<HTML><HEAD><TITLE>ICP Solar Technologies Inc.: Form S-1 - Prepared By TNT
Filings Inc.</TITLE>
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<P align=center style="margin-top: 0; margin-bottom: 0"><B>As filed with the Securities and Exchange Commission on
___________, 2009 </B></P>
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<P align=right style="margin-top: 0; margin-bottom: 0"><B>Registration No. 333- </B></P>
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<P align=center><B><FONT size=5>UNITED STATES </FONT><BR><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT><BR></B>Washington, D.C. 20549
</P>
<P align=center><B><FONT size=5>FORM S-1 </FONT></B></P>
<P align=center>REGISTRATION STATEMENT <BR>UNDER<BR>THE SECURITIES ACT OF 1933
</P>
<P align=center><B><U><FONT size=6>ICP SOLAR TECHNOLOGIES,
INC.<BR></FONT></U></B>(Exact Name of Registrant as specified in its
Charter)</P>
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    <TD align=center><B><U>NEVADA </U></B></TD>
    <TD width="33%" align=center><B><U>3674 </U></B></TD>
    <TD width="33%" align=center><B><U>20-0643604 </U></B></TD></TR>
  <TR vAlign=top>
    <TD align=center>(State or other jurisdiction of </TD>
    <TD width="33%" align=center>(Primary Standard Industrial </TD>
    <TD width="33%" align=center>(I.R.S. Employer </TD></TR>
  <TR vAlign=top>
    <TD align=center>incorporation or organization) </TD>
    <TD width="33%" align=center>Classification Code Number) </TD>
    <TD width="33%" align=center>Identification Number) </TD></TR></TABLE>
<P align=center><B>7075 Place Robert-Joncas <BR>Montr&#233;al, Qu&#233;bec, Canada H4M 2Z2
<BR><U>(514) 270-5770 <BR></U></B>(Address, including zip code, and telephone
number, including area code, of Registrant's principal executive offices)</P>
<P align=center><B>Camlex Management <BR>8275 S. Eastern Ave., Suite 200
<BR><U>Las Vegas, Nevada 89123<BR></U></B>(Name, address including zip
code, and telephone number, including area code, of Agent for Service)</P>
<P align=center><B><I>Copies to:<BR></I>Andrew J. Merken, Esq. <BR>Burns
&amp; Levinson LLP <BR>125 Summer Street <BR>Boston, Massachusetts 02110
<BR><U>(617) 345-3000</U> </B></P>
<P align=justify style="text-indent: 5%"><B>Approximate date of commencement of proposed sale to the
public: </B>As soon as practicable after this registration statement becomes
effective. </P>
<P align=justify style="text-indent: 5%">If any 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: [X] </P>
<P align=justify style="text-indent: 5%">If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) 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. [&nbsp;
&nbsp;]</P>
<P align=justify style="text-indent: 5%">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. [&nbsp;&nbsp; ]</P>
<P align=justify style="text-indent: 5%">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. [&nbsp; &nbsp;]</P>
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<P align=justify style="text-indent: 5%">Indicate by 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 Rule 12b-2 of the
Exchange Act. </P>
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    <TD align=center>Large Accelerated filer [&nbsp;&nbsp;&nbsp; ]</TD>
    <TD width="40%" align=center></TD>
    <TD width="29%" align=center>Accelerated
      filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;[&nbsp; &nbsp;] </TD></TR>
  <TR vAlign=top>
    <TD align=center>Non-accelerated filer&nbsp;&nbsp;
      &nbsp;[&nbsp;&nbsp;&nbsp; ]</TD>
    <TD width="40%" align=center>(Do not check if a smaller reporting
      company)&nbsp;&nbsp;</TD>
    <TD width="29%" align=center>Smaller reporting company [X]
</TD></TR></TABLE>
<p><BR>
</p>
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<P align=center><B>CALCULATION OF REGISTRATION FEE</B></P>
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  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp; </TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp;</TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Proposed </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Proposed </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Maximum </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp;</TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Maximum </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Aggregate </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Amount of </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp; Amount to be</TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Offering Price </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Offering </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>Registration </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">Title of Each Class of Securities to be Registered</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=center>Registered <SUP>(1)</SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=center>Per
      Share<SUP>(2)</SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=center>Price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=center>Fee
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom" bgcolor="#E6EFFF">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">Common Stock underlying Series A warrants exercisable at $0.14 per share </TD>
    <TD bgColor=#E6EFFF  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF width="12%" align=right valign="bottom">6,666,666 </TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF  width="1%" align=left valign="bottom">$</TD>
