    as incurred. However, in the event a loss on a contract is
    foreseen, the Company will recognize the loss as it is incurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For uncompleted contracts, the deferred asset (accumulated
    contract costs) in excess of the deferred liability (billings
    <FONT style="white-space: nowrap">and/or</FONT> cash
    received) is classified under current assets as Costs in excess
    of billings on uncompleted contracts. The deferred liability
    (billings
    <FONT style="white-space: nowrap">and/or</FONT> cash
    received) in excess of the deferred asset (accumulated contract
    costs) is classified under current liabilities as Billings in
    excess of costs on uncompleted contracts. Contract retentions
    are included in accounts receivable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is transitioning to a licensing model, under which
    it will not be directly performing dredging services. Under such
    a contractual arrangement, license fees would typically be paid
    to the Company at a negotiated, flat monthly rate, which would
    not be tied to the volume of material processed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Advertising</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company conducts advertising for the promotion of its
    services. In accordance with ASC Topic 720.35.25, advertising
    costs are charged to operations when incurred. Advertising costs
    aggregated $3,216 and $8,024 for the years ended
    December&#160;31, 2009 and 2008, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company uses the asset and liability method of accounting
    for income taxes in accordance with ASC Topic 740, &#147;Income
    Taxes.&#148; Under this method, income tax expense is recognized
    for the amount of: (i)&#160;taxes payable or refundable for the
    current year, and (ii)&#160;deferred tax consequences of
    temporary differences resulting from matters that have been
    recognized in an entity&#146;s financial statements or tax
    returns. Deferred tax assets and liabilities are measured using
    enacted tax rates expected to apply to taxable income in the
    years in which those temporary differences are expected to be
    recovered or settled. The effect on deferred tax assets and
    liabilities of a change in tax rates is recognized in the
    results of operations in the period that includes the enactment
    date. A valuation allowance is provided to reduce the deferred
    tax assets reported if, based on the weight of the available
    positive and negative evidence, it is more likely than not some
    portion or all of the deferred tax assets will not be realized.
    A liability (including interest if applicable) is established in
    the consolidated financial statements to the extent a current
    benefit has been recognized on a tax return for matters that are
    considered contingent upon the
</DIV>
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    <BR>
    F-11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    outcome of an uncertain tax position. Applicable interest is
    included as a component of income tax expense and income taxes
    payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ASC Topic 740.10.30 clarifies the accounting for uncertainty in
    income taxes recognized in an enterprise&#146;s financial
    statements and prescribes a recognition threshold and
    measurement attribute for the financial statement recognition
    and measurement of a tax position taken or expected to be taken
    in a tax return. ASC Topic 740.10.40 provides guidance on
    derecognition, classification, interest and penalties,
    accounting in interim periods, disclosure, and transition. The
    Company believes its tax positions are all highly certain of
    being upheld upon examination. As such, the Company has not
    recorded a liability for unrecognized tax benefits. As of
    December&#160;31, 2009, the tax years 2006 through 2008 remain
    open for IRS audit. The Company has received no notice of audit
    from the Internal Revenue Service for any of the open tax years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company adopted the provisions of ASC Topic 740.10.25.09,
    which provides guidance on how an entity should determine
    whether a tax position is effectively settled for the purpose of
    recognizing previously unrecognized tax benefits. The term
    &#147;effectively settled&#148; replaces the term
    &#147;ultimately settled&#148; when used to describe
    recognition, and the terms &#147;settlement&#148; or
    &#147;settled&#148; replace the terms &#147;ultimate
    settlement&#148; or &#147;ultimately settled&#148; when used to
    describe measurement of a tax position under ASC Topic 740.
    Topic 740.10.25.09 clarifies that a tax position can be
    effectively settled upon the completion of an examination by a
    taxing authority without being legally extinguished. For tax
    positions considered effectively settled, an entity would
    recognize the full amount of tax benefit, even if the tax
    position is not considered more likely than not to be sustained
    based solely on the basis of its technical merits and the
    statute of limitations remains open.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock-Based
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company recognizes compensation expense for stock-based
    compensation in accordance with ASC Topic No.&#160;718. For
    employee stock-based awards, the Company calculates the fair
    value of the award on the date of grant using the Black-Scholes
    method for stock options; the expense is recognized over the
    service period for awards expected to vest. For non-employee
    stock-based awards, the Company calculates the fair value of the
    award on the date of grant in the same manner as employee
    awards, however, the awards are revalued at the end of each
    reporting period and the prorata compensation expense is
    adjusted accordingly until such time the nonemployee award is
    fully vested, at which time the total compensation recognized to
    date shall equal the fair value of the stock-based award as
    calculated on the measurement date, which is the date at which
    the award recipient&#146;s performance is complete. The
    estimation of stock-based awards that will ultimately vest
    requires judgment, and to the extent actual results or updated
    estimates differ from original estimates, such amounts are
    recorded as a cumulative adjustment in the period estimates are
    revised. The Company considers many factors when estimating
    expected forfeitures, including types of awards, employee class,
    and historical experience.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Net Loss
    Per Share</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Basic net loss per share is computed by dividing the net loss by
    the weighted average number of shares of common stock
    outstanding during the periods presented. Diluted net loss per
    common share is computed using the weighted average number of
    common shares outstanding for the period, and, if dilutive,
    potential common shares outstanding during the period. Potential
    common shares consist of the incremental common shares issuable
    upon the exercise of stock options, stock warrants, convertible
    debt instruments or other common stock equivalents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Options to purchase 3,222,000 common shares and warrants to
    purchase 3,520,000 common shares were outstanding at
    December&#160;31, 2009, but were not included in the computation
    of diluted loss per share because the effects would have been
    anti-dilutive. These options and warrants may dilute future
    earnings per share.
</DIV>
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    <BR>
    F-12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">Reclassifications</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain amounts in the accompanying 2008 consolidated financial
    statements have been reclassified to conform to the 2009
    presentation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Comprehensive
    Loss</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Comprehensive loss includes net loss as currently reported by
    the Company adjusted for other comprehensive items. Other
    comprehensive items for the Company consist of foreign currency
    translations gains and losses.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Foreign
    Currency Translation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company accounts for foreign currency translation according
    to ASC Topic 830, &#147;Foreign Currency Matters&#148;. The
    Company&#146;s functional currency is the United States Dollar,
    but it had a capital lease obligation that is denominated in
    Euros. The capital lease obligation denominated in Euros is
    translated into United States Dollars using the current exchange
    rate at the end of each fiscal period. Such debt translation
    adjustments are included in accumulated other comprehensive
    income (loss) for the period. Expenses are translated using the
    average exchange rates prevailing throughout the respective
    periods. Translation gains or losses related to operating and
    interest expenses are recognized for each reporting period in
    the related statement of operations and comprehensive loss.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounting
    for Derivatives</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company evaluates its options, warrants or other contracts
    to determine if those contracts or embedded components of those
    contracts qualify as derivatives to be separately accounted for
    under ASC Topic 815, &#147;Derivatives and Hedging&#148;. The
    result of this accounting treatment is that the fair value of
    the derivative is
    <FONT style="white-space: nowrap">marked-to-market</FONT>
    each balance sheet date and recorded as a liability. In the
    event that the fair value is recorded as a liability, the change
    in fair value is recorded in the statement of operations as
    other income (expense). Upon conversion or exercise of a
    derivative instrument, the instrument is marked to fair value at
    the conversion date and then that fair value is reclassified to
    equity. Equity instruments that are initially classified as
    equity that become subject to reclassification under ASC Topic
    815 are reclassified to liability at the fair value of the
    instrument on the reclassification date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Research
    and Development</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with ASC Topic 730, &#147;Research and
    Development&#148;, expenditures for research and development of
    the Company&#146;s products and services are expensed when
    incurred, and are included in operating expenses. The Company
    recognized research and development costs of $4,735 and $2,011
    for the years ended December&#160;31, 2009 and 2008,
    respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Codification
    Update</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2009, the FASB issued an accounting standard that became
    part of ASC Topic
    <FONT style="white-space: nowrap">855-10,</FONT>
    &#147;Subsequent Events&#148; which establishes general
    standards of accounting for and disclosure of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. ASC Topic 855 sets forth
    (1)&#160;the period after the balance sheet date during which
    management of a reporting entity should evaluate events or
    transactions that may occur for potential recognition or
    disclosure in the financial statements, (2)&#160;the
    circumstances under which an entity should recognize events or
    transactions occurring after the balance sheet date in its
    financial statements and (3)&#160;the disclosures that an entity
    should make about events or transactions that occurred after the
    balance sheet date. ASC Topic 855 is effective for interim or
    annual financial periods ending after June&#160;15, 2009. The
    adoption of ASC Topic 855 did not have a material effect on the
    Company&#146;s financial statements.
</DIV>
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    <BR>
    F-13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued an accounting standard
    ASC&#160;105, &#147;Generally Accepted Accounting
    Principles&#148;, whereby the FASB Accounting Standards
    Codification (&#147;ASC&#148; or &#147;Codification&#148;) will
    be the single source of authoritative nongovernmental
    U.S.&#160;GAAP. Rules and interpretive releases of the
    Securities and Exchange Commission (the &#147;SEC&#148;) under
    authority of federal securities laws are also sources of
    authoritative GAAP for SEC registrants. ASC Topic 105 is
    effective for interim and annual periods ending after
    September&#160;15, 2009. All existing accounting standards are
    superseded as described in ASC Topic 105. All other accounting
    literature not included in the Codification is
    non-authoritative. The Codification is not expected to have a
    significant impact on the Company&#146;s financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2009, the FASB issued Accounting Standards Update
    <FONT style="white-space: nowrap">2009-05,</FONT>
    &#147;Fair Value Measurements and Disclosures (Topic 820):
    Measuring Liabilities at Fair Value&#148;. ASU
    <FONT style="white-space: nowrap">2009-05</FONT>
    provided amendments to
    <FONT style="white-space: nowrap">ASC&#160;820-10,</FONT>
    including clarification that in circumstances in which a quoted
    price in an active market for the identical liability is not
    available, a reporting entity is required to measure fair value
    using certain techniques. ASU
    <FONT style="white-space: nowrap">2009-05</FONT> also
    clarifies that when estimating the fair value of a liability, a
    reporting entity is not required to include a separate input or
    adjustment to other inputs relating to the existence of a
    restriction that prevents the transfer of a liability. ASU
    <FONT style="white-space: nowrap">2009-05</FONT> also
    clarifies that both a quoted price in an active market for the
    identical liability at the measurement date and the quoted price
    for the identical liability when traded as an asset in an active
    market when no adjustments to the quoted price of the asset are
    required are Level&#160;1 fair value measurements. Adoption of
    ASU <FONT style="white-space: nowrap">2009-05</FONT>
    did not have a material impact on the Company&#146;s
    consolidated results of operations or financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In October 2009, the FASB issued ASU
    <FONT style="white-space: nowrap">2009-13,</FONT>
    &#147;Multiple-Deliverable Revenue Arrangements (amendments to
    FASB ASC Topic 605, Revenue Recognition)&#148; (&#147;ASU
    <FONT style="white-space: nowrap">2009-13&#148;)</FONT>
    and ASU
    <FONT style="white-space: nowrap">2009-14,</FONT>
    &#147;Certain Arrangements That Include Software Elements,
    (amendments to FASB ASC Topic 985, Software)&#148; (&#147;ASU
    <FONT style="white-space: nowrap">2009-14&#148;).</FONT>
    ASU <FONT style="white-space: nowrap">2009-13</FONT>
    requires entities to allocate revenue in an arrangement using
    estimated selling prices of the delivered goods and services
    based on a selling price hierarchy. The amendments eliminate the
    residual method of revenue allocation and require revenue to be
    allocated using the relative selling price method. ASU
    <FONT style="white-space: nowrap">2009-14</FONT>
    removes tangible products from the scope of software revenue
    guidance and provides guidance on determining whether software
    deliverables in an arrangement that includes a tangible product
    are covered by the scope of the software revenue guidance. ASU
    <FONT style="white-space: nowrap">2009-13</FONT> and
    ASU <FONT style="white-space: nowrap">2009-14</FONT>
    should be applied on a prospective basis for revenue
    arrangements entered into or materially modified in fiscal years
    beginning on or after June&#160;15, 2010, with early adoption
    permitted. The Company does not expect adoption of ASU
    <FONT style="white-space: nowrap">2009-13</FONT> or
    ASU <FONT style="white-space: nowrap">2009-14</FONT>
    to have a material impact on the Company&#146;s consolidated
    results of operations or financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2010, the FASB issued ASU
    <FONT style="white-space: nowrap">2010-06,</FONT>
    &#147;Fair Value Measurements and Disclosures (Topic 820):
    Improving Disclosures about Fair Value Measurements&#148;. This
    update provides amendments to Topic 820 that will provide more
    robust disclosures about (1)&#160;the different classes of
    assets and liabilities measured at fair value, (2)&#160;the
    valuation techniques and inputs used, (3)&#160;the activity in
    Level&#160;3 fair value measurements, and (4)&#160;the transfers
    between Levels&#160;1, 2, and 3. The Company does not expect
    adoption of ASU
    <FONT style="white-space: nowrap">2010-06</FONT> to
    have a material impact on the Company&#146;s consolidated
    results of operations or financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2010, the FASB issued ASU
    <FONT style="white-space: nowrap">2010-09,</FONT>
    &#147;Subsequent Events (Topic 855): Amendments to Certain
    Recognition and Disclosure Requirements&#148;. This update
    addresses both the interaction of the requirements of Topic 855,
    &#147;Subsequent Events&#148;, with the SEC&#146;s reporting
    requirements and the intended breadth of the reissuance
    disclosures provision related to subsequent events
    <FONT style="white-space: nowrap">(paragraph&#160;855-10-50-4).</FONT>
    The amendments in this update have the potential to change
    reporting by both private and public entities, however, the
    nature of the change may vary depending on facts and
    circumstances. The Company does not expect adoption of ASU
    <FONT style="white-space: nowrap">2010-09</FONT> to
    have a material impact on the Company&#146;s consolidated
    results of operations or financial condition.
</DIV>
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    <BR>
    F-14
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Going
    Concern</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As reflected in the accompanying consolidated financial
    statements for the years ended December&#160;31, 2009 and 2008,
    the Company had net losses of $2,247,767 and $1,568,251, and
    cash used in operations of $1,737,841 and $575,443,
    respectively. At December&#160;31, 2009, the Company had an
    accumulated deficit of $6,217,899. In addition, the Company had
    minimal revenue generating activities in 2009 and is
    transitioning to a new business model. These matters raise
    substantial doubt about the Company&#146;s ability to continue
    as a going concern. During 2009, the Company raised
    approximately $7.2&#160;million from contributed capital, new
    loans, and a private placement of its common stock and warrants,
    net of offering costs. At December&#160;31, 2009, the Company
    had working capital of $3,232,419, which includes a warrant
    derivative liability of $804,718. Management plans to utilize
    its working capital to implement its business plan. The
    financial statements do not include any adjustments relating to
    the recovery of the recorded assets or the classification of the
    liabilities that might be necessary should the Company be unable
    to implement its business plan and continue as a going concern.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Costs In
    Excess of Billings (Billings in Excess of Costs) On Uncompleted
    Contracts</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Costs in excess of billings on uncompleted contracts (calculated
    on an individual contract basis) represent accumulated contract
    costs that exceeded billings
    <FONT style="white-space: nowrap">and/or</FONT> cash
    received on uncompleted contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009 and 2008, costs in excess of billings
    on uncompleted contracts consisted of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Costs on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    76,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Billings and/or cash receipts on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17,090
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Costs in excess of billings on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    59,506
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Billings in excess of costs on uncompleted contracts (calculated
    on an individual contract basis) represents billings
    <FONT style="white-space: nowrap">and/or</FONT> cash
    received that exceed accumulated contract costs on uncompleted
    contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009 and 2008, billings in excess of costs
    on uncompleted contracts consisted of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Billings and/or cash receipts on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    215,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    215,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Costs on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,781
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Billings in excess of costs on uncompleted contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    201,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    215,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment consisted of the following at
    December&#160;31, 2009 and 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Computer and office equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Equipment and tools
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,065,959
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,142,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,075,683
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,152,392
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (356,214
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (307,393
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    719,469
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    844,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment held under capitalized leases of $258,991
    and $258,991 at December&#160;31, 2009 and 2008, respectively,
    are included in Equipment and tools above. Depreciation expense
    for the years ended December&#160;31, 2009 and 2008 was $112,345
    and $252,609, of which $25,899 and $25,899 pertained to the
    capitalized lease discussed above, for the years ended
    December&#160;31, 2009 and 2008, respectively. Accumulated
    depreciation amounted to $356,214 and $307,393, of which $62,589
    and $36,690 pertained to capitalized leases, as of
    December&#160;31, 2009 and 2008, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the year ended December&#160;31, 2008, as a result of an
    analysis by management, the Company determined that an
    impairment charge and write off of certain pieces of RDS
    equipment were appropriate. The Company recorded an impairment
    reserve as of December&#160;31, 2008 of $124,630, which is
    included in operating expenses, and wrote off the net book value
    of RDS equipment amounting to $174,125, which is included in
    other income (expense). No other events or circumstances
    occurred for which an evaluation of the recoverability of
    long-lived assets was required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the year ended December&#160;31, 2009, the Company
    recognized an impairment loss of $61,107, which is included in
    operating expenses, related to the net book value of RDS
    equipment held by a third party that was not recoverable.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Patents</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Patents consisted of the following at December&#160;31, 2009 and
    2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patents pending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,097
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,275
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    152,589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amortization expense for the years ended December&#160;31, 2009
    and 2008 was $4,415 and $4,415, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, as a result of an
    analysis by management, the Company recognized an impairment
    loss of $50,077 and $119,896 relating to the net book value of
    patents and patents pending, respectively. The charge is
    included in selling, general and administrative expenses.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accrued
    Expenses</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accrued expenses consisted of the following at December&#160;31,
    2009 and 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Payroll and related benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    288,945
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    536,782
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    183,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sales tax payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,276
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    476,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    771,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has accrued payroll and estimated related taxes,
    including estimated penalties and interest, to various taxing
    authorities, including the Internal Revenue Service, that
    pertain to various years of service. At December&#160;31, 2009
    and 2008, estimated penalties and interest in the amounts of
    $63,709 and $33,851, respectively, were included in payroll and
    related benefits in the above table.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Fair
    Value of Financial Instruments</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The estimated fair value of certain financial instruments,
    including cash and cash equivalents and current liabilities, are
    carried at historical cost basis, which approximates their fair
    values because of the short-term nature of these instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, the Company adopted a newly issued
    accounting standard for fair value measurements of all
    nonfinancial assets and nonfinancial liabilities not recognized
    or disclosed at fair value in the financial statements on a
    recurring basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accounting standard for fair value measurements provides a
    framework for measuring fair value and requires expanded
    disclosures regarding fair value measurements. Fair value is
    defined as the price that would be received for an asset or the
    exit price that would be paid to transfer a liability in the
    principal or most advantageous market in an orderly transaction
    between market participants on the measurement date. The
    accounting standard established a fair value hierarchy which
    requires an entity to maximize the use of observable inputs,
    where available. This hierarchy prioritizes the inputs into
    three broad levels as follows. Level&#160;1 inputs are quoted
    prices (unadjusted) in active markets for identical assets or
    liabilities. Level 2 inputs are quoted prices for similar assets
    and liabilities in active markets or inputs that are observable
    for the asset or liability, either directly or indirectly
    through market corroboration, for substantially the full term of
    the financial instrument. Level&#160;3 inputs are unobservable
    inputs based on the Company&#146;s own assumptions used to
    measure assets and liabilities at fair value. An asset or
    liability&#146;s classification within the hierarchy is
    determined based on the lowest level input that is significant
    to the fair value measurement.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assets and liabilities measured at fair value on a recurring and
    non-recurring basis consisted of the following at
    December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value at<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fair Value Measurements at December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 3)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patents pending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Totals
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Warrant derivative liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    804,718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    804,718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of activity of Level&#160;3 assets
    for the year ended December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    152,589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Patent costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Amortization expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,415
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Impairment loss recognized
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (169,973
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of activity of Level&#160;3
    liabilities for the year ended December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Warrant liability upon issuance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    826,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Change in fair value
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,960
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    804,718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Impairment losses recognized on patents and patents pending are
    included in selling, general and administrative expenses.
    Changes in fair value of the warrant derivative liability are
    included in other income (expense) in the accompanying
    consolidated statements of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company used the discounted cash flows method to measure the
    fair value of patents and patents pending. Due to minimal and
    varied revenue producing activities, the Company cannot reliably
    project positive cash flows for patents and patents pending.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company estimates the fair value of the warrant derivative
    liability utilizing the Black-Scholes option pricing model,
    which is dependent upon several variables such as the expected
    warrant term, expected volatility of our stock price over the
    expected warrant term, expected risk-free interest rate over the
    expected warrant term, and the expected dividend yield rate over
    the expected warrant term. The Company believes this valuation
    methodology is appropriate for estimating the fair value of the
    warrant derivative liability. The following table summarizes the
    assumptions the Company utilized to estimate the fair value of
    the warrant derivative liability at December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Assumptions</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December 31, 2009</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected term (years)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8 - 3.0&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected volatility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk-free interest rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.14% - 1.70%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividend yield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The expected warrant term is based on the remaining contractual
    term. The expected volatility is based on historical volatility.
    The risk-free interest rate is based on the U.S.&#160;Treasury
    yields with terms equivalent to the expected term of the related
    warrant at the valuation date. Dividend yield is based on
    historical trends. While the Company believes these estimates
    are reasonable, the fair value would increase if a higher
    expected volatility was used, or if the expected dividend yield
    increased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There were no changes in the valuation techniques during the
    three months ended December&#160;31, 2009.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Loan
    Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Loan payable at December&#160;31, 2009 and 2008 consisted of an
    unsecured, non-interest bearing loan in the amount of $68,076,
    due on demand.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Equipment
    Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;19, 2007, the Company entered into an agreement and
    bill of sale with a third party vendor for the purchase of
    certain RDS equipment in the amount of $110,000. The terms of
    payment under the agreement were principal only payments of
    $6,670 per month, commencing August&#160;1, 2007, for a period
    of seven months. On March&#160;1, 2008, a final payment of
    $70,000 was to be made by the Company. The Company made no
    payments under the agreement during 2007 and went into default
    under the agreement. During 2008, the Company made payments to
    reduce the principal amount by $25,205. Upon default, 12%
    interest applies to the unpaid balance. As of December&#160;31,
    2009 and 2008, the principal amount due under the agreement
    amounted to $84,795, and is reflected as equipment payable in
    the accompanying consolidated balance sheets.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Capital
    Lease Obligations</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Capital lease obligations consisted of the following at
    December&#160;31, 2009 and 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    59,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    261,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Current maturities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (59,216
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (143,428
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Amount due after one year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    117,822
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;12.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Secured
    Note Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Secured notes payable consisted of the following at
    December&#160;31, 2009 and 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    20% Secured promissory note payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    116,662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Current maturities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (116,662
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Amount due after one year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;30, 2008, the Company issued a secured promissory
    note in the amount of $200,000 to a lender, who is the lessor of
    the office space that the Company occupies for its operations,
    for working capital purposes. The note bears interest at 20% per
    year, was secured by all patents and other intellectual property
    of the Company, and was personally guaranteed by the Chief
    Executive Officer of the Company. The terms for repayment of the
    note required payments of $16,667 per month for a period of
    12&#160;months, together with a balloon payment of $40,000 in
    interest at the time the last payment was made. As part of the
    secured promissory note, the Company granted to the lessor an
    option to purchase, for a period of one year after the repayment
    of the loan and interest, shares of common stock of the Company,
    up to a total of the amount of the note, interest paid on the
    note, and a premium of $40,000 (approximately $280,000 in
    total), at a price of $1 per share. At December&#160;31, 2008,
    the principal balance of the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    note remaining amounted to $116,662, all of which was current in
    nature. The remaining balance of the note, including accrued
    interest, was paid in full on August&#160;31, 2009 and the lien
    was subsequently released by the lender.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;13.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Convertible
    Notes Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Convertible notes payable consisted of the following at
    December&#160;31, 2009 and 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Convertible notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    723,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Current maturities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (723,190
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Amount due after one year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has entered into various secured and unsecured
    convertible notes with third party lenders to fund its
    operations. The notes are generally convertible into shares of
    common stock at a fixed rate of $5.00 per share at the
    discretion of the holder and mature over periods of less than
    one year. As the conversion rate for all of the notes exceeded
    the estimated fair value of the Company&#146;s common stock on
    the date of issuance, the notes did not contain a beneficial
    conversion feature. The notes bear interest at rates ranging
    from 4.3% to 40%. Activities pertaining to convertible notes for
    the years ended December&#160;31, 2009 and 2008, were as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Beginning balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    723,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    302,971
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Issuance of convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    773,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    595,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest added to principal amounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129,298
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,896
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Principal payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (158,179
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (94,007
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Conversions to common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,457,809
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (160,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ending balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    723,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The weighted average interest rate for convertible notes payable
    outstanding as of December&#160;31, 2009 was 40%.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;14.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Notes
    Payable&#160;&#151; Related Party</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notes payable&#160;&#151; related party consisted of the
    following at December&#160;31, 2009 and 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Notes payable&#160;&#151; related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Current maturities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,575
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50,819
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Amount due after one year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has entered into various unsecured notes with
    related parties to fund its operations. The notes are due on
    demand or within one year from the date of the note. The notes
    bear interest at rates ranging from 4.3% to 80%. Activities
    pertaining to notes payable&#160;&#151; related parties for the
    years ended December&#160;31, 2009 and 2008, are described in
    Note&#160;19.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The weighted average interest rate for notes payable&#160;&#151;
    related party outstanding as of December&#160;31, 2009 was 13.5%.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;15.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    Leases</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a schedule by years of future minimum lease
    payments under capital leases together with the present value of
    the net minimum lease payments as of December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Year ending December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total minimum lease payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Amount representing interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,696
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Present value of net minimum lease payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    59,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Operating
    Leases</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company leases office facilities under a
    <FONT style="white-space: nowrap">month-to-month</FONT>
    lease, which is cancellable with 30&#160;days notice by either
    the Company or the landlord.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rent expense for the years ended December&#160;31, 2009 and 2008
    was $14,971 and $14,219, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Settlement
    Due to Vendor</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;27, 2008, Eagle North America, Inc.
    (&#147;Eagle&#148;), which provided certain equipment and
    consulting services to the Company, filed suit against the
    Company and Michael Hodges, Chief Executive Officer and
    Director, for monies owed pursuant to an equipment lease
    agreement between Eagle and the Company. Eagle claimed damages
    of $152,103. The Company made counter claims against Eagle for
    breach of certain representations and warranties, alleged
    damages related to the performance and operation of certain
    leased equipment and losses incurred as a result of its
    inadequate operation and maintenance of approximately $280,000.
    The Company and Eagle entered mediation in November 2008. On
    June&#160;26, 2009, the parties entered into a settlement
    agreement pursuant to which Eagle dismissed its claims against
    the Company, and the Company dismissed its claims against Eagle.
    Pursuant to the settlement agreement, the Company is required to
    pay Eagle the aggregate sum of $152,000, payable as follows:
    (i)&#160;$25,000 within thirty days of the settlement, and
    (ii)&#160;thereafter 15 equal installments of $8,467 commencing
    August&#160;26, 2009. As of December&#160;31, 2009, the
    remaining balance due under the settlement due to vendor was
    $84,667, all of which is current in nature.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of a private placement, we have agreed to file a
    &#147;resale&#148; registration statement with the SEC covering
    all shares of our common stock included within the Units sold in
    the Offering and underlying any warrants as well as the shares
    underlying the Placement Agent warrants, on or before the date
    which is 90&#160;days after the final closing date of the
    Private Placement or the termination date, whichever occurs
    later (the &#147;Filing Deadline&#148;). We will maintain the
    effectiveness of the &#147;resale&#148; registration statement
    from the effective date through and until twelve
    (12)&#160;months after the final closing date, unless all
    securities registered under the registration statement have been
    sold or are otherwise able to be sold pursuant to Rule&#160;144.
    We have agreed to use commercially reasonable efforts to have
    the &#147;resale&#148; registration statement declared effective
    by the SEC as soon as possible and, in any event, within
    180&#160;days after the final closing date of the Private
    Placement or the termination date, whichever occurs later (the
    &#147;Effectiveness Deadline&#148;). In addition, if the
    registration statement is not effective, then the investors in
    the Offering are permitted to &#147;piggy-back&#148; onto other
    registration statements that are filed by the Company, with
    certain exceptions. One of these exceptions is in connection
    with a registration statement filed to register the sale of
    certain shares held in escrow in connection with the Merger. We
    are obligated to pay to investors in the Offering a fee of 1%
    per month of the investors&#146; investment, payable in cash for
    each month: (i)&#160;in excess of the Filing Deadline that the
    registration statement has not been filed; and, (ii)&#160;in
    excess of the Effectiveness Deadline that the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    registration statement has not been declared effective;
    provided, however, that the Company shall not be obligated to
    pay any liquidated damages if the Company is unable to fulfill
    its registration obligations as a result of rules, regulations,
    positions or releases issued or actions taken by the SEC
    pursuant to its authority with respect to
    &#147;Rule&#160;415,&#148; provided the Company registers at
    that time the maximum number of shares of common stock
    permissible upon consultation with the staff of the SEC. The
    maximum potential penalty under the registration rights
    agreement is 10%, which amounts $682,500. As of March&#160;29,
    2009, the Company was in default regarding the registration
    rights agreement as the Company had not yet filed a registration
    statement covering the securities issued in the private
    placement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Legal
    Matters</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, we may be involved in litigation relating to
    claims arising out of our operations in the normal course of
    business. As of December&#160;31, 2009, other than what is
    described in this section, &#147;Legal Matters&#148;, there were
    no pending or threatened lawsuits that could reasonably be
    expected to have a material effect on our results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2006, the Company entered into a five-year
    exclusive license agreement with an entity located in the
    Netherlands (the &#147;Entity&#148;) to complete projects and
    develop the revenues and marketing presence of the Company in
    the Netherlands, France, and Germany. Though never consummated,
    it was the intent of the parties to enter into a joint venture.
    The parties completed one project, which has become the subject
    of a dispute. Each party has alleged certain damages and
    defenses as a result of the project. However, the parties are
    working together to resolve the matter. In order to conduct the
    project completed with the Entity, the Company relocated certain
    RDS equipment from the United States to the Netherlands. The RDS
    equipment transferred is currently under the control of the
    Entity, and is part of the dispute between the parties described
    above. During the year ended December&#160;31, 2008, the Company
    wrote off $174,125 in net book value of RDS equipment located in
    the Netherlands, which management of the Company believes is not
    in suitable operating condition, and provided a 50% reserve, in
    the amount of $124,630, for impairment in the carrying value of
    other RDS equipment, which is also under control of the Entity.
    At December&#160;31, 2009, the Company impaired the remaining
    net book value of the equipment and recognized an impairment
    loss of $61,107. The extent of any additional loss, contingent
    or otherwise, was not determinable or probable of occurrence and
    as a result, no general reserve for the dispute has been
    recorded in the accompanying consolidated financial statements.
    Further, as of December&#160;31, 2009, no formal legal claim had
    been filed with any jurisdiction by either party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2009, the Company terminated a Reseller Agreement. The
    reseller has contested this termination, however, no formal
    legal claim had been filed as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The former chief financial officer of the Company has claimed
    breach of his separation agreement. The Company has made certain
    counterclaims. As of December&#160;31, 2009, no formal legal
    claim had been filed with any jurisdiction by either party (See
    Note&#160;19).
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;16.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Stockholders&#146;
    Equity (Deficiency)</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Recapitalization</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, Genesis Ltd. entered into a merger
    transaction with Holdings, an inactive publicly-held company.
    This transaction was treated as a recapitalization of Genesis
    Ltd. with 1,160,000 common shares deemed issued to the
    pre-merger stockholders of Holdings. The accounting effects of
    the recapitalization are reflected retroactively for all periods
    presented in the accompanying consolidated financial statements
    and footnotes (See Note&#160;1).
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of the Merger, 1,300,000&#160;shares issuable to Michael
    Hodges, the founder and Chief Executive Officer of the Company,
    have been placed in escrow to be held for three years in order
    to cover certain liabilities, including potential tax
    liabilities of Genesis Ltd.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of the Merger, on October&#160;30, 2009, the
    Company amended its Articles of Incorporation whereby it changed
    its name to Genesis Fluid Solution Holdings, Inc. and revised
    its authorized capital to consist of 100,000,000 common shares
    at $0.001&#160;par value and 25,000,000 preferred shares at
    $0.001&#160;par value.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is authorized to issue up to 25,000,000&#160;shares
    of preferred stock having a par value of $0.001 per share, of
    which none was issued and outstanding at December&#160;31, 2009
    and December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is authorized to issue up to 100,000,000&#160;shares
    of common stock having a par value of $0.001 per share, of which
    17,668,500 and 10,000,000&#160;shares were issued and
    outstanding at December&#160;31, 2009 and 2008, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the year ended December&#160;31, 2008, Michael Hodges,
    the Company&#146;s Chief Executive Officer and a Director of the
    Company, sold approximately 23,000&#160;shares of Company common
    stock owned personally by him to third-party investors for cash
    proceeds of $68,360, which was then contributed to Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the year ended December&#160;31, 2008, Michael Hodges,
    the Company&#146;s Chief Executive Officer and a Director of the
    Company, gave approximately 32,960&#160;shares of Company common
    stock owned personally by him to certain creditors of the
    Company to serve as repayment of notes payable and related
    accrued interest of the note holders of $187,940. Such
    conversions of the notes payable into common shares of the
    Company did not result in any cash received by the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purpose of recording certain equity transactions, the
    Company obtained an independent certified valuation report of
    the value of its common stock for May&#160;11, 2009 of $0.01 per
    share and for October&#160;30, 2009 of $0.50 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the period from January&#160;6, 2009 through
    July&#160;11, 2009, Michael Hodges, the Company&#146;s Chief
    Executive Officer and a Director of the Company, sold
    187,730&#160;shares of Company common stock owned personally by
    him to third-party investors for cash proceeds of $491,374,
    which was then contributed to Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the period from March&#160;10, 2009 through
    October&#160;1, 2009, Michael Hodges, the Company&#146;s Chief
    Executive Officer and a Director of the Company, gave
    160,600&#160;shares of Company common stock owned personally by
    him to certain creditors of the Company upon conversion, at
    their contractual conversion rate of $5.00 per share, of
    convertible notes payable of $690,167 and related accrued
    interest of $79,830. One creditor was given 6,700 additional
    shares, resulting in convertible debt inducement expense of $66.
    Such conversions of the notes payable into common shares of the
    Company did not result in any cash received by the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the period from January&#160;16, 2009 through
    July&#160;7, 2009, Michael Hodges, the Company&#146;s Chief
    Executive Officer and a Director of the Company, gave
    26,480&#160;shares of Company common stock (having a fair value
    of $265) owned personally by him to two individuals as loan
    origination fees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, Michael Hodges, the Company&#146;s
    Chief Executive Officer and a Director of the Company, returned
    to the Company 1,232,730&#160;shares of common stock owned
    personally by him. He received no compensation and the shares
    were immediately cancelled. This transaction was recorded as an
    increase in additional paid-in capital of $1,233 with a
    corresponding decrease in common stock.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, several stockholders (comprised of a
    director, an officer, and several employees of the Company)
    agreed to return to the Company 1,972,000&#160;shares of common
    stock in exchange for options to purchase 1,972,000&#160;shares
    in the Company. The options have a term of ten years, of which
    (i)&#160;1,272,000 vested immediately and have an exercise price
    of $0.90 per share and (ii)&#160;700,000 options will vest on
    April&#160;30, 2010 and have an exercise price $0.99 per share.
    Since the fair value of the common shares returned exceeded the
    fair value of the stock options issued on the exchange date, no
    additional expense was recognized. This transaction was recorded
    as an increase in additional paid-in capital of $1,972 with a
    corresponding decrease in common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the period from October&#160;1, 2009 through
    October&#160;13, 2009, the Company issued 101,730&#160;shares of
    common stock upon conversion of convertible notes payable of
    $92,642 and accrued interest of $9,079. The creditors&#146;
    contractual conversion rate was $5.00 per share, however, the
    creditors converted at $1.00 per share, resulting in convertible
    debt inducement expense of $40,693.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the year ended December&#160;31, 2009, the Company issued
    2,584,000&#160;shares of common stock (having a fair value of
    $25,840) in exchange for cash proceeds of $26 and services
    rendered. Accordingly, the Company recognized stock-based
    compensation expense of $25,814.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, prior to the Merger, stockholders of
    the Company gave 50,000&#160;shares of Company common stock
    (having a fair value of $25,000) owned personally by them to a
    vendor of the Company to serve as payment on behalf of the
    Company for services rendered. The $25,000 was recorded as
    contributed capital.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, prior to the Merger, stockholders of
    the Company gave 250,000&#160;shares of Company common stock
    (having a fair value of $125,000) owned personally by them to a
    vendor of the Company to serve as payment on behalf of the
    Company to settle accounts payable of $243,910. Accordingly, the
    Company recognized a gain on settlement of accounts payable of
    $118,910.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May and June 2009, pursuant to Note Purchase Agreements (the
    &#147;Agreements&#148;), the Company sold $600,000 of
    convertible notes (&#147;bridge notes&#148;) to lenders. In
    September and October 2009, the Company sold an additional
    $75,000 of bridge notes to lenders. The holders of $275,000 of
    the bridge notes had the option and the holders of $400,000 of
    the bridge notes had the obligation to convert on a
    <FONT style="white-space: nowrap">dollar-for-dollar</FONT>
    basis upon a Subsequent Financing (as defined in the Agreements)
    on the same terms and conditions as the Subsequent Financing. In
    addition, whether converted or not, upon the earlier of:
    (i)&#160;a Subsequent Financing or (ii)&#160;six months, the
    bridge note holders were entitled to additional interest in the
    form of common shares of the Company equal to 30% of the face
    value of the notes using a price per share based on:
    (a)&#160;the same price per share of a Subsequent Financing or
    (b)&#160;should the Subsequent Financing not have occurred
    within six months of the date of the respective agreement, a
    price per share based upon a $15&#160;million total market value
    of the Company. The bridge notes bore interest of 10% and were
    due and payable on the earlier of the completion of a reverse
    merger transaction (which occurred October&#160;30,
    2009)&#160;or November&#160;9, 2009. All of the bridge note
    holders converted to the private placement that occurred on
    October&#160;30, 2009. As a result, 675,000 common shares and
    warrants (having the same terms as those issued to investors
    under the private placement, as discussed below) to purchase
    337,500 common shares were issued in exchange for the bridge
    notes (an aggregate principal amount of $675,000) as payment in
    full. Additionally, 202,500 common shares (representing 30% of
    the face value of the bridge notes) (having a fair value of
    $101,250), were issued and such value was included in interest
    expense.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the closing of the Merger through December&#160;29,
    2009, the Company accepted subscriptions for an aggregate of
    246&#160;units in a private placement (each unit consisting of
    25,000&#160;shares of common stock and three-year warrants to
    purchase 12,500 common shares at an exercise price of $2.00 per
    share) at a price of $25,000 per unit for gross proceeds of
    $6,150,000. As a result, the Company issued (i)&#160;6,150,000
    common shares and (ii)&#160;warrants to purchase 3,075,000
    common shares. In connection with the private placement, the
    Company paid $240,250 in offering costs and issued two-year
    warrants to purchase an aggregate of 107,500 common shares,
    exercisable at $1.25 per share, to placement agents. All of the
    shares of common stock issued in the private placement as well
    as the shares of common stock underlying the warrants issued in
    the private placement and the shares of common stock
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    underlying the placement agents&#146; warrants are subject to a
    registration rights agreement (See Note&#160;15). In addition,
    so long as the underlying shares of common stock are registered
    in an effective registration statement, if and when shares of
    the common stock are trading at or above $3.50 per share for 20
    consecutive trading days, we will have the option to redeem the
    three-year warrants from the investors for a purchase price of
    $0.001 per share. A holder of three-year warrants will have
    10&#160;days following notice to convert their warrants or we
    may retire the warrants upon the payment of $0.001 per share
    underlying each warrant. All of the warrants contain a cashless
    exercise provision whereby if at any time after twelve
    (12)&#160;months from the issuance date of the warrants there is
    no effective registration statement registering or no current
    prospectus available, for the resale of the shares of warrant
    stock issuable, then the holder may cashless exercise the
    warrants. All of the warrants contain a price protection
    provision whereby if from the warrant issuance date and through
    the earlier to occur of: (i)&#160;first anniversary of the date
    of issuance and (ii)&#160;the date there is an effective
    registration statement on file with the Securities and Exchange
    Commission covering the resale of all the shares of warrant
    stock and all the shares of common stock issued in the offering
    the Company issues or sells any shares of common stock or
    securities convertible into common stock, other than an exempt
    issuance, as defined in the warrant, for consideration per share
    of common stock less than $1.00, then immediately after such
    dilutive issuance, the warrant price then in effect shall be
    reduced to an amount equal to the new issuance price multiplied
    by two. Due to the price protection clause, the warrants are
    deemed a derivative and, therefore, were reclassified from
    equity to a warrant derivative liability on each date of
    issuance resulting in an aggregate amount of $826,678 being
    reclassified (See Note 8).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Common
    Stock Warrants</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s warrant activity during the year
    ended December&#160;31, 2009 is presented below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
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    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Remaining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>No. of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Contractual<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Intrinsic<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Warrants</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Term</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance Outstanding, December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,520,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Forfeited
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Expired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance Outstanding, December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,520,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exercisable, December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,520,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock
    Incentive Plan and Stock Option Grants to Employees and
    Directors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, the Company&#146;s board of directors
    and stockholders adopted the 2009 Equity Incentive Plan (the
    &#147;2009 Plan&#148;). The purpose of the 2009 Plan is to
    provide an incentive to attract and retain directors, officers,
    consultants, advisors and employees whose services are
    considered valuable, to encourage a sense of proprietorship and
    to stimulate an active interest of such persons into our
    development and financial success. Under the 2009 Plan, the
    Company is authorized to issue incentive stock options intended
    to qualify under Section&#160;422 of the Code, non-qualified
    stock options, stock appreciation rights, performance shares,
    restricted stock and long-term incentive awards. The Company has
    reserved for issuance an aggregate of 4,542,000&#160;shares of
    common stock under the 2009 Plan. The 2009 Plan will be
    administered by the Company&#146;s board of directors until such
    time as such authority has been delegated to a committee of the
    board of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The material terms of each option granted pursuant to the 2009
    Plan by the Company shall contain the following terms:
    (i)&#160;that the purchase price of each share purchasable under
    an incentive option shall be determined
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    by the Committee at the time of grant, but shall not be less
    than 100% of the Fair Market Value (as defined in the 2009 Plan)
    of such common share on the date the option is granted,
    (ii)&#160;the term of each option shall be fixed by the
    Committee, but no option shall be exercisable more than
    10&#160;years after the date such option is granted and
    (iii)&#160;in the absence of any option vesting periods
    designated by the Committee at the time of grant, options shall
    vest and become exercisable as to one-third of the total number
    of shares subject to the option on each of the first, second and
    third anniversaries of the date of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, the Company issued, pursuant to the
    2009 Plan, ten-year options to purchase 1,972,000&#160;shares in
    the Company in exchange for the return of 1,972,000&#160;shares
    of common stock (see above).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, the Company granted, pursuant to the
    2009 Plan, ten-year stock options to purchase 1,250,000 common
    shares of the Company, of which (i)&#160;580,000 are exercisable
    immediately at $0.90 per share, (ii)&#160;70,000 are exercisable
    on April&#160;30, 2010 at $0.99 per share, and
    (iii)&#160;600,000 vest based on performance milestones, as
    stipulated in the option, and are exercisable at $1.00 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total fair value of stock option awards (not including those
    issued in exchange for common stock returned to the Company)
    granted to employees during the year ended December&#160;31,
    2009 was $251,871, which is being recognized over the respective
    vesting periods. The Company recorded compensation expense of
    $233,900 for the year ended December&#160;31, 2009 in connection
    with these stock options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, 1,320,000&#160;shares were
    remaining under the 2009 Plan for future issuance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company estimates the fair value of share-based compensation
    utilizing the Black-Scholes option pricing model, which is
    dependent upon several variables such as the expected option
    term, expected volatility of our stock price over the expected
    option term, expected risk-free interest rate over the expected
    option term, expected dividend yield rate over the expected
    option term, and an estimate of expected forfeiture rates. The
    Company believes this valuation methodology is appropriate for
    estimating the fair value of stock options granted to employees
    and directors which are subject to ASC Topic 718 requirements.