    <TD bgColor=#E6EFFF width="12%" align=right valign="bottom">&nbsp;0.14 </TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF  width="1%" align=left valign="bottom">$</TD>
    <TD bgColor=#E6EFFF width="12%" valign="bottom">
    <font FACE="TimesNewRoman" SIZE="2">
    <p ALIGN="right">933,333.24</font></TD>
    <TD bgColor=#E6EFFF  width="2%" valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF  width="1%" valign="bottom">$</TD>
    <TD bgColor=#E6EFFF width="12%" valign="bottom">
    <p ALIGN="right"><font face="TimesNewRoman">52.08</font></TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">Common Stock underlying Series B warrants exercisable at $0.14 per share </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">19,999,998 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;0.14</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" valign="bottom"><font FACE="TimesNewRoman" SIZE="2">
    <p ALIGN="right">2,799,999.72</font></TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">$</TD>
    <TD width="12%" valign="bottom">
    <p ALIGN="right"><font face="TimesNewRoman">156.24</font></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgcolor="#E6EFFF">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">Common Stock underlying Series C warrants exercisable at $0.14 per share </TD>
    <TD bgColor=#E6EFFF  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF width="12%" align=right valign="bottom">6,666,666 </TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF  width="1%" align=left valign="bottom">$</TD>
    <TD bgColor=#E6EFFF width="12%" align=right valign="bottom">&nbsp;0.14</TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF  width="1%" align=left valign="bottom">$</TD>
    <TD bgColor=#E6EFFF width="12%" align=right valign="bottom">
    <font FACE="TimesNewRoman" SIZE="2">933,333.24</font></TD>
    <TD bgColor=#E6EFFF  width="2%" valign="bottom">&nbsp;</TD>
    <TD bgColor=#E6EFFF  width="1%" valign="bottom">$</TD>
    <TD bgColor=#E6EFFF width="12%" valign="bottom">
    <p ALIGN="right"><font face="TimesNewRoman">52.08</font></TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">Common Stock issuable upon conversion of preferred Class A exchangeable shares on a 1:1 basis </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">2,000,000 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;0.14</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" align=right valign="bottom">
    <font FACE="TimesNewRoman" SIZE="2">280,000.00</font></TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">$</TD>
    <TD width="12%" valign="bottom">
    <p ALIGN="right"><font face="TimesNewRoman">15.62</font></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom" bgcolor="#E6EFFF">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF" align="right">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" valign="bottom" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">Common Stock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF
    width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF width="12%"
    align=right valign="bottom">811,581 </TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF
    width="1%" align=left valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF width="12%"
    align=right valign="bottom">&nbsp;0.14</TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF
    width="1%" align=left valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF width="12%" valign="bottom">
    <font FACE="TimesNewRoman" SIZE="2">
    <p ALIGN="right">113.621.34</font></TD>
    <TD bgColor=#E6EFFF  width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF
    width="1%" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#E6EFFF width="12%" valign="bottom">
    <p ALIGN="right"><font face="TimesNewRoman">6.34</font></TD>
    <TD bgColor=#E6EFFF  width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -20; margin-left: 20; margin-right: 20">Total </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double"
    width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" width="12%"
    align=right valign="bottom">36,144,911 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double"
    width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" width="12%"
    align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double"
    width="1%" align=left valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" width="12%" valign="bottom">
    <font FACE="TimesNewRoman" SIZE="2">
    <p ALIGN="right">5,060,287.54</font></TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double"
    width="1%" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" width="12%" valign="bottom">
    <p ALIGN="right"><font face="TimesNewRoman">282.36</font></TD>
    <TD  width="2%"
  align=left valign="bottom">&nbsp;</TD></TR></TABLE>
<P align=justify>(1) <font FACE="TimesNewRoman" SIZE="2">All of the shares of
common stock registered hereunder will be offered by the selling stockholders
named herein.</P>
<p ALIGN="LEFT">Pursuant to Rule 416 under the Securities Act of 1933, as
amended, the shares being registered hereunder include such indeterminate number
of additional shares of common stock as may be issuable with respect to the
shares being registered as a result of stock splits, stock dividends and similar
changes.</p>
</font>
<P align=justify>(2) <font FACE="TimesNewRoman" SIZE="2">Estimated solely for
the purpose of calculating the registration fee in accordance with Rule 457(c).
We have estimated the offering price to be $0.14 per share based on the reported
average bid and asked price for shares of our stock in the over-the-counter
market on July 29, 2009.</P>
</font>
<P align=justify><I>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, as amended, or until the
registration statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.</I></P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_4></A>
<P align=justify><B>THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY
BE CHANGED. THESE SECURITIES MAY NOT BE SOLD UNTIL THE REGISTRATION STATEMENT
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS
IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO
BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT
PERMITTED.</B></P>
<P align=center><B>Subject to Completion, Dated July 30, 2009</B></P>
<P align=center><B>PROSPECTUS</B></P>
<P align=center><B><font size="5">ICP SOLAR TECHNOLOGIES, INC.</font></B></P>
<P align=center>36,144,911 Shares of Common Stock</P>
<P align=justify>This prospectus relates to the offer for sale of 36,144,911
shares of our common stock, $0.00001 par value per share, by certain existing
holders of the securities named herein, referred to as &#147;selling stockholders&#148;
throughout this document. </P>
<P align=justify>The shares of common stock to be sold by the selling
stockholders include: </P>
<ul>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">6,666,666 shares issuable to selling stockholders pursuant
  to the exercise of Series A warrants; and </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">19,999,998 shares issuable to selling stockholders pursuant
  to the exercise of Series B warrants; and </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">6,666,666 shares issuable to selling stockholders pursuant
  to the exercise of Series C warrants; and </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">2,000,000 shares issuable to certain selling stockholders
  upon the conversion of Class A Exchangeable Shares of 1260491 Alberta Inc.,
  our wholly-owned subsidiary, on a one-for-one basis; and</P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">811,581 shares issued by us as consideration for consulting
  services rendered to us by certain of the selling stockholders.</P>
  </li>
</ul>
<P align=justify>The offered shares issuable upon the exercise of the warrants
described above were acquired by certain selling stockholders pursuant to a
series of transactions completed on December 31, 2008. See &#147;Prospectus Summary;
The Offering&#148;. We are registering the offer and sale of the shares of common
stock underlying the warrants to satisfy registration rights we have granted to
the selling stockholder who are holders thereof.</P>
<P align=justify>All of the shares being offered by this prospectus are being
offered by the selling stockholders named in this prospectus or any supplement
hereto. This offering is not being underwritten. We will not receive any of the
proceeds from the sale of the shares of our common stock in this offering. If
the warrants are exercised so that the underlying shares may be sold, we will
receive the exercise price of the warrants. </P>
<P align=justify>The selling stockholders identified in this prospectus, or
their pledgees, donees, transferees or other successors-in-interest, may offer
the common stock or interests therein from time to time through public or
private transactions at prevailing market prices, at prices related to
prevailing market prices, or at privately negotiated prices. We will pay all
expenses of registering this offering of securities. See &#147;Plan of Distribution&#148;.