    These amounts are estimates and thus may not be reflective of
    actual future results, nor amounts ultimately realized by
    recipients of these grants. The Company recognizes compensation
    on a straight-line basis over the requisite service period for
    each award. The following table summarizes the assumptions the
    Company utilized to record compensation expense for stock
    options granted during the year ended December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Assumptions</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected term (years)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0 - 10.0&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected volatility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted-average volatility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk-free interest rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.31% - 3.41%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividend yield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected forfeiture rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The expected life is computed using the simplified method, which
    is the average of the vesting term and the contractual term. The
    expected volatility is based on historical volatility. The
    risk-free interest rate is based on the U.S.&#160;Treasury
    yields with terms equivalent to the expected term of the related
    option at the time of the grant. Dividend yield is based on
    historical trends. While the Company believes these estimates
    are reasonable, the compensation expense recorded would increase
    if the expected life was increased, a higher expected volatility
    was used, or if the expected dividend yield increased.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s stock option activity during the
    year ended December&#160;31, 2009 is presented below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Remaining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>No. of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Contractual<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Intrinsic<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Term</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance Outstanding, December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,222,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Forfeited
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Expired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance Outstanding, December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,222,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exercisable, December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,852,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The weighted-average grant-date fair value of options granted to
    employees during the year ended December&#160;31, 2009 was
    $0.40. The Company expects all non-contingent outstanding
    employee stock options to eventually vest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, there were total unrecognized
    compensation costs related to nonvested share-based compensation
    arrangements of $297,337, of which $17,972 is expected to be
    recognized over a weighted-average period of 0.3&#160;years and
    $279,365 shall be recognized upon the satisfaction of a
    contingency.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Stock-Based Option Awards to Nonemployees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;30, 2008, as part of a secured promissory note, the
    Company granted an option to purchase, for a period of one year
    after the repayment of the loan and interest (which occurred on
    August&#160;31, 2009), shares of common stock of the Company, up
    to a total of the amount of the note, interest paid on the note
    and a premium of $40,000 (approximately $280,000 in total), at a
    rate of $1 per share. As of December&#160;31, 2009, the option
    has not yet been exercised.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;30, 2009, an option to purchase up to 5,000
    common shares at $5.00 expired unexercised.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;17.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company was originally formed in October 2005 as an
    &#147;S&#148; corporation and filed its federal and state income
    tax returns according to the rules and regulations of that
    section of the Internal Revenue Code. On October&#160;31, 2007,
    the Company revoked its status as an &#147;S&#148; corporation
    and converted to a &#147;C&#148; corporation.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company files a consolidated U.S.&#160;income tax return
    that includes its U.S.&#160;subsidiary. The amounts provided for
    income taxes are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current (benefit) provision: federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current (benefit) provision: state
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred (benefit) provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred (benefit) provision relating to reduction of valuation
    allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total deferred provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total provision (benefit) for income taxes from continuing
    operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Significant items making up the deferred tax assets and deferred
    tax liabilities as of December&#160;31, 2009 and 2008 are as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net operating loss carryforward
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,315,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    588,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued severance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Impairment&#160;&#151; patents and patents pending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,961
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,493,599
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    588,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,473,655
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (588,181
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,680
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other temporary differences
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,264
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total deferred tax liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19,944
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total net deferred tax assets (liabilities)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A valuation allowance is established if it is more likely than
    not that all or a portion of the deferred tax asset will not be
    realized. Accordingly, a valuation allowance was established in
    2009 and 2008 for the full amount of our deferred tax assets due
    to the uncertainty of realization. Management believes that
    based upon its projection of future taxable operating income for
    the foreseeable future, it is more likely than not that the
    Company will not be able to realize the benefit of the deferred
    tax asset at December&#160;31, 2009. The net change in the
    valuation allowance during the years ended December&#160;31,
    2009 and 2008 was an increase of $885,474 and $521,696,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, the Company had $3,495,295 of net
    operating loss carryforwards which will expire in various years
    through 2029. Under the provision of the Tax Reform Act of 1986,
    when there has been a change in an entity&#146;s ownership of
    50&#160;percent or greater, utilization of net operating loss
    carry forwards may be limited. As a result of the Company&#146;s
    equity transactions, the Company&#146;s net operating losses may
    be subject to such limitations and may not be available to
    offset future income for tax purposes. Utilization of the net
    operating losses and credits
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    may be subject to a substantial annual limitation due to the
    ownership change provisions of the Internal Revenue Code of
    1986, as amended. The annual limitation may result in the
    expiration of net operating losses and credits before
    utilization and in the event we have a change of ownership,
    utilization of the carryforwards could be restricted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s effective income tax expense (benefit)
    differs from the statutory federal income tax rate of 34% as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>For the<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Federal tax rate applied to loss before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    State income taxes, net of federal benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    -3.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Permanent differences
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.9
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.0
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Change in valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (39.4
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (28.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;18.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Concentrations</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Concentration
    of Credit Risk</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Financial instruments that potentially subject the Company to
    concentration of credit risk consist of cash and cash
    equivalents and accounts receivable. Cash and cash equivalents
    are deposited in the local currency in three financial
    institutions in the United States. The balance, at any given
    time, may exceed Federal Deposit Insurance Corporation insurance
    limits. As of December&#160;31, 2009 and 2008, there was
    $4,508,514 and $0, respectively, in excess of insurable limits.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;19.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;28, 2008, the Company entered into a loan
    agreement with Maria Hodges, the wife of the Company&#146;s
    Chief Executive Officer, Michael Hodges for $9,800. The note
    bears an annual 4.29&#160;percent interest rate and is due on
    November&#160;28, 2018. The note does not have any conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December&#160;31, 2008, no
    principal or interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;29, 2008, the Company entered into a loan
    agreement with Maria Hodges, wife of the Company&#146;s Chief
    Executive Officer Michael Hodges for $9,000. The note bears an
    annual 4.29&#160;percent interest rate and is due on
    September&#160;29, 2019. The note does not have conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December&#160;31, 2008, no
    principal interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;17, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $5,000. The note bears an annual
    4.29&#160;percent interest rate and is due on June&#160;17,
    2018. The note does not have conversion feature and is
    unsecured. Accrued and unpaid interest is due at the termination
    of the loan. In September 2008, the Company paid Mr.&#160;Speer
    $2,925 which was recorded as a reduction of the outstanding
    principal balance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;28, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $1,075. The note had no stated interest rate
    or maturity date. The note does not have any conversion feature
    and is unsecured. In September 2008, the Company paid
    Mr.&#160;Speer $1,075 and cancelled the note.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DECEMBER 31, 2009 AND 2008</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;4, 2008, the Company entered into a loan
    agreement with Greg Rankin, who has provided legal services to
    the Company, for $5,000. The note had no stated interest rate or
    maturity date. The note does not have conversion feature and was
    unsecured. On July&#160;23, 2008, the principal balance plus
    $600 of accrued and unpaid interest was converted into
    1,120&#160;shares of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;9, 2007, the Company entered into a loan
    agreement with Michael Whaley, the former Chief Financial
    Officer of the Company, for $50,000. The note originally bore an
    annual interest rate of 20&#160;percent, which was later amended
    to 80&#160;percent, and subsequently, in combination with his
    separation, was revised to a 15&#160;percent interest rate and
    was due on November&#160;5, 2007. The note does not have a
    conversion feature and is unsecured. Accrued and unpaid interest
    is due at maturity date of the loan. At December&#160;31, 2008,
    $37,500, respectively, had been repaid under the note. At
    December&#160;31, 2009, $12,500 of principal plus accrued
    interest was due on the note. On September&#160;17, 2009,
    Michael Whaley, the former chief financial officer of the
    Company, resigned. As part of his separation agreement and in
    exchange for mutual releases, the Company is required to deliver
    the following to Mr.&#160;Whaley after completion of the Merger:
    (i)&#160;$40,000 in cash, (ii)&#160;$30,000&#160;shares of
    common stock of the Company, and (iii)&#160;payment of all
    amounts due under his loan agreement. As of December&#160;31,
    2009, all of the amounts due under the separation agreement were
    outstanding as the separation agreement is in dispute (See
    Note&#160;15).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;9, 2007, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $25,000. The note bears an
    annual 40&#160;percent interest rate and was due on
    November&#160;10, 2007. The note does not have conversion
    feature and was unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December&#160;31, 2008, the
    Company had made payments of $22,500 of which approximately
    $13,000 had been applied against principal and the remaining
    amount recognized as interest. During 2009, principal and
    accrued interest on this note was paid in full.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;5, 2009, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $50,000. The note was
    unsecured, bore 40% interest and was due on February&#160;3,
    2009. During 2009, principal and accrued interest on this note
    was paid in full.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;20.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;15, 2010, the Company entered into an agreement
    with a vendor for the vendor to perform marketing services. On
    March&#160;2, 2010, the Company terminated its agreement with
    the vendor. On March&#160;23, 2010, the vendor filed suit for
    breach of contract claiming amounts owed of approximately
    $41,000. The Company disputes this claim and intends to
    rigorously defend its position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;19, 2010, the Company entered into a settlement
    agreement with an individual that had been engaged May&#160;11,
    2009 to perform financial advisory services for the Company. As
    a result of the settlement, the Company issued
    83,000&#160;shares of the Company&#146;s common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;29, 2009, the Company was in default regarding
    the registration rights agreement as the Company had not yet
    filed a registration statement covering the securities issued in
    the private placement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In preparing these consolidated financial statements, the
    Company has evaluated events and transactions for potential
    recognition or disclosure through the date the consolidated
    financial statements were issued.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-30
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt">GENESIS FLUID SOLUTIONS
    HOLDINGS, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">11,847,500&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 14%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 14%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;13.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">OTHER
    EXPENSES OF ISSUANCE AND DISTRIBUTION.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the costs and expenses payable by
    us in connection with the issuance and distribution of the
    securities being registered. None of the following expenses are
    payable by the selling stockholders. All of the amounts shown
    are estimates, except for the SEC registration fee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SEC registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,872.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    TOTAL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    87,872.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;14.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">INDEMNIFICATION
    OF DIRECTORS AND OFFICERS.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;145 of the Delaware General Corporation Law (the
    &#147;DGCL&#148;) provides, in general, that a corporation
    incorporated under the laws of the State of Delaware, as we are,
    may indemnify any person who was or is a party or is threatened
    to be made a party to any threatened, pending or completed
    action, suit or proceeding (other than a derivative action by or
    in the right of the corporation) by reason of the fact that such
    person is or was a director, officer, employee or agent of the
    corporation, or is or was serving at the request of the
    corporation as a director, officer, employee or agent of another
    enterprise, against expenses (including attorneys&#146; fees),
    judgments, fines and amounts paid in settlement actually and
    reasonably incurred by such person in connection with such
    action, suit or proceeding if such person acted in good faith
    and in a manner such person reasonably believed to be in or not
    opposed to the best interests of the corporation and, with
    respect to any criminal action or proceeding, had no reasonable
    cause to believe such person&#146;s conduct was unlawful. In the
    case of a derivative action, a Delaware corporation may
    indemnify any such person against expenses (including
    attorneys&#146; fees) actually and reasonably incurred by such
    person in connection with the defense or settlement of such
    action or suit if such person acted in good faith and in a
    manner such person reasonably believed to be in or not opposed
    to the best interests of the corporation, except that no
    indemnification will be made in respect of any claim, issue or
    matter as to which such person will have been adjudged to be
    liable to the corporation unless and only to the extent that the
    Court of Chancery of the State of Delaware or any other court in
    which such action was brought determines such person is fairly
    and reasonably entitled to indemnity for such expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Certificate of Incorporation and Bylaws provide that we will
    indemnify our directors, officers, employees and agents to the
    extent and in the manner permitted by the provisions of the
    DGCL, as amended from time to time, subject to any permissible
    expansion or limitation of such indemnification, as may be set
    forth in any stockholders&#146; or directors&#146; resolution or
    by contract. In addition, our director and officer
    indemnification agreements with each of our directors and
    officers provide, among other things, for the indemnification to
    the fullest extent permitted or required by Delaware law,
    provided that no indemnitee will be entitled to indemnification
    in connection with any claim initiated by the indemnitee against
    us or our directors or officers unless we join or consent to the
    initiation of the claim, or the purchase and sale of securities
    by the indemnitee in violation of Section&#160;16(b) of the
    Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any repeal or modification of these provisions approved by our
    stockholders will be prospective only and will not adversely
    affect any limitation on the liability of any of our directors
    or officers existing as of the time of such repeal or
    modification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are also permitted to apply for insurance on behalf of any
    director, officer, employee or other agent for liability arising
    out of his actions, whether or not the DGCL would permit
    indemnification.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;15.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">RECENT
    SALES OF UNREGISTERED SECURITIES.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Explanatory Note:</I>&#160;&#160;At the closing of the
    Merger, each share of Genesis Fluid Solutions&#146; common stock
    was exchanged for the right to receive 10&#160;shares of our
    common stock. All Genesis Fluid Solutions&#146; share and
    per-share information contained below retroactively reflects the
    effect of the 10:1 exchange.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sales by
    Genesis Fluid Solutions, Ltd.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;1, 2005, Genesis Fluid Solutions issued an
    aggregate of 10,000,000&#160;shares of its common stock to 16
    individuals, including 500,000&#160;shares to Michael Hodges,
    its then chief executive officer, and 450,000&#160;shares to
    Larry Campbell, its then senior vice president and director of
    field operations. The aggregate purchase price for these shares
    was $396,800. The shares were issued in a transaction that was
    exempt from the registration requirements of the Securities Act
    pursuant to Section&#160;4(2) of the Securities Act, which
    exempts transactions by an issuer not involving a public
    offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From May 2009 through October&#160;13, 2009, Genesis Fluid
    Solutions sold an aggregate of $675,000 principal amount of 10%
    secured promissory notes (&#147;Bridge Notes&#148;) in a private
    placement transaction. The purchasers of Bridge Notes paid an
    aggregate gross purchase price of $675,000 for the Bridge Notes.
    The Bridge Notes are due and payable upon the earlier of
    November&#160;3, 2009 and the date that Genesis Fluid Solutions,
    or an affiliate such as the Company, consummates an offering or
    offerings raising gross proceeds of at least $2.5&#160;million
    (a &#147;Subsequent Financing&#148;). The Private Placement
    resulted in the Bridge Notes becoming due. The Bridge Notes also
    provide that, upon the consummation of a Subsequent Financing,
    the holders shall have the right to exchange the Bridge Notes
    for an amount of securities that could be purchased in the
    Subsequent Financing for a purchase price equal to the
    outstanding principal, and accrued interest on the Bridge Notes.
    The private placement was made solely to &#147;accredited
    investors,&#148; as that term is defined in Regulation&#160;D
    under the Securities Act. The securities sold in the private
    placement were not registered under the Securities Act, or the
    securities laws of any state, and were offered and sold in
    reliance on the exemption from registration afforded by
    Section&#160;4(2) and Regulation&#160;D
    (Rule&#160;506)&#160;under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, according to the terms of the Bridge Notes, in the
    event Genesis Fluid Solutions enters into a reverse merger
    transaction that has a capital raising transaction in connection
    therewith (the &#147;Reverse Merger Financing&#148;),
    (i)&#160;the holders of $275,000 of Bridge Notes will have the
    option and (ii)&#160;the holders of $400,000 of Bridge Notes
    will have the obligation, to exchange the Bridge Notes for an
    amount of securities that could be purchased in the Reverse
    Merger Financing for a purchase price equal to the outstanding
    principal and accrued interest on the Bridge Notes. The Private
    Placement constitutes a Reverse Merger Financing and, therefore,
    each holder of Bridge Notes will either be entitled or
    obligated, as the case may be, to exchange the outstanding
    principal and interest amount of its Bridge Notes for units sold
    in the Private Placement. If the holders of all of the Bridge
    Notes elect to exchange the Bridge Notes for units in the
    Private Placement, then the Company will be required to issue an
    aggregate of 675,000&#160;shares of common stock and warrants to
    purchase an aggregate of 337,500&#160;shares of common stock
    (plus additional shares in respect of any accrued but unpaid
    interest on the Bridge Notes) to the holders of the Bridge
    Notes. Upon the closing of the Merger, Bridge Notes in the
    principal amount of $675,000 converted in the Private Placement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;11, 2009, Genesis Fluid Solutions sold an aggregate
    of 2,584,000&#160;shares of its common stock to eight parties
    who provided services to it, for an aggregate purchase price of
    $25.80. The shares were issued in a transaction that was exempt
    from the registration requirements of the Securities Act
    pursuant to Section&#160;4(2) of the Securities Act, which
    exempts transactions by an issuer not involving a public
    offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sales by
    Genesis Fluid Solutions Holdings, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;15, 2007, we issued 1,000,000&#160;shares of our
    common stock to Sharone Perlstein, our founder and sole director
    at that time, in consideration for their par value. On
    April&#160;15, 2007, we issued 900,000&#160;shares of our common
    stock to Dr.&#160;Reuven Gepstein, our then president, chief
    executive officer and director, in consideration of their par
    value. The shares were issued in a transaction that was exempt
    from the registration requirements of the Securities Act
    pursuant to Regulation&#160;S of the SEC.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;15, 2007, we issued 3,777,000&#160;shares of our
    common stock to four other individuals in consideration of their
    par value. The shares were issued in a transaction that was
    exempt from the registration requirements of the Securities Act
    pursuant to Regulation&#160;S of the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;18, 2007, we issued 962,500&#160;shares of our
    common stock to Yael Alush, our then Secretary, Treasurer and
    Director, in consideration of their par value. The shares were
    issued in a private transaction that was exempt from the
    registration requirements of the Securities Act pursuant to
    Regulation&#160;S of the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;18, 2007, we issued 3,940,500&#160;shares of our
    common stock to six other individuals in consideration of their
    par value. The shares were issued in a transaction that was
    exempt from the registration requirements of the Securities Act
    pursuant to Regulation&#160;S of the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In July 2007 through October of 2007, we issued
    2,000,000&#160;shares of common stock to 46 investors in a
    private placement pursuant to the exemption from the
    registration requirements of the Securities Act provided by
    Regulation&#160;S. The aggregate consideration paid for these
    shares was $50,000. All investors in the private placement were
    non-US persons (as defined under SEC Regulations). The Company
    provided all investors in the private placement with a
    subscription agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;9, 2007, we raised $225,000 by selling
    1,125,000&#160;shares of our common stock to two investors in a
    transaction that was exempt from registration pursuant to the
    exemption from the registration requirements of the Securities
    Act provided by Regulation&#160;S. Both investors in the private
    placement were non-US persons (as defined under SEC Regulations)
    and were provided with subscription agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;30, 2009, we accepted subscriptions for a total
    of 142.6&#160;units in the Private Placement, consisting of an
    aggregate of 3,707,500&#160;shares of the our common stock and
    warrants to purchase an aggregate of 1,782,500&#160;shares of
    common stock at an exercise price of $2.00 per share, for a per
    unit purchase price of $25,000. We received net proceeds from
    this closing of the Private Placement of $2,946,000, which does
    not include the $475,000 of Bridge Notes that were converted in
    the Private Placement. The Private Placement was made solely to
    &#147;accredited investors,&#148; as that term is defined in
    Regulation&#160;D under the Securities Act. The securities sold
    in the Private Placement were not registered under the
    Securities Act, or the securities laws of any state, and were
    offered and sold in reliance on the exemption from registration
    afforded by Section&#160;4(2) and Regulation&#160;D
    (Rule&#160;506)&#160;under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    WFG Investments, Inc. and Colorado Financial Service Corporation
    acted as our Placement Agents and received (i)&#160;cash fees of
    $56,000 and $52,000, respectively, equal to 8% of the gross
    proceeds of the Private Placement from units sold through these
    Placement Agents, and (ii)&#160;two-year warrants to purchase an
    aggregate of 14,000 and 13,000&#160;shares of common stock,
    respectively, equal to 2% of the number of shares of common
    stock included in the units sold through these Placement Agents,
    for an exercise price of $1.25 per share. GarWood Securities LLC
    received two-year warrants to purchase an aggregate of
    50,000&#160;shares of common stock for an exercise price of
    $1.25 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;19, 2009, we accepted subscriptions for a total
    of 22.9&#160;units in the Private Placement, consisting of an
    aggregate of 372,500&#160;shares of the our common stock and
    warrants to purchase an aggregate of 186,250&#160;shares of
    common stock at an exercise price of $2.00 per share, for a per
    unit purchase price of $25,000. We received net proceeds from
    this closing of the Private Placement of $364,500, which does
    not include the $200,000 of Bridge Notes that were converted in
    the Private Placement. The Private Placement was made solely to
    &#147;accredited investors,&#148; as that term is defined in
    Regulation&#160;D under the Securities Act. The securities sold
    in the Private Placement were not registered under the
    Securities Act, or the securities laws of any state, and were
    offered and sold in reliance on the exemption from registration
    afforded by Section&#160;4(2) and Regulation&#160;D
    (Rule&#160;506)&#160;under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Legend Merchant Group acted as our Placement Agent and received
    (i)&#160;a cash fee of $8,000, equal to 8% of the gross proceeds
    of the Private Placement from units sold through the Placement
    Agent, and (ii)&#160;two-year warrants to purchase an aggregate
    of 2,000&#160;shares of common stock, equal to 2% of the number
    of shares of common stock included in the units sold through the
    Placement Agent, for an exercise price of $1.25 per share.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;29, 2009, we accepted subscriptions for a total
    of 107.5&#160;units in the Private Placement, consisting of an
    aggregate of 2,687,500&#160;shares of the our common stock and
    warrants to purchase an aggregate of 1,343,750&#160;shares of
    common stock at an exercise price of $2.00 per share, for a per
    unit purchase price of $25,000. We received net proceeds from
    the final closing of the Private Placement of $2,573,500. The
    Private Placement was made solely to &#147;accredited
    investors,&#148; as that term is defined in Regulation&#160;D
    under the Securities Act. The securities sold in the Private
    Placement were not registered under the Securities Act, or the
    securities laws of any state, and were offered and sold in
    reliance on the exemption from registration afforded by
    Section&#160;4(2) and Regulation&#160;D
    (Rule&#160;506)&#160;under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Colorado Financial Service Corporation, Legend Merchant Group,
    and Jesup&#160;&#038; Lamont Securities Corp. acted as our
    Placement Agents and received (i)&#160;cash fees of $80,000,
    $24,000 and $10,000, respectively, equal to 8% of the gross
    proceeds of the Private Placement from units sold through these
    Placement Agents, and (ii)&#160;two-year warrants to purchase an
    aggregate of 20,000, 6000 and 2,500&#160;shares of common stock,
    respectively, equal to 2% of the number of shares of common
    stock included in the units sold through these Placement Agents,
    for an exercise price of $1.25 per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;17, 2010, we issued 83,000&#160;shares of our
    common stock to an individual who had provided certain
    consulting services to the Company. The shares were issued in a
    transaction that was exempt from the registration requirements
    of the Securities Act pursuant to Section&#160;4(2) of the
    Securities Act, which exempts transactions by an issuer not
    involving a public offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;16.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">EXHIBITS&#160;AND
    FINANCIAL STATEMENT SCHEDULES.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exhibit No.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Agreement and Plan of Merger, dated as of October&#160;30, 2009,
    by and among Genesis Fluid Solutions Holdings, Inc., Genesis
    Fluid Solutions, Ltd. and Genesis Fluid Solutions Acquisition
    Corp.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Merger, dated October&#160;30, 2009 merging
    Genesis Fluid Solutions Acquisition Corp. with and into Genesis
    Fluid Solutions, Ltd.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Certificate of Incorporation(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Bylaws(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Sichenzia Ross Friedman Ference LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Subscription Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Investor Warrant(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Registration Rights Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Lockup Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Placement Agent Agreement, dated July&#160;15, 2009, between
    Genesis Fluid Solutions, Ltd. and WFG(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Placement Agent Agreement, dated June&#160;28, 2009, between
    Genesis Fluid Solutions, Ltd. and Chadbourn Securities(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Placement Agent Warrant(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Directors and Officers Indemnification Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Genesis Fluid Solutions Holdings, Inc. 2009 Equity Incentive
    Plan(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2009 Incentive Stock Option Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2009 Non-Qualified Stock Option Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Agreement of Conveyance, Transfer and Assignment of Assets and
    Assumption of Obligations, dates as of October&#160;30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and Cherry
    Tankers Holdings, Inc.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Stock Purchase Agreement, dated as of October&#160;30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and the
    shareholders listed therein(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consulting Agreement, dated May&#160;11, 2009, between Genesis
    Fluid Solutions and Liviakis Financial Communications, Inc.(1)
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exhibit No.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Consulting Agreement, dated October&#160;20, 2009,
    between Genesis Fluid Solutions and Liviakis Financial
    Communications, Inc.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Assignment of Patents Agreement, dated as of August&#160;16,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Assignment of Patents Agreement, dated as of September&#160;30,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .18
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Voting Agreement between Michael Hodges and the
    stockholders signatory thereto(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Escrow Agreement, dated October&#160;30, 2009, among Genesis
    Fluid Solutions Holdings, Inc., Michael Hodges and Sichenzia
    Ross Friedman Ference LLP, as escrow agent(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .20
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consulting Agreement dated December&#160;14, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and Sharp Resources,
    Inc.(2)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consulting Agreement dated December&#160;15, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and SFL3 LLC(3)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director and Officer Indemnification Agreement dated
    December&#160;15, 2009 by and between Genesis Fluid Solutions
    Holdings, Inc. and Selby F. Little,&#160;III(3)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Engagement Letter between Genesis Fluid Solutions and GarWood
    Securities LLC dated November&#160;10, 2009(5)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Engagement Letter between Genesis Fluid Solutions
    and GarWood Securities LLC dated March&#160;23, 2010(5)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    16
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter from Davis Accounting Group P.C.(4)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    List of Subsidiaries(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Davis Accounting Group P.C.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Salberg &#038; Company, P.A.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Sichenzia Ross Friedman Ference LLP (included in
    Exhibit 5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Powers of Attorney (included on signature page)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as an exhibit to our Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on November&#160;5, 2009, as amended on November&#160;16,
    2009 and December&#160;14, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as Exhibit&#160;10.1 to our Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on December&#160;21, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such documents
    included as Exhibit&#160;10.1 and Exhibit&#160;10.2 to our
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on December&#160;24, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as Exhibit&#160;16.1 to our Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on January&#160;28, 2010</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as an exhibit to our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    filed on April&#160;15, 2010</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;17.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">UNDERTAKINGS.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registrant hereby undertakes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;To file, during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;To include any prospectus required by Section 10(a)(3)
    of the Securities Act of 1933;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;To reflect in the prospectus any facts or events
    arising after the effective date of the registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in the registration statement.
    Notwithstanding
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the foregoing, any increase or decrease in volume of securities
    offered (if the total dollar value of securities offered would
    not exceed that which was registered) and any deviation from the
    low or high end of the estimated maximum offering range may be
    reflected in the form of prospectus filed with the Commission
    pursuant to Rule&#160;424(b) if, in the aggregate, the changes
    in volume and price represent no more than a 20&#160;percent
    change in the maximum aggregate offering price set forth in the
    &#147;Calculation of Registration Fee&#148; table in the
    effective registration statement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;To include any material information with respect to
    the plan of distribution not previously disclosed in the
    registration statement or any material change to such
    information in the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;That, for the purpose of determining any liability
    under the Securities Act of 1933, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    <I>bona fide </I>offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;To remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;That, for the purpose of determining liability under
    the Securities Act of 1933 to any purchaser, each prospectus
    filed pursuant to Rule&#160;424(b) as part of a registration
    statement relating to an offering, other than registration
    statements relying on Rule&#160;430B or other than prospectuses
    filed in reliance on Rule&#160;430A, shall be deemed to be part
    of and included in the registration statement as of the date it
    is first used after effectiveness. Provided, however, that no
    statement made in a registration statement or prospectus that is
    part of the registration statement or made in a document
    incorporated or deemed incorporated by reference into the
    registration statement or prospectus that is part of the
    registration statement will, as to a purchaser with a time of
    contract of sale prior to such first use, supersede or modify
    any statement that was made in the registration statement or
    prospectus that was part of the registration statement or made
    in any such document immediately prior to such date of first use.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;Insofar as indemnification for liabilities arising
    under the Securities Act of 1933&#160;may be permitted to
    directors, officers and controlling persons of the registrant
    pursuant to the foregoing provisions, or otherwise, the
    registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Colorado Springs, State of Colorado
    on the 14th&#160;day of April 2010.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    GENESIS FLUID SOLUTIONS HOLDINGS, INC.
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Michael
    Hodges</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Michael Hodges
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="53%"></TD>
    <TD width="8%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    Chairman and Interim Chief Executive Officer
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">POWER OF
    ATTORNEY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    KNOW ALL PERSONS BY THESE PRESENTS, that each person whose
    signature appears below hereby constitutes and appoints Michael
    Hodges his true and lawful attorneys-in-fact and agents, with
    full power of substitution and resubstitution, for such person
    and in his name, place and stead, in any and all capacities, to
    sign any or all further amendments or supplements (including
    post-effective amendments filed pursuant to Rule&#160;462(b) of
    the Securities Act of 1933)&#160;to this registration statement
    and to file the same, with all exhibits thereto, and other
    documents in connection therewith, with the SEC, granting unto
    said attorneys-in-fact and agents full power and authority to do
    and perform each and every act and thing requisite and necessary
    to be done in and about the premises, as fully as to all intents
    and purposes as he might or could do in person, hereby ratifying
    and confirming all that each of said attorneys-in-fact and
    agents, or their substitutes, may lawfully do or cause to be
    done by virtue hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    registration statement has been signed by the following persons
    in the capacities and on the dates indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Michael
    Hodges</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Michael
    Hodges
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chairman and<BR>
    Interim Chief Executive Officer
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 15, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Mary
    Losty</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Mary
    Losty
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 15, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">John
    Freshman</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>John
    Freshman
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 15, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Robert
    Stempel</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Robert
    Stempel
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 15, 2010
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBITS
    AND FINANCIAL STATEMENT SCHEDULES</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exhibit No.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Agreement and Plan of Merger, dated as of October&#160;30, 2009,
    by and among Genesis Fluid Solutions Holdings, Inc., Genesis
    Fluid Solutions, Ltd. and Genesis Fluid Solutions Acquisition
    Corp.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Merger, dated October&#160;30, 2009 merging
    Genesis Fluid Solutions Acquisition Corp. with and into Genesis
    Fluid Solutions, Ltd.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Certificate of Incorporation(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Bylaws(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Sichenzia Ross Friedman Ference LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Subscription Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Investor Warrant(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Registration Rights Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Lockup Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Placement Agent Agreement, dated July&#160;15, 2009, between
    Genesis Fluid Solutions, Ltd. and WFG(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Placement Agent Agreement, dated June&#160;28, 2009, between
    Genesis Fluid Solutions, Ltd. and Chadbourn Securities(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Placement Agent Warrant(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Directors and Officers Indemnification Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Genesis Fluid Solutions Holdings, Inc. 2009 Equity Incentive
    Plan(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2009 Incentive Stock Option Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 2009 Non-Qualified Stock Option Agreement(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Agreement of Conveyance, Transfer and Assignment of Assets and
    Assumption of Obligations, dates as of October&#160;30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and Cherry
    Tankers Holdings, Inc.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Stock Purchase Agreement, dated as of October&#160;30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and the
    shareholders listed therein(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consulting Agreement, dated May&#160;11, 2009, between Genesis
    Fluid Solutions and Liviakis Financial Communications, Inc.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Consulting Agreement, dated October&#160;20, 2009,
    between Genesis Fluid Solutions and Liviakis Financial
    Communications, Inc.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Assignment of Patents Agreement, dated as of August&#160;16,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Assignment of Patents Agreement, dated as of September&#160;30,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .18
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Voting Agreement between Michael Hodges and the
    stockholders signatory thereto(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Escrow Agreement, dated October&#160;30, 2009, among Genesis
    Fluid Solutions Holdings, Inc., Michael Hodges and Sichenzia
    Ross Friedman Ference LLP, as escrow agent(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .20
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consulting Agreement dated December&#160;14, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and Sharp Resources,
    Inc.(2)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consulting Agreement dated December&#160;15, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and SFL3 LLC(3)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director and Officer Indemnification Agreement dated
    December&#160;15, 2009 by and between Genesis Fluid Solutions
    Holdings, Inc. and Selby F. Little,&#160;III(3)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Engagement Letter between Genesis Fluid Solutions and Garwood
    Securities LLC dated November&#160;20, 2009(5)
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exhibit No.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Engagement Letter between Genesis Fluid Solutions
    and Garwood Securities LLC dated March&#160;23, 2010(5)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    16
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter from Davis Accounting Group P.C.(4)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    List of Subsidiaries(1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Davis Accounting Group P.C.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Salberg &#038; Company, P.A.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Sichenzia Ross Friedman Ference LLP (included in
    Exhibit&#160;5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Powers of Attorney (included on signature page)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as an exhibit to our Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on November&#160;5, 2009, as amended on November&#160;16,
    2009 and December&#160;14, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as Exhibit&#160;10.1 to our Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on December&#160;21, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such documents
    included as Exhibit&#160;10.1 and Exhibit&#160;10.2 to our
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on December&#160;24, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as Exhibit&#160;16.1 to our Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed on January&#160;28, 2010</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Incorporated herein by reference to the copy of such document
    included as an exhibit to our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    filed on April&#160;15, 2010</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-9
</DIV><!-- END PAGE WIDTH -->
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sv1
Table of Contents
As filed with the Securities and Exchange Commission on
    April 15, 2010
Registration
No. 333-
UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
Washington, D.C.
    20549
Form S-1
REGISTRATION STATEMENT UNDER
    THE SECURITIES ACT OF 1933
GENESIS FLUID SOLUTIONS
    HOLDINGS, INC.
(Exact name of registrant as
    specified in its charter)
Delaware
3531
98-0531496
(State or other jurisdiction
of incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
830 Tender Foot Hill Road
    #301
Colorado Springs, CO
    80906
(719) 332-7447
(Address, including zip code,
    and telephone number, including area code, of registrant's
    principal executive offices)
Michael Hodges
Interim Chief Executive
    Officer
830 Tender Foot Hill Road
    #301
Colorado Springs, CO
    80906
(719) 332-7447
(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)
Copies to:
Harvey J.
    Kesner, Esq.
Benjamin S.
    Reichel, Esq.
Sichenzia Ross Friedman Ference
    LLP
61 Broadway, 32nd
    Floor
New York, New York
    10006
Telephone:
(212) 930-9700
Approximate date of commencement of proposed sale to the
    public:
As soon as practicable after the
    effective date of this registration statement.
If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule 415 under the Securities Act of 1933, check the
    following
    box.
þ
If this Form is filed to register additional securities for an
    offering pursuant to Rule 462(b) under the Securities Act,
    please check the following box and list the Securities Act of
    1933 registration statement number of the earlier effective
    registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
Indicate by a check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in
Rule 12b-2
of the Exchange Act. (Check One):
Large
    Accelerated
    Filer
o
Accelerated
    Filer
o
Non-Accelerated
    Filer
o
Smaller Reporting
    Company
þ
(Do not check if a smaller
    reporting company)
CALCULATION
    OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Amount to be
Offering Price
Aggregate Offering
Amount of
Title of Each Class of Securities to be Registered
Registered(1)
per Share
Price
Registration Fee
Common stock, par value $0.001 per share
7,027,500
$
3.40
(2)
$
23,893,500
$
1,703.61
Common stock, par value $0.001 per share, upon exercise of
    warrants issued to investors
3,412,500
$
3.40
(3)
$
11,602,500
$
827.26
Common stock, par value $0.001 per share, currently being held
    in escrow
1,300,000
$
3.40
(2)
$
4,420,000
$
315.15
Common stock, par value $0.001 per share, upon exercise of
    warrants issued to the placement agents
107,500
$
3.40
(3)
$
365,500
$
26.06
Total
11,847,500
$
3.40
$
40,281,500
$
2,872.07
(1)
Pursuant to Rule 416 under the
    Securities Act, the shares of common stock offered hereby also
    include an indeterminate number of additional shares of common
    stock as may from time to time become issuable by reason of
    anti-dilution provisions, stock splits, stock dividends,
    recapitalizations or other similar transactions.
(2)
With respect to the shares of
    common stock offered by the selling stockholders named herein,
    estimated at $3.40 per share, the average of the high and low
    prices of the common stock as reported on the OTC
    Bulletin Board on April 12, 2010, for the purpose of
    calculating the registration fee in accordance with
    Rule 457(c) under the Securities Act.
(3)
Estimated at $3.40 per share, the
    average of the high and low prices of the common stock as
    reported on the OTC Bulletin Board on April 12, 2010,
    for the purpose of calculating the registration fee in
    accordance with Rule 457(g)(3) under the Securities Act.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON
    SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE
    DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH
    SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL
    THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a)
    OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION
    STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION,
    ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.
Table of Contents
The
information in this prospectus is not complete and may be
changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these
securities and we are not soliciting an offer to buy these
securities in any state where the offer or sale is not
permitted.
SUBJECT TO COMPLETION, DATED
    APRIL 15, 2010
PRELIMINARY PROSPECTUS
11,847,500 Shares
Genesis Fluid Solutions
    Holdings, Inc.