</P>
<P align=justify>Our common stock is quoted on the Over-The-Counter Bulletin
Board (the "OTC Bulletin Board") under the symbol "ICPR". On July 29, 2009, the
last reported bid price was $0.14. Except under certain circumstances, the selling
stockholders will sell the shares from time to time through independent
brokerage firms in the over-the-counter market at market prices prevailing at
the time of sale. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>Investing
in our common stock involves substantial risks. See "Risk Factors" beginning on
page 6. </STRONG></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is
truthful or complete. Any representation to the contrary is a criminal
offense.</B> </P>
<P align=center>The date of this Prospectus is July 30, 2009</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_5></A>
<P align=center><B>TABLE OF CONTENTS</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="15%" align=right>Page </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_6" style="text-decoration: none">Prospectus
      Summary </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_6" style="text-decoration: none">3
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_9" style="text-decoration: none">Risk
      Factors </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_9" style="text-decoration: none">6
      </A></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_19" style="text-decoration: none">Forward-Looking
      Statements </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_19" style="text-decoration: none">16
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_20" style="text-decoration: none">Use
      of Proceeds </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_20" style="text-decoration: none">17
      </A></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_20" style="text-decoration: none">Market
      Price of Our Common Stock and Related Stockholder Matters </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_20" style="text-decoration: none">17
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_22" style="text-decoration: none">Selling
      Security Holders </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_22" style="text-decoration: none">19
      </A></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_24" style="text-decoration: none">Plan
      of Distribution </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_24" style="text-decoration: none">21
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_26" style="text-decoration: none">Description
      of Securities </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_26" style="text-decoration: none">23
      </A></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_26" style="text-decoration: none">Legal
      Matters </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_26" style="text-decoration: none">23
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_26" style="text-decoration: none">Experts
      </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_26" style="text-decoration: none">23
      </A></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_27" style="text-decoration: none">Management's
      Discussion and Analysis of Financial condition and Results of Operations
      </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_27" style="text-decoration: none">24
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_43" style="text-decoration: none">Our
      Business </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_43" style="text-decoration: none">40
      </A></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_54" style="text-decoration: none">Legal
      Proceedings </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_54" style="text-decoration: none">51
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <A
      href="#page_54" style="text-decoration: none">Directors
      and Executive Officers </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_54" style="text-decoration: none">51
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><A
      href="#page_57" style="text-decoration: none">Executive
      Compensation </A></TD>
    <TD width="15%" align=right bgcolor="#E6EFFF">
    <A
      href="#page_57" style="text-decoration: none">54
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <A
      href="#page_63" style="text-decoration: none">Security
      Ownership of Certain Beneficial Owners and Management </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_63" style="text-decoration: none">60
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><A
      href="#page_65" style="text-decoration: none">Certain
      Relationships and Related Party Transactions; Director Independence
</A></TD>
    <TD width="15%" align=right bgcolor="#E6EFFF">
    <a href="#page_65" style="text-decoration: none">62</a></TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <A