Common Stock
This prospectus relates to the sale by the selling stockholders
    identified in this prospectus of up to 11,847,500 shares of
    our common stock, which includes (i) 7,027,500 shares
    issued to investors in a private placement;
    (ii) 3,412,500 shares issuable upon the exercise of
    warrants with an exercise price of $2.00 per share;
    (iii) 1,300,000 shares issued in connection with the
    Merger, which are being held in escrow for three years in order
    to cover certain potential claims, indebtedness and liabilities,
    including potential tax liabilities, of Genesis Fluid Solutions;
    and (iv) 107,500 shares issuable upon the exercise of
    warrants with an exercise price of $1.25 per share. All of these
    shares of our common stock are being offered for resale by the
    selling stockholders.
The prices at which the selling stockholders may sell shares
    will be determined by the prevailing market price for the shares
    or in negotiated transactions. We will not receive any proceeds
    from the sale of these shares by the selling stockholders.
    However, we will receive proceeds from the exercise of the
    warrants if they are exercised for cash by the selling
    stockholders.
We will bear all costs relating to the registration of these
    shares of our common stock, other than any selling
    stockholders' legal or accounting costs or commissions.
Our common stock is quoted on the regulated quotation service of
    the OTC Bulletin Board under the symbol
    "GSFL.OB". The last reported sale price of our common
    stock as reported by the OTC Bulletin Board on
    April 12, 2010, was $3.40 per share.
Investing in our common stock is highly speculative and
    involves a high degree of risk. You should carefully consider
    the risks and uncertainties described under the heading
    "Risk Factors" beginning on page 8 of this
    prospectus before making a decision to purchase our common
    stock.
Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or passed upon the accuracy or adequacy of this
    prospectus. Any representation to the contrary is a criminal
    offense.
The date of this prospectus
    is          ,
    2010
TABLE OF
    CONTENTS
Page
Prospectus Summary
3
Special Note Regarding Forward Looking
    Statements
7
Risk Factors
8
Use of Proceeds
17
Market for Our Common Stock and Related
    Stockholder Matters
17
Dividend Policy
17
Management's Discussion and Analysis of
    Financial Condition and Results of Operations
18
Business
21
Management
26
Executive Compensation
29
Certain Relationships and Related Transactions
32
Security Ownership of Certain Beneficial Owners
    and Management
34
Selling Stockholders
35
Description of Securities
42
Plan of Distribution
46
Legal Matters
48
Experts
48
Where You Can Find Additional Information
49
Index to Financial Statements
F-1
EX-23.1: Consent of Davis Accounting Group
EX-23.2: Consent of Salberg & Company
You should rely only on the information contained in this
    prospectus. We have not authorized any other person to provide
    you with different information. If anyone provides you with
    different or inconsistent information, you should not rely on
    it. We are not making an offer to sell these securities in any
    jurisdiction where an offer or sale is not permitted. You should
    assume that the information appearing in this prospectus is
    accurate only as of the date on the front cover of this
    prospectus. Our business, financial condition, results of
    operations and prospects may have changed since that date.
2
Table of Contents
PROSPECTUS
    SUMMARY
The following summary highlights information contained
    elsewhere in this prospectus. This summary may not contain all
    of the information that may be important to you. You should read
    this entire prospectus carefully, including the sections
    entitled "Risk Factors" and "Management's
    Discussion and Analysis of Financial Condition and Results of
    Operations" and our historical financial statements and
    related notes included elsewhere in this prospectus. In this
    prospectus, unless otherwise noted, the terms "the
    Company," "we," "us," and
    "our" refer to Genesis Fluid Solutions Holdings, Inc.,
    and its subsidiary, Genesis Fluid Solutions, Ltd.
Overview
We are engaged in the design and development of waterway
    restoration and water remediation technologies for the
    environmental, mining and paper industries. Our patented Rapid
    Dewatering System (RDS) removes different types of debris,
    sediments, and contaminates from waterways and industrial sites,
    which assists in the recovery of lakes, canals, reservoirs and
    harbors. The RDS system separates water from the solid materials
    that are dredged, a process that is known as dewatering. Because
    of the scalability of the equipment, the small footprint
    required, and our own real time rapid dewatering capabilities,
    our RDS can remove thousands of cubic yards of sediment per day,
    and return clear water to waterways at rates of two thousand or
    more gallons per minute. We believe we accomplish this at
    significantly lower costs than our competitors.
After demonstrating proof of concept on a port restoration
    project in California, we were acknowledged by the Water Board
    for the State of California, the United States Environmental
    Protection Agency and the United States Army Corps of Engineers
    as having an innovative technology acceptable for the
    restoration of both contaminated and non-contaminated waterways.
    We believe our technologies have a variety of benefits for both
    industry and the environment.
Our
    History
Our wholly-owned subsidiary, Genesis Fluid Solutions, Ltd.,
    began operations in 1994 as a sole proprietorship owned by our
    founder, Michael Hodges, and was incorporated in Colorado in
    2005. Genesis Fluid Solutions is engaged in the design and
    development of waterway restoration and water remediation
    technology and equipment for the environmental, mining and paper
    industries. Genesis Fluid Solutions holds various United States
    and international patents and patent applications on water
    restoration and remediation technology, seeks to license the
    technology and equipment to others, and seeks to enter into
    contracts for the performance of water restoration and
    remediation. To date, Genesis Fluid Solutions has not generated
    material revenues or earnings as a result of its activities. As
    a result of the Merger, Genesis Fluid Solutions became a
    wholly-owned subsidiary of the Company and the Company succeeded
    to the business of Genesis Fluid Solutions as its sole line of
    business.
On October 30, 2009, we filed an Amended and Restated
    Certificate of Incorporation in order to, among other things,
    change our name from "Cherry Tankers Inc." to
    "Genesis Fluid Solutions Holdings, Inc." and authorize
    a class of "blank check" preferred stock.
On October 30, 2009, we entered into an Agreement of Merger
    and Plan of Reorganization with Genesis Fluid Solutions, Ltd., a
    privately held Colorado corporation ("Genesis Fluid
    Solutions"), and Genesis Fluid Solutions Acquisition Corp.,
    our newly formed, wholly-owned Delaware subsidiary
    ("Acquisition Sub"). Upon closing of the transaction
    contemplated under the Agreement of Merger and Plan of
    Reorganization (the "Merger"), Acquisition Sub merged
    with and into Genesis Fluid Solutions. Genesis Fluid Solutions,
    as the surviving corporation, became a wholly-owned subsidiary
    of the Company, and the Company succeeded to the business of
    Genesis Fluid Solutions as its sole line of business.
At the closing of the Merger, each share of Genesis Fluid
    Solutions' common stock issued and outstanding immediately
    prior to the closing of the Merger was exchanged for the right
    to receive 10 shares of our common stock. To the extent
    that there were fractional shares, the fractional shares were
    rounded to the nearest whole share. Accordingly, an aggregate of
    9,481,000 shares of our common stock were issued to the
    holders of Genesis Fluid Solutions' common stock. Of the
    9,481,000 shares issued in the Merger,
    1,300,000 shares issuable to Michael Hodges, the founder
    and former chief executive officer of Genesis Fluid Solutions,
    were agreed to be set aside in
3
Table of Contents
escrow and held for three years in order to provide for certain
    liabilities, including potential tax liabilities, of Genesis
    Fluid Solutions (the "Escrow Agreement," as more fully
    described below).
Following the closing of the Merger, the Company issued
    273 units in a private placement (the "Private
    Placement"), consisting of an aggregate of
    7,027,500 shares of the Company's common stock and
    three-year callable warrants to purchase an aggregate of
    3,412,500 shares of common stock exercisable at $2.00 per
    share, for $25,000 per unit. Colorado Financial Service
    Corporation, WFG Investments, Inc., Legend Merchant Group, and
    Jesup & Lamont Securities Corp. (the "Placement
    Agents") served as the Company's placement agents for
    certain of the investors in the Private Placement, and received
    two-year warrants, exercisable at $1.25 per share, to purchase
    33,000, 14,000, 8,000 and 2,500 shares of common stock,
    respectively, equal to 2% of the number of shares investors
    purchased through the respective Placement Agents. GarWood
    Securities LLC received two-year warrants, exercisable at $1.25
    per share to purchase 50,000 shares of common stock. All of
    the shares issued in the Private Placement, as well as the
    shares of common stock underlying the warrants issued to
    investors and the Placement Agents, are subject to a
    registration rights agreement under which we are obligated to
    seek registration of the shares within 180 days of the
    final closing date of the Private Placement. Holders of our
    shares issued in the Private Placement also have the right to
    seek "piggyback" registration of their shares in
    certain circumstances, other than with respect to registration
    of shares held under the Escrow Agreement.
Upon the closing of the Merger, Reuven Gepstein and Yael Alush
    resigned as our officers and directors and, simultaneously with
    the Merger, a new board of directors and new officers were
    appointed. The new board of directors consists of Michael
    Hodges, Mary Losty, John Freshman, and Robert Stempel.
On October 30, 2009, immediately following the closing of
    the Merger and the initial closing of Private Placement, under
    an Agreement of Conveyance, Transfer and Assignment of Assets
    and Assumption of Obligations (the "Conveyance
    Agreement"), we also transferred all of our pre-Merger
    assets and liabilities to our wholly-owned subsidiary, Cherry
    Tankers Holdings, Inc. ("SplitCo"). Thereafter,
    pursuant to a stock purchase agreement (the "Stock Purchase
    Agreement"), we transferred all of the outstanding capital
    stock of SplitCo to certain of our stockholders in exchange for
    the cancellation of 12,545,000 shares of our common stock
    (the "Split-Off"), with 1,160,000 shares of
    common stock held by persons who were stockholders of ours prior
    to the Merger remaining outstanding. These 1,160,000 shares
    constitute our "public float," are our only shares of
    registered common stock and, accordingly, are our only shares
    available for resale without further registration.
The foregoing description of certain changes to our Certificate
    of Incorporation, the Merger and the Split-Off does not purport
    to be complete and is qualified in its entirety by reference to
    the complete text of (i) the Amended and Restated
    Certificate of Incorporation, which is filed as Exhibit 3.1
    hereto, (ii) the Agreement of Merger and Plan of
    Reorganization, which is filed as Exhibit 2.1 hereto,
    (iii) the Escrow Agreement, which is filed as
    Exhibit 10.19 hereto, (iv) the Conveyance Agreement,
    which is filed as Exhibit 10.12 hereto, and (v) the
    Stock Purchase Agreement, which is filed as Exhibit 10.13
    hereto, each of which is incorporated herein by reference.
The foregoing description of the Private Placement does not
    purport to be complete and is qualified in its entirety by
    reference to the complete text of the (i) Form of
    Subscription Agreement, which is filed as Exhibit 10.1
    hereto, (ii) Form of Warrant, which is filed as
    Exhibit 10.2 hereto, (iii) Form of Placement Agent
    Warrant, which is filed as Exhibit 10.7 hereto, and
    (iv) Form of Registration Rights Agreement, which is filed
    as Exhibit 10.3 hereto, each of which is incorporated
    herein by reference.
Following (i) the closing of the Merger, (ii) the
    final closing of the Private Placement for an aggregate of
    $6,825,000 (which includes the conversion of $675,000 of bridge
    notes), and (iii) the cancellation of
    12,545,000 shares in the Split-Off, there were
    17,668,500 shares of common stock issued and outstanding.
    Approximately 53.9% of the issued and outstanding shares were
    held by the former stockholders of Genesis Fluid Solutions,
    approximately 39.6% were held by the investors in the Private
    Placement, and approximately 6.5% were held by investors in
    shares of our registered common stock. The foregoing percentages
    exclude warrants to purchase 3,520,000 shares of common
    stock issued to investors and the Placement Agents in connection
    with the Private Placement, and 4,542,000 shares of common
    stock reserved for issuance under our 2009 Equity Incentive Plan.
Neither we nor Genesis Fluid Solutions had any outstanding
    options or warrants to purchase shares of capital stock
    immediately prior to the closing of the Merger. However, prior
    to the Merger, we adopted the 2009 Equity
4
Table of Contents
Incentive Plan and reserved 4,542,000 shares of common
    stock for issuance as awards to officers, directors, employees,
    consultants and others. Upon the closing of the Merger, the
    Company issued options under the 2009 Equity Incentive Plan to
    purchase an aggregate of 3,222,000 shares of our common
    stock to a total of ten individuals. Each of the options expires
    10 years from the award date and has an exercise price of
    either $0.90, $0.99 or $1.00 per share. The recipients of the
    options received awards in recognition of services
and/or
cancellation of shares of stock of Genesis Fluid Solutions they
    owned, and included: (i) Michael Hodges, who received
    options to purchase 600,000 shares, (ii) Larry
    Campbell, who received options to purchase 600,000 shares,
    and (iii) Carol Shobrook, who received options to purchase
    400,000 shares, each of whom was an executive officer of
    Genesis Fluid Solutions prior to the Merger and of the Company
    following the Merger.
The shares of our common stock issued to former holders of
    Genesis Fluid Solutions' stock in connection with the
    Merger, and the shares of our common stock and warrants issued
    in the Private Placement, were not registered under the
    Securities Act of 1933, as amended (the "Securities
    Act"), in reliance upon an exemption from registration
    provided by Section 4(2) under the Securities Act and
    Regulation D thereof. These securities may not be
    transferred or sold without registration under or an applicable
    exemption from the Securities Act.
At the closing of the Merger, an aggregate of
    9,481,000 shares of our common stock were issued to the
    holders of Genesis Fluid Solutions' common stock. Of the
    9,481,000 shares issued in the Merger,
    1,300,000 shares issuable to Michael Hodges have been
    agreed to be registered in the name of the escrow agent, set
    aside in escrow and held for three years in order to provide for
    certain claims, indebtedness and liabilities, including
    potential tax liabilities, of Genesis Fluid Solutions. Upon
    receipt of written instructions from the chief financial officer
    of the Company, the escrow agent is permitted to sell shares to
    cover any of these liabilities. The escrow agent has complete
    and absolute discretion as to the method and timing of any
    related sale of shares of common stock.
Pursuant to the terms of the Escrow Agreement, (i) Michael
    Hodges may at any time exchange cash for escrowed shares at a
    rate of $1.00 per share, (ii) the Escrow Agent will provide
    a voting proxy to Michael Hodges to vote the escrowed shares,
    and (iii) the Company has agreed to file a registration
    statement covering the escrowed shares as soon as practicable
    following the closing of the Merger.
5
Table of Contents
THE
    OFFERING
Common stock offered by selling stockholders
This prospectus relates to the sale by certain selling
    stockholders of 11,847,500 shares of our common stock
    consisting of:
(i) 7,027,500 shares of our common stock
    issued to investors in the Private Placement;
(ii) 3,412,500 shares of our common stock
    issuable upon the exercise of warrants issued to investors in
    the Private Placement;
(iii) 1,300,000 shares of our common stock
    issued in connection with the Merger that are currently being
    held in escrow for three years in order to cover certain claims,
    indebtedness and liabilities, including potential tax
    liabilities of Genesis Fluid Solutions; and
(iv) 107,500 shares of our common stock
    issuable upon the exercise of warrants issued to the Placement
    Agents in the Private Placement.
Offering price
Market price or privately negotiated prices.
Common stock outstanding before the offering
17,751,500 shares(1)
Common stock to be outstanding after the offering
21,271,500 shares(2)
Use of proceeds
We will not receive any proceeds from the sale of the common
    stock by the selling stockholders. However, we will receive the
    exercise price, if the cashless exercise feature is not used,
    upon exercise of the warrants by the selling stockholders. We
    expect to use the proceeds received from the exercise of the
    warrants, if any, for general working capital purposes.
OTB Bulletin Board Symbol
GSFL.OB
Risk Factors
You should carefully consider the information set forth in this
    prospectus and, in particular, the specific factors set forth in
    the "Risk Factors" section beginning on page 9 of
    this prospectus before deciding whether or not to invest in our
    common stock.
(1)
Represents the number of shares of our common stock outstanding
    as of April 15, 2010. Excludes
    (i) 4,542,000 shares of our common stock issuable upon
    exercise of options granted or reserved under the 2009 Equity
    Incentive Plan; and (ii) 3,520,000 shares of our
    common stock issuable upon exercise of outstanding warrants.
(2)
Includes 3,520,000 shares of our common stock issuable upon
    exercise of outstanding warrants, which shares are offered for
    sale in this prospectus. Excludes 4,542,000 shares of our
    common stock issuable upon exercise of options granted or
    reserved under the 2009 Equity Incentive Plan.
6
Table of Contents
SPECIAL
    NOTE REGARDING FORWARD LOOKING STATEMENTS
This prospectus contains forward-looking statements within the
    meaning of Section 27A of the Securities Act and
    Section 21E of the Securities Exchange Act of 1934, as
    amended (the "Exchange Act"). Such statements include
    statements regarding our expectations, hopes, beliefs or
    intentions regarding the future, including but not limited to
    statements regarding our market, strategy, competition,
    development plans (including acquisitions and expansion),
    financing, revenues, operations, and compliance with applicable
    laws. Forward-looking statements involve certain risks and
    uncertainties, and actual results may differ materially from
    those discussed in any such statement. Factors that could cause
    actual results to differ materially from such forward-looking
    statements include the risks described in greater detail in the
    following paragraphs. All forward-looking statements in this
    document are made as of the date hereof, based on information
    available to us as of the date hereof, and we assume no
    obligation to update any forward- looking statement. Market data
    used throughout this prospectus is based on published third
    party reports or the good faith estimates of management, which
    estimates are based upon their review of internal surveys,
    independent industry publications and other publicly available
    information. Although we believe that such sources are reliable,
    we do not guarantee the accuracy or completeness of this
    information, and we have not independently verified such
    information.
7
Table of Contents
RISK
    FACTORS
Investing in our common stock involves a high degree of risk.
    Prospective investors should carefully consider the risks
    described below, together with all of the other information
    included or referred to in this prospectus, before purchasing
    shares of our common stock. There are numerous and varied risks
    that may prevent us from achieving our goals. If any of these
    risks actually occurs, our business, financial condition or
    results of operations may be materially adversely affected. In
    such case, the trading price of our common stock could decline
    and investors in our common stock could lose all or part of
    their investment.
Risks
    Relating to Our Business
We may
    not be able to adequately protect our proprietary rights, which
    would have an adverse effect on our ability to competitively
    conduct our business.
We rely on our patented technology, both domestically and
    internationally, to deliver our equipment and services. To
    protect our proprietary rights, we rely on a combination of
    patent and trade secret laws, confidentiality agreements, and
    protective contractual provisions. Despite these efforts, our
    patents and intellectual property relating to our business may
    not provide us with any competitive advantages. Additionally,
    another party may obtain a blocking patent and we would need to
    either obtain a license or design around the patent in order to
    continue to offer the contested item in our products and
    services. Further, effective protection of intellectual property
    rights may be unavailable or limited in some foreign countries.
    Our inability to adequately protect our proprietary rights would
    have an adverse impact on our ability to competitively
    manufacture, distribute and use our products on a worldwide
    basis.
We
    could become involved in intellectual property disputes that
    create a drain on our resources and could ultimately impair our
    assets.
We do not knowingly infringe on patents, copyrights or other
    intellectual property rights owned by other parties; however, in
    the event of an infringement claim, we may be required to spend
    a significant amount of money to defend a claim, develop a
    non-infringing alternative or to obtain licenses. We may not be
    successful in developing an alternative or obtaining licenses on
    reasonable terms, if at all. Any litigation, even if without
    merit, could result in substantial costs and diversion of our
    resources and could materially and adversely affect our
    business, financial condition and results of operations.
Since
    we have a somewhat limited operating history, it is difficult
    for potential investors to evaluate our business.
We began research and development operations in the mid-1990s
    and have completed 12 projects to date. Our somewhat limited
    operating history makes it difficult for potential investors to
    evaluate our business or prospective operations. Since our
    formation, we have generated only limited and sporadic revenues.
    As an early stage company, we are subject to all the risks
    inherent in the initial organization, financing, expenditures,
    complications and delays inherent in a new business.
    Accordingly, our business and success faces risks from
    uncertainties faced by developing companies in a competitive
    environment. There can be no assurance that our efforts will be
    successful or that we will ultimately be able to attain
    profitability.
We are
    dependent upon key personnel whose loss may adversely impact our
    business.
We rely heavily on the expertise, experience and continued
    services of Michael Hodges, our Chairman and Interim Chief
    Executive Officer. The loss of Mr. Hodges and the inability
    to attract or retain other key individuals, could materially
    adversely affect us. We seek to compensate and motivate our
    executives, as well as other personnel, through competitive
    salaries and bonus and equity incentive plans, but there can be
    no assurance that these programs will allow us to attract or
    retain personnel. If Mr. Hodges were to leave, we could
    face substantial difficulty in hiring a qualified successor and
    could experience a loss in productivity while any successor
    obtains the necessary training and experience. We have not
    entered into an employment agreement with Mr. Hodges.
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We
    face risks associated with our anticipated international
    business.
We expect to establish, and to expand over time, international
    commercial or licensing operations and activities in various
    countries. These international business operations will be
    subject to a variety of risks associated with conducting
    business internationally. We do not know the impact that these
    regulatory, geopolitical and other factors may have on our
    international business in the future, including the following:
•
changes in or interpretations of foreign regulations that may
    adversely affect our ability to perform services or repatriate
    profits to the United States;
•
the imposition of tariffs;
•
economic or political instability in foreign countries;
•
imposition of limitations on or increase of withholding and
    other taxes on remittances and other payments by foreign
    subsidiaries or joint ventures or customers;
•
conducting business in places where business practices and
    customs are unfamiliar and unknown;
•
the imposition of restrictive trade policies;
•
the existence of inconsistent laws or regulations;
•
the imposition or increase of investment requirements and other
    restrictions or requirements by foreign governments;
•
uncertainties relating to foreign laws and legal proceedings;
•
fluctuations in foreign currency and exchange rates; and
•
compliance with a variety of U.S. laws, including the
    Foreign Corrupt Practices Act.
We may
    need additional financing to execute our business plan and fund
    operations, which additional financing may not be available on
    reasonable terms or at all.
We have limited funds. Even with the aggregate proceeds of
    $6,150,000 from the recent private placement (the "Private
    Placement"), we may not be able to execute our current
    business plan and fund business operations long enough to
    achieve profitability. Our ultimate success may depend upon our
    ability to raise additional capital. There can be no assurance
    that additional funds will be available when needed from any
    source or, if available, will be available on terms that are
    acceptable to us. We may be required to pursue sources of
    additional capital through various means, including joint
    venture projects and debt or equity financing. Future financing
    through equity investments is likely to be dilutive to existing
    stockholders. Also, the terms of securities we may issue in
    future capital transactions may be more favorable to new
    investors than our current investors. Newly issued securities
    may include preferences, superior voting rights, the issuance of
    warrants or other derivative securities, and the issuance of
    incentive awards under employee equity incentive plans, which
    may have additional dilutive effects. Further, we may incur
    substantial costs in pursuing future capital
and/or
financing, including investment banking fees, legal fees,
    accounting fees, printing and distribution expenses and other
    costs. We may also be required to recognize non-cash expenses in
    connection with certain securities we may issue, such as
    convertible notes and warrants, which will adversely impact our
    financial condition and results of operations. Our ability to
    obtain needed financing may be impaired by factors, including
    the condition of the economy and capital markets, both generally
    and specifically in our industry, and the fact that we are not
    profitable, which could impact the availability or cost of
    future financing. If the amount of capital we are able to raise
    from financing activities, together with our revenues from
    operations, is not sufficient to satisfy our capital needs, even
    to the extent that we reduce our operations accordingly, we may
    be required to cease operations.
We may
    be subject to fines for the non-payment of payroll taxes in
    prior quarters and, if we are unable to repay the amounts owed,
    some of our assets could be taken away.
We may be subject to both federal and state fines for the
    non-payment of payroll taxes, penalties and interest for certain
    quarters in 2007 through 2009. We have agreed with Michael
    Hodges to set aside in escrow
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1,300,000 shares of our common stock, that were to be
    delivered to him as consideration in the Merger, to cover these
    and other potential liabilities, but this may not be sufficient
    to cover, and we may not otherwise have sufficient funds or be
    able to obtain sufficient funds to repay, these liabilities. If
    we are unable to repay the amounts owed, the Internal Revenue
    Service and various state taxing agencies may levy liens against
    our assets and acquire ownership of our assets. The enforcement
    of a lien could have a material adverse affect on our business.
    In addition, the Internal Revenue Service can seek reimbursement
    from our officers and directors that have or have had a direct
    relationship over our cash resources
and/or
signature authority on checks.
Our
    independent auditors have expressed doubt about our ability to
    continue as a going concern.
In their report dated April 14, 2010, our current
    independent registered public accounting firm stated that our
    consolidated financial statements for the year ended
    December 31, 2009 were prepared assuming that we would
    continue as a going concern, and that they have doubt about our
    ability to continue as a going concern. In their report dated
    November 11, 2009, our former independent registered public
    accounting firm stated that our consolidated financial
    statements for the year ended December 31, 2008 were
    prepared assuming that we would continue as a going concern, and
    that they have doubt about our ability to continue as a going
    concern. Our auditors' doubts are based on our recurring
    losses, accumulated deficits and negative cash flows from
    operations. We continue to experience net operating losses and
    negative cash flows from operating activities. Our ability to
    continue as a going concern is subject to our ability to
    generate profits
and/or
obtain necessary funding from outside sources, including by the
    sale of our securities, or obtaining loans from lenders, where
    possible. Our continued net operating losses and our
    auditors' doubts increase the difficulty of our meeting
    these goals, and our efforts to continue as a going concern may
    not prove successful.
We
    depend on our ability to continue to obtain government dredging
    contracts, and are therefore greatly impacted by the amount of
    government funding for dredging projects. A reduction in this
    funding could materially limit future revenues and
    profits.
We expect that a material portion of our revenues will be
    derived from government dredging contracts. Therefore, if there
    is a reduction in government funding for dredging contracts, it
    could limit future revenues and profits.
Our
    business is subject to significant operating risks and hazards
    that could result in damage or destruction to persons or
    property, which could result in losses or liabilities to
    us.
The dredging business is generally subject to a number of risks
    and hazards, including environmental hazards, industrial
    accidents, encountering unusual or unexpected geological
    formations, cave-ins below water levels, collisions, disruption
    of transportation services and flooding. These risks could
    result in damage to, or destruction of, dredges, transportation
    vessels and other maritime structures and buildings, and could
    also result in personal injury, environmental damage,
    performance delays, monetary losses or legal liability to third
    parties. Although we have general liability and equipment
    insurance, if our insurance policies do not cover all of the
    potential different risks
and/or
liability amounts, the resulting liabilities could be costly to
    us.
Adverse
    weather may cause us to incur additional costs and decreased
    profit margins.
Our ability to perform a contract may depend on weather
    conditions. Inclement weather can delay the completion of a
    project, thereby causing us to incur additional costs. As part
    of bidding on fixed-price contracts, we make allowances,
    consistent with historic weather data, for project downtime due
    to adverse weather conditions. In the event that we experience
    adverse weather beyond these allowances, we may incur additional
    costs and decreased profit margins on these projects.
Seasonality
    makes it harder for us to manage our business and for investors
    to evaluate our performance.
Our operations may be affected by seasonal fluctuations due to
    weather and budgetary cycles influencing the timing of
    customers' spending for remediation activities. Typically,
    during the first quarter of each calendar year there is less
    demand for our services due to weather related reasons,
    particularly in the northern and mid-western
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United States and Canada, and an increased possibility of
    unplanned weather related stoppages. This seasonality in our
    business makes it harder for us to manage our business and for
    investors to evaluate our performance.
Environmental
    regulations could force us to incur significant capital and
    operational costs.
Our operations are subject to various environmental laws and
    regulations relating to, among other things, dredging
    operations; the disposal of dredged material; protection of
    wetlands; storm water and waste water discharges; and,
    transportation and disposal of hazardous substances and
    materials. We are also subject to laws designed to protect
    certain marine species and habitats. Compliance with these
    statutes and regulations can delay performance of particular
    projects and increase related project costs. These delays and
    increased costs could have a material adverse effect on our
    results of operations and cash flows.
Our projects may involve transportation and disposal of
    hazardous substances and materials. Various laws strictly
    regulate the removal and transportation of hazardous substances
    and materials, and impose liability for human health effects and
    environmental contamination caused by these materials. Services
    rendered in connection with hazardous substance and material
    removal may involve professional judgments by licensed experts
    about the nature of soil conditions and other physical
    conditions, including the extent to which hazardous substances
    and materials are present, and about the probable effect of
    procedures to mitigate or otherwise affect those conditions. If
    these judgments and the recommendations based upon these
    judgments are incorrect, we may be liable for resulting damages
    that we or our customers incur, which may be material. The
    failure of certain contractual protections, including any
    indemnification from our customers or subcontractors, to protect
    us from incurring this liability could have a material adverse
    effect on our business, financial condition, results of
    operations and cash flows.
Difficult
    conditions in the global capital markets and the economy
    generally may materially adversely affect our business and
    results of operations, and we do not expect these conditions to
    improve in the near future.
Our results of operations are materially affected by conditions
    in the global capital markets and the economy generally, both in
    the U.S. and elsewhere around the world. The stress
    experienced by global capital markets that began in the second
    half of 2007 continued and substantially increased during the
    third and fourth quarter of 2008 and is continuing. Recently,
    concerns over inflation, energy costs, geopolitical issues, the
    availability and cost of credit, the U.S. mortgage market,
    and a declining real estate market in the U.S. have
    contributed to increased volatility and diminished expectations
    for the economy and the markets going forward. These factors,
    combined with volatile oil prices, declining business and
    consumer confidence and increased unemployment, have
    precipitated an economic slowdown and a global recession.
    Domestic and international equity markets have been experiencing
    heightened volatility and turmoil. These events and the
    continuing market upheavals may have an adverse effect on our
    business. In the event of extreme prolonged market events, such
    as the global credit crisis, we could incur significant losses.
Risks
    Relating to Our Organization and Our Common Stock
We may
    be unable to register for resale all of the shares of common
    stock and shares of common stock underlying the warrants
    included within the units sold in the Private Placement, in
    which case purchasers in the Private Placement will need to rely
    on an exemption from registration requirements in order to sell
    their shares.
In connection with the Private Placement, we entered into a
    registration rights agreement, pursuant to which we are
    obligated to file a "resale" registration statement
    with the Securities and Exchange Commission (the
    "SEC") that covers all of the common stock and shares
    of common stock underlying the warrants included within the
    units sold in the Private Placement (the "Warrant
    Shares") and to have the "resale" registration
    statement declared effective by the SEC no later than
    180 days after the final closing of the Private Placement.
    Nevertheless, it is possible that the SEC may not permit us to
    register all of the shares of common stock for resale. In
    certain circumstances, the SEC may take the view that the
    Private Placement requires us to register the resale of the
    securities as a primary offering. It is possible that, if
    registration is barred by current or future rules and
    regulations, rescission of the Private Placement could be sought
    by investors or an offer of rescission may be mandated by the
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SEC, which would result in a material adverse effect on us. In
    addition, our shares of public float are limited and are held by
    persons who acquired those shares under an effective
    registration filed prior to the Merger. Investors should be
    aware of the existence of risks that interpretive positions
    taken with respect to Rule 415, or similar rules or
    regulations including those that may be adopted subsequent to
    the date of this prospectus, could impede the manner in which
    the common stock and Warrant Shares may be registered or our
    ability to register the common stock or Warrant Shares for
    resale at all, or the trading in our securities. If we are
    unable to register some or all of the common stock or Warrant
    Shares, or if shares previously registered are not deemed to be
    freely tradeable, these shares would only be able to be sold
    pursuant to an exemption from registration under the Securities
    Act, such as Rule 144, that currently permits the resale of
    securities by holders who are not affiliated with the issuer
    following twelve months from November 16, 2009.
As a
    result of the Merger, Genesis Fluid Solutions became a
    subsidiary of ours and, we are subject to the reporting
    requirements of federal securities laws. Such reporting
    requirements can be expensive and may divert resources from
    other projects, thus impairing our ability to
    grow.
As a result of the Merger, Genesis Fluid Solutions became a
    subsidiary of ours and, accordingly, is subject to the
    information and reporting requirements of the Exchange Act, and
    other federal securities laws, including compliance with the
    Sarbanes-Oxley Act of 2002. The costs of preparing and filing
    annual and quarterly reports, proxy statements and other
    information with the SEC (including reporting of the Merger) and
    furnishing audited reports to stockholders will cause our
    expenses to be higher than they would have been if Genesis Fluid
    Solutions had remained privately held and did not consummate the
    Merger. In addition, we will incur substantial expenses in
    connection with the preparation of the registration statement
    and related documents required under the terms of the Private
    Placement that require us to register the shares of common stock
    included in the units and the Warrant Shares. It may be time
    consuming, difficult and costly for us to develop and implement
    the internal controls and reporting procedures required by the
    Sarbanes-Oxley Act of 2002. We will need to hire additional
    financial reporting, internal controls and other finance
    personnel in order to develop and implement appropriate internal
    controls and reporting procedures. If we are unable to comply
    with the internal controls requirements of the Sarbanes-Oxley
    Act of 2002, then we may not be able to obtain the independent
    accountant certifications required by that act, which may
    preclude us from keeping our filings with the SEC current, and
    interfere with the ability of investors to trade our securities
    and our shares to continue to be quoted on the OTC
    Bulletin Board or our ability to list our shares on any
    national securities exchange.
If we
    fail to establish and maintain an effective system of internal
    controls, we may not be able to report our financial results
    accurately or prevent fraud. Any inability to report and file
    our financial results accurately and timely could harm our
    reputation and adversely impact the trading price of our common
    stock.
Effective internal controls are necessary for us to provide
    reliable financial reports and prevent fraud. If we cannot
    provide reliable financial reports or prevent fraud, we may not
    be able to manage our business as effectively as we would if an
    effective control environment existed, and our business and
    reputation with investors may be harmed. As a result, our small
    size and any current internal control deficiencies may adversely
    affect our financial condition, results of operations and access
    to capital. We have not performed an in-depth analysis to
    determine if historical undiscovered failures of internal
    controls exist, and may in the future discover areas of our
    internal controls that need improvement.
Public
    company compliance may make it more difficult to attract and
    retain officers and directors.
The Sarbanes-Oxley Act of 2002 and rules implemented by the SEC
    have required changes in corporate governance practices of
    public companies. As a public company, we expect these rules and
    regulations to increase our compliance costs in 2010 and beyond
    and to make certain activities more time consuming and costly.
    As a public company, we also expect that these rules and
    regulations may make it more difficult and expensive for us to
    obtain director and officer liability insurance and we may be
    required to accept reduced policy limits and coverage or incur
    substantially higher costs to obtain the same or similar
    coverage. As a result, it may be more difficult for us
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to attract and retain qualified persons to serve on our board of
    directors or as executive officers, and to maintain insurance at
    reasonable rates, or at all.
Because
    we became public by means of a reverse merger, we may not be
    able to attract the attention of major brokerage
    firms.
There may be risks associated with us becoming public through a
    "reverse merger." Securities analysts of major
    brokerage firms may not provide coverage of us since there is no
    incentive to brokerage firms to recommend the purchase of our
    common stock. No assurance can be given that brokerage firms
    will, in the future, want to conduct any offerings on behalf of
    our post-Merger company.
Our
    stock price may be volatile.
The market price of our common stock is likely to be highly
    volatile and could fluctuate widely in price in response to
    various factors, many of which are beyond our control, including
    the following:
•
changes in our industry;
•
competitive pricing pressures;
•
our ability to obtain working capital financing;
•
additions or departures of key personnel;
•
limited "public float" following the Merger, in the
    hands of a small number of persons whose sales or lack of sales
    could result in positive or negative pricing pressure on the
    market price for our common stock;
•
sales of our common stock (particularly following effectiveness
    of the resale registration statement required to be filed in
    connection with the Private Placement);
•
our ability to execute our business plan;
•
operating results that fall below expectations;
•
loss of any strategic relationship;
•
regulatory developments;
•
economic and other external factors;
•
period-to-period fluctuations in our financial results; and
•
our inability to develop or acquire new or needed technology.
In addition, the securities markets have from time to time
    experienced significant price and volume fluctuations that are
    unrelated to the operating performance of particular companies.
    These market fluctuations may also materially and adversely
    affect the market price of our common stock.
We
    have not paid dividends in the past and do not expect to pay
    dividends in the future. Any return on investment may be limited
    to the value of our common stock.
We have never paid cash dividends on our common stock and do not
    anticipate doing so in the foreseeable future. The payment of
    dividends on our common stock will depend on earnings, financial
    condition and other business and economic factors affecting us
    at the time as our board of directors may consider relevant. If
    we do not pay dividends, our common stock may be less valuable
    because a return on your investment will only occur if our stock
    price increases.
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Our
    shares of common stock are very thinly traded, the price may not
    reflect our value, and there can be no assurance that there will
    be an active market for our shares of common stock either now or
    in the future.
Our shares of common stock are very thinly traded, only a small
    percentage of our common stock is available to be traded and is
    held by a small number of holders, and the price, if traded, may
    not reflect our actual or perceived value. There can be no
    assurance that there will be an active market for our shares of
    common stock either now or in the future. The market liquidity
    will be dependent on the perception of our operating business,
    among other things. We will take certain steps including
    utilizing investor awareness campaigns, press releases, road
    shows and conferences to increase awareness of our business, and
    any steps that we might take to bring us to the awareness of
    investors may require we compensate consultants with cash
and/or
stock. There can be no assurance that there will be any
    awareness generated or the results of any efforts will result in
    any impact on our trading volume. Consequently, investors may
    not be able to liquidate their investment or liquidate it at a
    price that reflects the value of the business, and trading may
    be at an inflated price relative to the performance of the
    Company due to, among other things, availability of sellers of
    our shares. If a market should develop, the price may be highly
    volatile. Because there may be a low price for our shares of
    common stock, many brokerage firms or clearing firms may not be
    willing to effect transactions in the securities or accept our
    shares for deposit in an account. Even if an investor finds a
    broker willing to effect a transaction in the shares of our
    common stock, the combination of brokerage commissions, transfer
    fees, taxes, if any, and any other selling costs may exceed the
    selling price. Further, many lending institutions will not
    permit the use of low priced shares of common stock as
    collateral for any loans. A significant number of shares have
    been issued to our counsel and others as payment for services.
    In the aggregate, 1,160,000 shares of freely trading stock
    were available for trading immediately following closing of the
    Merger. Our counsel serves as escrow agent under the Escrow
    Agreement, under which 1,300,000 shares may be registered
    for resale. Those shares, in addition to other shares issued to
    our counsel, may from time to time be sold in open market
    transactions, or in privately negotiated transactions. In the
    event we are required to pay any liability or claim under the
    Escrow Agreement, the escrow agent will have discretion in
    determining the timing and manner of those sales, as well as the
    timing and manner of sale of other shares issued to our counsel
    for services.
There
    is currently a very limited trading market for our common stock
    and we cannot ensure that one will ever develop or be
    sustained.
To date there has been a very limited trading market for our
    common stock. We cannot predict how liquid the market for our
    common stock might become. We anticipate having our common stock
    continue to be quoted for trading on the OTC
    Bulletin Board, however, we cannot be sure that these
    quotations will continue. As soon as is practicable, we
    anticipate applying for listing of our common stock on the NYSE
    Amex, The NASDAQ Capital Market or another national securities
    exchange, assuming that we can satisfy the initial listing
    standards of the exchange. We currently do not satisfy the
    initial listing standards, and cannot ensure that we will be
    able to satisfy the listing standards or that our common stock
    will be accepted for listing on any exchange. Should we fail to
    satisfy the initial listing standards of an exchange, or our
    common stock is otherwise rejected for listing and remains
    listed on the OTC Bulletin Board or suspended from the OTC
    Bulletin Board, the trading price of our common stock could
    suffer and the trading market for our common stock may be less
    liquid and our common stock price may be subject to increased
    volatility. Furthermore, for companies whose securities are
    traded in the OTC Bulletin Board, it is more difficult
    (1) to obtain accurate quotations, (2) to obtain
    coverage for significant news events because major wire services
    generally do not publish press releases about these companies,
    and (3) to obtain needed capital. We are not required to
    register for sale the warrants, and do not intend to register
    the warrants for resale by the holders. As a result, the only
    value in the warrants will be in the "spread" between
    the trading price of our common stock and the exercise price of
    the warrants.
Our
    common stock may be deemed a "penny stock," which
    would make it more difficult for our investors to sell their
    shares.
Our common stock may be subject to the "penny stock"
    rules adopted under Section 15(g) of the Exchange Act. The
    penny stock rules generally apply to companies whose common
    stock is not listed on The NASDAQ Stock Market or another
    national securities exchange and trades at less than $4.00 per
    share, other than companies that
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have had average revenues of at least $6,000,000 for the last
    three years or that have tangible net worth of at least
    $5,000,000 ($2,000,000 if the company has been operating for
    three or more years). These rules require, among other things,
    that brokers who trade penny stock to persons other than
    "established customers" complete certain
    documentation, make suitability inquiries of investors and
    provide investors with certain information concerning trading in
    the security, including a risk disclosure document and quote
    information under certain circumstances. Many brokers have
    decided not to trade penny stocks because of the requirements of
    the penny stock rules and, as a result, the number of
    broker-dealers willing to act as market makers in these
    securities is limited. If we remain subject to the penny stock
    rules for any significant period, it could have an adverse
    effect on the market, if any, for our securities. If our
    securities are subject to the penny stock rules, investors will
    find it more difficult to dispose of our securities.
Offers
    or availability for sale of a substantial number of shares of
    our common stock may cause the price of our common stock to
    decline.
If our stockholders sell substantial amounts of our common stock
    in the public market, including shares issued in the Private
    Placement upon the effectiveness of the registration statement
    required to be filed, upon the expiration of any statutory
    holding period under Rule 144, upon expiration of
lock-up
periods applicable to outstanding shares, or shares issued upon
    the exercise of outstanding options or warrants, it could create
    a circumstance commonly referred to as an "overhang"
    and, in anticipation of which, the market price of our common
    stock could fall. The existence of an overhang, whether or not
    sales have occurred or are occurring, also could make more
    difficult our ability to raise additional financing through the
    sale of equity or equity-related securities in the future at a
    time and price that we deem reasonable or appropriate. The
    shares of common stock issued in the Merger to the current and
    former officers and directors of Genesis Fluid Solutions are
    subject to a
lock-up
agreement prohibiting sales of these shares for a period of
    12 months following the Merger. Following that date, all of
    those shares will become freely tradable, subject to securities
    laws and SEC regulations regarding sales by insiders. In
    addition, the shares of common stock sold in the Private
    Placement and the Warrant Shares will be freely tradable upon
    the earlier of (i) effectiveness of a registration
    statement covering these shares; and, (ii) the date on
    which these shares may be sold without registration pursuant to
    Rule 144 (or other applicable exemption) under the
    Securities Act.
We may
    apply the proceeds of the Private Placement to uses that
    ultimately do not improve our operating results or increase the
    value of your investment.
We intend to use a portion of the net proceeds from the Private
    Placement, including proceeds received upon the exercise of the
    warrants, for general working capital purposes. Therefore, our
    management will have broad discretion in how we use these
    proceeds. These proceeds could be applied in ways that do not
    ultimately improve our operating results or otherwise increase
    the value of the investment in our common stock or warrants.
Because
    our directors and executive officers are among our largest
    stockholders, they can exert significant control over our
    business and affairs and have actual or potential interests that
    may depart from those of our other stockholders.
Our directors and executive officers own or control a
    significant percentage of the common stock following the Merger
    and completion of the Private Placement. Additionally, the
    holdings of our directors and executive officers may increase in
    the future upon vesting or other maturation of exercise rights
    under any of the options or warrants they may hold or in the
    future be granted or if they otherwise acquire additional shares
    of our common stock. Following the Merger, our executive
    officers and directors, in the aggregate, beneficially own
    5,729,920 shares of our common stock, which represents
    approximately 32.6% of the voting power of all of our
    outstanding shares of stock. Our President, Michael Hodges,
    beneficially owns 2,833,800 shares of our common stock
    (including the right to vote 1.3 million shares held in
    escrow pursuant to the escrow agreement, which he has the right
    to re-acquire), and will be able to vote an additional
    1,231,120 shares under voting agreements with the
    beneficial owners of the shares, until the beneficial owners no
    longer own such shares, or a total of approximately 28.3% of the
    voting power of all our outstanding shares of stock. Our Senior
    Vice President-Field Operations, Larry Campbell, beneficially
    owns 600,000 shares of our common stock (consisting of
    600,000 shares of our common stock issuable upon exercise
    of currently exercisable options). Mary Losty, a director of
    ours, beneficially owns 1,030,000 shares of our common
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stock (including 20,000 shares of our common stock
    purchased in the Private Placement and 10,000 shares of our
    common stock underlying warrants issued in the Private
    Placement. John Freshman, a director of ours, beneficially owns
    35,000 shares of our common stock. As a result, in addition
    to their board seats and offices, such persons will have
    significant influence over and control all corporate actions
    requiring stockholder approval, irrespective of how the
    Company's other stockholders, including purchasers in the
    Private Placement, may vote, including the following actions:
•
to elect or defeat the election of our directors;
•
to amend or prevent amendment of our Certificate of
    Incorporation or By-laws;
•
to effect or prevent a merger, sale of assets or other corporate
    transaction; and
•
to control the outcome of any other matter submitted to our
    stockholders for vote.
In addition, these persons' stock ownership may discourage
    a potential acquirer from making a tender offer or otherwise
    attempting to obtain control of the Company, which in turn could
    reduce our stock price or prevent our stockholders from
    realizing a premium over our stock price.
Exercise
    of options and warrants may have a dilutive effect on our common
    stock.
If the price per share of our common stock at the time of
    exercise of any warrants, options, or any other convertible
    securities is in excess of the various exercise or conversion
    prices of these convertible securities, exercise or conversion
    of these convertible securities would have a dilutive effect on
    our common stock. As of April 15, 2010, we had
    (i) outstanding warrants to purchase 3,412,500 shares
    of our common stock at an exercise price of $2.00 per share,
    (ii) outstanding Placement Agent warrants to purchase
    107,500 shares of our common stock at an exercise price of
    $1.25 per share, (iii) outstanding options to purchase
    770,000 shares of our common stock at an exercise price of
    $0.99 per share, (iv) outstanding options to purchase
    1,852,000 shares of our common stock at an exercise price
    of $0.90 per share, and (v) outstanding options to purchase
    600,000 shares of our common stock at an exercise price of
    $1.00 per share. Further, any additional financing that we
    secure may require the granting of rights, preferences or
    privileges senior to those of our common stock and which result
    in additional dilution of the existing ownership interests of
    our common stockholders.
Our
    certificate of incorporation allows for our board of directors
    to create new series of preferred stock without further approval
    by our stockholders, which could adversely affect the rights of
    the holders of our common stock.
Our board of directors has the authority to fix and determine
    the relative rights and preferences of preferred stock. Our
    board of directors also has the authority to issue preferred
    stock without further stockholder approval. As a result, our
    board of directors could authorize the issuance of series of
    preferred stock that would grant to holders the preferred right
    to our assets upon liquidation, the right to receive dividend
    payments before dividends are distributed to the holders of
    common stock and the right to the redemption of the shares,
    together with a premium, prior to the redemption of our common
    stock. In addition, our board of directors could authorize the
    issuance of series of preferred stock that have greater voting
    power than our common stock or that are convertible into our
    common stock, which could decrease the relative voting power of
    our common stock or result in dilution to our existing
    stockholders.
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USE OF
    PROCEEDS
The selling stockholders will receive all of the proceeds from
    the sale of the shares offered by them under this prospectus. We
    will not receive any proceeds from the sale of the shares by the
    selling stockholders covered by this prospectus. We will,
    however, receive proceeds from the exercise of the warrants if
    the warrants are exercised for cash. Proceeds received by us, if
    any, will be used for working capital and general corporate
    purposes.
MARKET
    FOR OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS
Our common stock has been quoted on the OTC Bulletin Board
    under the symbol GSFL.OB since November 23, 2009. Prior to
    November 23, 2009, there was no active market for our
    common stock. Trading of our common stock commenced on
    November 23, 2009. As of April 12, 2010, there were
    approximately 214 holders of record of our common stock.
The following table sets forth the high and low bid prices for
    our common stock for the periods indicated, as reported by the
    OTC Bulletin Board. The quotations reflect inter-dealer
    prices, without retail
mark-up,
mark-down or commission, and may not represent actual
    transactions.
Period
High
Low
November 23, 2009 through December 31, 2009
$
6.00
$
1.60
January 1, 2010 through March 31, 2010
$
5.85
$
2.60
The last reported sales price of our common stock on the OTC
    Bulletin Board on April 12, 2010 was $3.40 per share.
DIVIDEND
    POLICY
We have not declared nor paid any cash dividend on our common
    stock, and we currently intend to retain future earnings, if
    any, to finance the expansion of our business, and we do not
    expect to pay any cash dividends in the foreseeable future. The
    decision whether to pay cash dividends on our common stock will
    be made by our board of directors, in their discretion, and will
    depend on our financial condition, results of operations,
    capital requirements and other factors that our board of
    directors considers significant.
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MANAGEMENT'S
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis should be read in
    conjunction with our consolidated financial statements and
    related notes appearing elsewhere in this prospectus. In
    addition to historical information, this discussion and analysis
    contains forward-looking statements that involve risks,
    uncertainties, and assumptions. Our actual results may differ
    materially from those anticipated in these forward-looking
    statements as a result of certain factors, including but not
    limited to those set forth under "Risk Factors".
Company
    Overview
Genesis Fluid Solutions began operations in 1994 as a sole
    proprietorship owned by our founder, Michael Hodges and was
    incorporated in Colorado in 2005. We are engaged in the design
    and development of waterway restoration, mining, and paper mill
    (water) remediation technologies. Our patented Rapid Dewatering
    System (RDS) removes different types of debris, sediments, and
    contaminates from waterways and industrial sites, which assists
    in the recovery of lakes, canals, reservoirs and harbors. The
    RDS system separates water from the solid materials that are
    dredged, a process that is known as dewatering. Because of the
    scalability of the equipment, the small footprint required, and
    our own real-time rapid dewatering capabilities, RDS can remove
    thousands of cubic yards of sediment per day, and return clear
    water to waterways at rates of thousands of gallons per minute.
    We believe we accomplish this at significantly lower costs than
    our competitors.
Domestically, we have secured two contracts under which we will
    perform the work directly. These waterway dredging projects are
    due to begin in 2010. Our performance under such contracts is
    presently not anticipated to commence until June 2010 and
    September 2010, respectively, as the projects are currently
    completing permitting requirements.
Results
    of Operations
Our revenues are derived from professional services contracts to
    dewater dredged material, including fine-grained sediment, for
    lake and waterway restoration.
Year
    Ended December 31, 2009 Compared with Year Ended
    December 31, 2008
Revenues
The Company recognized no revenue for the year ended
    December 31, 2009 as compared to $35,097 of revenue for the
    year ended December 31, 2008. The decrease is primarily due
    to the effects of accounting for revenues under the completed
    contract method whereby the company defers revenue until
    completion of the project. In addition, the two projects we
    currently have contracts for were delayed. The development of
    our business was further hindered by a general lack of private
    and public financing for the dewatering projects to which we
    market and sell our services.
All of our sales for the year ended December 31, 2008, were
    to customers in the United States.
Operating
    Expenses
Selling,
    General and Administrative Expenses
Selling, general and administrative expenses were $1,941,484 for
    the year ended December 31, 2009 as compared to $713,424
    for the year ended December 31, 2008, an increase of 172%.
    Utilizing the proceeds received from financing activities (see
    below), we began implementing our business plan and thus, our
    selling, general and administrative expenses increased
    accordingly. Our selling, general and administrative expenses
    consist of expenses paid for payroll and related costs,
    consultant and professional fees, stock-based compensation,
    insurance, impairments on long-lived assets, equipment
    maintenance, depreciation expense, and other general operating
    costs.
We expect our costs for personnel, consultants and other
    operating costs to increase as we implement our business plan.
    Thus, our selling, general and administrative expenses are
    likely to increase significantly in future reporting periods.
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Other
    Income (Expense)
Other income (expense) for the year ended December 31, 2009
    was $306,283 compared to $496,241 for the year ended
    December 31, 2008, a decrease of 38.3%. The decrease was
    primarily attributable to the fact that the prior year included
    a loss on disposal of property and equipment of $174,125.
    Interest expense (which includes $101,250 of stock-based
    interest) also decreased by $44,537 primarily due to the
    decrease in interest-bearing liabilities (most notably
    convertible notes payable decreased by $713,190). The decrease
    in interest expense is significantly offset by an increase in
    inducement expense on debt conversion of $40,759.
Net
    Loss
Net loss for the year ended December 31, 2009 was
    $2,247,767 compared to a net loss of $1,568,251 for the year
    ended December 31, 2008. The change was attributable to an
    increase in operating expenses of $1,228,060, offset by a
    decrease in other expenses of $189,958.
Liquidity
    and Capital Resources
Net cash used in operations during the year ended
    December 31, 2009 totaled $1,737,841 and resulted primarily
    from a net loss of $2,247,767, an increase in prepaid expenses
    and other current assets of $124,805 and a gain on settlement of
    accounts payable of $118,910, partially offset by stock-based
    compensation of $284,714, an increase in accounts payable of
    $215,592, impairment of patents pending of $119,896,
    depreciation of property and equipment of $112,345, and
    stock-based interest expense of $101,250.
Net cash used in investing activities during the year ended
    December 31, 2009 totaled $69,721 and resulted from $47,922
    of purchases of property and equipment and $21,799 of patent
    costs.
Net cash provided by financing activities during the year ended
    December 31, 2009 totaled $6,661,531 and resulted primarily
    from proceeds of $5,909,750 from sales common stock and warrants
    (net of offering costs), proceeds of $773,500 from issuances of
    convertible notes payable, and capital contributions of
    $491,374, partially offset by principal payments of $202,034 on
    capital leases, principal payments of $158,179 on convertible
    notes payable, and principal payments of $116,662 on a secured
    note payable.
At December 31, 2009, we had working capital of $3,232,419,
    including $4,873,912 in cash and cash equivalents. We had
    minimal revenue generating activities in 2009 and are
    transitioning to a new business model. We anticipate that
    revenues will resume in June 2010 as we begin to provide
    services under waterway dredging contracts. Our cash used in
    operating activities during the year ended December 31,
    2009 totaled $1,737,841. Our auditors have expressed a going
    concern in our consolidated financial statements. Nonetheless,
    the Company expects that it has sufficient cash and borrowing
    capacity to meet its working capital needs for at least the next
    12 months.
Historically, we have financed our working capital and capital
    expenditure requirements primarily from notes payable and the
    sales of our equity securities. We may seek additional equity
and/or
debt
    financing in order to implement our business plan. We completed
    a Private Placement, commencing October 30, 2009 through
    December 29, 2009, whereby we received net proceeds of
    $5,909,750, which we believe will fund our operations at least
    through December 2010. We do not have any lines of credit or
    borrowing facilities to meet our cash needs. As a result, we may
    not be able to continue as a going concern, without further
    financing, following December 2010. It is reasonably possible
    that we will not be able to obtain sufficient financing to
    continue operations. Furthermore, any additional equity or
    convertible debt financing will be dilutive to existing
    shareholders and may involve preferential rights over common
    shareholders. Debt financing, with or without equity conversion
    features, may involve restrictive covenants.
Related
    Party Transactions
No related party transactions had a material impact on our
    operating results. See Notes 14 and 19 to our consolidated
    financial statements.
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New
    Accounting Pronouncements
See Note 2 to our consolidated financial statements for a
    discussion of recent accounting pronouncements.
Critical
    Accounting Estimates
Management's discussion and analysis of financial condition
    and results of operations is based upon our consolidated
    financial statements, which have been prepared in accordance
    with accounting principles generally accepted in the United
    States of America. The preparation of these consolidated
    financial statements requires us to make estimates and
    assumptions that affect the reported amounts of assets,
    liabilities, revenues, and expenses, and related disclosure of
    contingent assets and liabilities. On an ongoing basis, we
    evaluate our estimates and assumptions, including, but not
    limited to, those related to the estimates of depreciable lives
    and valuation of property and equipment, valuation and
    amortization periods of intangible assets, valuation of
    derivatives, valuation of payroll tax contingencies, valuation
    of share-based payments, and the valuation allowance on deferred
    tax assets.
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BUSINESS
The
    Company
We are engaged in the design and development of waterway and
    water remediation technologies for the environmental, mining and
    paper industries. Our patented Rapid Dewatering System (RDS)
    removes different types of debris, sediments, and contaminates
    from waterways and industrial sites, which assists in the
    recovery of lakes, canals, reservoirs and harbors. The RDS
    system separates water from the solid materials that are
    dredged, a process that is known as dewatering. Because of the
    scalability of the equipment, the small footprint required, and
    our own real time rapid dewatering capabilities, our RDS can
    remove thousands of cubic yards of sediment per day, and return
    clear water to waterways at rates of thousands of gallons per
    minute. We believe we accomplish this at significantly lower
    costs than our competitors.
After demonstrating proof of concept on a port restoration
    project in California, we were acknowledged by the Water Board
    of the State of California, the United States Environmental
    Protection Agency and the United States Army Corps of Engineers
    as having an innovative technology acceptable for the
    restoration of both contaminated and non-contaminated waterways.
    We believe our technologies have a variety of benefits for both
    industry and the environment.
Water
    Recovery Industry
Many waterways worldwide suffer from eutrophication or
    deterioration, leading to the formation of wetlands. This
    typically results from agricultural run-off and other man-made
    causes. Some waterways are so polluted and stagnant that their
    animal and plant life die off and, in the case of rivers and
    streams, the current ceases to flow. Having continued access to
    healthy, clean lakes, rivers, marinas, shipping ports and other
    waterways is vital to maintaining affordable water supplies,
    vibrant economies and entire ecosystems. Additionally, mining
    operations and paper mills can greatly limit their water usage
    by recycling their carriage water in their industrial circuit,
    instead of discharging it into natural waterways or disposal
    sites.
Cleaning a waterway often requires dredging. Dredging empties
    the water body of large quantities of
built-up
debris along the bottom, ranging from coarse material, such as
    shells, organic vegetation and garbage, to sand and fine grained
    sediment, such as clays, silts and organics.
The methodologies currently employed in the industry to dewater
    dredged sentiment from waterways primarily fall into three
    categories: (1) upland disposal sites, (2) belt
    presses and thickeners, and (3) geo-synthetic tubes. These
    techniques have prohibitive costs and, since they are
    land-intensive, they are environmentally destructive and slow.
    Therefore, increasingly, many communities and governments either
    cannot afford to restore their waterways or are unwilling to
    accept a process that involves the destruction of one ecosystem
    to save another.
Upland Disposal Sites.
Unlike coarse material
    and sand, fine-grained sediment requires a long settling period
    to release even minimal water content. Historically, dredged
    sediment has been dewatered in upland disposal sites. These
    sites are created by clearing vast areas of land and building
    dykes or levees around the sites, resulting in large sludge
    lagoons to hold the sediment discharged from hydraulic dredges.
    Contained disposal facilities require purchasing land, if
    available, which is often expensive, and leveling it, so that it
    is completely flat. This construction process completely
    destroys all ecosystems in the area, including forests. The
    "process rate" for sun drying in containment areas is
    discouragingly slow, requiring an average drying time of seven
    or more years. Also, in many coastal areas around the world,
    ocean dumping of sediment is now prohibited.
Belt Presses and Thickeners.
Dredges can pump
    sludge to dewatering plants, which will slowly process it. By
    building large or numerous tank farms, the material can be
    flocculated, which is a process that facilitates the separation
    of water from solids. This process is slow. Typical ratios in
    this industry are 3:1 to 5:1. That is, three hours to five hours
    to dewater 1 hour of dredge pumping. This approach pulls
    the settled flocculated material from the tank bottoms,
    generally flocculates the material a second time, then utilizes
    a belt press to squeeze the flocculated solids, wringing water
    from the solids. Belt press operations are slow and expensive
    and require additional operators.
Geo-Synthetic Tubes.
Geo-tubes are long and
    wide synthetic "sausage" tubes. Flocculated material
    from the dredge is poured into these tubes. Water slowly drains
    from numerous and small porous openings in the synthetic
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material. Eventually the material becomes dry enough to be
    removed from the Geo-tube, which is accomplished by cutting the
    tubes open. The tubes are expensive, slow to dewater and can
    only be used once.
Rapid
    Dewatering System (RDS)
We have inverted the concept of settling sediment through a
    water column and instead drain water instantly away from the
    sediment through our patented system. This eliminates the need
    for vast amounts of time
and/or
land
    to dewater, and does not have the negative environmental effects
    found with the other techniques. Our process encompasses several
    stages of sediment/asset recovery prior to reaching our RDS unit.
This three-stage process of removing sand and coarse material
    yields a slurry of liquid and fine grained particulates that is
    suitable for polymer dosing, flocculation and instant
    dewatering. By removing heavier solids prior to polymer
    introduction, polymer is reserved for only the finest grain
    solids, resulting in significant cost savings.
Fine grain sediment removal represents the most challenging
    aspect of waterway restoration. We believe that no other
    technology can approach the real-time capacity for high-speed
    dewatering of ultra-fine solids that we have achieved. The
    patented RDS recovers and classifies solid material down to
    ultra-fine clays, silts, and organics (7-14 angstroms in size)
    and simultaneously returns clear water (30 parts per million
    (ppm) of total suspended solids) to the waterway.
•
Stage 1 — utilizes a coarse screening system to
    facilitate removal of coarse debris that may include a variety
    of obstructive materials, such as shells, beverage cans, tree
    stumps, shoes, lumber, fiberglass or fibrous plant life.
•
Stage 2 — utilizes a screening unit designed to
    remove, classify and stockpile gravel. The unit we use is
    capable of classifying retrieved gravel according to client
    specifications and washing the material, which is an important
    factor in asset resale.
•
Stage 3 — continues the process by salvaging the sand.
    The sand recovery system that provides the greatest flexibility
    utilizes the dual technologies of sand screws and hydro-cyclones
    working in tandem. This process also allows for the
    classification, washing and stockpiling of sand for reuse or
    sale.
Once coarse debris, gravel, and sand have been removed from the
    dredge flow, polymer is introduced into the mix. We have
    developed a precise, agile technology that continually monitors
    the slurry and provides instant response to varying flow rates
    and densities. Our state of the art technology measures the
    density of the remaining solids to be processed. This data,
    coupled with the flow rate, is fed to a programmable logic
    control system, which in turn controls a variable speed pump
    that injects polymer into the slurry at very close tolerances.
The slurry and polymer are gently blended, initiating a
    flash-flocculation process that provides for polymer extension,
    contact time, and particle capture. The flocculated substrate is
    then distributed over a micro-screen system that enables water
    to drain away from the accumulated flocs, instantaneously
    separating the clear water from the accumulating cake. The
    accumulated cake, which at this point has a consistency of
    cottage cheese, is gravity fed into our dewatering boxes for
    final dewatering, if desired. The recovered cake is stackable
    dirt and ready for disposal or reuse. The turbidity of the clear
    water phase is continually monitored, as clear water is returned
    to the waterway. The speed and agility of the RDS enables the
    dewatering unit to operate in steady state balance with a
    hydraulic dredge. Thus, production and recovery occur in a
    synchronized, operational rhythm.
Competition
    and Competitive Strengths
Our business is highly competitive. We expect to depend on
    government contracts for a significant portion of our business.
    Competition for government contracts depends upon our ability to
    satisfy bidding requirements as well as subcontracting
    requirements in the event that we are a subcontractor to a prime
    contractor. Many larger more well capitalized companies may be
    able to satisfy the financial, size, equipment, employment,
    bonding,
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certification, track record, and other government regulatory
    requirements more readily than we are able to. Our typical
    competitors are represented by the following companies:
•
Deme Environmental Contractors — DEC NV (Zwijndrecht,
    Belgium) employs belt presses and plate and frame presses and
    clarifier (tank) settling systems in Europe. This company is
    associated with several large European dredging groups and
    performs dewatering operations for ports and waterways.
•
Dredge America, Inc. (Kansas City, Missouri) works with
    Geo-Textile tubes. These "Geo-Tubes" are filled with
    flocculated dredge slurry. The tubes, shaped like large
    sausages, slowly bleed out capillary moisture from the contained
    sludge until the material is relatively dry, and are then cut
    open to extricate the dewatered solids.
•
PHOENIX Process Equipment Co. (Louisville, Kentucky) uses belt
    presses, screw presses and thickeners, and processes dredge flow
    through a flocculation process. This company also provides
    consulting services for mining operations and has in-house
    fabrication capability.
We believe that our RDS gives us an advantage over our
    competitors for the following reasons:
•
quicker process — can dewater a dredge flow in real
    time, rather than dry the sediment under the sun over the course
    of months
and/or
years, so projects can be completed much quicker;
•
returns clear water — can simultaneously return clear,
    aerated water to the waterway, thereby providing natural,
    oxygenated water to the habitat;
•
works on fine-grained solids — can separate water from
    even fine-grained solids at high speeds;
•
lower cost — is much more cost efficient since
    (i) our system is able to sustain a better ratio (dredge
    time to dewatering time) than many alternatives so that projects
    may be able to be completed sooner than other dewatering
    processes, and (ii) we do not need to utilize large amounts
    of land to spread out and dewater the dredged sediment;
•
environmentally friendlier — is less destructive on
    the environment by immediately returning natural, clear water to
    the habitat;
•
greater mobility — has a small footprint, is mobile
    and scalable, which allows for quick set up and restoration of
    sites, and access to waterways that other companies'
    equipment is unable to reach;
•
easier to remove solids — can dewater the solids to
    less than 50% moisture content, which is the equivalent of dry
    dirt, so that they can be stacked for removal, trucking, or
    reuse options such as topsoil or landfill;
•
quieter — uses sound attenuated equipment, so the only
    noise heard resembles a gentle waterfall;
•
odorless — has no odor associated with the process,
    due to the speed the sediment is dewatered; and,
•
cleaner — designed to contain spillage, which is
    automatically reprocessed through the system, so that the entire
    staging area remains clean.
Marketing
    Strategies
Our strategy includes directly marketing services to government
    and other users, and licensing our technology to others. We
    intend to initially focus our efforts on the United States,
    Europe and the Pacific Rim.
We may provide the equipment and training necessary to launch
    projects while retaining ownership of equipment and intellectual
    property. By seeking to cultivate strategic relationships with
    large, established companies in various regions of the world, we
    believe we can grow more quickly than establishing offices
    throughout the world.
Government
    and Environmental Regulation
Our operations are subject to various environmental laws and
    regulations related to, among other things: dredging operations;
    the disposal of dredged material; protection of wetlands; storm
    water and waste water
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discharges; and, transportation and disposal of hazardous
    substances and materials. We are also subject to laws designed
    to protect certain marine species and habitats. Compliance with
    these statutes and regulations can delay appropriation
and/or
performance of particular projects and increase related
    expenses. Our projects may involve transportation and disposal
    of hazardous waste and other hazardous substances and materials.
    Various laws strictly regulate the removal, treatment and
    transportation of hazardous substances and materials and impose
    liability for human health effects and environmental
    contamination caused by these materials. We cannot predict what
    environmental legislation or regulations will be enacted in the
    future, how existing or future laws or regulations will be
    enforced, administered or interpreted, or the amount of future
    expenditures that may be required to comply with these
    environmental or health and safety laws or regulations, or to
    respond to future cleanup matters or other environmental claims.
Intellectual
    Property
We have invested significantly in the development of proprietary
    technology and also to establish and maintain an extensive
    knowledge of the leading technologies, and incorporate these
    technologies into the RDS and the services that we offer and
    provide to our customers. We hold a patent, which expires in
    2021, that covers the European Union, China, South Africa,
    Eurasia and New Zealand; a patent pending in the United States,
    which is expected in the next 12 months; and, a number of
    other patent applications. We believe that we hold adequate
    rights to all intellectual property used in our business and
    that we do not infringe upon any intellectual property rights
    held by other parties.
Properties
We lease our Colorado Springs headquarters, consisting of
    approximately 300 square feet of office space, at $1,152.15
    per month. The lease is on a month-to-month basis and may be
    terminated by either us our landlord with 30 days notice.
Employees
As of April 15, 2010, we had four persons engaged in
    management, marketing, sales, project development, and finance
    activities for us.
Legal
    Proceedings
From time to time, the Company may become involved in litigation
    relating to claims arising out of its operations in the normal
    course of business. Except as described below, no legal
    proceedings, government actions, administrative actions,
    investigations or claims are currently pending against us or
    involve the Company which, in the opinion of the management of
    the Company, could reasonably be expected to have a material
    adverse effect on its business or financial condition.
There are no proceedings in which any of the directors, officers
    or affiliates of the Company, or any registered or beneficial
    stockholder, is an adverse party or has a material interest
    adverse to that of the Company.
On May 27, 2008, Eagle North America, Inc.
    ("Eagle"), which provided certain equipment and
    consulting services to the Company, filed suit against Genesis
    Fluid Solutions and its chief executive officer and director
    Michael Hodges for monies owed pursuant to an equipment lease
    agreement between Eagle and the Company. Eagle claimed damages
    of $152,103.28. The Company made counter claims against Eagle
    for a breach of representations and warranties and alleged
    damages related to the performance and operation of certain
    leased equipment and losses incurred as a result of its
    inadequate operation and maintenance of approximately $280,000.
    The two parties entered mediation in November 2008.
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On June 26, 2009, the parties entered into a settlement
    agreement under which Eagle dismissed its claims against the
    Company, and the Company dismissed its claims against Eagle. The
    settlement agreement provided that the Company was to pay Eagle
    the sum of $152,000 payable as follows:
•
$25,000.00 within thirty days of the settlement, and
•
thereafter 15 equal installments of $8,466.67 beginning on
    August 26, 2009.
As of April 15, 2010, the Company has on a timely basis
    made all payments to date required by the settlement agreement.
On or about March 31, 2010, the Company's agent for
    service of process in Delaware notified the Company of its
    receipt of service of a partial Summons and Complaint to the
    Company. The action was commenced before the Supreme Court, New
    York County. We understand the service agent was served with an
    incomplete Summons and Complaint, missing pages. We requested a
    copy of the Court file. Plaintiff Big Fuel Communications, LLC
    seeks $41,250 in damages under various theories of recovery:
    breach of contract, quantum meruit and unjust enrichment, for
    services allegedly rendered to Genesis Fluid Solutions. The
    Company disputes the complaint's allegations.
We have a potential dispute concerning a letter with a potential
    joint venture partner in the Netherlands, which is more fully
    described in Note 15 to our audited consolidated financial
    statements for the year ended December 31, 2009. The
    parties have alleged certain damages and defenses and are
    working together to resolve the issue.
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MANAGEMENT
Set forth below is certain information regarding our executive
    officers and directors. Each of the directors listed below was
    elected to our board of directors to serve until our next annual
    meeting of stockholders or until his successor is elected and
    qualified. All directors hold office for one-year terms until
    the election and qualification of their successors. The
    following table sets forth information regarding the members of
    our board of directors and our executive officers:
Name
Age
Position with the Company
Michael Hodges
59
Chairman and Interim Chief Executive Officer
Larry Campbell
61
Senior Vice President-Field Operations
Mary Losty
50
Director
John Freshman
63
Director
Robert Stempel
77
Director
Michael Hodges
,
Chairman
and
Interim Chief
    Executive Officer.
Mr. Hodges has been
    chairman of the board of directors of the Company since October
    2009 and Interim Chief Executive Officer since March 2010. From
    October 2005 to October 2009, he was president, chief executive
    officer and director of Genesis Fluid Solutions, and founded the
    predecessor business to Genesis Fluid Solutions in 1994. He has
    30 years of experience in liquid technology, which
    culminated with the Genesis Fluid Solutions Rapid Dewatering
    System. His experience includes management of lake, marina and
    other waterway restoration projects. Prior to founding Genesis
    Fluid Solutions, he worked for Black & Veatch. He was
    also director and project manager for several, large refinery
    and environmental projects. As an early developer of excess
    polymer mud systems, he has expertise in working with carbon
    dioxide, hydrogen sulfide, anhydrite, and numerous other liquid
    contaminants. His extensive operations experience includes
    centrifuge, belt press, linear motion shakers, hydrocyclones,
    separators, pumping systems, polymer
make-up
units, programmable logic control systems, polymer injection,
    flocculation chemistry, coagulation and contaminated sediments.
    Mr. Hodges collaborates with colleagues worldwide on a
    variety of liquid and water projects and is a speaker at
    national and international forums. He has been published in
    industry journals, including Engineering News Record, Dredging
    and Port Construction, and International Dredging Review. He has
    invented a number of dewatering systems and filed several
    national and international patents. He holds qualifications in
    attapulgite, bentonitic, and montmorillonite mud systems and is
    certified in enhanced centrifuge technology. Mr. Hodges
    created "Mud School," the only certification process
    in rapid dewatering technology.
Larry Campbell
,
Senior Vice President-Field
    Operations.
Mr. Campbell has been senior
    vice president-field operations of Genesis Fluid Solutions since
    January 2010. From October 2005 to January 2010, he was senior
    vice president and director of field operations of Genesis Fluid
    Solutions, and held a similar position with the predecessor
    business to Genesis Fluid Solutions since 1994.
    Mr. Campbell is responsible for Genesis Fluid Solutions
    dewatering operations, and works closely with Mr. Hodges in
    research and development. In this capacity, he has brought
    solutions to the field of water and waterway restoration
    projects that have resulted in Genesis Fluid Solutions being
    awarded patents on a variety of innovations, and is the
    fabricator of the Genesis Fluid Solutions Rapid Dewatering
    System and related clarifier applications and energy dampening
    equipment. He has 33 years of experience in commercial
    construction management, all phases of related field activity,
    and
on-site
client relations. He has also designed coarse debris and
    manifold systems, as well as inline filters, distributive
    systems, and sand recovery units. Earlier in his career,
    Mr. Campbell designed and constructed high pressure
    snubbing tools for Kuwaiti oilfield recovery, and production
    plants for agricultural applications. He is certified as a Lead
    Operations Superintendent for contaminated sediments (including
    Haz-Mat training), closed loop mud systems, and enhanced belt
    press procedures. With expertise in all phases of centrifugal,
    positive displacement and gear pump operations,
    Mr. Campbell is also a Master Fabricator and Welder.
Mary Losty
,
Director.
Since 1998,
    Ms. Losty has been a general partner and portfolio manager
    of Cornwall Asset Management, LLC. Prior to that, she worked as
    a portfolio manager at Duggan & Associates, as an
    equity research analyst and assistant portfolio manager at M.
    Kimelman & Co., and at Morgan Stanley &
    Company. Since May 2007, she has served on the board of
    directors of Procera Networks (AMEX:PKT), a Silicon Valley
    bandwidth management company. She is also the commissioner of
    the Cambridge, Maryland Planning and Zoning
26
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Commission, as well as a member of the Am Board of Directors of
    the United Nations University for Peace. Ms. Losty has a
    law degree from Georgetown University.
John Freshman, Director.
Mr. Freshman has
    served as a principal of Troutman Sanders Strategies, a
    full-service government relations and issue management firm
    since 2006. Prior to joining Troutman Sanders Strategies,
    Mr. Freshman served as president of Freshman Kast, Inc., a
    multi-purposed government relations and lobbying firm
    specializing in environment and natural resources, from 1981
    through 2006. Mr. Freshman helped write the original 1972
    Clean Water Act, Clean Air Act, and Endangered Species Act. He
    has contributed to wetlands protection programs and other
    federal legislative proposals and regulations. As a result, he
    has been involved in many appropriations legislation for water
    including navigation, water supply, dams, and flood control. He
    has also served in senior positions in the Senate Environment
    and Public Works Committee, the White House, and the
    Environmental Protection Agency. His first government position
    was as a staff assistant to Senator Richard Schweiker in 1969.
    He holds a Political Science degree from Middlebury College.
Robert Stempel
,
Director.
Mr. Stempel began his career at
    General Motors in 1958, was promoted to President and Chief
    Operating Officer in 1987, and finally elevated to CEO and
    Chairman in 1990. From 1995 through 2007, he served as Chief
    Executive Officer and Chairman of Energy Conversion Devices,
    where he accomplished exceptional growth in advanced nickel
    metal hydride batteries and thin film solar panel technology. In
    addition, he was the Chairman of Great Lakes Industries, where
    he coordinated industry engagement in key great lakes water
    quality, environmental, and policy issues. Mr. Stempel
    earned an engineering degree from the Worcester Polytechnic
    Institute and an MBA from Michigan State University. He is a
    member of the National Academy of Engineering, a Fellow of The
    Society of Automotive Engineers and the Engineering Society of
    Detroit, and a Life Fellow of the American Society of Mechanical
    Engineers.
There are no family relationships among any of our directors and
    executive officers.
Independent
    Directors
We believe Mary Losty, John D. Freshman, and Robert Stempel are
    "independent directors," as that term is defined by
    listing standards of the national exchanges and SEC rules,
    including the rules relating to the independence standards of an
    audit committee and the non-employee director definition of
Rule 16b-3
of the Exchange Act.
Committees
    of the Board of Directors
We intend to appoint persons to the board of directors and
    committees of the board of directors as required to meet the
    corporate governance requirements of a national securities
    exchange, although we are not required to comply with these
    requirements until we elect to seek listing on a national
    securities exchange. We intend to appoint directors in the
    future so that a majority of our directors will be independent
    directors, of which at least one director will qualify as an
    "audit committee financial expert," within the meaning
    of Item 407(d)(5) of
Regulation S-K
of the SEC.
On October 30, 2009, the board of directors appointed an
    executive committee, audit committee, compensation committee,
    nominating committee and executive committee, and adopted
    charters relative to its audit committee, compensation committee
    and nominating committee.
Audit
    Committee
Mary Losty is currently the sole member of the audit committee.
    The audit committee's duties are to recommend to our board
    of directors the engagement of independent auditors to audit our
    financial statements and to review our accounting and auditing
    principles. The audit committee reviews the scope, timing and
    fees for the annual audit and the results of audit examinations
    performed by independent public accountants, including their
    recommendations to improve the system of accounting and internal
    controls. The audit committee oversees the independent auditors,
    including their independence and objectivity. However, the
    committee members are not acting as professional accountants or
    auditors, and their functions are not intended to duplicate or
    substitute for the activities of management and the independent
    auditors. The audit committee is empowered to retain independent
27
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legal counsel and other advisors as it deems necessary or
    appropriate to assist the audit committee in fulfilling its
    responsibilities, and to approve the fees and other retention
    terms of the advisors. Our audit committee member possesses an
    understanding of financial statements and generally accepted
    accounting principles. The Company does not currently have an
    audit committee financial expert. The Company and its board of
    directors have yet to identify a suitable candidate to serve as
    the audit committee financial expert due to the small size of
    the Company and its limited reporting history, however, the
    Company intends to appoint an audit committee financial expert
    as soon as it is practical.
Compensation
    Committee
Mary Losty is currently the sole member of the compensation
    committee. The compensation committee has certain duties and
    powers as described in its charter, including but not limited to
    periodically reviewing and approving our salary and benefits
    policies, compensation of our executive officers, administering
    our stock option plans, and recommending and approving grants of
    stock options under those plans.
Nominating
    Committee
Mary Losty is currently the sole member of the nominating
    committee. The nominating committee considers and makes
    recommendations on matters related to the practices, policies
    and procedures of the board of directors and takes a leadership
    role in shaping our corporate governance. As part of its duties,
    the nominating committee assesses the size, structure and
    composition of the board of directors and its committees,
    coordinates evaluation of board performance and reviews board
    compensation. The nominating committee also acts as a screening
    and nominating committee for candidates considered for election
    to the board of directors.
Executive
    Committee
Mary Losty is currently the sole member of the executive
    committee. The executive committee has certain duties and
    powers, including but not limited to assisting the board of
    directors in fulfilling its obligations relating to its
    operational oversight of the Company. The executive committee
    also acts as a screening and nominating committee for candidates
    considered for appointment as officers of the Company.
Compensation
    Committee Interlocks and Insider Participation
Mary Losty is currently the sole member of the compensation
    committee.
None of our directors or executive officers serves as a member
    of the board of directors or compensation committee of any other
    entity that has one or more of its executive officers serving as
    a member of our board of directors.
Director
    Compensation
We have not had compensation arrangements in place for members
    of our board of directors and have not finalized any plan to
    compensate directors in the future for their services as
    directors. We may develop a compensation plan for our
    independent directors in order to attract qualified persons and
    to retain them. We expect that the compensation arrangements may
    be comprised of a combination of cash
and/or
equity awards.
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EXECUTIVE
    COMPENSATION
Summary
    Compensation Table
The table below sets forth, for the last two fiscal years, the
    compensation earned by (i) each individual who served as
    our principal executive officer or principal financial officer
    during the last fiscal year and (ii) our most highly
    compensated executive officer, other than those listed in
    clause (i) above, who was serving as executive officers at
    the end of the last fiscal year (together, the "Named
    Executive Officers"). No other executive officer had annual
    compensation in excess of $100,000 during the last fiscal year.
Option
All Other
Salary
Bonus
Awards
Compensation
Total
Name and Principal Position
Year
($)
($)
($)
($)
($)
Michael Hodges,
2009
$
30,000
—
$
279,365
$
71,615
(1)
$
380,980
Chairman of the Board of Directors
2008
—
—
—
$
66,998
(2)
$
66,998
of the Company and Interim Chief Executive Officer
Martin Hedley,
2009
—
—
—
$
15,313
$
15,313
Former Chief Executive Officer(3)
Selby Little,
2009
—
—
—
$
4,916
$
4,916
Former Chief Financial Officer(4)
Carol Shobrook
2009
$
29,840
—
$
154,906
$
79,601
(6)
$
264,347
Former Chief Operating Officer(5)
2008
—
—
—
$
36,564
$
36,564
(1)
Consists of (i) $70,500 that was paid to Mr. Hodges
    for consulting services performed for Genesis Fluid Solutions
    and (ii) $1,115 in life insurance policy premiums that were
    paid by the Company on behalf of Mr. Hodges.