      href="#page_65" style="text-decoration: none">Interests
      of Named Experts and Counsel </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_65" style="text-decoration: none">62
      </A></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>
    <A
      href="#page_66" style="text-decoration: none">Where
      You Can Find Additional Information </A></TD>
    <TD bgColor=#E6EFFF width="15%" align=right>
    <A
      href="#page_66" style="text-decoration: none">63
      </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_67" style="text-decoration: none">Index
      to Financial Statements </A></TD>
    <TD width="15%" align=right>
    <A
      href="#page_67" style="text-decoration: none">64
      </A></TD></TR></TABLE>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You
may only rely on the information contained in this prospectus or that we have
referred you to. No dealer, salesperson or other person is authorized to give
any information or to represent anything not contained in this prospectus. You
must not rely on any unauthorized information or representations. This
prospectus is an offer to sell only the shares offered hereby, but only under
circumstances and in jurisdictions where it is lawful to do so. The information
contained in this prospectus is current only as of its date. Neither the
delivery of this prospectus nor any sale made in connection with this prospectus
shall, under any circumstances, create an implication that there has been no
change in our affairs since the date of this prospectus or that the information
contained by reference to this prospectus is correct as of any time after its
date.</B></P>
<P align=center>2 </P>
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width="100%" noShade>
<A name=page_6></A>
<P align=center><B>PROSPECTUS SUMMARY</B></P>
<P align=justify><B>This summary highlights information contained elsewhere in
this prospectus and is qualified in its entirety by the more detailed
information and consolidated financial statements included elsewhere in this
prospectus. This summary is not complete and may not contain all of the
information that may be important to you. You should read carefully this entire
prospectus, including the information under "Risk Factors" and our consolidated
financial statements and the related notes included elsewhere in this
prospectus, before making an investment decision.</B></P>
<P align=center><B>Our Business</B> </P>
<P align=justify>On September 29, 2006, ICP Solar Technologies Inc., formerly FC
Financial Services Inc. ("ICP Solar"), a Nevada corporation, directly and
indirectly through its Canadian wholly owned subsidiary, completed the
acquisition of 100% of the issued and outstanding shares of ICP Solar
Technologies Inc., a Canadian corporation ("ICP"). ICP, organized in 1988, has
continued its operations as a subsidiary of ICP Solar. In this prospectus,
unless otherwise indicated or the context requires, the &#147;Company&#148;, &#147;we&#148;, &#147;us&#148;
and &#147;our&#148; refer to ICP Solar and its subsidiaries including ICP and ICP Global
Technologies Inc. (Canada), our operating company and a wholly-owned subsidiary
of ICP.</P>
<P align=justify>We are headquartered in Montreal, Canada and we operate in the
solar energy industry. We market and sell solar panel based products to the
consumer goods, Original Equipment Manufacturers ("OEM") and integrated building
materials markets through our distribution channels in over 50 countries. Our
products include: <B>Sunsei <SUP>TM</SUP></B> <B>12V solar chargers</B>
(from 135mAmps to 8Amp sizes, Charge Controllers, Mounting and Expansion Kits,
Coleman solar chargers from 100mAmps to 3.6Amps, 4A Charge Controller), <B>OEM
Modules</B> (from 54mm to 600mm in size VW Solar Charger, Winnebago Solar
Charger for RV Roof), and <B>Solar Tiles (BIPV)</B> (in development). We operate
our business through a wholly owned subsidiary of ICP, ICP Global Technologies
Inc. (Canada). </P>
<P align=justify>We were incorporated in the State of Nevada on November 19,
2003 as &#147;FC Financial Services Inc.&#148; Prior to completing the acquisition of ICP,
we were in the business of providing indirect financing of installment contracts
for automobile purchases and leases. Our business model involved automobile
dealers making arrangements with us to finance the purchase or lease of a
vehicle. In order to focus our resources on developing ICP's technology and
business, we no longer are proceeding with automobile financing business
activities. </P>
<P align=left><B>Our Strategy </B></P>
<P align=justify>Our business strategy is to expand our client base with large
retail chains and specialty retailers in addition to further penetrating our
existing client base. Our strategy is to gain market share by working with
partners for a variety of applications. At the present time, the Company has
identified potential marketing partners. The Company also intends to continue to
market its existing products to the rural areas of developing countries. We plan
to continue to reduce our costs by improving efficiency and innovating new
technologies. As part of our overall sales growth strategy, we intend to
continue to work closely with our sales agents, as well as utilize the Internet
for our marketing and sales of our products. </P>
<P align=left><B>Our Competitive Strengths </B></P>
<P align=justify>We believe that our key competitive strengths include:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Our intellectual property;
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">The depth and breadth of our management team's expertise and experience in
  the solar energy industry;
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Market recognition of our brand names; and
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Our reputation for quality products. </LI></UL>
<P align=center>3 </P>
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width="100%" noShade>
<A name=page_7></A>
<P align=justify><B>The Offering </B></P>
<P align=justify><I>Shares offered by selling stockholders </I></P>
<P align=justify>The selling stockholders will offer and sell up to an aggregate
of 36,144,911 shares of our common stock, as follows: (i) 6,666,666 shares
issuable upon the exercise of Series A warrants held by selling stockholders,
(ii) 19,999,998 shares issuable upon the exercise of Series B warrants held by
selling stockholders, (iii) 6,666,666 shares issuable upon the exercise of
Series C warrants held by selling stockholders, (iv) 2,000,000 shares issuable
to certain selling stockholders upon the conversion of Class A Exchangeable
Shares of 1260491 Alberta Inc., our wholly owned subsidiary on a one-for-one
basis (see &#147;Management's Discussion and Analysis of Financial condition and
Results of Operations - Reorganization of the Corporation&#148;); and (v) 811,581
shares issued by us as consideration for consulting services rendered to us by
certain selling stockholders. For a list of the selling stockholders and the
amount of shares of common stock that each of them may sell, see "Selling
Security Holders." The total amount of the shares of common stock being
registered for sale by the selling stockholders is equal to approximately 88 %
of our currently outstanding common stock. </P>
<P align=justify>The offering is being made by the selling stockholders for
their benefit. We will not receive any of the proceeds of their sales of common
stock. We expect to use any cash proceeds received from exercise of the Warrants
by selling stockholders for general working capital purposes.</P>
<P align=justify><I>Our common stock </I></P>
<P align=justify>As of July 29, 2009, there were 41,262,497 shares of our common
stock outstanding. Shares of our common stock are quoted on the Over-The-Counter
Bulletin Board (the "OTC Bulletin Board") under the symbol "ICPR". See<B>
"</B>Market Price of Our Common Stock and Related Stockholder Matters." </P>
<P align=justify><I>Plan of distribution </I></P>
<P align=justify>We expect that the selling stockholders will sell the shares
primarily through sales into the over-the-counter market made from time to time
at prices that they consider appropriate. See "Plan of Distribution." </P>
<P align=justify><I>Background of the offering </I></P>
<P align=justify>On June 13, 2008, we completed a private placement (the
&#147;Private Placement&#148;) of securities in reliance upon the exemption from
registration provided by Regulation D promulgated under the Securities Act of
1933, as amended (the &#147;Securities Act&#148;) for net proceeds of US $3,000,000. In
connection with this private placement, we issued to the participating investors
(&#147;Buyers&#148;): (i) 11% senior secured convertible debentures, due June 13, 2010, in
the Company issued at a 10% discount with an aggregate face value of
$3,333,333,convertible into shares of common stock of the Company at an initial
conversion price of US $0.50 (subject to adjustment) (the &#147;Debentures&#148;); (ii)
6,666,666 six-year Series A purchase warrants each exercisable to purchase one
share of common stock of the Company, at an initial exercise price of US $0.50
per share (subject to adjustment); (iii) 6,666,666 six-year Series B purchase
warrants, each exercisable to purchase one share of common stock of the Company
at an initial exercise price of US $1.00 per share (subject to adjustment); and
(iv) 6,666,666 six-year Series C purchase warrants, each exercisable to purchase
one share of common stock of the Company at an initial exercise price of US
$1.00 per share warrants (subject to adjustment) (the securities described in
(ii) through (iv), collectively, the &#147;Warrants&#148;). No Series C warrants may be