(2)
Consists of (i) $44,500 that was paid to Mr. Hodges
    for consulting services performed for Genesis Fluid Solutions
    and (ii) $22,498 miscellaneous expense reimbursement.
(3)
Mr. Hedley was appointed as the Company's Chief
    Executive Officer effective December 14, 2009. Effective
    March 9, 2010, Mr. Hedley is no longer serving as the
    Company's Chief Executive Officer and is no longer
    affiliated with the Company.
(4)
Mr. Little was appointed as the Company's Chief
    Financial Officer effective December 15, 2009. Effective
    February 14, 2010, Mr. Little is no longer serving as
    the Company's Chief Financial Officer and is no longer
    affiliated with the Company.
(5)
Ms. Shobrook was appointed as the Company's Chief
    Operating Officer effective November 15, 2009. Effective
    February 5, 2010, Ms. Shobrook is no longer serving as
    our Chief Operating Officer and is no longer affiliated with the
    Company.
(6)
Consists of (i) $50,000 that was paid to Ms. Shobrook
    for consulting services performed for Genesis Fluid Solutions
    and (ii) $29,601 in life insurance policies.
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Outstanding
    Equity Awards at Fiscal Year-End
Other than as set forth below, there were no outstanding
    unexercised options, unvested stock,
and/or
equity incentive plan awards issued to our named executive
    officers as of December 31, 2009.
Stock Award
Equity
Equity
Incentive
Incentive
Plan
Plan
Awards:
Awards:
Market
Option Award
Number
or Payout
Equity
Market
of
Value of
Incentive
Number
Value
Unearned
Unearned
Plan
of
of
Shares,
Shares,
Number of
Number of
Awards:
Shares
Shares
Units or
Units or
Securities
Securities
Number of
or Units
or Units
Other
Other
Underlying
Underlying
Securities
of Stock
of Stock
Rights
Rights
Unexercised
Unexercised
Underlying
Option
That
That
That
That
Options
Options
Unexercised
Exercise
Option
Have
Have Not
Have Not
Have Not
(#)
(#)
Unearned
Price
Expiration
Not
Vested
Vested
Vested
Name
Exercisable
Unexercisable
Options
($)
Date
Vested
($)
(#)
($)
Michael Hodges
600,000
(1)
$
1.00
October 30, 2019
Carol Shobrook
400,000
$
0.90
October 30, 2019
(1)
Upon closing of the Merger, Michael Hodges was granted
10-year
options to purchase 600,000 shares of our common stock at
    $1.00 per share, which options vest upon our reaching the
    following milestones:
Number of Option Shares
Milestone
200,000
Company having pre-tax income of $5 million during the
    first year following the closing of the Merger
Additional 200,000
Company having pre-tax income of an additional $12 million
    during the second year following the closing of the Merger
Additional 200,000
Company having pre-tax income of an additional $25 million
    during the third year following the closing of the Merger
Such amounts and bonuses should be calculated on a cumulative
    basis. For example, if the Company has $0 pre-tax income in year
    1 and $17 million in year 2, then options to purchase
    400,000 shares would vest at the end of the second year.
All options described are subject to and have been issued under
    our 2009 Equity Incentive Plan.
Employment
    Agreements
The Company has not entered into employment agreements with any
    of its personnel. Michael Hodges, our Chairman of the Board of
    Directors and Interim Chief Executive Officer, earns a salary of
    $11,000 per month. Mr. Hodges is entitled to receive such
    additional consideration, including higher salaries, bonuses
and/or
option grants, as determined by our Board of Directors.
Equity
    Compensation Plan Information
Equity
    Incentive Plan
On October 30, 2009, our board of directors and
    stockholders adopted the 2009 Equity Incentive Plan. The purpose
    of the 2009 Equity Incentive Plan is to provide an incentive to
    attract and retain directors, officers, consultants, advisors
    and employees whose services are considered valuable, to
    encourage a sense of proprietorship, and to stimulate an active
    interest of these persons in our development and financial
    success. Under the 2009 Equity Incentive Plan, we are authorized
    to issue incentive stock options intended to qualify under
    Section 422 of the Internal Revenue Code of 1986, as
    amended, non-qualified stock options, stock appreciation rights,
    performance shares, restricted stock and long term incentive
    awards. The 2009 Equity Incentive Plan will be administered by
    our board of directors until authority has been delegated to a
    committee of the board of directors. On the closing
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date of the Merger, certain of our executive officers, directors
    and other persons were granted options to purchase common stock
    exercisable at prices ranging from $0.90 to $1.00 per share as
    follows:
Name
Shares
Vesting Schedule
Exercise Price
Expiration
Colleen Stiles
770,000
Six months
$
0.99
10/30/19
Michael Hodges
600,000
Based on milestones
$
1.00
10/30/19
Larry Campbell
600,000
Immediate
$
0.90
10/30/19
Paul Vette
500,000
Immediate
$
0.90
10/30/19
Carol Shobrook
400,000
Immediate
$
0.90
10/30/19
Dan Lohrmeyer
200,000
Immediate
$
0.90
10/30/19
Amanda Sorenson
100,000
Immediate
$
0.90
10/30/19
Michael Whaley
30,000
Immediate
$
0.90
10/30/19
Brittany Jorgenson
20,000
Immediate
$
0.90
10/30/19
Tim Holt
2,000
Immediate
$
0.90
10/30/19
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CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS
Except as set forth below, during the past three years, there
    have been no transactions, whether directly or indirectly,
    between the Company and any of its officers, directors or their
    family members.
Loans
On November 28, 2008, the Company entered into a loan
    agreement with Maria Hodges, the wife of the Company's
    Chief Executive Officer, Michael Hodges for $9,800. The note
    bears an annual 4.29 percent interest rate and is due on
    November 28, 2018. The note does not have any conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December 31, 2008, no
    principal or interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
On September 29, 2008, the Company entered into a loan
    agreement with Maria Hodges, wife of the Company's Chief
    Executive Officer Michael Hodges for $9,000. The note bears an
    annual 4.29 percent interest rate and is due on
    September 29, 2019. The note does not have conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December 31, 2008, no
    principal interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
On June 17, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $5,000. The note bears an annual
    4.29 percent interest rate and is due on June 17,
    2018. The note does not have conversion feature and is
    unsecured. Accrued and unpaid interest is due at the termination
    of the loan. In September 2008, the Company paid Mr. Speer
    $2,925 which was recorded as a reduction of the outstanding
    principal balance.
On May 28, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $1,075. The note had no stated interest rate
    or maturity date. The note does not have any conversion feature
    and is unsecured. In September 2008, the Company paid
    Mr. Speer $1,075 and cancelled the note.
On February 4, 2008, the Company entered into a loan
    agreement with Greg Rankin, who has provided legal services to
    the Company, for $5,000. The note had no stated interest rate or
    maturity date. The note does not have conversion feature and was
    unsecured. On July 23, 2008, the principal balance plus
    $600 of accrued and unpaid interest was converted into
    1,120 shares of common stock.
On August 9, 2007, the Company entered into a loan
    agreement with Michael Whaley, the former Chief Financial
    Officer of the Company, for $50,000. The note originally bore an
    annual interest rate of 20 percent, which was later amended
    to 80 percent, and subsequently, in combination with his
    separation, was revised to a 15 percent interest rate and
    was due on November 5, 2007. The note does not have a
    conversion feature and is unsecured. Accrued and unpaid interest
    is due at maturity date of the loan. At December 31, 2008,
    $37,500, respectively, had been repaid under the note. At
    December 31, 2009, $12,500 of principal plus accrued
    interest was due on the note. On September 17, 2009,
    Michael Whaley, the former chief financial officer of the
    Company, resigned. As part of his separation agreement and in
    exchange for mutual releases, the Company is required to deliver
    the following to Mr. Whaley after completion of the Merger:
(i) $40,000 in cash,
(ii) $30,000 shares of common stock of the
    Company, and
(iii) payment of all amounts due under his loan agreement.
As of December 31, 2009, all of the amounts due under the
    separation agreement were outstanding as the separation
    agreement is in dispute.
On August 9, 2007, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $25,000. The note bears an
    annual 40 percent interest rate and was due on
    November 10, 2007. The note does not have conversion
    feature and was unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December 31, 2008, the
    Company had made payments of $22,500 of which
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approximately $13,000 had been applied against principal and the
    remaining amount recognized as interest. During 2009, principal
    and accrued interest on this note was paid in full.
On January 5, 2009, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $50,000. The note was
    unsecured, bore 40% interest and was due on February 3,
    2009. During 2009, principal and accrued interest on this note
    was paid in full.
Intellectual
    Property Assignment
On August 16, 2009, Michael Hodges and Larry Campbell
    executed an assignment agreement, pursuant to which they
    assigned to Genesis Fluid Solutions all of the their rights,
    title and interest in an invention entitled Apparatus and Method
    for De-Watering of Slurries, as described
and/or
claimed in US Application No. 11/676,699 and PCT
    Application No. PCT/GB2007/000544, and all rights of
    priority in the invention as described
and/or
claimed in any applications for patents based on the invention.
On September 30, 2009, Michael Hodges and Larry Campbell
    executed another assignment agreement, pursuant to which they
    assigned to Genesis Fluid Solutions all of the their rights,
    title and interest in all patents, whether in the United States
    or internationally, that they may have in their respective
    names, that they may have applied for, or that they will apply
    for, directly or indirectly relating to the business currently
    conducted
and/or
to be
    conducted by the Company.
Release
    of Cherry Tankers Debt
Pursuant to the terms of a release dated October 30, 2009,
    a third party lender forgave loans made to us in the aggregate
    amount of $42,727 and released us from any claims he may have
    against us. These loans were made to cover certain expenses
    incurred by us before the Merger.
Bridge
    Notes
Mary Losty, a director of the Company, purchased $100,000 in
    principal amount of 10% secured promissory notes as part of our
    bridge note financing conducted from May 2009 through
    October 13, 2009. Pursuant to the terms of the bridge note
    financing, Ms. Losty converted the aggregate principal
    amount of her note into units sold in the Private Placement
    which closed immediately following the Merger at a rate of
    1.3 shares of common stock and warrants to purchase
    0.5 shares of common stock for each $1.00 of bridge note
    converted.
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SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information as of
    April 15, 2010 regarding the beneficial ownership of our
    common stock, taking into account the consummation of the
    Merger, the Private Placement and the Split-Off, by
    (i) each person or entity who, to our knowledge, owns more
    than 5% of our common stock; (ii) our executive officers
    named in the Summary Compensation Table above; (iii) each
    director; and, (iv) all of our executive officers and
    directors as a group. Unless otherwise indicated in the
    footnotes to the following table, each person named in the table
    has sole voting and investment power and that person's
    address is
c/o Genesis
Fluid Solutions Holdings, Inc., 830 Tender Foot Hill
    Road #301 Colorado Springs, CO 80906 Shares of common
    stock subject to options, warrants, or other rights currently
    exercisable or exercisable within 60 days of April 14,
    2010, are deemed to be beneficially owned and outstanding for
    computing the share ownership and percentage of the stockholder
    holding the options, warrants or other rights, but are not
    deemed outstanding for computing the percentage of any other
    stockholder.
Number of Shares
Percentage
Name of Beneficial Owner
Beneficially Owned
Beneficially Owned(1)
5% Owners
:
John Liviakis
1,000,000
(2)
5.6
%
Executive Officers and Directors
:
Michael Hodges
4,064,920
(3)
22.9
%
Larry Campbell
600,000
(4)
3.3
%
Mary Losty
1,080,000
(5)
6.1
%
John Freshman
35,000
*
Robert Stempel
0
0
All executive officers and directors as a group
    (five persons)
5,779,920
(3)(4)(5)
32.6
%
*
Represents less than one percent.
(1)
Based on 17,751,500 shares of our common stock outstanding
    on April 15, 2010.
(2)
Does not include 234,000 shares issued to certain designees
    of Liviakis Financial Communications, Inc., a company hired by
    us to provide investor relations and public relations services
    through May 10, 2011.
(3)
Includes (i) 1,231,120 shares of our common stock that
    Mr. Hodges has the power to vote pursuant to certain voting
    agreements with existing stockholders, and
    (ii) 1,300,000 shares of our common stock that he owns
    and that are being held in escrow pursuant to the terms of the
    Merger. Does not include 600,000 shares of our common stock
    issuable upon exercise of outstanding stock options that are not
    exercisable within the next 60 days.
(4)
Consists of 600,000 shares of our common stock issuable
    upon exercise of currently exercisable stock options.
(5)
Includes (i) 30,000 shares of our common stock
    purchased in the Private Placement upon conversion of certain
    outstanding promissory notes and (ii) 50,000 shares of
    our common stock underlying warrants issued in the Private
    Placement.
34
Table of Contents
SELLING
    STOCKHOLDERS
Up to 11,847,500 shares of common stock are being offered
    by this prospectus, all of which are being registered for sale
    for the accounts of the selling security holders and include the
    following:
•
7,027,500 shares of common stock issued in the Private
    Placement;
•
3,412,500 shares of common stock issuable upon the exercise
    of warrants issued to investors in the Private Placement;
•
1,300,000 shares issued in connection with the Merger,
    which are being held in escrow for three years in order to cover
    certain potential claims, indebtedness and liabilities,
    including potential tax liabilities, of Genesis Fluid Solutions;
    and
•
107,500 shares of common stock issuable upon the exercise
    of warrants issued to the placement agent in connection with the
    Private Placements.
Each of the transactions by which the selling stockholders
    acquired their securities from us was exempt under the
    registration provisions of the Securities Act.
The shares of common stock referred to above are being
    registered to permit public sales of the shares, and the selling
    stockholders may offer the shares for resale from time to time
    pursuant to this prospectus. The selling stockholders may also
    sell, transfer or otherwise dispose of all or a portion of their
    shares in transactions exempt from the registration requirements
    of the Securities Act or pursuant to another effective
    registration statement covering those shares. We may from time
    to time include additional selling stockholders in supplements
    or amendments to this prospectus.
The table below sets forth certain information regarding the
    selling stockholders and the shares of our common stock offered
    by them in this prospectus. None of the selling stockholders
    have had a material relationship with us within the past three
    years other than as described in the footnotes to the table
    below or as a result of their acquisition of our shares or other
    securities. To our knowledge, subject to community property laws
    where applicable, each person named in the table has sole voting
    and investment power with respect to the shares of common stock
    set forth opposite such person's name.
Beneficial ownership is determined in accordance with the rules
    of the SEC. Each selling stockholder's percentage of
    ownership of our outstanding shares in the table below is based
    upon 17,751,500 shares of common stock outstanding as of
    April 15, 2010.
Ownership Before Offering
After Offering(1)
Number of
Number of
Shares of
Shares of
Percentage of
Common Stock
Number of
Common Stock
Common Stock
Beneficially
Shares
Beneficially
Beneficially
Selling Stockholder
Owned
Offered
Owned
Owned
Stephen J. and Lauren Reynolds Anderson
37,500
(2)
37,500
(2)
0
0
Robert A. Ayerle
150,000
(3)
150,000
(3)
0
0
Timothy J. Barkocy
37,500
(2)
37,500
(2)
0
0
Michael E. and Mary P. Baroody
22,500
(4)
22,500
(4)
0
0
Michael E. Baroody (IRA) fbo Michael E. Baroody(5)
37,500
(2)
37,500
(2)
0
0
James C., Jr. and Nancy F. Barragan
75,000
(6)
75,000
(6)
0
0
George M. Bradvica, Trustee, Bradvica Living Trust, 7/1989(7)
75,000
(6)
75,000
(6)
0
0
Cagan Capital LLC(8)
750,000
(9)
750,000
(9)
0
0
UBS Financial Services FBO Michael T. Collins (IRA Rollover)(10)
37,500
(2)
37,500
(2)
0
0
Linden Growth Partners Master Fund LP(11)
600,000
(43)
600,000
(43)
0
0
Seth Ian Fishman
37,500
(2)
37,500
(2)
0
0
35
Table of Contents
Ownership Before Offering
After Offering(1)
Number of
Number of
Shares of
Shares of
Percentage of
Common Stock
Number of
Common Stock
Common Stock
Beneficially
Shares
Beneficially
Beneficially
Selling Stockholder
Owned
Offered
Owned
Owned
Bruce A. Gates
37,500
(2)
37,500
(2)
0
0
Kevin Geraghty
75,000
(6)
75,000
(6)
0
0
Black Stocking Ventures, LLC(13)
37,500
(2)
37,500
(2)
0
0
Timothy P. Hecht
37,500
(2)
37,500
(2)
0
0
William H. Hecht
112,500
(14)
112,500
(14)
0
0
Washington Strategies 401(K) Profit Sharing Plan, fbo William
    Jarrell(15)
150,000
(3)
150,000
(3)
0
0
Washington Strategies 401K Plan fbo Jennifer Jarrell(16)
75,000
(6)
75,000
(6)
0
0
J Robert Jesmer
15,000
(17)
15,000
(17)
0
0
Frank R. Koons, III
75,000
(6)
75,000
(6)
0
0
Edward Kowlowitz
450,000
(18)
450,000
(18)
0
0
Colorado Springs Orthopedic Group Profit Sharing Plan FBO
    Kenneth B. Kurica, MD(19)
37,500
(2)
37,500
(2)
0
0
John E. Kyees
37,500
(2)
37,500
(2)
0
0
Don and Marie Lamberson
52,500
(20)
52,500
(20)
0
0
Ross Lamberson
105,000
(21)
105,000
(21)
0
0
Daryl Marcus Lechner
37,500
(2)
37,500
(2)
0
0
Sandor Capital Master Fund, L.P.(22)
750,000
(9)
750,000
(9)
0
0
JSL Kids Partners(23)
150,000
(3)
150,000
(3)
0
0
Glengar International Invs Ltd(24)
825,000
(25)
825,000
(25)
0
0
Daniel J. Mattoon, Sr.
15,000
(17)
15,000
(17)
0
0
Rachel McKernan
37,500
(2)
37,500
(2)
0
0
Patrick D. McSwain
37,500
(2)
37,500
(2)
0
0
Micha Mottale
150,000
(3)
150,000
(3)
0
0
David O. Palmer, M.D.
75,000
(6)
75,000
(6)
0
0
The Barbara L. Kolar Family Trust- 1988(26)
37,500
(2)
37,500
(2)
0
0
NTC & CO
26-1356253
FBO Daniel Rivers(27)
37,500
(2)
37,500
(2)
0
0
Scott Robinson
37,500
(2)
37,500
(2)
0
0
Neil Arthur Tallo
37,500
(2)
37,500
(2)
0
0
Gordon Clements
150,000
(3)
150,000
(3)
0
0
Maria E. Henderson
18,750
(28)
18,750
(28)
0
0
James A. Lewandowski
37,500
(2)
37,500
(2)
0
0
Staffan Lofgren
75,000
(6)
75,000
(6)
0
0
London Family Trust(29)
510,000
(30)
510,000
(30)
0
0
Harriet Loshin
37,500
(2)
37,500
(2)
0
0
Terry and Marci Nelson
15,000
(17)
15,000
(17)
0
0
Oman International Holdings(31)
75,000
(6)
75,000
(6)
0
0
Christopher Paasch
37,500
(2)
37,500
(2)
0
0
W. Thomas Rhoads
37,500
(2)
37,500
(2)
0
0
36
Table of Contents
Ownership Before Offering
After Offering(1)
Number of
Number of
Shares of
Shares of
Percentage of
Common Stock
Number of
Common Stock
Common Stock
Beneficially
Shares
Beneficially
Beneficially
Selling Stockholder
Owned
Offered
Owned
Owned
Ben Sparango
75,000
(6)
75,000
(6)
0
0
Michael C. Brown Trust dated 6/30/2000(32)
225,000
(33)
225,000
(33)
0
0
James Burzotta
75,000
(6)
75,000
(6)
0
0
Kiana Cagan
75,000
(6)
75,000
(6)
0
0
Kyla Cagan
75,000
(6)
75,000
(6)
0
0
William S. Daugherty
37,500
(2)
37,500
(2)
0
0
Keith W. Davidson
40,000
(37)
40,000
(37)
0
0
William E. and Frances H. Davidson
10,000
10,000
0
0
Carl J. Domino
150,000
(3)
150,000
(3)
0
0
Jason T. and Dannette E. Evans
15,000
(17)
15,000
(17)
0
0
Robert and Amy Frei
75,000
(6)
75,000
(6)
0
0
Dean Gardner
37,500
(2)
37,500
(2)
0
0
Thomas Glenndahl
37,500
(2)
37,500
(2)
0
0
Mikael Johannesson
37,500
(2)
37,500
(2)
0
0
Linda U. Kuhlman Trust dated 7/12/94(35)
150,000
(3)
150,000
(3)
0
0
Barry Thomas Lechner
37,500
(2)
37,500
(2)
0
0
David J. Lies
330,000
(36)
330,000
(36)
0
0
John Liviakis Custodian FBO Audrey Liviakis(38)
37,500
(2)
37,500
(2)
0
0
John Liviakis Custodian FBO Caroline Liviakis(39)
37,500
(2)
37,500
(2)
0
0
Janice M. Loshin
37,500
(2)
37,500
(2)
0
0
Susan E. Loshin
7,500
(40)
7,500
(40)
0
0
Andrew S. Losty
15,000
(17)
15,000
(17)
0
0
Edward J. Losty and Gretchen N. Losty JT WROS
75,000
(6)
75,000
(6)
0
0
Lawrence J. Losty and Esther A. Losty JT WROS
45,000
(34)
45,000
(34)
0
0
Margaret M. Losty
60,000
(41)
60,000
(41)
0
0
Mario V. Mele
37,500
(2)
37,500
(2)
0
0
The James Molesky Family Trust(42)
18,750
(28)
18,750
(43)
0
0
Mark L. Moskowitz
150,000
(3)
150,000
(3)
0
0
Paul Francis Pelosi, Jr.
30,000
(37)
30,000
(37)
0
0
Jan Pettersen
37,500
(2)
37,500
(2)
0
0
Robert H. Richardson
15,000
(17)
15,000
(17)
0
0
Bradley Rotter
150,000
(3)
150,000
(3)
0
0
J. Rune Sandell
37,500
(2)
37,500
(2)
0
0
Sherman Capital Group(45)
150,000
(3)
150,000
(3)
0
0
Sustainable Tech Fund(46)
37,500
(2)
37,500
(2)
0
0
Tarn M. Sublett
37,500
(2)
37,500
(2)
0
0
37
Table of Contents
Ownership Before Offering
After Offering(1)
Number of
Number of
Shares of
Shares of
Percentage of
Common Stock
Number of
Common Stock
Common Stock
Beneficially
Shares
Beneficially
Beneficially
Selling Stockholder
Owned
Offered
Owned
Owned
Charles N. Travers Trustee WDT Dated Oct 24, 1988 FBO Charles N.
    and Elizabeth Hall Travers(47)
450,000
(18)
450,000
(18)
0
0
Joseph J. and Margaret C. Trefaller
75,000
(6)
75,000
(6)
0
0
K. Douglas Whittington Jr. and Carol A. Whittington
15,000
(17)
15,000
(17)
0
0
Frederick W. Vogel
300,000
(48)
300,000
(48)
0
0
Roberta T. and Victor Yori
10,000
10,000
0
0
Todd A. Zuckerbrod IRA(49)
37,500
(2)
37,500
(2)
0
0
Judy R Block
10,000
10,000
0
0
Richard Fellin
10,000
10,000
0
0
Alice Ferdinand
10,000
10,000
0
0
Margaret Stone Higgins
10,000
10,000
0
0
Timothy P. Hughes
180,000
(3)
180,000
(3)
0
0
Mary M. Losty
80,000
(3)
80,000
(3)
0
0
Fourth Street Fund LP(50)
45,000
(2)
45,000
(2)
0
0
Andrew J. Jr. and Linda L. Pasden
10,000
10,000
0
0
Robert B. Prag
90,000
(6)
90,000
(6)
0
0
Donald Rauch
180,000
(3)
180,000
(3)
0
0
Richard Schmitt
20,000
(37)
20,000
(37)
0
0
Mary Jo Sherrock
10,000
10,000
0
0
Patricia M.B. Sinnott and Robert J. Sinnott
10,000
10,000
0
0
Susan D. Stavish
10,000
10,000
0
0
Colorado Financial Services Corporation(51)
2,700
(52)
2,700
(52)
0
0
John Lemak
14,000
(54)
14,000
(54)
0
0
Legend Merchant(55)
8,000
(56)
8,000
(56)
0
0
Jesup and Lamont(57)
350
(58)
350
(58)
0
0
Gar Wood Securities(59)
50,000
(60)
50,000
(60)
0
0
Dave Evanson
2,000
(61)
2,000
(61)
0
0
Scott Furman
150
(62)
150
(62)
0
0
Mark Moskowitz
10,200
(63)
10,200
(63)
0
0
Laird Cagan
11,625
(64)
11,625
(64)
0
0
Daniel Murphy
825
(65)
825
(65)
0
0
Brad Ellis
3,400
(66)
3,400
(66)
0
0
Ramin J. Azar
4,250
(44)
4,250
(44)
0
0
Sichenzia Ross Friedman Ference LLP
1,300,000
(53)
1,300,000
(53)
0
0
(1)
Represents the amount of shares that will be held by the selling
    stockholders after completion of this offering based on the
    assumptions that (a) all shares registered for sale by the
    registration statement of which this prospectus is part will be
    sold and (b) no other shares of our common stock are
    acquired or sold by the selling stockholders prior to completion
    of this offering. However, the selling stockholders may sell
    all, some or none of the shares offered pursuant to this
    prospectus and may sell other shares of our common stock that
    they may own pursuant to another registration statement under
    the Securities Act or sell some or all of their shares
38
Table of Contents
pursuant to an exemption from the registration provisions of the
    Securities Act, including under Rule 144. To our knowledge
    there are currently no agreements, arrangements or understanding
    with respect to the sale of any of the shares that may be held
    by the selling stockholders after completion of this offering or
    otherwise.
(2)
Includes currently exercisable warrants to purchase
    12,500 shares of our common stock at an exercise price of
    $2.00 per share.
(3)
Includes currently exercisable warrants to purchase
    50,000 shares of our common stock at an exercise price of
    $2.00 per share.
(4)
Includes currently exercisable warrants to purchase
    7,500 shares of our common stock at an exercise price of
    $2.00 per share.
(5)
Michael E. Baroody, as Beneficial Owner, has voting and
    dispositive power over these securities.
(6)
Includes currently exercisable warrants to purchase
    25,000 shares of our common stock at an exercise price of
    $2.00 per share.
(7)
George M. Bradvica, as Trustee, has voting and dispositive power
    over these securities.
(8)
Laird Cagan, as Managing Member, has voting and dispositive
    power over these securities.
(9)
Includes currently exercisable warrants to purchase
    250,000 shares of our common stock at an exercise price of
    $2.00 per share.
(10)
Michael T. Collins, as beneficial owner, has voting and
    dispositive power over these securities.
(11)
Lara Coviello, as Analyst, has voting and dispositive power over
    these securities.
(12)
Includes currently exercisable warrants to purchase
    100,000 shares of our common stock at an exercise price of
    $2.00 per share.
(13)
Garrett Gross, as Member, has voting and dispositive power over
    these securities.
(14)
Includes currently exercisable warrants to purchase
    37,500 shares of our common stock at an exercise price of
    $2.00 per share.
(15)
William Jarrell, as Beneficial Owner, has voting and dispositive
    power over these securities.
(16)
Jennifer Jarrell, as Beneficial Owner, has voting and
    dispositive power over these securities.
(17)
Includes currently exercisable warrants to purchase
    5,000 shares of our common stock at an exercise price of
    $2.00 per share.
(18)
Includes currently exercisable warrants to purchase
    150,000 shares of our common stock at an exercise price of
    $2.00 per share.
(19)
Kenneth B. Kurica and Ashley. Wiechmann, as Trustees, have
    voting and dispositive power over these securities.
(20)
Includes currently exercisable warrants to purchase
    17,500 shares of our common stock at an exercise price of
    $2.00 per share.
(21)
Includes currently exercisable warrants to purchase
    35,000 shares of our common stock at an exercise price of
    $2.00 per share.
(22)
John Lemak, as Manager, has voting and dispositive power over
    these securities.
(23)
John S. Lemak, Lacey E. Lemak, Eleanor J. Lemak, and Bailey A.
    Lemak, as Partners, have voting and dispositive power over these
    securities.
(24)
Ian Crosby, James Colclough, Cora Binchy, Robert Douglas, Mervyn
    Ellis, Guy Gibson, Karen Oliver, Paul Roper, Philip Dean,
    Phillippe De Salis, Simon Harvey, Nigel Mifsud, Pauline Quach,
    Daniel Recordon, Aris Tatos, Christelle Theurillat, Olivier
    Perroud, Magali Garcia, Nicola Roberts, Nicholas Bernard, Samuel
    Caporossi, Raji Karattuparambil, Corinne Jaggy, and Phillipe
    Rauber, as Authorized Signatures, have voting and dispositive
    power over these securities.
(25)
Includes currently exercisable warrants to purchase
    275,000 shares of our common stock at an exercise price of
    $2.00 per share.
(26)
Daniel Rivers, as Trustee has voting and dispositive power over
    these securities.
39
Table of Contents
(27)
Daniel River, as Beneficial Owner, has voting and dispositive
    power over these securities.
(28)
Includes currently exercisable warrants to purchase
    6,250 shares of our common stock at an exercise price of
    $2.00 per share.
(29)
Robert S. London, as Trustee, has voting and dispositive power
    over these securities.
(30)
Includes currently exercisable warrants to purchase
    150,000 shares of our common stock at an exercise price of
    $2.00 per share.
(31)
Ian Crosby, James Colclough, Cora Binchy, Robert Douglas, Mervyn
    Ellis, Guy Gilson, Karen Oliver, Paul Roper, Philip Dean,
    Phillippe De Salis, Simon Harvey, Nigel Mifsud, Pauline Quach,
    Daniel Recordon, Aris Tatos, Christelle Theurillat, Olivier
    Perroud, Magali Garcia, Nicola Roberts, Nicholas Bernard, Samuel
    Caporossi, Raji Karattuparambil, Corinne Jaggy, and Phillipe
    Rauber, as Authorized Signatures, have voting and dispositive
    power over these securities.
(32)
Michael C. Brown, as Trustee, has voting and dispositive power
    over these securities.
(33)
Includes currently exercisable warrants to purchase
    75,000 shares of our common stock at an exercise price of
    $2.00 per share.
(34)
Includes currently exercisable warrants to purchase
    15,000 shares of our common stock at an exercise price of
    $2.00 per share.
(35)
Linda U. Kuhlman, as Trustee, has voting and dispositive power
    over these securities.
(36)
Includes currently exercisable warrants to purchase
    100,000 shares of our common stock at an exercise price of
    $2.00 per share.
(37)
Includes currently exercisable warrants to purchase
    10,000 shares of our common stock at an exercise price of
    $2.00 per share.
(38)
John Liviakis, as Custodian, has voting and dispositive power
    over these securities.
(39)
John Liviakis, as Custodian, has voting and dispositive power
    over these securities.
(40)
Includes currently exercisable warrants to purchase
    2,500 shares of our common stock at an exercise price of
    $2.00 per share.
(41)
Includes currently exercisable warrants to purchase
    20,000 shares of our common stock at an exercise price of
    $2.00 per share.
(42)
James Molesky, as Trustee, has voting and dispositive power over
    these securities.
(43)
Includes currently exercisable warrants to purchase
    200,000 shares of our common stock at an exercise price of
    $2.00 per share.
(44)
Includes currently exercisable warrants to purchase
    4,250 shares of our common stock at an exercise price of
    $1.25 per share
(45)
Samuel Sherman, as Manager, has voting and dispositive power
    over these securities.
(46)
Paul Ferreri, as CIO and Founder, has voting and dispositive
    power over these securities.
(47)
Charles N. Travers, as Trustee, has voting and dispositive power
    over these securities.
(48)
Includes currently exercisable warrants to purchase
    100,000 shares of our common stock at an exercise price of
    $2.00 per share.
(49)
Todd A. Zuckerbrod, as Beneficial Owner, has voting and
    dispositive power over these securities.
(50)
Paul Mannion, as Managing Member, has voting and dispositive
    power over these securities.
(51)
Laird Cagan, as Managing Member, has voting and dispositive
    power over these securities.
(52)
Includes currently exercisable warrants to purchase
    33,000 shares of our common stock at an exercise price of
    $1.25 per share.
(53)
Includes 1,300,000 shares issued in connection with the
    Merger to Michael Hodges, our Chairman and Interim Chief
    Executive Officer, which are being held in escrow by Sichenzia
    Ross Friedman Ference LLP ("SRFF") as escrow agent for
    three years pursuant to the terms of an escrow agreement in
    order to cover certain potential claims, indebtedness and
    liabilities, including potential tax liabilities, of Genesis
    Fluid Solutions. Pursuant to
40
Table of Contents
the escrow agreement, Mr. Hodges has voting power over the
    shares and Harvey Kesner, a member of SRFF has dispositive power
    over the shares. Does not include shares received by SRFF as
    compensation for services provided to us.
(54)
Includes currently exercisable warrants to purchase
    14,000 shares of our common stock at an exercise price of
    $1.25 per share.
(55)
David W. Unsworth Jr., as Member, has voting and dispositive
    power over these securities.
(56)
Includes currently exercisable warrants to purchase
    8,000 shares of our common stock at an exercise price of
    $1.25 per share.
(57)
William Holub, as Chief Financial Officer, has voting and
    dispositive power over these securities.
(58)
Includes currently exercisable warrants to purchase
    20,000 shares of our common stock at an exercise price of
    $1.25 per share.
(59)
Dennis Gerecke, as EVP and COO, has voting and dispositive power
    over these securities.
(60)
Includes currently exercisable warrants to purchase
    50,000 shares of our common stock at an exercise price of
    $1.25 per share.
(61)
Includes currently exercisable warrants to purchase
    2,000 shares of our common stock at an exercise price of
    $1.25 per share.
(62)
Includes currently exercisable warrants to purchase
    150 shares of our common stock at an exercise price of
    $1.25 per share.
(63)
Includes currently exercisable warrants to purchase
    10,200 shares of our common stock at an exercise price of
    $1.25 per share.
(64)
Includes currently exercisable warrants to purchase
    11,625 shares of our common stock at an exercise price of
    $1.25 per share.
(65)
Includes currently exercisable warrants to purchase
    825 shares of our common stock at an exercise price of
    $1.25 per share.
(66)
Includes currently exercisable warrants to purchase
    3,400 shares of our common stock at an exercise price of
    $1.25 per share.
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DESCRIPTION
    OF SECURITIES
Authorized
    and Outstanding Capital Stock
We have authorized 125,000,000 shares of capital stock, par
    value $0.001 per share, of which 100,000,000 are shares of
    common stock and 25,000,000 are shares of
    "blank-check" preferred stock.
As of April 15, 2010, we had the following issued and
    outstanding securities on a fully diluted basis:
•
17,751,500 shares of common stock;
•
No shares of preferred stock;
•
Warrants to purchase 3,520,000 shares of common stock, of
    which (i) three-year callable warrants to purchase
    3,412,500 shares of common stock at an exercise price of
    $2.00 per share were issued to investors in the Private
    Placement and (ii) two-year warrants to purchase
    107,500 shares of common stock at an exercise price of
    $1.25 per share were issued to the Placement Agents in
    connection with the Private Placement; and,
•
Options to purchase 1,852,000 shares of common stock at an
    exercise price of $0.90 per share, options to purchase
    770,000 shares of common stock at an exercise price of
    $0.99 per share, and options to purchase 600,000 shares of
    common stock at an exercise price of $1.00 per share.
Common
    Stock
The holders of our common stock are entitled to one vote per
    share. In addition, the holders of our common stock will be
    entitled to receive ratably dividends, if any, declared by our
    board of directors out of legally available funds; however, the
    current policy of our board of directors is to retain earnings,
    if any, for operations and growth. Upon liquidation, dissolution
    or
winding-up,
the holders of our common stock will be entitled to share
    ratably in all assets that are legally available for
    distribution. The holders of our common stock will have no
    preemptive, subscription, redemption or conversion rights. The
    rights, preferences and privileges of holders of our common
    stock will be subject to, and may be adversely affected by, the
    rights of the holders of any series of preferred stock, which
    may be designated solely by action of our board of directors and
    issued in the future.
Preferred
    Stock
Our board of directors will be authorized, subject to any
    limitations prescribed by law, without further vote or action by
    our stockholders, to issue from time to time shares of preferred
    stock in one or more series. Each series of preferred stock will
    have the number of shares, designations, preferences, voting
    powers, qualifications and special or relative rights or
    privileges as shall be determined by our board of directors,
    which may include, among others, dividend rights, voting rights,
    liquidation preferences, conversion rights and preemptive rights.
Warrants
We issued three-year warrants to purchase 3,412,500 shares
    of our common stock, at an exercise price of $2.00 per share to
    investors in the Private Placement. We also issued two-year
    warrants to the Placement Agents to purchase an aggregate of
    107,500 shares of our common stock, at an initial cash
    exercise price of $1.25 per share, in connection with their
    efforts as placement agents in connection with the Private
    Placement. We are prohibited from effecting the exercise of the
    warrants to the extent that as a result of the exercise the
    holder of the exercised warrants beneficially owns more than
    4.99% (or, if this limitation is waived by the holder upon no
    less than 61 days prior notice to us, 9.99%) in the
    aggregate of the issued and outstanding shares of our common
    stock calculated immediately after giving effect to the issuance
    of shares of common stock upon the exercise of the warrants.
    Prior to exercise, the warrants do not confer upon holders any
    voting or any other rights as a stockholder. In the event that
    we are not in material compliance with our registration
    obligations set forth in the registration rights agreement
    entered into with the investors in the Private Placement, then
    the investors have a cashless exercise option upon exercising
    their warrants. In addition, so long as the underlying shares of
    common stock are registered in an effective registration
    statement, if and when shares of the common stock are trading at
    or above $3.50 per share for
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20 consecutive trading days, we will have the option to
    redeem the three-year warrants from the investors for a purchase
    price of $0.001 per share. A holder of three-year warrants will
    have 10 days following notice to convert their warrants or
    we may retire the warrants upon the payment of $0.001 per share
    underlying each warrant. The warrants contain provisions that
    protect the holders against dilution by adjustment of the
    purchase price in certain events such as stock dividends, stock
    splits and other similar events. In addition, the warrants have
    anti-dilution protection in the event we issue securities at a
    value less than $1.00 per share (see "Future Stock
    Issuances" below). No fractional shares will be issued upon
    exercise of the warrants. If, upon exercise of the warrants, a
    holder would be entitled to receive a fractional interest in a
    share, we may, in our discretion, upon exercise, round up to the
    nearest whole number the number of shares of our common stock to
    be issued to the warrant holder or otherwise equitably adjust
    the exercise amount and exercise price per share.
Options
As of April 15, 2010, we have granted options to purchase
    an aggregate of 3,222,000 shares of our common stock,
    pursuant to our 2009 Equity Incentive Plan. See "Equity
    Compensation Plan Information — Equity Incentive
    Plan."
Right to
    Purchase
On July 30, 2008, Genesis Fluid Solutions entered into a
    loan agreement providing for a secured loan in the amount of
    $200,000. The loan was secured by substantially all Genesis
    Fluid Solutions intellectual property, including its patents,
    and guaranteed by its chief executive officer, Michael Hodges.
    On August 31, 2009, the loan was repaid in full, and the
    collateral released from all liens. Under the loan agreement,
    Genesis Fluid Solutions granted to the lender a right to
    purchase up to the amount of principal and interest plus $40,000
    worth of its common stock at $1 per share for up to one year
    from the date of the loan's repayment. Following the
    repayment of the loan, this right to purchase allows the lender
    to purchase 280,000 shares of our common stock at $1.00 per
    share until August 31, 2010.
Registration
    Rights
We have agreed to file a "resale" registration
    statement with the SEC covering all shares of our common stock
    included within the Units sold in the Offering and underlying
    any warrants as well as the shares underlying the Placement
    Agent warrants, on or before the date which is 90 days
    after the final closing date of the Private Placement or the
    termination date, whichever occurs later (the "Filing
    Deadline"). We will maintain the effectiveness of the
    "resale" registration statement from the effective
    date through and until twelve (12) months after the final
    closing date, unless all securities registered under the
    registration statement have been sold or are otherwise able to
    be sold pursuant to Rule 144. We have agreed to use
    commercially reasonable efforts to have the "resale"
    registration statement declared effective by the SEC as soon as
    possible and, in any event, within 180 days after the final
    closing date of the Private Placement or the termination date,
    whichever occurs later (the "Effectiveness Deadline").
    In addition, if the registration statement is not effective,
    then the investors in the Offering are permitted to
    "piggy-back" onto other registration statements that
    are filed by the Company, with certain exceptions. One of these
    exceptions is in connection with a registration statement filed
    to register the sale of certain shares held in escrow in
    connection with the Merger. We are obligated to pay to investors
    in the Offering a fee of 1% per month of the investors'
    investment, payable in cash, up to a maximum of 10%, for each
    month: (i) in excess of the Filing Deadline that the
    registration statement has not been filed; and, (ii) in
    excess of the Effectiveness Deadline that the registration
    statement has not been declared effective; provided, however,
    that the Company shall not be obligated to pay any liquidated
    damages if the Company is unable to fulfill its registration
    obligations as a result of rules, regulations, positions or
    releases issued or actions taken by the SEC pursuant to its
    authority with respect to "Rule 415," provided
    the Company registers at that time the maximum number of shares
    of common stock permissible upon consultation with the staff of
    the SEC.
Lock-up
Agreements
All our shares of common stock issued in the Merger to the
    officers and directors of Genesis Fluid Solutions, as well as to
    certain stockholders of Genesis Fluid Solutions, in exchange for
    their shares of common stock of Genesis Fluid Solutions, in the
    following amounts, are subject to
lock-up
agreements: (i) Michael Hodges —
    1,533,800 shares and 600,000 shares underlying
    options, (ii) Mary Losty — 1,000,000 shares,
    (iii) Larry Campbell
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— 600,000 shares underlying options, and
    (iv) Carol Shobrook — 400,000 shares
    underlying options. These
lock-up
agreements provide that these persons may not sell or transfer
    any of their shares for a period of 12 months following the
    Merger, with the exception of contributions made to non-profit
    organizations qualified as charitable organizations under
    Section 501(c)(3) of the Internal Revenue Code of 1986, as
    amended, or in privately negotiated sales to persons who agree,
    in writing, to be bound to the terms of the
lock-up
agreements.
Transfer
    Agent
Our transfer agent is Island Stock Transfer, 100 Second Avenue
    South, Suite 104N, St. Petersburg, Florida 33701.
Future
    Stock Issuances
Until the earlier of (i) the 12 month anniversary of
    the initial closing date of the Private Placement or
    (ii) the date that the SEC declared a registration
    statement effective that registers the resale of the common
    stock issued in the Private Placement and the Warrant Shares
    issued in the Private Placement, should we issue or sell any
    shares of common stock or any warrants or other convertible
    security convertible into our common stock pursuant to which
    shares of our common stock may be acquired at a price less than
    $1.00 per share (except for issuances under a stock option plan,
    upon conversion or exercise of outstanding securities, or in
    connection with acquisitions or strategic transactions with a
    synergistic business), we shall promptly issue additional shares
    to each investor in the Private Placement in an amount
    sufficient that the subscription price paid in the Private
    Placement, when divided by the total number of shares issued
    will result in an actual price per share paid by each investor
    equal to the lower price (this is intended to be a "full
    ratchet" adjustment). For example, if an investor purchases
    one Unit in the Offering (25,000 shares of common stock)
    for a purchase price of $25,000 (equals $1.00 per share) and
    then the Company issues additional shares of common stock at
    $0.50 per share during the Adjustment Period, the Company will
    issue an additional 25,000 shares of common stock to the
    investor ($25,000/50,000 shares = $0.50 per share). In
    addition, in the event of the issuance of securities at a price
    less than $1.00 per share, the exercise price of the warrants
    issued in the Private Placement shall be reduced to four times
    the lower price, if the resulting exercise price is less than
    $2.00 per share.
Changes
    in and Disagreements with Accountants
Effective as of January 8, 2010, we dismissed Davis
    Accounting Group, P.C. ("Davis") as our
    independent registered public accounting firm. Davis had
    previously been engaged as the principal accountant to audit our
    financial statements.
The report of Davis on our financial statements for all periods
    prior to January 8, 2010 did not contain an adverse opinion
    or disclaimer of opinion, nor was it qualified or modified as to
    uncertainty, audit scope or accounting principles, except that
    the report was qualified as to our ability to continue as a
    going concern.
From our inception through January 8, 2010, there were no
    disagreements with Davis on any matter of accounting principles
    or practices, financial statement disclosure, or auditing scope
    or procedure which, if not resolved to the satisfaction of
    Davis, would have caused it to make reference to the matter in
    connection with its reports.
As of January 8, 2010, Salberg & Company, P.A.
    ("Salberg") was engaged as our new independent
    registered public accounting firm. Salberg is located at 2295 NW
    Corporate Blvd. Suite 240 Boca Raton, FL
33431-7328.
The appointment of Salberg was approved by our board of
    directors. During our two most recent fiscal years and the
    subsequent interim periods through January 8, 2010 (the
    date of engagement of Salberg), we did not consult Salberg
    regarding either: (i) the application of accounting
    principles to a specific completed or contemplated transaction,
    or the type of audit opinion that might be rendered on our
    financial statements; or (ii) any matter that was the
    subject of a disagreement as described in
    Item 304(a)(1)(iv) of
Regulation S-K.
Indemnification
    of Directors and Officers
Section 145 of the Delaware General Corporation Law (the
    "DGCL") provides, in general, that a corporation
    incorporated under the laws of the State of Delaware, as we are,
    may indemnify any person who was or is a party or
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is threatened to be made a party to any threatened, pending or
    completed action, suit or proceeding (other than a derivative
    action by or in the right of the corporation) by reason of the
    fact that such person is or was a director, officer, employee or
    agent of the corporation, or is or was serving at the request of
    the corporation as a director, officer, employee or agent of
    another enterprise, against expenses (including attorneys'
    fees), judgments, fines and amounts paid in settlement actually
    and reasonably incurred by such person in connection with such
    action, suit or proceeding if such person acted in good faith
    and in a manner such person reasonably believed to be in or not
    opposed to the best interests of the corporation and, with
    respect to any criminal action or proceeding, had no reasonable
    cause to believe such person's conduct was unlawful. In the
    case of a derivative action, a Delaware corporation may
    indemnify any such person against expenses (including
    attorneys' fees) actually and reasonably incurred by such
    person in connection with the defense or settlement of such
    action or suit if such person acted in good faith and in a
    manner such person reasonably believed to be in or not opposed
    to the best interests of the corporation, except that no
    indemnification will be made in respect of any claim, issue or
    matter as to which such person will have been adjudged to be
    liable to the corporation unless and only to the extent that the
    Court of Chancery of the State of Delaware or any other court in
    which such action was brought determines such person is fairly
    and reasonably entitled to indemnity for such expenses.
Our Certificate of Incorporation and Bylaws provide that we will
    indemnify our directors, officers, employees and agents to the
    extent and in the manner permitted by the provisions of the
    DGCL, as amended from time to time, subject to any permissible
    expansion or limitation of such indemnification, as may be set
    forth in any stockholders' or directors' resolution or
    by contract. In addition, our director and officer
    indemnification agreements with each of our directors and
    officers provide, among other things, for the indemnification to
    the fullest extent permitted or required by Delaware law,
    provided that no indemnitee will be entitled to indemnification
    in connection with any claim initiated by the indemnitee against
    us or our directors or officers unless we join or consent to the
    initiation of the claim, or the purchase and sale of securities
    by the indemnitee in violation of Section 16(b) of the
    Exchange Act.
Any repeal or modification of these provisions approved by our
    stockholders will be prospective only and will not adversely
    affect any limitation on the liability of any of our directors
    or officers existing as of the time of such repeal or
    modification.
We are also permitted to apply for insurance on behalf of any
    director, officer, employee or other agent for liability arising
    out of his actions, whether or not the DGCL would permit
    indemnification.
Limitation
    of Liability of Directors
Our certificate of incorporation provides that, to the fullest
    extent permitted by the DGCL, no director of the Company will be
    personally liable to the Company or its stockholders for
    monetary damages for breach of fiduciary duty as a director.
Anti-Takeover
    Effect of Delaware Law, Certain By-Law Provisions
Certain provisions of our Bylaws are intended to strengthen the
    board of directors' position in the event of a hostile
    takeover attempt. These provisions have the following effects:
We are subject to the provisions of Section 203 of the
    DGCL, an anti-takeover law. In general, Section 203
    prohibits a publicly held Delaware corporation from engaging in
    a "business combination" with an "interested
    stockholder" for a period of three years after the date of
    the transaction in which the person became an interested
    stockholder, unless the business combination is approved in a
    prescribed manner. For purposes of Section 203, a
    "business combination" includes a merger, asset sale
    or other transaction resulting in a financial benefit to the
    interested stockholder, and an "interested
    stockholder" is a person who, together with affiliates and
    associates, owns, or within three years prior, did own, 15% or
    more of the corporation's voting stock.
Disclosure
    of Commission Position on Indemnification for Securities Act
    Liabilities
Insofar as indemnification for liabilities arising under the
    Securities Act may be permitted to our directors, officers, and
    persons controlling us, we have been advised that it is the
    SEC's opinion that such indemnification is against public
    policy as expressed in the Securities Act and is, therefore,
    unenforceable.
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PLAN OF
    DISTRIBUTION
Each selling stockholder and any of their pledgees, assignees
    and
successors-in-interest
may, from time to time, sell any or all of their shares of
    common stock on the over-the-counter market or any other stock
    exchange, market or trading facility on which the shares are
    traded, or in private transactions. These sales may be at fixed
    or negotiated prices. A selling stockholder may use any one or
    more of the following methods when selling shares:
•
ordinary brokerage transactions and transactions in which the
    broker-dealer solicits purchasers;
•
block trades in which the broker-dealer will attempt to sell the
    shares as agent but may position and resell a portion of the
    block as principal to facilitate the transaction;
•
purchases by a broker-dealer as principal and resale by the
    broker-dealer for its account;
•
conducting business in places where business practices and
    customs are unfamiliar and unknown;
•
an exchange distribution in accordance with the rules of the
    applicable exchange;
•
privately negotiated transactions;
•
settlement of short sales entered into after the date of this
    prospectus;
•
broker-dealers may agree with the selling stockholders to sell a
    specified number of the shares at a stipulated price per share;
•
a combination of any of these methods of sale;
•
through the writing or settlement of options or other hedging
    transactions, whether through an options exchange or
    otherwise; or
•
any other method permitted pursuant to applicable law.
The selling stockholders may also sell shares under
    Rule 144 under the Securities Act, if available, rather
    than under this prospectus.
Broker-dealers engaged by the selling stockholders may arrange
    for other brokers-dealers to participate in sales.
    Broker-dealers may receive commissions or discounts from the
    selling stockholders (or, if any broker-dealer acts as agent for
    the purchaser of shares, from the purchaser) in amounts to be
    negotiated. Each selling stockholder does not expect these
    commissions and discounts relating to its sales of shares to
    exceed what is customary in the types of transactions involved.
GarWood Securities LLC, Colorado Financial Service Corporation,
    WFG Investments, Inc., Legend Merchant Group, and
    Jesup & Lamont Securities Corp. are registered
    broker-dealers and FINRA member firms and listed as selling
    stockholders in this prospectus. Colorado Financial Service
    Corporation, WFG Investments, Inc., Legend Merchant Group and
    Jessup & Lamont Securities Group served as placement
    agents in our recently completed Private Placement offering, and
    received, in addition to cash commissions, warrants to purchase
    an aggregate of 50,000, 33,000, 14,000, 8,000 and
    2,500 shares of our common stock, respectively, with an
    exercise price of $1.25 per share. In addition, GarWood
    Securities LLC received warrants to purchase an aggregate of
    50,000 shares of common stock effective on
    November 10, 2009, which expire on November 11, 2011.
    The registration statement of which this prospectus forms a part
    includes the shares of common stock underlying the warrants held
    by these firms and certain associated persons. The SEC has
    indicated that it is their position that any broker-dealer firm
    which is a selling stockholder is deemed an underwriter and
    therefore these firms may be deemed an underwriter with respect
    to the securities being sold by them.
Of the total of 33,000 warrants held by Colorado Financial
    Service Corporation (or its associated persons as listed in the
    "Selling Stockholders" table above), 13,000 were
    received in connection with the Private Placement closing on
    October 30, 2009 and the remainder were received in
    connection with the final closing of the Private Placement on
    December 29, 2009, and expire on October 30, 2011 and
    December 29, 2011, respectively. The 14,000 warrants held
    by WFG Investments, Inc. (or its associated persons as listed in
    the "Selling Stockholders" table above) were received
    in connection with the Private Placement closing on
    October 30, 2009, and expire on October 30, 2011. Of
    the total of 8,000 warrants held by Legend Merchant Group (or
    its associated persons as listed
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in the "Selling Stockholders" table above), 2,000 were
    received in connection with the Private Placement closing on
    November 19, 2009 and the remainder were received in
    connection with the final closing of the Private Placement on
    December 29, 2009, and expire on November 19, 2011 and
    December 29, 2011, respectively. The 2,500 warrants held by
    Jesup & Lamont Securities Corp (or its associated
    persons as listed in the "Selling Stockholders" table
    above) were received in connection with the final closing of the
    Private Placement on December 29, 2009, and expire on
    December 29, 2011. The 107,500 shares of common stock
    issued or issuable upon conversion of Placement Agent warrants
    received by these firms (or their assignees as indicated in the
    "Selling Stockholders" table above) are restricted
    from sale, transfer, assignment, pledge or hypothecation or
    being the subject of any hedging, short sale, derivative, put,
    or call transaction that would result in the effective economic
    disposition of the securities by any person for a period of
    180 days immediately following the effective date of the
    registration statement, of which this prospectus forms a part,
    except transfers of the warrants to officers or partners within
    these firms as allowed under FINRA Rule 2710 (g)(1) and (2).
Each of these firms has indicated to us its willingness to act
    as selling agent on behalf of certain of the selling
    stockholders named in this prospectus under "Selling
    Stockholders" that purchased our privately placed
    securities. All shares sold, if any, on behalf of selling
    stockholders by these firms would be in transactions executed by
    these firms on an agency basis and commissions charged to its
    customers in connection with each transaction shall not exceed a
    maximum of 4.5% of the gross proceeds. These firms do not have
    an underwriting agreement with us
and/or
the
    selling stockholders and no selling stockholders are required to
    execute transactions through these firms. Further, other than
    their existing brokerage relationship as customers with these
    firms, no selling stockholders have any pre-arranged agreement,
    written or otherwise, with these firms to sell their securities
    through these firms.
FINRA Rule 2710 requires FINRA member firms (unless an
    exemption applies) to satisfy the filing requirements of
    Rule 2710 in connection with the resale, on behalf of
    selling stockholders, of the securities on a principal or agency
    basis. FINRA Notice to Members
88-101 states
that in the event a selling stockholder intends to sell any of
    the shares registered for resale in this Prospectus through a
    member of FINRA participating in a distribution of our
    securities, the member is responsible for ensuring that a timely
    filing, if required, is first made with the Corporate Finance
    Department of FINRA and disclosing to FINRA the following:
•
it intends to take possession of the registered securities or to
    facilitate the transfer of the certificates;
•
the complete details of how the selling shareholders shares are
    and will be held, including location of the particular accounts;
•
whether the member firm or any direct or indirect affiliates
    thereof have entered into, will facilitate or otherwise
    participate in any type of payment transaction with the selling
    shareholders, including details regarding these
    transactions; and
•
in the event any of the securities offered by the selling
    shareholders are sold, transferred, assigned or hypothecated by
    any selling shareholder in a transaction that directly or
    indirectly involves a member firm of FINRA or any affiliates
    thereof, that prior to or at the time of said transaction the
    member firm will timely file for review with the Corporate
    Finance Department of FINRA all relevant documents with respect
    to these transactions.
FINRA has recently proposed rule changes to FINRA Rule 2710
    which may, if approved, modify the requirements of its members
    to make filings under FINRA Rule 2710. Further, no FINRA
    member firm may receive compensation in excess of that allowable
    under FINRA rules, including Rule 2710, in connection with
    the resale of the securities by the selling shareholders, which
    total compensation may not exceed 8%.
We have advised the selling stockholders that the
    anti-manipulation rules of Regulation M under the Exchange
    Act may apply to sales of shares in the market and to the
    activities of the selling stockholders and their affiliates. In
    addition, we will make copies of this Prospectus available to
    the selling stockholders for the purpose of satisfying the
    Prospectus delivery requirements of the Securities Act.
In connection with the sale of our common stock or interests
    therein, the selling stockholders may enter into hedging
    transactions with broker-dealers or other financial
    institutions, which may in turn engage in short sales of the
    common stock in the course of hedging the positions they assume.
    The selling stockholders may also sell shares
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of our common stock short and deliver these securities to close
    out their short positions, or loan or pledge the common stock to
    broker-dealers that in turn may sell these securities. The
    selling stockholders may also enter into option or other
    transactions with broker-dealers or other financial institutions
    or the creation of one or more derivative securities which
    require the delivery to these broker-dealers or other financial
    institutions of shares offered by this prospectus, which shares
    these broker-dealers or other financial institutions may resell
    pursuant to this prospectus (as supplemented or amended to
    reflect these transactions).
The selling stockholders and any broker-dealers or agents that
    are involved in selling the shares may be deemed to be
    "underwriters" within the meaning of the Securities
    Act in connection with these sales. In this event, any
    commissions received by these broker-dealers or agents and any
    profit on the resale of the shares purchased by them may be
    deemed to be underwriting commissions or discounts under the
    Securities Act. Each selling stockholder has informed us that it
    does not have any agreement or understanding, directly or
    indirectly, with any person to distribute the common stock. In
    no event shall any broker-dealer receive fees, commissions and
    markups which, in the aggregate, would exceed eight percent (8%).
We are required to pay certain fees and expenses incurred by us
    incident to the registration of the shares. We have agreed to
    indemnify the selling stockholders against certain losses,
    claims, damages and liabilities, including liabilities under the
    Securities Act.
The selling stockholders may agree to indemnify any agent,
    dealer or broker-dealer that participates in transactions
    involving sales of the shares against certain liabilities,
    including liabilities arising under the Securities Act.
Because selling stockholders may be deemed to be
    "underwriters" within the meaning of the Securities
    Act, they will be subject to the prospectus delivery
    requirements of the Securities Act. In addition, any securities
    covered by this prospectus which qualify for sale pursuant to
    Rule 144 under the Securities Act may be sold under
    Rule 144 rather than under this prospectus. There is no
    underwriter or coordinating broker acting in connection with the
    proposed sale of the shares by the selling stockholders.
Under applicable rules and regulations under the Exchange Act,
    any person engaged in the distribution of the shares may not
    simultaneously engage in market making activities with respect
    to our common stock for a period of two business days prior to
    the commencement of the distribution. In addition, the selling
    stockholders will be subject to applicable provisions of the
    Exchange Act and the rules and regulations thereunder, including
    Regulation M, which may limit the timing of purchases and
    sales of shares of our common stock by the selling stockholders
    or any other person. We will make copies of this prospectus
    available to the selling stockholders and have informed them of
    the need to deliver a copy of this prospectus to each purchaser
    at or prior to the time of the sale.
LEGAL
    MATTERS
Sichenzia Ross Friedman and Ference LLP ("SRFF"), New
    York, New York, will pass upon the validity of the shares of our
    common stock to be sold in this offering. SRFF, as escrow agent,
    and Harvey Kesner, a member of SRFF, beneficially owns shares of
    our common stock.
EXPERTS
The consolidated financial statements as of and for the year
    ended December 31, 2009 included in this prospectus have
    been audited by Salberg & Company, P.A., an
    independent registered public accounting firm as set forth in
    their report, and are included in reliance upon such report
    given on the authority of such firm as experts in accounting and
    auditing. The financial statements as of and for the year ended
    December 31, 2008 included in this prospectus have been
    audited by Davis Accounting Group P.C., an independent
    registered public accounting firm as set forth in their report,
    and are included in reliance upon such report given on the
    authority of such firm as experts in accounting and auditing.
48
Table of Contents
WHERE YOU
    CAN FIND ADDITIONAL INFORMATION
We have filed with the SEC a registration statement on
Form S-1,
together with any amendments and related exhibits, under the
    Securities Act with respect to our shares of common stock
    offered by this prospectus. The registration statement contains
    additional information about us and our shares of common stock
    that we are offering in this prospectus.
We file annual, quarterly and current reports and other
    information with the SEC under the Exchange Act. Our SEC filings
    are available to the public over the Internet at the SEC's
    website at
http://www.sec.gov.
You may also read and copy any document we file at the
    SEC's public reference room located at
    100 F Street, N.E., Washington, D.C. 20549.
    Please call the SEC at
1-800-SEC-0330
for further information on the public reference rooms and their
    copy charges. You may also request a copy of those filings,
    excluding exhibits, from us at no cost. These requests should be
    addressed to us at: Michael Hodges, Interim Chief Executive
    Officer, Genesis Fluid Solutions Holdings, Inc., 830 Tender Foot
    Hill Road #301 Colorado Springs, CO 80906.
49
Genesis
    Fluid Solutions Holdings, Inc. and Subsidiary
Index to Consolidated Financial Statements
Page
Financial Statements
Reports of Independent Registered Public
    Accounting Firms
F-2
Consolidated Balance Sheets —
    December 31, 2009 and 2008
F-4
Consolidated Statements of Operations for the
    years ended December 31, 2009 and 2008
F-5
Consolidated Statements of Changes in
    Stockholders' Equity (Deficiency) for the years ended
    December 31, 2009 and 2008
F-6
Consolidated Statements of Cash Flows for the
    years ended December 31, 2009 and 2008
F-7
Notes to Consolidated Financial Statements
F-9
F-1
Table of Contents
Report of
    Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders' of:
Genesis Fluid Solutions Holdings, Inc.
We have audited the accompanying consolidated balance sheet of
    Genesis Fluid Solutions Holdings, Inc. and Subsidiary as of
    December 31, 2009 and the related consolidated statements
    of operations, changes in stockholders' equity
    (deficiency), and cash flows for the year then ended. These
    consolidated financial statements are the responsibility of the
    Company's management. Our responsibility is to express an
    opinion on these consolidated financial statements based on our
    audit.
We conducted our audit in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the consolidated financial
    statements are free of material misstatement. An audit includes
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the consolidated financial statements. An audit
    also includes assessing the accounting principles used and
    significant estimates made by management, as well as evaluating
    the overall consolidated financial statement presentation. We
    believe that our audit provides a reasonable basis for our
    opinion.
In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the
    consolidated financial position of Genesis Fluid Solutions
    Holdings, Inc. and Subsidiary as of December 31, 2009 and
    the consolidated results of its operations and its cash flows
    for the year then ended in conformity with accounting principles
    generally accepted in the United States of America.
The accompanying consolidated financial statements have been
    prepared assuming the Company will continue as a going concern.
    As discussed in Note 3 to the consolidated financial
    statements, the Company reported a net loss and used cash in
    operations of $2,247,767 and $1,737,841, respectively, in 2009.
    As of December 31, 2009, the Company had an accumulated
    deficit of $6,217,899. In addition, the Company has minimal
    revenue generating activities in 2009 and is transitioning to a
    new business model. These matters raise substantial doubt about
    the Company's ability to continue as a going concern.
    Management's plans as to these matters are also described
    in Note 3. The consolidated financial statements do not
    include any adjustments that might result from the outcome of
    this uncertainty.
/s/  Salberg
    & Company, P.A.
SALBERG &
    COMPANY, P.A.
Boca Raton, Florida
April 14, 2010
F-2
Table of Contents
REPORT OF
    REGISTERED INDEPENDENT AUDITORS
To the Board of Directors and Stockholders of
Genesis Fluid Solutions, Ltd.:
We have audited the accompanying balance sheet of Genesis Fluid
    Solutions, Ltd. (a Colorado corporation) as of December 31,
    2008, and the related statements of operations and comprehensive
    (loss), stockholders' (deficit), and cash flows for the
    year then ended. These financial statements are the
    responsibility of the Company's management. Our
    responsibility is to express an opinion on these financial
    statements based on our audit.
We conducted our audit in accordance with the standards of the
    Public Company Accounting Oversight Board (United States of
    America). Those standards require that we plan and perform the
    audit to obtain reasonable assurance about whether the financial
    statements are free of material misstatement. The Company is not
    required to have, nor were we engaged to perform, an audit of
    its internal control over financial reporting. Our audit
    included consideration of internal control over financial
    reporting as a basis for designing audit procedures that are
    appropriate in the circumstances, but not for the purpose of
    expressing an opinion on the effectiveness of the Company's
    internal control over financial reporting. Accordingly, we
    express no such opinion. An audit includes examining, on a test
    basis, evidence supporting the amounts and disclosures in the
    financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provide a
    reasonable basis for our opinion.
In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of Genesis Fluid Solutions, Ltd. as of December 31, 2008,
    and the results of its operations and its cash flows for the
    year ended December 31, 2008, in conformity with accounting
    principles generally accepted in the United States of America.
The accompanying financial statements have been prepared
    assuming that the Company will continue as a going concern. As
    discussed in Note 2 to the financial statements, the
    Company has experienced operating losses, and has negative
    working capital. These and other factors raise substantial doubt
    about the Company's ability to continue as a going concern.
    Management's plans regarding these matters are also
    described in Note 2 to the financial statements. The
    financial statements do not include any adjustments that might
    result from the outcome of this uncertainty.
Respectfully submitted,
/s/ Davis Accounting Group P.C.
Cedar City, Utah,
November 11, 2009
F-3
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE
    SHEETS
December 31, 2009
December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents
$
4,873,912
$
9,076
Costs in excess of billings on uncompleted contracts
59,506
—
Prepaid expenses and other current assets
185,273
60,468
Total current assets
5,118,691
69,544
Property and equipment, net
719,469
844,999
Patents, net
—
54,492
Patents pending
—
98,097
Other assets
—
2,334
Total assets
$
5,838,160
$
1,069,466
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable
$
82,206
$
110,524
Accrued expenses
476,800
771,540
Warrant derivative liability
804,718
—
Billings in excess of costs on uncompleted contracts
201,219
215,000
Equipment payable
84,795
84,795
Settlement due to vendor, current portion
84,667
67,334
Loan payable
68,076
68,076
Obligations under capital leases, current portion
59,216
143,428
Convertible notes payable
10,000
723,190
Secured note payable
—
116,662
Notes payable — related parties
14,575
50,819
Total current liabilities
1,886,272
2,351,368
Obligations under capital leases, net of current portion
—
117,822
Settlement due to vendor, net of current portion
—
84,666
Total liabilities
1,886,272
2,553,856
Commitments and contingencies — See Note 15
Stockholders' equity (deficiency):
Preferred stock, $0.001 par value; 25,000,000 shares
    authorized, zero shares issued and outstanding
—
—
Common stock, $0.001 par value; 100,000,000 shares
    authorized, 17,668,500 and 10,000,000 issued and outstanding,
    respectively
17,669
10,000
Additional paid-in capital
10,152,118
2,486,609
Accumulated other comprehensive loss
—
(10,867
)
Accumulated deficit
(6,217,899
)
(3,970,132
)
Total stockholders' equity (deficiency)
3,951,888
(1,484,390
)
Total liabilities and stockholders' equity (deficiency)
$
5,838,160
$
1,069,466
The accompanying notes are an integral part of these
    consolidated financial statements.
F-4
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF
    OPERATIONS
For the
For the
Year Ended
Year Ended
December 31, 2009
December 31, 2008
Revenues
$
—
$
35,097
Cost of revenues
—
393,683
Gross loss
—
(358,586
)
Operating expenses:
Selling, general and administrative
1,941,484
713,424
Total operating expenses
1,941,484
713,424
Operating loss from continuing operations
(1,941,484
)
(1,072,010
)
Other income (expense):
Change in warrant derivative liability
21,960
—
Interest income
198
10,103
Interest expense
(287,682
)
(332,219
)
Inducement expense on debt conversion
(40,759
)
—
Loss on disposal of property and equipment
—
(174,125
)
Total other income (expense), net
(306,283
)
(496,241
)
Loss from continuing operations before income taxes
(2,247,767
)
(1,568,251
)
Income tax benefit
—
—
Net loss
(2,247,767
)
(1,568,251
)
Other comprehensive income (loss):
Gain (loss) on foreign currency translation, net of income tax
    of $0
10,867
(445
)
Total other comprehensive income (loss), net of income taxes
10,867
(445
)
Comprehensive loss
$
(2,236,900
)
$
(1,568,696
)
Net loss per share — basic and diluted
$
(0.19
)
$
(0.16
)
Weighted average number of common shares — basic and
    diluted
12,050,759
10,000,000
The accompanying notes are an integral part of these
    consolidated financial statements.
F-5
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES
    IN STOCKHOLDERS' EQUITY (DEFICIENCY)
For the Years Ended December 31, 2009 and 2008
Accumulated
Total
Additional
Other
Stockholders'
Common Stock
Paid-In
Comprehensive
Accumulated
Equity
Shares
Amount
Capital
Loss
Deficit
(Deficiency)
Balance, December 31, 2007
10,000,000
$
10,000
$
2,230,309
$
(10,422
)
$
(2,401,881
)
$
(171,994
)
Principal stockholder contribution of cash derived from sale of
    common shares of Company stock
—
—
68,360
—
—
68,360
Principal stockholder issuance of shares on behalf of company
    for conversion of convertible notes payable and accrued interest
—
—
187,940
—
—
187,940
Foreign currency translation loss
—
—
—
(445
)
—
(445
)
Net loss, 2008
—
—
—
—
(1,568,251
)
(1,568,251
)
Balance, December 31, 2008
10,000,000
10,000
2,486,609
(10,867
)
(3,970,132
)
(1,484,390
)
Principal stockholder contribution of cash derived from sale of
    common shares of Company stock
—
—
491,374
—
—
491,374
Principal stockholder issuance of common shares on behalf of
    company to settle debt and accrued interest
—
—
770,063
—
—
770,063
Principal stockholder issuance of common shares on behalf of
    company for loan origination fees
—
—
265
—
—
265
Common shares returned to treasury and canceled
(1,232,730
)
(1,233
)
1,233
—
—
—
Common shares returned in exchange for stock options issued
(1,972,000
)
(1,972
)
1,972
—
—
—
Common shares issued to settle debt and accrued interest
101,730
102
142,312
—
—
142,414
Common shares issued for nominal cash and services
2,584,000
2,584
23,256
—
—
25,840
Consideration paid by stockholders, on behalf of company, to
    service providers
—
—
25,000
—
—
25,000
Consideration paid by stockholders, on behalf of company, to
    settle accounts payable
—
—
125,000
—
—
125,000
Common shares issued pursuant to recapitalization
1,160,000
1,160
(1,160
)
—
—
—
Common shares and warrants issued under private placement, net
    of offering costs
6,150,000
6,150
5,903,600
—
—
5,909,750
Common shares and warrants issued for conversions of bridge
    notes payable
877,500
878
775,372
—
—
776,250
Stock option expense
—
—
233,900
—
—
233,900
Reclassifications of warrants from equity to a liability
—
—
(826,678
)
—
—
(826,678
)
Foreign currency translation gain
—
—
—
10,867
—
10,867
Net loss, 2009
—
—
—
—
(2,247,767
)
(2,247,767
)
Balance, December 31, 2009
17,668,500
$
17,669
$
10,152,118
$
—
$
(6,217,899
)
$
3,951,888
The accompanying notes are an integral part of these
    consolidated financial statements.
F-6
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH
    FLOWS
For the
For the
Year Ended
Year Ended
December 31, 2009
December 31, 2008
Cash flows from operating activities:
Net loss
$
(2,247,767
)
$
(1,568,251
)
Adjustments to reconcile net loss from continuing operations to
    net cash used in operating activities:
Stock-based compensation
284,714
—
Impairment of patents pending
119,896
—
Depreciation of property and equipment
112,345
252,609
Stock-based interest expense
101,250
—
Impairment of property and equipment
61,107
124,630
Impairment of patents
50,077
—
Convertible debt inducement expense
40,759
—
Amortization of patents
4,415
4,415
Stock-based loan fees
265
—
Gain on settlement of accounts payable
(118,910
)
—
Change in warrant derivative liability
(21,960
)
—
Loss on disposal of property and equipment
—
174,125
Changes in operating assets and liabilities:
Decrease in accounts receivable
—
72,728
Decrease in inventories
—
2,116
Increase in costs in excess of billings on uncompleted contracts
(59,506
)
—
Increase in prepaid expenses and other current assets
(124,805
)
—
Decrease in other assets
2,334
30,000
Increase (decrease) in accounts payable
215,592
(144,518
)
(Decrease) increase in accrued expenses
(76,533
)
320,687
(Decrease) increase in billings in excess of costs on
    uncompleted contracts
(13,781
)
215,000
Decrease in settlement due to vendor
(67,333
)
(58,984
)
Net cash used in operating activities
(1,737,841
)
(575,443
)
Cash flows from investing activities:
Purchases of property and equipment
(47,922
)
(10,712
)
Patent costs
(21,799
)
(64,290
)
Net cash used in investing activities
(69,721
)
(75,002
)
Cash flows from financing activities:
Proceeds from common stock and warrants issued for cash, net of
    offering costs
5,909,750
—
Capital contributions received
491,374
68,360
Proceeds from issuance of convertible notes payable
773,500
595,330
Principal payments on convertible notes payable
(158,179
)
(94,007
)
Proceeds from issuance of notes payable
—
607,987
Principal payments on secured note payable
(116,662
)
(297,529
)
Proceeds from notes payable — related parties
—
71,975
Principal payments on notes payable — related parties
(36,244
)
(85,500
)
Debt issuance costs
(4,000
)
Principal payments on capital leases
(202,034
)
(252,018
)
Nominal cash received for common shares issued for services
26
—
Net cash provided by financing activities
6,661,531
610,598
Effect of exchange rate changes on cash
10,867
(445
)
Net increase (decrease) in cash and cash equivalents
4,864,836
(40,292
)
Cash and cash equivalents at beginning of year
9,076
49,368
Cash and cash equivalents at end of year
$
4,873,912
$
9,076
The accompanying notes are an integral part of these
    consolidated financial statements.
F-7
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH
    FLOWS — (Continued)
For the
For the
Year Ended
Year Ended
December 31, 2009
December 31, 2008
Supplemental disclosure of cash flow information:
Interest paid
$
111,847
$
—
Income taxes paid
$
—
$
—
Non-cash investing and financing activities:
Issuance of common stock to settle accounts payable
$
125,000
$
—
Conversion of accrued interest payable to convertible notes
    payable
$
129,298
$
—
Conversion of accrued interest payable to common stock
$
88,909
$
—
Conversion of convertible notes payable to common stock
$
1,457,809
$
—
Reclassification of warrant derivative liability from additional
    paid-in capital
$
826,678
$
—
The accompanying notes are an integral part of these
    consolidated financial statements.
F-8
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED
    FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Note 1.
Nature of
    Operations and Recapitalization
Overview
Genesis Fluid Solutions Holdings, Inc. ("Holdings" or
    the "Company") is an environmental company that
    supplies a Rapid Dewatering System ("RDS") technology
    for dredged material, including fine-grained sediment, for lake
    and waterway restoration. The Company's subsidiary, Genesis
    Fluid Solutions, Ltd ("Genesis Ltd"), was incorporated
    on October 26, 2005 under the laws of the State of Colorado.
On October 30, 2009, Genesis Ltd. entered into and
    consummated an Agreement of Merger and Plan of Reorganization
    (the "Merger Agreement") with Holdings, an inactive
    publicly-held company, and Genesis Fluid Solutions Acquisition
    Corp. ("Acquisition Sub"), which was Holdings'
    newly formed, wholly-owned Delaware subsidiary. Upon closing of
    the transaction contemplated under the Merger Agreement (the
    "Merger"), Acquisition Sub merged with and into
    Genesis Ltd., and Genesis Ltd., as the surviving corporation,
    became a wholly-owned subsidiary of Holdings. On
    October 30, 2009, the Company changed its name to Genesis
    Fluid Solutions Holdings, Inc.
At the closing of the Merger, each share of Genesis Ltd. common
    stock that was issued and outstanding immediately prior to the
    closing of the Merger was exchanged for ten shares of
    Holdings' common stock. This transaction was treated as a
    recapitalization of Genesis Ltd. with 1,160,000 common shares
    deemed issued to the pre-merger stockholders of Holdings.
    Subsequent to the merger, but prior to the same day closing of
    the first traunche of a private placement of common stock and
    warrants, the stockholders of Genesis Ltd. had approximately 89%
    voting control of the Company. The accounting effects of the
    recapitalization are reflected retroactively for all periods
    presented in the accompanying consolidated financial statements
    and footnotes (See Note 16).
Note 2.
Significant
    Accounting Policies
Use of
    Estimates
Our consolidated financial statements are prepared in accordance
    with accounting principles generally accepted in the United
    States ("GAAP"). These accounting principles require
    us to make certain estimates, judgments and assumptions. We
    believe that the estimates, judgments and assumptions upon which
    we rely are reasonable based upon information available to us at
    the time that these estimates, judgments and assumptions are
    made. These estimates, judgments and assumptions can affect the
    reported amounts of assets and liabilities as of the date of our
    consolidated financial statements as well as the reported
    amounts of revenues and expenses during the periods presented.
    Our consolidated financial statements would be affected to the
    extent there are material differences between these estimates
    and actual results. In many cases, the accounting treatment of a
    particular transaction is specifically dictated by GAAP and does
    not require management's judgment in its application. There
    are also areas in which management's judgment in selecting
    any available alternative would not produce a materially
    different result. Significant estimates include the estimates of
    depreciable lives and valuation of property and equipment,
    valuation and amortization periods of intangible assets,
    valuation of derivatives, valuation of payroll tax
    contingencies, valuation of share-based payments, and the
    valuation allowance on deferred tax assets.
Principles
    of Consolidation
The consolidated financial statements include the accounts of
    Holdings and its wholly-owned subsidiary Genesis Ltd. All
    significant inter-company balances and transactions have been
    eliminated in consolidation.
Cash and
    Cash Equivalents
The Company considers all short-term highly liquid investments
    with an original maturity at the date of purchase of three
    months or less to be cash equivalents. There were no cash
    equivalents at December 31, 2009.
F-9
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Accounts
    Receivable
The Company records accounts receivable related to its
    construction contracts based on billings or on amounts due under
    the contractual terms. Accounts receivable throughout the year
    may decrease based on payments received, credits for change
    orders, or back charges incurred.
Management reviews accounts receivable periodically to determine
    if any receivables will potentially be uncollectible.
    Management's evaluation includes several factors including
    the aging of the accounts receivable balances, a review of
    significant past due accounts, economic conditions, and our
    historical write-off experience, net of recoveries. The Company
    includes any accounts receivable balances that are determined to
    be uncollectible, along with a general reserve, in its allowance
    for doubtful accounts. After all attempts to collect a
    receivable have failed, the receivable is written off against
    the allowance.
Property
    and Equipment
Property and equipment are stated at cost less accumulated
    depreciation. Depreciation is provided for on a straight-line
    basis over the estimated useful lives of the assets per the
    following table. Expenditures for additions and improvements are
    capitalized while repairs and maintenance are expensed as
    incurred.
Category
Depreciation Term
Computer and office equipment
3-5 years
Equipment and tools
5-10 years
Intangible
    Assets
The Company records the purchase of intangible assets not
    purchased in a business combination in accordance with the
    Financial Accounting Standards Board ("FASB")
    Accounting Standards Codification ("ASC" or
    "Codification") Topic 350 "Intangibles - Goodwill
    and Other" and records intangible assets acquired in a
    business combination in accordance with ASC Topic 805
    "Business Combinations".
The Company capitalizes the costs associated with the
    application for and issuance of international patents related to
    its technology. Such costs are classified as patents pending in
    the accompanying consolidated balance sheet until such time as
    the patents are issued. Upon issuance, such costs are
    reclassified to patents and subsequently amortized over the
    useful life of the related patents.
Long-Lived
    Assets
Management evaluates the recoverability of the Company's
    identifiable intangible assets and other long-lived assets in
    accordance with ASC Topic 360, "Property Plant and
    Equipment," which generally requires the assessment of
    these assets for recoverability when events or circumstances
    indicate a potential impairment exists. Events and circumstances
    considered by the Company in determining whether the carrying
    value of identifiable intangible assets and other long-lived
    assets may not be recoverable include, but are not limited to:
    significant changes in performance relative to expected
    operating results, significant changes in the use of the assets,
    significant negative industry or economic trends, a significant
    decline in the Company's stock price for a sustained period
    of time, and changes in the Company's business strategy. In
    determining if impairment exists, the Company estimates the
    undiscounted cash flows to be generated from the use and
    ultimate disposition of these assets. If impairment is indicated
    based on a comparison of the assets' carrying values and
    the undiscounted cash flows, the impairment loss is measured as
    the amount by which the carrying amount of the assets exceeds
    the fair market value of the assets.
F-10
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Fair
    Value Measurements
On January 1, 2008, the Company adopted the provisions of
    ASC Topic 820 "Fair Value Measurements and
    Disclosures". ASC Topic 820 defines fair value as used in
    numerous accounting pronouncements, establishes a framework for
    measuring fair value and expands disclosure of fair value
    measurements. Excluded from the scope of ASC Topic 820 are
    certain leasing transactions accounted for under ASC Topic 840,
    "Leases." The exclusion does not apply to fair value
    measurements of assets and liabilities recorded as a result of a
    lease transaction but measured pursuant to other pronouncements
    within the scope of ASC Topic 820.
Revenue
    Recognition
The Company generates revenues from professional services
    contracts. Customers are billed, according to individual
    agreements, typically based upon the amount of cubic yards of
    material processed. Revenues from professional services are
    recognized on a completed-contract basis, in accordance with ASC
    Topic
605-35,
"Construction-Type and Production-Type Contracts."
    Under the completed-contract basis, contract costs are recorded
    to a deferred asset account and billings
and/or
cash
    received are recorded to a deferred revenue liability account
    during the periods of construction. Costs include direct
    material, direct labor and subcontract labor. All revenues,
    costs, and profits are recognized in operations upon completion
    of the contract. A contract is considered complete when all
    costs except insignificant items have been incurred and final
    acceptance has been received from the customer. Corporate
    general and administrative expenses are charged to the periods
    as incurred. However, in the event a loss on a contract is
    foreseen, the Company will recognize the loss as it is incurred.
For uncompleted contracts, the deferred asset (accumulated
    contract costs) in excess of the deferred liability (billings
and/or
cash
    received) is classified under current assets as Costs in excess
    of billings on uncompleted contracts. The deferred liability
    (billings
and/or
cash
    received) in excess of the deferred asset (accumulated contract
    costs) is classified under current liabilities as Billings in
    excess of costs on uncompleted contracts. Contract retentions
    are included in accounts receivable.
The Company is transitioning to a licensing model, under which
    it will not be directly performing dredging services. Under such
    a contractual arrangement, license fees would typically be paid
    to the Company at a negotiated, flat monthly rate, which would
    not be tied to the volume of material processed.
Advertising
The Company conducts advertising for the promotion of its
    services. In accordance with ASC Topic 720.35.25, advertising
    costs are charged to operations when incurred. Advertising costs
    aggregated $3,216 and $8,024 for the years ended
    December 31, 2009 and 2008, respectively.
Income
    Taxes
The Company uses the asset and liability method of accounting
    for income taxes in accordance with ASC Topic 740, "Income
    Taxes." Under this method, income tax expense is recognized
    for the amount of: (i) taxes payable or refundable for the
    current year, and (ii) deferred tax consequences of
    temporary differences resulting from matters that have been
    recognized in an entity's financial statements or tax
    returns. Deferred tax assets and liabilities are measured using
    enacted tax rates expected to apply to taxable income in the
    years in which those temporary differences are expected to be
    recovered or settled. The effect on deferred tax assets and
    liabilities of a change in tax rates is recognized in the
    results of operations in the period that includes the enactment
    date. A valuation allowance is provided to reduce the deferred
    tax assets reported if, based on the weight of the available
    positive and negative evidence, it is more likely than not some
    portion or all of the deferred tax assets will not be realized.
    A liability (including interest if applicable) is established in
    the consolidated financial statements to the extent a current
    benefit has been recognized on a tax return for matters that are
    considered contingent upon the
F-11
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
outcome of an uncertain tax position. Applicable interest is
    included as a component of income tax expense and income taxes
    payable.
ASC Topic 740.10.30 clarifies the accounting for uncertainty in
    income taxes recognized in an enterprise's financial
    statements and prescribes a recognition threshold and
    measurement attribute for the financial statement recognition
    and measurement of a tax position taken or expected to be taken
    in a tax return. ASC Topic 740.10.40 provides guidance on
    derecognition, classification, interest and penalties,
    accounting in interim periods, disclosure, and transition. The
    Company believes its tax positions are all highly certain of
    being upheld upon examination. As such, the Company has not
    recorded a liability for unrecognized tax benefits. As of
    December 31, 2009, the tax years 2006 through 2008 remain
    open for IRS audit. The Company has received no notice of audit
    from the Internal Revenue Service for any of the open tax years.
The Company adopted the provisions of ASC Topic 740.10.25.09,
    which provides guidance on how an entity should determine
    whether a tax position is effectively settled for the purpose of
    recognizing previously unrecognized tax benefits. The term
    "effectively settled" replaces the term
    "ultimately settled" when used to describe
    recognition, and the terms "settlement" or
    "settled" replace the terms "ultimate
    settlement" or "ultimately settled" when used to
    describe measurement of a tax position under ASC Topic 740.
    Topic 740.10.25.09 clarifies that a tax position can be
    effectively settled upon the completion of an examination by a
    taxing authority without being legally extinguished. For tax
    positions considered effectively settled, an entity would
    recognize the full amount of tax benefit, even if the tax
    position is not considered more likely than not to be sustained
    based solely on the basis of its technical merits and the
    statute of limitations remains open.
Stock-Based
    Compensation
The Company recognizes compensation expense for stock-based
    compensation in accordance with ASC Topic No. 718. For
    employee stock-based awards, the Company calculates the fair
    value of the award on the date of grant using the Black-Scholes
    method for stock options; the expense is recognized over the
    service period for awards expected to vest. For non-employee
    stock-based awards, the Company calculates the fair value of the
    award on the date of grant in the same manner as employee
    awards, however, the awards are revalued at the end of each
    reporting period and the prorata compensation expense is
    adjusted accordingly until such time the nonemployee award is
    fully vested, at which time the total compensation recognized to
    date shall equal the fair value of the stock-based award as
    calculated on the measurement date, which is the date at which
    the award recipient's performance is complete. The
    estimation of stock-based awards that will ultimately vest
    requires judgment, and to the extent actual results or updated
    estimates differ from original estimates, such amounts are
    recorded as a cumulative adjustment in the period estimates are
    revised. The Company considers many factors when estimating
    expected forfeitures, including types of awards, employee class,
    and historical experience.
Net Loss
    Per Share
Basic net loss per share is computed by dividing the net loss by
    the weighted average number of shares of common stock
    outstanding during the periods presented. Diluted net loss per
    common share is computed using the weighted average number of
    common shares outstanding for the period, and, if dilutive,
    potential common shares outstanding during the period. Potential
    common shares consist of the incremental common shares issuable
    upon the exercise of stock options, stock warrants, convertible
    debt instruments or other common stock equivalents.
Options to purchase 3,222,000 common shares and warrants to
    purchase 3,520,000 common shares were outstanding at
    December 31, 2009, but were not included in the computation
    of diluted loss per share because the effects would have been
    anti-dilutive. These options and warrants may dilute future
    earnings per share.
F-12
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Reclassifications
Certain amounts in the accompanying 2008 consolidated financial
    statements have been reclassified to conform to the 2009
    presentation.
Comprehensive
    Loss
Comprehensive loss includes net loss as currently reported by
    the Company adjusted for other comprehensive items. Other
    comprehensive items for the Company consist of foreign currency
    translations gains and losses.
Foreign
    Currency Translation
The Company accounts for foreign currency translation according
    to ASC Topic 830, "Foreign Currency Matters". The
    Company's functional currency is the United States Dollar,
    but it had a capital lease obligation that is denominated in
    Euros. The capital lease obligation denominated in Euros is
    translated into United States Dollars using the current exchange
    rate at the end of each fiscal period. Such debt translation
    adjustments are included in accumulated other comprehensive
    income (loss) for the period. Expenses are translated using the
    average exchange rates prevailing throughout the respective
    periods. Translation gains or losses related to operating and
    interest expenses are recognized for each reporting period in
    the related statement of operations and comprehensive loss.
Accounting
    for Derivatives
The Company evaluates its options, warrants or other contracts
    to determine if those contracts or embedded components of those
    contracts qualify as derivatives to be separately accounted for
    under ASC Topic 815, "Derivatives and Hedging". The
    result of this accounting treatment is that the fair value of
    the derivative is
marked-to-market
each balance sheet date and recorded as a liability. In the
    event that the fair value is recorded as a liability, the change
    in fair value is recorded in the statement of operations as
    other income (expense). Upon conversion or exercise of a
    derivative instrument, the instrument is marked to fair value at
    the conversion date and then that fair value is reclassified to
    equity. Equity instruments that are initially classified as
    equity that become subject to reclassification under ASC Topic
    815 are reclassified to liability at the fair value of the
    instrument on the reclassification date.
Research
    and Development
In accordance with ASC Topic 730, "Research and
    Development", expenditures for research and development of
    the Company's products and services are expensed when
    incurred, and are included in operating expenses. The Company
    recognized research and development costs of $4,735 and $2,011
    for the years ended December 31, 2009 and 2008,
    respectively.
Codification
    Update
In May 2009, the FASB issued an accounting standard that became
    part of ASC Topic
855-10,
"Subsequent Events" which establishes general
    standards of accounting for and disclosure of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. ASC Topic 855 sets forth
    (1) the period after the balance sheet date during which
    management of a reporting entity should evaluate events or
    transactions that may occur for potential recognition or
    disclosure in the financial statements, (2) the
    circumstances under which an entity should recognize events or
    transactions occurring after the balance sheet date in its
    financial statements and (3) the disclosures that an entity
    should make about events or transactions that occurred after the
    balance sheet date. ASC Topic 855 is effective for interim or
    annual financial periods ending after June 15, 2009. The
    adoption of ASC Topic 855 did not have a material effect on the
    Company's financial statements.
F-13
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
In June 2009, the FASB issued an accounting standard
    ASC 105, "Generally Accepted Accounting
    Principles", whereby the FASB Accounting Standards
    Codification ("ASC" or "Codification") will
    be the single source of authoritative nongovernmental
    U.S. GAAP. Rules and interpretive releases of the
    Securities and Exchange Commission (the "SEC") under
    authority of federal securities laws are also sources of
    authoritative GAAP for SEC registrants. ASC Topic 105 is
    effective for interim and annual periods ending after
    September 15, 2009. All existing accounting standards are
    superseded as described in ASC Topic 105. All other accounting
    literature not included in the Codification is
    non-authoritative. The Codification is not expected to have a
    significant impact on the Company's financial statements.
In August 2009, the FASB issued Accounting Standards Update
2009-05,
"Fair Value Measurements and Disclosures (Topic 820):
    Measuring Liabilities at Fair Value". ASU
2009-05
provided amendments to
ASC 820-10,
including clarification that in circumstances in which a quoted
    price in an active market for the identical liability is not
    available, a reporting entity is required to measure fair value
    using certain techniques. ASU
2009-05
also
    clarifies that when estimating the fair value of a liability, a
    reporting entity is not required to include a separate input or
    adjustment to other inputs relating to the existence of a
    restriction that prevents the transfer of a liability. ASU
2009-05
also
    clarifies that both a quoted price in an active market for the
    identical liability at the measurement date and the quoted price
    for the identical liability when traded as an asset in an active
    market when no adjustments to the quoted price of the asset are
    required are Level 1 fair value measurements. Adoption of
    ASU
2009-05
did not have a material impact on the Company's
    consolidated results of operations or financial condition.
In October 2009, the FASB issued ASU
2009-13,
"Multiple-Deliverable Revenue Arrangements (amendments to
    FASB ASC Topic 605, Revenue Recognition)" ("ASU
2009-13")
and ASU
2009-14,
"Certain Arrangements That Include Software Elements,
    (amendments to FASB ASC Topic 985, Software)" ("ASU
2009-14").
ASU
2009-13
requires entities to allocate revenue in an arrangement using
    estimated selling prices of the delivered goods and services
    based on a selling price hierarchy. The amendments eliminate the
    residual method of revenue allocation and require revenue to be
    allocated using the relative selling price method. ASU
2009-14
removes tangible products from the scope of software revenue
    guidance and provides guidance on determining whether software
    deliverables in an arrangement that includes a tangible product
    are covered by the scope of the software revenue guidance. ASU
2009-13
and
    ASU
2009-14
should be applied on a prospective basis for revenue
    arrangements entered into or materially modified in fiscal years
    beginning on or after June 15, 2010, with early adoption
    permitted. The Company does not expect adoption of ASU
2009-13
or
    ASU
2009-14
to have a material impact on the Company's consolidated
    results of operations or financial condition.
In January 2010, the FASB issued ASU
2010-06,
"Fair Value Measurements and Disclosures (Topic 820):
    Improving Disclosures about Fair Value Measurements". This
    update provides amendments to Topic 820 that will provide more
    robust disclosures about (1) the different classes of
    assets and liabilities measured at fair value, (2) the
    valuation techniques and inputs used, (3) the activity in
    Level 3 fair value measurements, and (4) the transfers
    between Levels 1, 2, and 3. The Company does not expect
    adoption of ASU
2010-06
to
    have a material impact on the Company's consolidated
    results of operations or financial condition.
In February 2010, the FASB issued ASU
2010-09,
"Subsequent Events (Topic 855): Amendments to Certain
    Recognition and Disclosure Requirements". This update
    addresses both the interaction of the requirements of Topic 855,
    "Subsequent Events", with the SEC's reporting
    requirements and the intended breadth of the reissuance
    disclosures provision related to subsequent events
(paragraph 855-10-50-4).
The amendments in this update have the potential to change
    reporting by both private and public entities, however, the
    nature of the change may vary depending on facts and
    circumstances. The Company does not expect adoption of ASU
2010-09
to
    have a material impact on the Company's consolidated
    results of operations or financial condition.
F-14
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Note 3.
Going
    Concern
As reflected in the accompanying consolidated financial
    statements for the years ended December 31, 2009 and 2008,
    the Company had net losses of $2,247,767 and $1,568,251, and
    cash used in operations of $1,737,841 and $575,443,
    respectively. At December 31, 2009, the Company had an
    accumulated deficit of $6,217,899. In addition, the Company had
    minimal revenue generating activities in 2009 and is
    transitioning to a new business model. These matters raise
    substantial doubt about the Company's ability to continue
    as a going concern. During 2009, the Company raised
    approximately $7.2 million from contributed capital, new
    loans, and a private placement of its common stock and warrants,
    net of offering costs. At December 31, 2009, the Company
    had working capital of $3,232,419, which includes a warrant
    derivative liability of $804,718. Management plans to utilize
    its working capital to implement its business plan. The
    financial statements do not include any adjustments relating to
    the recovery of the recorded assets or the classification of the
    liabilities that might be necessary should the Company be unable
    to implement its business plan and continue as a going concern.
Note 4.
Costs In
    Excess of Billings (Billings in Excess of Costs) On Uncompleted
    Contracts
Costs in excess of billings on uncompleted contracts (calculated
    on an individual contract basis) represent accumulated contract
    costs that exceeded billings
and/or
cash
    received on uncompleted contracts.
At December 31, 2009 and 2008, costs in excess of billings
    on uncompleted contracts consisted of the following:
December 31,
December 31,
2009
2008
Costs on uncompleted contracts
$
76,596
$
—
Less: Billings and/or cash receipts on uncompleted contracts
(17,090
)
—
Costs in excess of billings on uncompleted contracts
$
59,506
$
—
Billings in excess of costs on uncompleted contracts (calculated
    on an individual contract basis) represents billings
and/or
cash
    received that exceed accumulated contract costs on uncompleted
    contracts.
At December 31, 2009 and 2008, billings in excess of costs
    on uncompleted contracts consisted of the following:
December 31,
December 31,
2009
2008
Billings and/or cash receipts on uncompleted contracts
$
215,000
$
215,000
Less: Costs on uncompleted contracts
(13,781
)
—
Billings in excess of costs on uncompleted contracts
$
201,219
$
215,000
F-15
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Note 5.
Property
    and Equipment
Property and equipment consisted of the following at
    December 31, 2009 and 2008:
December 31,
December 31,
2009
2008
Computer and office equipment
$
9,724
$
9,724
Equipment and tools
1,065,959
1,142,668
1,075,683
1,152,392
Accumulated depreciation
(356,214
)
(307,393
)
Property and equipment, net
$
719,469
$
844,999
Property and equipment held under capitalized leases of $258,991
    and $258,991 at December 31, 2009 and 2008, respectively,
    are included in Equipment and tools above. Depreciation expense
    for the years ended December 31, 2009 and 2008 was $112,345
    and $252,609, of which $25,899 and $25,899 pertained to the
    capitalized lease discussed above, for the years ended
    December 31, 2009 and 2008, respectively. Accumulated
    depreciation amounted to $356,214 and $307,393, of which $62,589
    and $36,690 pertained to capitalized leases, as of
    December 31, 2009 and 2008, respectively.
During the year ended December 31, 2008, as a result of an
    analysis by management, the Company determined that an
    impairment charge and write off of certain pieces of RDS
    equipment were appropriate. The Company recorded an impairment
    reserve as of December 31, 2008 of $124,630, which is
    included in operating expenses, and wrote off the net book value
    of RDS equipment amounting to $174,125, which is included in
    other income (expense). No other events or circumstances
    occurred for which an evaluation of the recoverability of
    long-lived assets was required.
During the year ended December 31, 2009, the Company
    recognized an impairment loss of $61,107, which is included in
    operating expenses, related to the net book value of RDS
    equipment held by a third party that was not recoverable.
Note 6.
Patents
Patents consisted of the following at December 31, 2009 and
    2008:
December 31,
December 31,
2009
2008
Patents
$
—
$
68,767
Patents pending
—
98,097
—
166,864
Accumulated amortization
—
(14,275
)
Intangible assets, net
$
—
$
152,589
Amortization expense for the years ended December 31, 2009
    and 2008 was $4,415 and $4,415, respectively.
For the year ended December 31, 2009, as a result of an
    analysis by management, the Company recognized an impairment
    loss of $50,077 and $119,896 relating to the net book value of
    patents and patents pending, respectively. The charge is
    included in selling, general and administrative expenses.
F-16
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Note 7.
Accrued
    Expenses
Accrued expenses consisted of the following at December 31,
    2009 and 2008:
December 31,
December 31,
2009
2008
Payroll and related benefits
$
288,945
$
536,782
Accrued interest
12,180
183,482
Sales tax payable
—
16,276
Other
175,675
35,000
Total
$
476,800
$
771,540
The Company has accrued payroll and estimated related taxes,
    including estimated penalties and interest, to various taxing
    authorities, including the Internal Revenue Service, that
    pertain to various years of service. At December 31, 2009
    and 2008, estimated penalties and interest in the amounts of
    $63,709 and $33,851, respectively, were included in payroll and
    related benefits in the above table.
Note 8.
Fair
    Value of Financial Instruments
The estimated fair value of certain financial instruments,
    including cash and cash equivalents and current liabilities, are
    carried at historical cost basis, which approximates their fair
    values because of the short-term nature of these instruments.
On January 1, 2009, the Company adopted a newly issued
    accounting standard for fair value measurements of all
    nonfinancial assets and nonfinancial liabilities not recognized
    or disclosed at fair value in the financial statements on a
    recurring basis.
The accounting standard for fair value measurements provides a
    framework for measuring fair value and requires expanded
    disclosures regarding fair value measurements. Fair value is
    defined as the price that would be received for an asset or the
    exit price that would be paid to transfer a liability in the
    principal or most advantageous market in an orderly transaction
    between market participants on the measurement date. The
    accounting standard established a fair value hierarchy which
    requires an entity to maximize the use of observable inputs,
    where available. This hierarchy prioritizes the inputs into
    three broad levels as follows. Level 1 inputs are quoted
    prices (unadjusted) in active markets for identical assets or
    liabilities. Level 2 inputs are quoted prices for similar assets
    and liabilities in active markets or inputs that are observable
    for the asset or liability, either directly or indirectly
    through market corroboration, for substantially the full term of
    the financial instrument. Level 3 inputs are unobservable
    inputs based on the Company's own assumptions used to
    measure assets and liabilities at fair value. An asset or
    liability's classification within the hierarchy is
    determined based on the lowest level input that is significant
    to the fair value measurement.
F-17
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Assets and liabilities measured at fair value on a recurring and
    non-recurring basis consisted of the following at
    December 31, 2009:
Total Carrying
Value at
Fair Value Measurements at December 31, 2009
December 31, 2009
(Level 1)
(Level 2)
(Level 3)
Assets:
Patents
$
—
$
—
$
—
$
—
Patents pending
—
—
—
—
Totals
$
—
$
—
$
—
$
—
Liabilities:
Warrant derivative liability
$
804,718
$
—
$
—
$
804,718
The following is a summary of activity of Level 3 assets
    for the year ended December 31, 2009:
Balance at December 31, 2008
$
152,589
Patent costs
21,799
Amortization expense
(4,415
)
Impairment loss recognized
(169,973
)
Balance at December 31, 2009
$
—
The following is a summary of activity of Level 3
    liabilities for the year ended December 31, 2009:
Balance at December 31, 2008
$
—
Warrant liability upon issuance
826,678
Change in fair value
(21,960
)
Balance at December 31, 2009
$
804,718
Impairment losses recognized on patents and patents pending are
    included in selling, general and administrative expenses.
    Changes in fair value of the warrant derivative liability are
    included in other income (expense) in the accompanying
    consolidated statements of operations.
The Company used the discounted cash flows method to measure the
    fair value of patents and patents pending. Due to minimal and
    varied revenue producing activities, the Company cannot reliably
    project positive cash flows for patents and patents pending.
The Company estimates the fair value of the warrant derivative
    liability utilizing the Black-Scholes option pricing model,
    which is dependent upon several variables such as the expected
    warrant term, expected volatility of our stock price over the
    expected warrant term, expected risk-free interest rate over the
    expected warrant term, and the expected dividend yield rate over
    the expected warrant term. The Company believes this valuation
    methodology is appropriate for estimating the fair value of the
    warrant derivative liability. The following table summarizes the
    assumptions the Company utilized to estimate the fair value of
    the warrant derivative liability at December 31, 2009:
Assumptions
December 31, 2009
Expected term (years)
1.8 - 3.0
Expected volatility
120.0%
Risk-free interest rate
1.14% - 1.70%
Dividend yield
0.00%
F-18
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
The expected warrant term is based on the remaining contractual
    term. The expected volatility is based on historical volatility.
    The risk-free interest rate is based on the U.S. Treasury
    yields with terms equivalent to the expected term of the related
    warrant at the valuation date. Dividend yield is based on
    historical trends. While the Company believes these estimates
    are reasonable, the fair value would increase if a higher
    expected volatility was used, or if the expected dividend yield
    increased.
There were no changes in the valuation techniques during the
    three months ended December 31, 2009.
Note 9.
Loan
    Payable
Loan payable at December 31, 2009 and 2008 consisted of an
    unsecured, non-interest bearing loan in the amount of $68,076,
    due on demand.
Note 10.
Equipment
    Payable
On June 19, 2007, the Company entered into an agreement and
    bill of sale with a third party vendor for the purchase of
    certain RDS equipment in the amount of $110,000. The terms of
    payment under the agreement were principal only payments of
    $6,670 per month, commencing August 1, 2007, for a period
    of seven months. On March 1, 2008, a final payment of
    $70,000 was to be made by the Company. The Company made no
    payments under the agreement during 2007 and went into default
    under the agreement. During 2008, the Company made payments to
    reduce the principal amount by $25,205. Upon default, 12%
    interest applies to the unpaid balance. As of December 31,
    2009 and 2008, the principal amount due under the agreement
    amounted to $84,795, and is reflected as equipment payable in
    the accompanying consolidated balance sheets.
Note 11.
Capital
    Lease Obligations
Capital lease obligations consisted of the following at
    December 31, 2009 and 2008:
December 31, 2009
December 31, 2008
Capital lease obligations
$
59,216
$
261,250
Less: Current maturities
(59,216
)
(143,428
)
Amount due after one year
$
—
$
117,822
Note 12.
Secured
    Note Payable
Secured notes payable consisted of the following at
    December 31, 2009 and 2008:
December 31, 2009
December 31, 2008
20% Secured promissory note payable
$
—
$
116,662
Less: Current maturities
—
(116,662
)
Amount due after one year
$
—
$
—
On July 30, 2008, the Company issued a secured promissory
    note in the amount of $200,000 to a lender, who is the lessor of
    the office space that the Company occupies for its operations,
    for working capital purposes. The note bears interest at 20% per
    year, was secured by all patents and other intellectual property
    of the Company, and was personally guaranteed by the Chief
    Executive Officer of the Company. The terms for repayment of the
    note required payments of $16,667 per month for a period of
    12 months, together with a balloon payment of $40,000 in
    interest at the time the last payment was made. As part of the
    secured promissory note, the Company granted to the lessor an
    option to purchase, for a period of one year after the repayment
    of the loan and interest, shares of common stock of the Company,
    up to a total of the amount of the note, interest paid on the
    note, and a premium of $40,000 (approximately $280,000 in
    total), at a price of $1 per share. At December 31, 2008,
    the principal balance of the
F-19
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
note remaining amounted to $116,662, all of which was current in
    nature. The remaining balance of the note, including accrued
    interest, was paid in full on August 31, 2009 and the lien
    was subsequently released by the lender.
Note 13.
Convertible
    Notes Payable
Convertible notes payable consisted of the following at
    December 31, 2009 and 2008:
December 31, 2009
December 31, 2008
Convertible notes payable
$
10,000
$
723,190
Less: Current maturities
(10,000
)
(723,190
)
Amount due after one year
$
—
$
—
The Company has entered into various secured and unsecured
    convertible notes with third party lenders to fund its
    operations. The notes are generally convertible into shares of
    common stock at a fixed rate of $5.00 per share at the
    discretion of the holder and mature over periods of less than
    one year. As the conversion rate for all of the notes exceeded
    the estimated fair value of the Company's common stock on
    the date of issuance, the notes did not contain a beneficial
    conversion feature. The notes bear interest at rates ranging
    from 4.3% to 40%. Activities pertaining to convertible notes for
    the years ended December 31, 2009 and 2008, were as follows:
For the
For the
Year Ended
Year Ended
December 31, 2009
December 31, 2008
Beginning balance
$
723,190
$
302,971
Issuance of convertible notes
773,500
595,330
Interest added to principal amounts
129,298
78,896
Principal payments
(158,179
)
(94,007
)
Conversions to common stock
(1,457,809
)
(160,000
)
Ending balance
$
10,000
$
723,190
The weighted average interest rate for convertible notes payable
    outstanding as of December 31, 2009 was 40%.
Note 14.
Notes
    Payable — Related Party
Notes payable — related party consisted of the
    following at December 31, 2009 and 2008:
December 31, 2009
December 31, 2008
Notes payable — related parties
$
14,575
$
50,819
Less: Current maturities
(14,575
)
(50,819
)
Amount due after one year
$
—
$
—
The Company has entered into various unsecured notes with
    related parties to fund its operations. The notes are due on
    demand or within one year from the date of the note. The notes
    bear interest at rates ranging from 4.3% to 80%. Activities
    pertaining to notes payable — related parties for the
    years ended December 31, 2009 and 2008, are described in
    Note 19.
The weighted average interest rate for notes payable —
    related party outstanding as of December 31, 2009 was 13.5%.
F-20
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
Note 15.
Commitments
    and Contingencies
Capital
    Leases
The following is a schedule by years of future minimum lease
    payments under capital leases together with the present value of
    the net minimum lease payments as of December 31, 2009:
Year ending December 31, 2010
$
61,912
Total minimum lease payments
61,912
Less: Amount representing interest
(2,696
)
Present value of net minimum lease payments
$
59,216
Operating
    Leases
The Company leases office facilities under a
month-to-month
lease, which is cancellable with 30 days notice by either
    the Company or the landlord.
Rent expense for the years ended December 31, 2009 and 2008
    was $14,971 and $14,219, respectively.
Settlement
    Due to Vendor
On May 27, 2008, Eagle North America, Inc.
    ("Eagle"), which provided certain equipment and
    consulting services to the Company, filed suit against the
    Company and Michael Hodges, Chief Executive Officer and
    Director, for monies owed pursuant to an equipment lease
    agreement between Eagle and the Company. Eagle claimed damages
    of $152,103. The Company made counter claims against Eagle for
    breach of certain representations and warranties, alleged
    damages related to the performance and operation of certain
    leased equipment and losses incurred as a result of its
    inadequate operation and maintenance of approximately $280,000.
    The Company and Eagle entered mediation in November 2008. On
    June 26, 2009, the parties entered into a settlement
    agreement pursuant to which Eagle dismissed its claims against
    the Company, and the Company dismissed its claims against Eagle.
    Pursuant to the settlement agreement, the Company is required to
    pay Eagle the aggregate sum of $152,000, payable as follows:
    (i) $25,000 within thirty days of the settlement, and
    (ii) thereafter 15 equal installments of $8,467 commencing
    August 26, 2009. As of December 31, 2009, the
    remaining balance due under the settlement due to vendor was
    $84,667, all of which is current in nature.
Registration
    Rights
As part of a private placement, we have agreed to file a
    "resale" registration statement with the SEC covering
    all shares of our common stock included within the Units sold in
    the Offering and underlying any warrants as well as the shares
    underlying the Placement Agent warrants, on or before the date
    which is 90 days after the final closing date of the
    Private Placement or the termination date, whichever occurs
    later (the "Filing Deadline"). We will maintain the
    effectiveness of the "resale" registration statement
    from the effective date through and until twelve
    (12) months after the final closing date, unless all
    securities registered under the registration statement have been
    sold or are otherwise able to be sold pursuant to Rule 144.
    We have agreed to use commercially reasonable efforts to have
    the "resale" registration statement declared effective
    by the SEC as soon as possible and, in any event, within
    180 days after the final closing date of the Private
    Placement or the termination date, whichever occurs later (the
    "Effectiveness Deadline"). In addition, if the
    registration statement is not effective, then the investors in
    the Offering are permitted to "piggy-back" onto other
    registration statements that are filed by the Company, with
    certain exceptions. One of these exceptions is in connection
    with a registration statement filed to register the sale of
    certain shares held in escrow in connection with the Merger. We
    are obligated to pay to investors in the Offering a fee of 1%
    per month of the investors' investment, payable in cash for
    each month: (i) in excess of the Filing Deadline that the
    registration statement has not been filed; and, (ii) in
    excess of the Effectiveness Deadline that the
F-21
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
registration statement has not been declared effective;
    provided, however, that the Company shall not be obligated to
    pay any liquidated damages if the Company is unable to fulfill
    its registration obligations as a result of rules, regulations,
    positions or releases issued or actions taken by the SEC
    pursuant to its authority with respect to
    "Rule 415," provided the Company registers at
    that time the maximum number of shares of common stock
    permissible upon consultation with the staff of the SEC. The
    maximum potential penalty under the registration rights
    agreement is 10%, which amounts $682,500. As of March 29,
    2009, the Company was in default regarding the registration
    rights agreement as the Company had not yet filed a registration
    statement covering the securities issued in the private
    placement.
Legal
    Matters
From time to time, we may be involved in litigation relating to
    claims arising out of our operations in the normal course of
    business. As of December 31, 2009, other than what is
    described in this section, "Legal Matters", there were
    no pending or threatened lawsuits that could reasonably be
    expected to have a material effect on our results of operations.
In September 2006, the Company entered into a five-year
    exclusive license agreement with an entity located in the
    Netherlands (the "Entity") to complete projects and
    develop the revenues and marketing presence of the Company in
    the Netherlands, France, and Germany. Though never consummated,
    it was the intent of the parties to enter into a joint venture.
    The parties completed one project, which has become the subject
    of a dispute. Each party has alleged certain damages and
    defenses as a result of the project. However, the parties are
    working together to resolve the matter. In order to conduct the
    project completed with the Entity, the Company relocated certain
    RDS equipment from the United States to the Netherlands. The RDS
    equipment transferred is currently under the control of the
    Entity, and is part of the dispute between the parties described
    above. During the year ended December 31, 2008, the Company
    wrote off $174,125 in net book value of RDS equipment located in
    the Netherlands, which management of the Company believes is not
    in suitable operating condition, and provided a 50% reserve, in
    the amount of $124,630, for impairment in the carrying value of
    other RDS equipment, which is also under control of the Entity.
    At December 31, 2009, the Company impaired the remaining
    net book value of the equipment and recognized an impairment
    loss of $61,107. The extent of any additional loss, contingent
    or otherwise, was not determinable or probable of occurrence and
    as a result, no general reserve for the dispute has been
    recorded in the accompanying consolidated financial statements.
    Further, as of December 31, 2009, no formal legal claim had
    been filed with any jurisdiction by either party.
During 2009, the Company terminated a Reseller Agreement. The
    reseller has contested this termination, however, no formal
    legal claim had been filed as of December 31, 2009.
The former chief financial officer of the Company has claimed
    breach of his separation agreement. The Company has made certain
    counterclaims. As of December 31, 2009, no formal legal
    claim had been filed with any jurisdiction by either party (See
    Note 19).
Note 16.
Stockholders'
    Equity (Deficiency)
Recapitalization
On October 30, 2009, Genesis Ltd. entered into a merger
    transaction with Holdings, an inactive publicly-held company.
    This transaction was treated as a recapitalization of Genesis
    Ltd. with 1,160,000 common shares deemed issued to the
    pre-merger stockholders of Holdings. The accounting effects of
    the recapitalization are reflected retroactively for all periods
    presented in the accompanying consolidated financial statements
    and footnotes (See Note 1).
F-22
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
As part of the Merger, 1,300,000 shares issuable to Michael
    Hodges, the founder and Chief Executive Officer of the Company,
    have been placed in escrow to be held for three years in order
    to cover certain liabilities, including potential tax
    liabilities of Genesis Ltd.
Upon completion of the Merger, on October 30, 2009, the
    Company amended its Articles of Incorporation whereby it changed
    its name to Genesis Fluid Solution Holdings, Inc. and revised
    its authorized capital to consist of 100,000,000 common shares
    at $0.001 par value and 25,000,000 preferred shares at
    $0.001 par value.
Preferred
    Stock
The Company is authorized to issue up to 25,000,000 shares
    of preferred stock having a par value of $0.001 per share, of
    which none was issued and outstanding at December 31, 2009
    and December 31, 2008.
Common
    Stock
The Company is authorized to issue up to 100,000,000 shares
    of common stock having a par value of $0.001 per share, of which
    17,668,500 and 10,000,000 shares were issued and
    outstanding at December 31, 2009 and 2008, respectively.
During the year ended December 31, 2008, Michael Hodges,
    the Company's Chief Executive Officer and a Director of the
    Company, sold approximately 23,000 shares of Company common
    stock owned personally by him to third-party investors for cash
    proceeds of $68,360, which was then contributed to Company.
During the year ended December 31, 2008, Michael Hodges,
    the Company's Chief Executive Officer and a Director of the
    Company, gave approximately 32,960 shares of Company common
    stock owned personally by him to certain creditors of the
    Company to serve as repayment of notes payable and related
    accrued interest of the note holders of $187,940. Such
    conversions of the notes payable into common shares of the
    Company did not result in any cash received by the Company.
For the purpose of recording certain equity transactions, the
    Company obtained an independent certified valuation report of
    the value of its common stock for May 11, 2009 of $0.01 per
    share and for October 30, 2009 of $0.50 per share.
During the period from January 6, 2009 through
    July 11, 2009, Michael Hodges, the Company's Chief
    Executive Officer and a Director of the Company, sold
    187,730 shares of Company common stock owned personally by
    him to third-party investors for cash proceeds of $491,374,
    which was then contributed to Company.
During the period from March 10, 2009 through
    October 1, 2009, Michael Hodges, the Company's Chief
    Executive Officer and a Director of the Company, gave
    160,600 shares of Company common stock owned personally by
    him to certain creditors of the Company upon conversion, at
    their contractual conversion rate of $5.00 per share, of
    convertible notes payable of $690,167 and related accrued
    interest of $79,830. One creditor was given 6,700 additional
    shares, resulting in convertible debt inducement expense of $66.
    Such conversions of the notes payable into common shares of the
    Company did not result in any cash received by the Company.
During the period from January 16, 2009 through
    July 7, 2009, Michael Hodges, the Company's Chief
    Executive Officer and a Director of the Company, gave
    26,480 shares of Company common stock (having a fair value
    of $265) owned personally by him to two individuals as loan
    origination fees.
On October 30, 2009, Michael Hodges, the Company's
    Chief Executive Officer and a Director of the Company, returned
    to the Company 1,232,730 shares of common stock owned
    personally by him. He received no compensation and the shares
    were immediately cancelled. This transaction was recorded as an
    increase in additional paid-in capital of $1,233 with a
    corresponding decrease in common stock.
F-23
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
On October 30, 2009, several stockholders (comprised of a
    director, an officer, and several employees of the Company)
    agreed to return to the Company 1,972,000 shares of common
    stock in exchange for options to purchase 1,972,000 shares
    in the Company. The options have a term of ten years, of which
    (i) 1,272,000 vested immediately and have an exercise price
    of $0.90 per share and (ii) 700,000 options will vest on
    April 30, 2010 and have an exercise price $0.99 per share.
    Since the fair value of the common shares returned exceeded the
    fair value of the stock options issued on the exchange date, no
    additional expense was recognized. This transaction was recorded
    as an increase in additional paid-in capital of $1,972 with a
    corresponding decrease in common stock.
During the period from October 1, 2009 through
    October 13, 2009, the Company issued 101,730 shares of
    common stock upon conversion of convertible notes payable of
    $92,642 and accrued interest of $9,079. The creditors'
    contractual conversion rate was $5.00 per share, however, the
    creditors converted at $1.00 per share, resulting in convertible
    debt inducement expense of $40,693.
During the year ended December 31, 2009, the Company issued
    2,584,000 shares of common stock (having a fair value of
    $25,840) in exchange for cash proceeds of $26 and services
    rendered. Accordingly, the Company recognized stock-based
    compensation expense of $25,814.
On October 30, 2009, prior to the Merger, stockholders of
    the Company gave 50,000 shares of Company common stock
    (having a fair value of $25,000) owned personally by them to a
    vendor of the Company to serve as payment on behalf of the
    Company for services rendered. The $25,000 was recorded as
    contributed capital.
On October 30, 2009, prior to the Merger, stockholders of
    the Company gave 250,000 shares of Company common stock
    (having a fair value of $125,000) owned personally by them to a
    vendor of the Company to serve as payment on behalf of the
    Company to settle accounts payable of $243,910. Accordingly, the
    Company recognized a gain on settlement of accounts payable of
    $118,910.
In May and June 2009, pursuant to Note Purchase Agreements (the
    "Agreements"), the Company sold $600,000 of
    convertible notes ("bridge notes") to lenders. In
    September and October 2009, the Company sold an additional
    $75,000 of bridge notes to lenders. The holders of $275,000 of
    the bridge notes had the option and the holders of $400,000 of
    the bridge notes had the obligation to convert on a
dollar-for-dollar
basis upon a Subsequent Financing (as defined in the Agreements)
    on the same terms and conditions as the Subsequent Financing. In
    addition, whether converted or not, upon the earlier of:
    (i) a Subsequent Financing or (ii) six months, the
    bridge note holders were entitled to additional interest in the
    form of common shares of the Company equal to 30% of the face
    value of the notes using a price per share based on:
    (a) the same price per share of a Subsequent Financing or
    (b) should the Subsequent Financing not have occurred
    within six months of the date of the respective agreement, a
    price per share based upon a $15 million total market value
    of the Company. The bridge notes bore interest of 10% and were
    due and payable on the earlier of the completion of a reverse
    merger transaction (which occurred October 30,
    2009) or November 9, 2009. All of the bridge note
    holders converted to the private placement that occurred on
    October 30, 2009. As a result, 675,000 common shares and
    warrants (having the same terms as those issued to investors
    under the private placement, as discussed below) to purchase
    337,500 common shares were issued in exchange for the bridge
    notes (an aggregate principal amount of $675,000) as payment in
    full. Additionally, 202,500 common shares (representing 30% of
    the face value of the bridge notes) (having a fair value of
    $101,250), were issued and such value was included in interest
    expense.
Following the closing of the Merger through December 29,
    2009, the Company accepted subscriptions for an aggregate of
    246 units in a private placement (each unit consisting of
    25,000 shares of common stock and three-year warrants to
    purchase 12,500 common shares at an exercise price of $2.00 per
    share) at a price of $25,000 per unit for gross proceeds of
    $6,150,000. As a result, the Company issued (i) 6,150,000
    common shares and (ii) warrants to purchase 3,075,000
    common shares. In connection with the private placement, the
    Company paid $240,250 in offering costs and issued two-year
    warrants to purchase an aggregate of 107,500 common shares,
    exercisable at $1.25 per share, to placement agents. All of the
    shares of common stock issued in the private placement as well
    as the shares of common stock underlying the warrants issued in
    the private placement and the shares of common stock
F-24
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
underlying the placement agents' warrants are subject to a
    registration rights agreement (See Note 15). In addition,
    so long as the underlying shares of common stock are registered
    in an effective registration statement, if and when shares of
    the common stock are trading at or above $3.50 per share for 20
    consecutive trading days, we will have the option to redeem the
    three-year warrants from the investors for a purchase price of
    $0.001 per share. A holder of three-year warrants will have
    10 days following notice to convert their warrants or we
    may retire the warrants upon the payment of $0.001 per share
    underlying each warrant. All of the warrants contain a cashless
    exercise provision whereby if at any time after twelve
    (12) months from the issuance date of the warrants there is
    no effective registration statement registering or no current
    prospectus available, for the resale of the shares of warrant
    stock issuable, then the holder may cashless exercise the
    warrants. All of the warrants contain a price protection
    provision whereby if from the warrant issuance date and through
    the earlier to occur of: (i) first anniversary of the date
    of issuance and (ii) the date there is an effective
    registration statement on file with the Securities and Exchange
    Commission covering the resale of all the shares of warrant
    stock and all the shares of common stock issued in the offering
    the Company issues or sells any shares of common stock or
    securities convertible into common stock, other than an exempt
    issuance, as defined in the warrant, for consideration per share
    of common stock less than $1.00, then immediately after such
    dilutive issuance, the warrant price then in effect shall be
    reduced to an amount equal to the new issuance price multiplied
    by two. Due to the price protection clause, the warrants are
    deemed a derivative and, therefore, were reclassified from
    equity to a warrant derivative liability on each date of
    issuance resulting in an aggregate amount of $826,678 being
    reclassified (See Note 8).
Common
    Stock Warrants
A summary of the Company's warrant activity during the year
    ended December 31, 2009 is presented below:
Weighted
Weighted
Average
Average
Remaining
Aggregate
No. of
Exercise
Contractual
Intrinsic
Warrants
Price
Term
Value
Balance Outstanding, December 31, 2008
—
—
—
—
Granted
3,520,000
$
1.98
—
—
Exercised
—
—
—
—
Forfeited
—
—
—
—
Expired
—
—
—
—
Balance Outstanding, December 31, 2009
3,520,000
$
1.98
2.9
$
—
Exercisable, December 31, 2009
3,520,000
$
1.98
2.9
$
—
Stock
    Incentive Plan and Stock Option Grants to Employees and
    Directors
On October 30, 2009, the Company's board of directors
    and stockholders adopted the 2009 Equity Incentive Plan (the
    "2009 Plan"). The purpose of the 2009 Plan is to
    provide an incentive to attract and retain directors, officers,
    consultants, advisors and employees whose services are
    considered valuable, to encourage a sense of proprietorship and
    to stimulate an active interest of such persons into our
    development and financial success. Under the 2009 Plan, the
    Company is authorized to issue incentive stock options intended
    to qualify under Section 422 of the Code, non-qualified
    stock options, stock appreciation rights, performance shares,
    restricted stock and long-term incentive awards. The Company has
    reserved for issuance an aggregate of 4,542,000 shares of
    common stock under the 2009 Plan. The 2009 Plan will be
    administered by the Company's board of directors until such
    time as such authority has been delegated to a committee of the
    board of directors.
The material terms of each option granted pursuant to the 2009
    Plan by the Company shall contain the following terms:
    (i) that the purchase price of each share purchasable under
    an incentive option shall be determined
F-25
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
by the Committee at the time of grant, but shall not be less
    than 100% of the Fair Market Value (as defined in the 2009 Plan)
    of such common share on the date the option is granted,
    (ii) the term of each option shall be fixed by the
    Committee, but no option shall be exercisable more than
    10 years after the date such option is granted and
    (iii) in the absence of any option vesting periods
    designated by the Committee at the time of grant, options shall
    vest and become exercisable as to one-third of the total number
    of shares subject to the option on each of the first, second and
    third anniversaries of the date of grant.
On October 30, 2009, the Company issued, pursuant to the
    2009 Plan, ten-year options to purchase 1,972,000 shares in
    the Company in exchange for the return of 1,972,000 shares
    of common stock (see above).
On October 30, 2009, the Company granted, pursuant to the
    2009 Plan, ten-year stock options to purchase 1,250,000 common
    shares of the Company, of which (i) 580,000 are exercisable
    immediately at $0.90 per share, (ii) 70,000 are exercisable
    on April 30, 2010 at $0.99 per share, and
    (iii) 600,000 vest based on performance milestones, as
    stipulated in the option, and are exercisable at $1.00 per share.
The total fair value of stock option awards (not including those
    issued in exchange for common stock returned to the Company)
    granted to employees during the year ended December 31,
    2009 was $251,871, which is being recognized over the respective
    vesting periods. The Company recorded compensation expense of
    $233,900 for the year ended December 31, 2009 in connection
    with these stock options.
As of December 31, 2009, 1,320,000 shares were
    remaining under the 2009 Plan for future issuance.
The Company estimates the fair value of share-based compensation
    utilizing the Black-Scholes option pricing model, which is
    dependent upon several variables such as the expected option
    term, expected volatility of our stock price over the expected
    option term, expected risk-free interest rate over the expected
    option term, expected dividend yield rate over the expected
    option term, and an estimate of expected forfeiture rates. The
    Company believes this valuation methodology is appropriate for
    estimating the fair value of stock options granted to employees
    and directors which are subject to ASC Topic 718 requirements.
    These amounts are estimates and thus may not be reflective of
    actual future results, nor amounts ultimately realized by
    recipients of these grants. The Company recognizes compensation
    on a straight-line basis over the requisite service period for
    each award. The following table summarizes the assumptions the
    Company utilized to record compensation expense for stock
    options granted during the year ended December 31, 2009:
For the
Year Ended
Assumptions
December 31, 2009
Expected term (years)
5.0 - 10.0
Expected volatility
120.0%
Weighted-average volatility
120.0%
Risk-free interest rate
2.31% - 3.41%
Dividend yield
0.00%
Expected forfeiture rate
0.0%
The expected life is computed using the simplified method, which
    is the average of the vesting term and the contractual term. The
    expected volatility is based on historical volatility. The
    risk-free interest rate is based on the U.S. Treasury
    yields with terms equivalent to the expected term of the related
    option at the time of the grant. Dividend yield is based on
    historical trends. While the Company believes these estimates
    are reasonable, the compensation expense recorded would increase
    if the expected life was increased, a higher expected volatility
    was used, or if the expected dividend yield increased.
F-26
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
A summary of the Company's stock option activity during the
    year ended December 31, 2009 is presented below:
Weighted
Weighted
Average
Average
Remaining
Aggregate
No. of
Exercise
Contractual
Intrinsic
Options
Price
Term
Value
Balance Outstanding, December 31, 2008
—
—
—
—
Granted
3,222,000
$
0.94
—
—
Exercised
—
—
—
—
Forfeited
—
—
—
—
Expired
—
—
—
—
Balance Outstanding, December 31, 2009
3,222,000
$
0.94
9.8
$
—
Exercisable, December 31, 2009
1,852,000
$
0.90
9.8
$
—
The weighted-average grant-date fair value of options granted to
    employees during the year ended December 31, 2009 was
    $0.40. The Company expects all non-contingent outstanding
    employee stock options to eventually vest.
As of December 31, 2009, there were total unrecognized
    compensation costs related to nonvested share-based compensation
    arrangements of $297,337, of which $17,972 is expected to be
    recognized over a weighted-average period of 0.3 years and
    $279,365 shall be recognized upon the satisfaction of a
    contingency.
Other
    Stock-Based Option Awards to Nonemployees
On July 30, 2008, as part of a secured promissory note, the
    Company granted an option to purchase, for a period of one year
    after the repayment of the loan and interest (which occurred on
    August 31, 2009), shares of common stock of the Company, up
    to a total of the amount of the note, interest paid on the note
    and a premium of $40,000 (approximately $280,000 in total), at a
    rate of $1 per share. As of December 31, 2009, the option
    has not yet been exercised.
On September 30, 2009, an option to purchase up to 5,000
    common shares at $5.00 expired unexercised.
Note 17.
Income
    Taxes
The Company was originally formed in October 2005 as an
    "S" corporation and filed its federal and state income
    tax returns according to the rules and regulations of that
    section of the Internal Revenue Code. On October 31, 2007,
    the Company revoked its status as an "S" corporation
    and converted to a "C" corporation.
F-27
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
The Company files a consolidated U.S. income tax return
    that includes its U.S. subsidiary. The amounts provided for
    income taxes are as follows:
For the
For the
Year Ended
Year Ended
December 31, 2009
December 31, 2008
Current (benefit) provision: federal
$
—
$
—
Current (benefit) provision: state
—
—
Total current provision
—
—
Deferred (benefit) provision
—
—
Deferred (benefit) provision relating to reduction of valuation
    allowance
—
—
Total deferred provision
—
—
Total provision (benefit) for income taxes from continuing
    operations
$
—
$
—
Significant items making up the deferred tax assets and deferred
    tax liabilities as of December 31, 2009 and 2008 are as
    follows:
December 31, 2009
December 31, 2008
Deferred tax assets:
Net operating loss carryforward
1,315,280
588,181
Accrued severance
26,341
—
Impairment — patents and patents pending
63,961
—
Stock-based compensation
88,017
—
1,493,599
588,181
Less: valuation allowance
(1,473,655
)
(588,181
)
Total deferred tax assets
19,944
—
Deferred tax liabilities:
Depreciation
(11,680
)
—
Other temporary differences
(8,264
)
—
Total deferred tax liabilities
(19,944
)
—
Total net deferred tax assets (liabilities)
$
—
$
—
A valuation allowance is established if it is more likely than
    not that all or a portion of the deferred tax asset will not be
    realized. Accordingly, a valuation allowance was established in
    2009 and 2008 for the full amount of our deferred tax assets due
    to the uncertainty of realization. Management believes that
    based upon its projection of future taxable operating income for
    the foreseeable future, it is more likely than not that the
    Company will not be able to realize the benefit of the deferred
    tax asset at December 31, 2009. The net change in the
    valuation allowance during the years ended December 31,
    2009 and 2008 was an increase of $885,474 and $521,696,
    respectively.
At December 31, 2009, the Company had $3,495,295 of net
    operating loss carryforwards which will expire in various years
    through 2029. Under the provision of the Tax Reform Act of 1986,
    when there has been a change in an entity's ownership of
    50 percent or greater, utilization of net operating loss
    carry forwards may be limited. As a result of the Company's
    equity transactions, the Company's net operating losses may
    be subject to such limitations and may not be available to
    offset future income for tax purposes. Utilization of the net
    operating losses and credits
F-28
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
may be subject to a substantial annual limitation due to the
    ownership change provisions of the Internal Revenue Code of
    1986, as amended. The annual limitation may result in the
    expiration of net operating losses and credits before
    utilization and in the event we have a change of ownership,
    utilization of the carryforwards could be restricted.
The Company's effective income tax expense (benefit)
    differs from the statutory federal income tax rate of 34% as
    follows:
For the
For the
Year Ended
Year Ended
December 31, 2009
December 31, 2008
Federal tax rate applied to loss before income taxes
34.0
%
34.0
%
State income taxes, net of federal benefit
3.5
%
-3.3
%
Permanent differences
(0.9
)%
(2.0
)%
Change in valuation allowance
(39.4
)%
(28.7
)%
Other
2.8
%
0.0
%
Income tax expense (benefit)
0.0
%
0.0
%
Note 18.
Concentrations
Concentration
    of Credit Risk
Financial instruments that potentially subject the Company to
    concentration of credit risk consist of cash and cash
    equivalents and accounts receivable. Cash and cash equivalents
    are deposited in the local currency in three financial
    institutions in the United States. The balance, at any given
    time, may exceed Federal Deposit Insurance Corporation insurance
    limits. As of December 31, 2009 and 2008, there was
    $4,508,514 and $0, respectively, in excess of insurable limits.
Note 19.
Related
    Party Transactions
On November 28, 2008, the Company entered into a loan
    agreement with Maria Hodges, the wife of the Company's
    Chief Executive Officer, Michael Hodges for $9,800. The note
    bears an annual 4.29 percent interest rate and is due on
    November 28, 2018. The note does not have any conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December 31, 2008, no
    principal or interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
On September 29, 2008, the Company entered into a loan
    agreement with Maria Hodges, wife of the Company's Chief
    Executive Officer Michael Hodges for $9,000. The note bears an
    annual 4.29 percent interest rate and is due on
    September 29, 2019. The note does not have conversion
    feature and is unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December 31, 2008, no
    principal interest had been paid on the note. During 2009,
    principal and accrued interest on this note was paid in full.
On June 17, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $5,000. The note bears an annual
    4.29 percent interest rate and is due on June 17,
    2018. The note does not have conversion feature and is
    unsecured. Accrued and unpaid interest is due at the termination
    of the loan. In September 2008, the Company paid Mr. Speer
    $2,925 which was recorded as a reduction of the outstanding
    principal balance.
On May 28, 2008, the Company entered into a loan agreement
    with Jack Speer, who was then a member of the Genesis Ltd. board
    of directors, for $1,075. The note had no stated interest rate
    or maturity date. The note does not have any conversion feature
    and is unsecured. In September 2008, the Company paid
    Mr. Speer $1,075 and cancelled the note.
F-29
Table of Contents
GENESIS
    FLUID SOLUTIONS HOLDINGS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
On February 4, 2008, the Company entered into a loan
    agreement with Greg Rankin, who has provided legal services to
    the Company, for $5,000. The note had no stated interest rate or
    maturity date. The note does not have conversion feature and was
    unsecured. On July 23, 2008, the principal balance plus
    $600 of accrued and unpaid interest was converted into
    1,120 shares of common stock.
On August 9, 2007, the Company entered into a loan
    agreement with Michael Whaley, the former Chief Financial
    Officer of the Company, for $50,000. The note originally bore an
    annual interest rate of 20 percent, which was later amended
    to 80 percent, and subsequently, in combination with his
    separation, was revised to a 15 percent interest rate and
    was due on November 5, 2007. The note does not have a
    conversion feature and is unsecured. Accrued and unpaid interest
    is due at maturity date of the loan. At December 31, 2008,
    $37,500, respectively, had been repaid under the note. At
    December 31, 2009, $12,500 of principal plus accrued
    interest was due on the note. On September 17, 2009,
    Michael Whaley, the former chief financial officer of the
    Company, resigned. As part of his separation agreement and in
    exchange for mutual releases, the Company is required to deliver
    the following to Mr. Whaley after completion of the Merger:
    (i) $40,000 in cash, (ii) $30,000 shares of
    common stock of the Company, and (iii) payment of all
    amounts due under his loan agreement. As of December 31,
    2009, all of the amounts due under the separation agreement were
    outstanding as the separation agreement is in dispute (See
    Note 15).
On August 9, 2007, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $25,000. The note bears an
    annual 40 percent interest rate and was due on
    November 10, 2007. The note does not have conversion
    feature and was unsecured. Accrued and unpaid interest is due at
    the termination of the loan. At December 31, 2008, the
    Company had made payments of $22,500 of which approximately
    $13,000 had been applied against principal and the remaining
    amount recognized as interest. During 2009, principal and
    accrued interest on this note was paid in full.
On January 5, 2009, the Company entered into a loan
    agreement with Larry McCurry, who was then a member of the
    Genesis Ltd. board of directors, for $50,000. The note was
    unsecured, bore 40% interest and was due on February 3,
    2009. During 2009, principal and accrued interest on this note
    was paid in full.
Note 20.
Subsequent
    Events
On February 15, 2010, the Company entered into an agreement
    with a vendor for the vendor to perform marketing services. On
    March 2, 2010, the Company terminated its agreement with
    the vendor. On March 23, 2010, the vendor filed suit for
    breach of contract claiming amounts owed of approximately
    $41,000. The Company disputes this claim and intends to
    rigorously defend its position.
On March 19, 2010, the Company entered into a settlement
    agreement with an individual that had been engaged May 11,
    2009 to perform financial advisory services for the Company. As
    a result of the settlement, the Company issued
    83,000 shares of the Company's common stock.
As of March 29, 2009, the Company was in default regarding
    the registration rights agreement as the Company had not yet
    filed a registration statement covering the securities issued in
    the private placement.
In preparing these consolidated financial statements, the
    Company has evaluated events and transactions for potential
    recognition or disclosure through the date the consolidated
    financial statements were issued.
F-30
Table of Contents
GENESIS FLUID SOLUTIONS
    HOLDINGS, INC.
11,847,500 Shares
Common Stock
PROSPECTUS
,
    2010
Table of Contents
PART II
INFORMATION
    NOT REQUIRED IN PROSPECTUS
ITEM 13.
OTHER
    EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the costs and expenses payable by
    us in connection with the issuance and distribution of the
    securities being registered. None of the following expenses are
    payable by the selling stockholders. All of the amounts shown
    are estimates, except for the SEC registration fee.
SEC registration fee
$
2,872.07
Legal fees and expenses
$
50,000
Accounting fees and expenses
$
15,000
Miscellaneous
$
20,000
TOTAL
$
87,872.07
ITEM 14.
INDEMNIFICATION
    OF DIRECTORS AND OFFICERS.
Section 145 of the Delaware General Corporation Law (the
    "DGCL") provides, in general, that a corporation
    incorporated under the laws of the State of Delaware, as we are,
    may indemnify any person who was or is a party or is threatened
    to be made a party to any threatened, pending or completed
    action, suit or proceeding (other than a derivative action by or
    in the right of the corporation) by reason of the fact that such
    person is or was a director, officer, employee or agent of the
    corporation, or is or was serving at the request of the
    corporation as a director, officer, employee or agent of another
    enterprise, against expenses (including attorneys' fees),
    judgments, fines and amounts paid in settlement actually and
    reasonably incurred by such person in connection with such
    action, suit or proceeding if such person acted in good faith
    and in a manner such person reasonably believed to be in or not
    opposed to the best interests of the corporation and, with
    respect to any criminal action or proceeding, had no reasonable
    cause to believe such person's conduct was unlawful. In the
    case of a derivative action, a Delaware corporation may
    indemnify any such person against expenses (including
    attorneys' fees) actually and reasonably incurred by such
    person in connection with the defense or settlement of such
    action or suit if such person acted in good faith and in a
    manner such person reasonably believed to be in or not opposed
    to the best interests of the corporation, except that no
    indemnification will be made in respect of any claim, issue or
    matter as to which such person will have been adjudged to be
    liable to the corporation unless and only to the extent that the
    Court of Chancery of the State of Delaware or any other court in
    which such action was brought determines such person is fairly
    and reasonably entitled to indemnity for such expenses.
Our Certificate of Incorporation and Bylaws provide that we will
    indemnify our directors, officers, employees and agents to the
    extent and in the manner permitted by the provisions of the
    DGCL, as amended from time to time, subject to any permissible
    expansion or limitation of such indemnification, as may be set
    forth in any stockholders' or directors' resolution or
    by contract. In addition, our director and officer
    indemnification agreements with each of our directors and
    officers provide, among other things, for the indemnification to
    the fullest extent permitted or required by Delaware law,
    provided that no indemnitee will be entitled to indemnification
    in connection with any claim initiated by the indemnitee against
    us or our directors or officers unless we join or consent to the
    initiation of the claim, or the purchase and sale of securities
    by the indemnitee in violation of Section 16(b) of the
    Exchange Act.
Any repeal or modification of these provisions approved by our
    stockholders will be prospective only and will not adversely
    affect any limitation on the liability of any of our directors
    or officers existing as of the time of such repeal or
    modification.
We are also permitted to apply for insurance on behalf of any
    director, officer, employee or other agent for liability arising
    out of his actions, whether or not the DGCL would permit
    indemnification.
II-1
Table of Contents
ITEM 15.
RECENT
    SALES OF UNREGISTERED SECURITIES.
Explanatory Note:
At the closing of the
    Merger, each share of Genesis Fluid Solutions' common stock
    was exchanged for the right to receive 10 shares of our
    common stock. All Genesis Fluid Solutions' share and
    per-share information contained below retroactively reflects the
    effect of the 10:1 exchange.
Sales by
    Genesis Fluid Solutions, Ltd.
On October 1, 2005, Genesis Fluid Solutions issued an
    aggregate of 10,000,000 shares of its common stock to 16
    individuals, including 500,000 shares to Michael Hodges,
    its then chief executive officer, and 450,000 shares to
    Larry Campbell, its then senior vice president and director of
    field operations. The aggregate purchase price for these shares
    was $396,800. The shares were issued in a transaction that was
    exempt from the registration requirements of the Securities Act
    pursuant to Section 4(2) of the Securities Act, which
    exempts transactions by an issuer not involving a public
    offering.
From May 2009 through October 13, 2009, Genesis Fluid
    Solutions sold an aggregate of $675,000 principal amount of 10%
    secured promissory notes ("Bridge Notes") in a private
    placement transaction. The purchasers of Bridge Notes paid an
    aggregate gross purchase price of $675,000 for the Bridge Notes.
    The Bridge Notes are due and payable upon the earlier of
    November 3, 2009 and the date that Genesis Fluid Solutions,
    or an affiliate such as the Company, consummates an offering or
    offerings raising gross proceeds of at least $2.5 million
    (a "Subsequent Financing"). The Private Placement
    resulted in the Bridge Notes becoming due. The Bridge Notes also
    provide that, upon the consummation of a Subsequent Financing,
    the holders shall have the right to exchange the Bridge Notes
    for an amount of securities that could be purchased in the
    Subsequent Financing for a purchase price equal to the
    outstanding principal, and accrued interest on the Bridge Notes.
    The private placement was made solely to "accredited
    investors," as that term is defined in Regulation D
    under the Securities Act. The securities sold in the private
    placement were not registered under the Securities Act, or the
    securities laws of any state, and were offered and sold in
    reliance on the exemption from registration afforded by
    Section 4(2) and Regulation D
    (Rule 506) under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
In addition, according to the terms of the Bridge Notes, in the
    event Genesis Fluid Solutions enters into a reverse merger
    transaction that has a capital raising transaction in connection
    therewith (the "Reverse Merger Financing"),
    (i) the holders of $275,000 of Bridge Notes will have the
    option and (ii) the holders of $400,000 of Bridge Notes
    will have the obligation, to exchange the Bridge Notes for an
    amount of securities that could be purchased in the Reverse
    Merger Financing for a purchase price equal to the outstanding
    principal and accrued interest on the Bridge Notes. The Private
    Placement constitutes a Reverse Merger Financing and, therefore,
    each holder of Bridge Notes will either be entitled or
    obligated, as the case may be, to exchange the outstanding
    principal and interest amount of its Bridge Notes for units sold
    in the Private Placement. If the holders of all of the Bridge
    Notes elect to exchange the Bridge Notes for units in the
    Private Placement, then the Company will be required to issue an
    aggregate of 675,000 shares of common stock and warrants to
    purchase an aggregate of 337,500 shares of common stock
    (plus additional shares in respect of any accrued but unpaid
    interest on the Bridge Notes) to the holders of the Bridge
    Notes. Upon the closing of the Merger, Bridge Notes in the
    principal amount of $675,000 converted in the Private Placement.
On May 11, 2009, Genesis Fluid Solutions sold an aggregate
    of 2,584,000 shares of its common stock to eight parties
    who provided services to it, for an aggregate purchase price of
    $25.80. The shares were issued in a transaction that was exempt
    from the registration requirements of the Securities Act
    pursuant to Section 4(2) of the Securities Act, which
    exempts transactions by an issuer not involving a public
    offering.
Sales by
    Genesis Fluid Solutions Holdings, Inc.
On April 15, 2007, we issued 1,000,000 shares of our
    common stock to Sharone Perlstein, our founder and sole director
    at that time, in consideration for their par value. On
    April 15, 2007, we issued 900,000 shares of our common
    stock to Dr. Reuven Gepstein, our then president, chief
    executive officer and director, in consideration of their par
    value. The shares were issued in a transaction that was exempt
    from the registration requirements of the Securities Act
    pursuant to Regulation S of the SEC.
II-2
Table of Contents
On April 15, 2007, we issued 3,777,000 shares of our
    common stock to four other individuals in consideration of their
    par value. The shares were issued in a transaction that was
    exempt from the registration requirements of the Securities Act
    pursuant to Regulation S of the SEC.
On June 18, 2007, we issued 962,500 shares of our
    common stock to Yael Alush, our then Secretary, Treasurer and
    Director, in consideration of their par value. The shares were
    issued in a private transaction that was exempt from the
    registration requirements of the Securities Act pursuant to
    Regulation S of the SEC.
On June 18, 2007, we issued 3,940,500 shares of our
    common stock to six other individuals in consideration of their
    par value. The shares were issued in a transaction that was
    exempt from the registration requirements of the Securities Act
    pursuant to Regulation S of the SEC.
In July 2007 through October of 2007, we issued
    2,000,000 shares of common stock to 46 investors in a
    private placement pursuant to the exemption from the
    registration requirements of the Securities Act provided by
    Regulation S. The aggregate consideration paid for these
    shares was $50,000. All investors in the private placement were
    non-US persons (as defined under SEC Regulations). The Company
    provided all investors in the private placement with a
    subscription agreement.
On December 9, 2007, we raised $225,000 by selling
    1,125,000 shares of our common stock to two investors in a
    transaction that was exempt from registration pursuant to the
    exemption from the registration requirements of the Securities
    Act provided by Regulation S. Both investors in the private
    placement were non-US persons (as defined under SEC Regulations)
    and were provided with subscription agreements.
On October 30, 2009, we accepted subscriptions for a total
    of 142.6 units in the Private Placement, consisting of an
    aggregate of 3,707,500 shares of the our common stock and
    warrants to purchase an aggregate of 1,782,500 shares of
    common stock at an exercise price of $2.00 per share, for a per
    unit purchase price of $25,000. We received net proceeds from
    this closing of the Private Placement of $2,946,000, which does
    not include the $475,000 of Bridge Notes that were converted in
    the Private Placement. The Private Placement was made solely to
    "accredited investors," as that term is defined in
    Regulation D under the Securities Act. The securities sold
    in the Private Placement were not registered under the
    Securities Act, or the securities laws of any state, and were
    offered and sold in reliance on the exemption from registration
    afforded by Section 4(2) and Regulation D
    (Rule 506) under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
WFG Investments, Inc. and Colorado Financial Service Corporation
    acted as our Placement Agents and received (i) cash fees of
    $56,000 and $52,000, respectively, equal to 8% of the gross
    proceeds of the Private Placement from units sold through these
    Placement Agents, and (ii) two-year warrants to purchase an
    aggregate of 14,000 and 13,000 shares of common stock,
    respectively, equal to 2% of the number of shares of common
    stock included in the units sold through these Placement Agents,
    for an exercise price of $1.25 per share. GarWood Securities LLC
    received two-year warrants to purchase an aggregate of
    50,000 shares of common stock for an exercise price of
    $1.25 per share.
On November 19, 2009, we accepted subscriptions for a total
    of 22.9 units in the Private Placement, consisting of an
    aggregate of 372,500 shares of the our common stock and
    warrants to purchase an aggregate of 186,250 shares of
    common stock at an exercise price of $2.00 per share, for a per
    unit purchase price of $25,000. We received net proceeds from
    this closing of the Private Placement of $364,500, which does
    not include the $200,000 of Bridge Notes that were converted in
    the Private Placement. The Private Placement was made solely to
    "accredited investors," as that term is defined in
    Regulation D under the Securities Act. The securities sold
    in the Private Placement were not registered under the
    Securities Act, or the securities laws of any state, and were
    offered and sold in reliance on the exemption from registration
    afforded by Section 4(2) and Regulation D
    (Rule 506) under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
Legend Merchant Group acted as our Placement Agent and received
    (i) a cash fee of $8,000, equal to 8% of the gross proceeds
    of the Private Placement from units sold through the Placement
    Agent, and (ii) two-year warrants to purchase an aggregate
    of 2,000 shares of common stock, equal to 2% of the number
    of shares of common stock included in the units sold through the
    Placement Agent, for an exercise price of $1.25 per share.
II-3
Table of Contents
On December 29, 2009, we accepted subscriptions for a total
    of 107.5 units in the Private Placement, consisting of an
    aggregate of 2,687,500 shares of the our common stock and
    warrants to purchase an aggregate of 1,343,750 shares of
    common stock at an exercise price of $2.00 per share, for a per
    unit purchase price of $25,000. We received net proceeds from
    the final closing of the Private Placement of $2,573,500. The
    Private Placement was made solely to "accredited
    investors," as that term is defined in Regulation D
    under the Securities Act. The securities sold in the Private
    Placement were not registered under the Securities Act, or the
    securities laws of any state, and were offered and sold in
    reliance on the exemption from registration afforded by
    Section 4(2) and Regulation D
    (Rule 506) under the Securities Act and corresponding
    provisions of state securities laws, which exempt transactions
    by an issuer not involving a public offering.
Colorado Financial Service Corporation, Legend Merchant Group,
    and Jesup & Lamont Securities Corp. acted as our
    Placement Agents and received (i) cash fees of $80,000,
    $24,000 and $10,000, respectively, equal to 8% of the gross
    proceeds of the Private Placement from units sold through these
    Placement Agents, and (ii) two-year warrants to purchase an
    aggregate of 20,000, 6000 and 2,500 shares of common stock,
    respectively, equal to 2% of the number of shares of common
    stock included in the units sold through these Placement Agents,
    for an exercise price of $1.25 per share.
On March 17, 2010, we issued 83,000 shares of our
    common stock to an individual who had provided certain
    consulting services to the Company. The shares were issued in a
    transaction that was exempt from the registration requirements
    of the Securities Act pursuant to Section 4(2) of the
    Securities Act, which exempts transactions by an issuer not
    involving a public offering.
ITEM 16.
EXHIBITS AND
    FINANCIAL STATEMENT SCHEDULES.
Exhibit No.
Description
2
.1
Agreement and Plan of Merger, dated as of October 30, 2009,
    by and among Genesis Fluid Solutions Holdings, Inc., Genesis
    Fluid Solutions, Ltd. and Genesis Fluid Solutions Acquisition
    Corp.(1)
2
.2
Certificate of Merger, dated October 30, 2009 merging
    Genesis Fluid Solutions Acquisition Corp. with and into Genesis
    Fluid Solutions, Ltd.(1)
3
.1
Amended and Restated Certificate of Incorporation(1)
3
.2
Amended and Restated Bylaws(1)
5
.1*
Opinion of Sichenzia Ross Friedman Ference LLP
10
.1
Form of Subscription Agreement(1)
10
.2
Form of Investor Warrant(1)
10
.3
Form of Registration Rights Agreement(1)
10
.4
Form of Lockup Agreement(1)
10
.5
Placement Agent Agreement, dated July 15, 2009, between
    Genesis Fluid Solutions, Ltd. and WFG(1)
10
.6
Placement Agent Agreement, dated June 28, 2009, between
    Genesis Fluid Solutions, Ltd. and Chadbourn Securities(1)
10
.7
Form of Placement Agent Warrant(1)
10
.8
Form of Directors and Officers Indemnification Agreement(1)
10
.9
Genesis Fluid Solutions Holdings, Inc. 2009 Equity Incentive
    Plan(1)
10
.10
Form of 2009 Incentive Stock Option Agreement(1)
10
.11
Form of 2009 Non-Qualified Stock Option Agreement(1)
10
.12
Agreement of Conveyance, Transfer and Assignment of Assets and
    Assumption of Obligations, dates as of October 30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and Cherry
    Tankers Holdings, Inc.(1)
10
.13
Stock Purchase Agreement, dated as of October 30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and the
    shareholders listed therein(1)
10
.14
Consulting Agreement, dated May 11, 2009, between Genesis
    Fluid Solutions and Liviakis Financial Communications, Inc.(1)
II-4
Table of Contents
Exhibit No.
Description
10
.15
Amendment to Consulting Agreement, dated October 20, 2009,
    between Genesis Fluid Solutions and Liviakis Financial
    Communications, Inc.(1)
10
.16
Assignment of Patents Agreement, dated as of August 16,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
10
.17
Assignment of Patents Agreement, dated as of September 30,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
10
.18
Form of Voting Agreement between Michael Hodges and the
    stockholders signatory thereto(1)
10
.19
Escrow Agreement, dated October 30, 2009, among Genesis
    Fluid Solutions Holdings, Inc., Michael Hodges and Sichenzia
    Ross Friedman Ference LLP, as escrow agent(1)
10
.20
Consulting Agreement dated December 14, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and Sharp Resources,
    Inc.(2)
10
.21
Consulting Agreement dated December 15, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and SFL3 LLC(3)
10
.22
Director and Officer Indemnification Agreement dated
    December 15, 2009 by and between Genesis Fluid Solutions
    Holdings, Inc. and Selby F. Little, III(3)
10
.23
Engagement Letter between Genesis Fluid Solutions and GarWood
    Securities LLC dated November 10, 2009(5)
10
.24
Amendment to Engagement Letter between Genesis Fluid Solutions
    and GarWood Securities LLC dated March 23, 2010(5)
16
.1
Letter from Davis Accounting Group P.C.(4)
21
List of Subsidiaries(1)
23
.1
Consent of Davis Accounting Group P.C.
23
.2
Consent of Salberg & Company, P.A.
23
.3*
Consent of Sichenzia Ross Friedman Ference LLP (included in
    Exhibit 5.1)
24
.1
Powers of Attorney (included on signature page)
*
To be filed by amendment
(1)
Incorporated herein by reference to the copy of such document
    included as an exhibit to our Current Report on
Form 8-K
filed on November 5, 2009, as amended on November 16,
    2009 and December 14, 2009.
(2)
Incorporated herein by reference to the copy of such document
    included as Exhibit 10.1 to our Current Report on
Form 8-K
filed on December 21, 2009.
(3)
Incorporated herein by reference to the copy of such documents
    included as Exhibit 10.1 and Exhibit 10.2 to our
    Current Report on
Form 8-K
filed on December 24, 2009.
(4)
Incorporated herein by reference to the copy of such document
    included as Exhibit 16.1 to our Current Report on
Form 8-K
filed on January 28, 2010
(5)
Incorporated herein by reference to the copy of such document
    included as an exhibit to our Annual Report on
Form 10-K
filed on April 15, 2010
ITEM 17.
UNDERTAKINGS.
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement:
(i) To include any prospectus required by Section 10(a)(3)
    of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events
    arising after the effective date of the registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in the registration statement.
    Notwithstanding
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Table of Contents
the foregoing, any increase or decrease in volume of securities
    offered (if the total dollar value of securities offered would
    not exceed that which was registered) and any deviation from the
    low or high end of the estimated maximum offering range may be
    reflected in the form of prospectus filed with the Commission
    pursuant to Rule 424(b) if, in the aggregate, the changes
    in volume and price represent no more than a 20 percent
    change in the maximum aggregate offering price set forth in the
    "Calculation of Registration Fee" table in the
    effective registration statement;
(iii) To include any material information with respect to
    the plan of distribution not previously disclosed in the
    registration statement or any material change to such
    information in the registration statement.
(2) That, for the purpose of determining any liability
    under the Securities Act of 1933, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
bona fide
offering thereof.
(3) To remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability under
    the Securities Act of 1933 to any purchaser, each prospectus
    filed pursuant to Rule 424(b) as part of a registration
    statement relating to an offering, other than registration
    statements relying on Rule 430B or other than prospectuses
    filed in reliance on Rule 430A, shall be deemed to be part
    of and included in the registration statement as of the date it
    is first used after effectiveness. Provided, however, that no
    statement made in a registration statement or prospectus that is
    part of the registration statement or made in a document
    incorporated or deemed incorporated by reference into the
    registration statement or prospectus that is part of the
    registration statement will, as to a purchaser with a time of
    contract of sale prior to such first use, supersede or modify
    any statement that was made in the registration statement or
    prospectus that was part of the registration statement or made
    in any such document immediately prior to such date of first use.
(5) Insofar as indemnification for liabilities arising
    under the Securities Act of 1933 may be permitted to
    directors, officers and controlling persons of the registrant
    pursuant to the foregoing provisions, or otherwise, the
    registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.
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Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Colorado Springs, State of Colorado
    on the 14th day of April 2010.
GENESIS FLUID SOLUTIONS HOLDINGS, INC.
By:
/s/
Michael
    Hodges
Name:     Michael Hodges
Title:
Chairman and Interim Chief Executive Officer
POWER OF
    ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose
    signature appears below hereby constitutes and appoints Michael
    Hodges his true and lawful attorneys-in-fact and agents, with
    full power of substitution and resubstitution, for such person
    and in his name, place and stead, in any and all capacities, to
    sign any or all further amendments or supplements (including
    post-effective amendments filed pursuant to Rule 462(b) of
    the Securities Act of 1933) to this registration statement
    and to file the same, with all exhibits thereto, and other
    documents in connection therewith, with the SEC, granting unto
    said attorneys-in-fact and agents full power and authority to do
    and perform each and every act and thing requisite and necessary
    to be done in and about the premises, as fully as to all intents
    and purposes as he might or could do in person, hereby ratifying
    and confirming all that each of said attorneys-in-fact and
    agents, or their substitutes, may lawfully do or cause to be
    done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
    registration statement has been signed by the following persons
    in the capacities and on the dates indicated.
Signature
Title
Date
/s/
Michael
    Hodges
Michael
    Hodges
Chairman and
Interim Chief Executive Officer
April 15, 2010
/s/
Mary
    Losty
Mary
    Losty
Director
April 15, 2010
/s/
John
    Freshman
John
    Freshman
Director
April 15, 2010
/s/
Robert
    Stempel
Robert
    Stempel
Director
April 15, 2010
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Table of Contents
EXHIBITS
    AND FINANCIAL STATEMENT SCHEDULES
Exhibit No.
Description
2
.1
Agreement and Plan of Merger, dated as of October 30, 2009,
    by and among Genesis Fluid Solutions Holdings, Inc., Genesis
    Fluid Solutions, Ltd. and Genesis Fluid Solutions Acquisition
    Corp.(1)
2
.2
Certificate of Merger, dated October 30, 2009 merging
    Genesis Fluid Solutions Acquisition Corp. with and into Genesis
    Fluid Solutions, Ltd.(1)
3
.1
Amended and Restated Certificate of Incorporation(1)
3
.2
Amended and Restated Bylaws(1)
5
.1*
Opinion of Sichenzia Ross Friedman Ference LLP
10
.1
Form of Subscription Agreement(1)
10
.2
Form of Investor Warrant(1)
10
.3
Form of Registration Rights Agreement(1)
10
.4
Form of Lockup Agreement(1)
10
.5
Placement Agent Agreement, dated July 15, 2009, between
    Genesis Fluid Solutions, Ltd. and WFG(1)
10
.6
Placement Agent Agreement, dated June 28, 2009, between
    Genesis Fluid Solutions, Ltd. and Chadbourn Securities(1)
10
.7
Form of Placement Agent Warrant(1)
10
.8
Form of Directors and Officers Indemnification Agreement(1)
10
.9
Genesis Fluid Solutions Holdings, Inc. 2009 Equity Incentive
    Plan(1)
10
.10
Form of 2009 Incentive Stock Option Agreement(1)
10
.11
Form of 2009 Non-Qualified Stock Option Agreement(1)
10
.12
Agreement of Conveyance, Transfer and Assignment of Assets and
    Assumption of Obligations, dates as of October 30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and Cherry
    Tankers Holdings, Inc.(1)
10
.13
Stock Purchase Agreement, dated as of October 30, 2009, by
    and between Genesis Fluid Solutions Holdings, Inc. and the
    shareholders listed therein(1)
10
.14
Consulting Agreement, dated May 11, 2009, between Genesis
    Fluid Solutions and Liviakis Financial Communications, Inc.(1)
10
.15
Amendment to Consulting Agreement, dated October 20, 2009,
    between Genesis Fluid Solutions and Liviakis Financial
    Communications, Inc.(1)
10
.16
Assignment of Patents Agreement, dated as of August 16,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
10
.17
Assignment of Patents Agreement, dated as of September 30,
    2009, between Michael Hodges, Larry Campbell and Genesis Fluid
    Solutions, Ltd.(1)
10
.18
Form of Voting Agreement between Michael Hodges and the
    stockholders signatory thereto(1)
10
.19
Escrow Agreement, dated October 30, 2009, among Genesis
    Fluid Solutions Holdings, Inc., Michael Hodges and Sichenzia
    Ross Friedman Ference LLP, as escrow agent(1)
10
.20
Consulting Agreement dated December 14, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and Sharp Resources,
    Inc.(2)
10
.21
Consulting Agreement dated December 15, 2009 by and between
    Genesis Fluid Solutions Holdings, Inc. and SFL3 LLC(3)
10
.22
Director and Officer Indemnification Agreement dated
    December 15, 2009 by and between Genesis Fluid Solutions
    Holdings, Inc. and Selby F. Little, III(3)
10
.23
Engagement Letter between Genesis Fluid Solutions and Garwood
    Securities LLC dated November 20, 2009(5)
II-8
Table of Contents
Exhibit No.
Description
10
.24
Amendment to Engagement Letter between Genesis Fluid Solutions
    and Garwood Securities LLC dated March 23, 2010(5)
16
.1
Letter from Davis Accounting Group P.C.(4)
21
List of Subsidiaries(1)
23
.1
Consent of Davis Accounting Group P.C.
23
.2
Consent of Salberg & Company, P.A.
23
.3*
Consent of Sichenzia Ross Friedman Ference LLP (included in
    Exhibit 5.1)
24
.1
Powers of Attorney (included on signature page)
*
To be filed by amendment
(1)
Incorporated herein by reference to the copy of such document
    included as an exhibit to our Current Report on
Form 8-K
filed on November 5, 2009, as amended on November 16,
    2009 and December 14, 2009.
(2)
Incorporated herein by reference to the copy of such document
    included as Exhibit 10.1 to our Current Report on
Form 8-K
filed on December 21, 2009.
(3)
Incorporated herein by reference to the copy of such documents
    included as Exhibit 10.1 and Exhibit 10.2 to our
    Current Report on
Form 8-K
filed on December 24, 2009.
(4)
Incorporated herein by reference to the copy of such document
    included as Exhibit 16.1 to our Current Report on
Form 8-K
filed on January 28, 2010
(5)
Incorporated herein by reference to the copy of such document
    included as an exhibit to our Annual Report on
Form 10-K
filed on April 15, 2010
II-9