exercised until such time as all Series B warrants have been exercised.<B>
</B></P>
<P align=justify>The Debentures are convertible at any time by the holders
thereof at a fixed initial conversion price of $0.50, subject to adjustment
pursuant to the terms of the Debentures in the event that we issue shares of
common stock (or securities convertible into or exercisable for shares of common
stock) at a price below the then current conversion price. The principal amount
under the Debentures is repayable to the holders in 18 equal monthly
installments of $185,185, beginning November 1, 2008. Interest on the Debentures
is payable monthly and began on June 13, 2008. We may make payments of interest
or principal under the Debentures in the form of shares of common stock;
provided, generally, that we are not in default under the Debentures at such
time and we have met certain equity conditions described in the Debentures. If
we make payments of interest in the form of shares of common stock, such shares
must be registered and free-trading. If the Company elects to make principal
payments in shares of common stock, the conversion rate will be the lesser of
(a) the Conversion Price (as defined below), or (b) 85% of the average of the
three (3) lowest closing bid prices of the common shares over the twenty (20)
trading day period ending on the trading day ending immediately preceding the
applicable monthly redemption date.</P>
<P align=center>4 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_8></A>
<P align=justify>A portion of the proceeds from the private placement were used
to redeem all of the outstanding principal and accrued interest on the Company's
credit facility with Royal Bank of Canada. </P>
<P align=justify>On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the &#147;Amendment&#148;) to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P style="margin-top: 0; margin-bottom: 12">The principal balance of the Debentures issued in the Private Placement, as
  amended, now constitutes 115% of the sum of (i) principal amount of the
  Debentures outstanding immediately prior to the date of the Amendment, plus
  (ii) all accrued and unpaid interest through December 31, 2008, for a total
  outstanding principal amount of: $2,953,688.37. The principal amount and the
  interest are to be paid out to the Buyers according to the terms set out in
  the Amendment and above. </P>
  <LI>
  <P style="margin-top: 0; margin-bottom: 12">The Company had agreed to remit to the holders 10% of its weekly
  collections commencing on February 1, 2009 until May 31, 2009 and any and all
  monthly receipts on the loan receivable from EPOD Solar Inc. (as
  described in &#147;Management's Discussion and Analysis of Financial condition and
  Results of Operations - Sale of 100% of Shares of ICP UK&#148;), until the Senior
  Secured Convertible Debentures have been repaid in full. The Company also
  assigned to the holders of the Debentures a $1,000 CDN face value 12%
  convertible debenture, due August 8, 2011, issued by EPOD Solar Inc. to the
  Company in connection with the sale of ICP UK. See &quot;Management's Discussion
  and Analysis of Financial condition and Results of Operations - Sale of 100%
  of Shares of ICP UK&quot;. Beginning on June 1,
  2009 the Company was to begin making thirteen equal monthly repayments of
  approximately $180,000. The Company has not commenced capital repayments, and
  the holders of the Debentures have agreed to allow the Company to repay the
  principal remaining with approximately 11 equal payments of approximately
  $166,000 and a final payment of $322,000. </P>
  <LI>
  <P style="margin-top: 0; margin-bottom: 12">The exercise price of the Series A purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  6,666,666 additional Series A warrants (hereinafter referred to as the &#147;Series
  A Adjustment Warrants&#148;); the exercise price of the Series B purchase warrants
  issued in the Private Placement was reduced from $0.50 to $0.25, resulting in
  the issuance of 19,999,998 additional Series B warrants (hereinafter referred
  to as the &#147;Series B Adjustment Warrants&#148;): the exercise price of the Series C
  purchase warrants issued in the Private Placement was reduced from $1.00 to
  $0.50, resulting in the issuance of 6,666,666 additional Series C warrants
  (hereinafter referred to as the &#147;Series C Adjustment Warrants&#148;) (the Series A
  Adjustment Warrants, Series B Adjustment Warrants and Series C Adjustment
  Warrants are collectively referred to herein as the &#147;Adjustment Warrants&#148;).
  </P></LI></UL>
<P align=justify>The Company has agreed to register the shares of common stock
issuable upon exercise of the Adjustment Warrants and is doing so pursuant to
the registration statement on Form S-1 of which this prospectus is a part. The
Company may be subject to various penalties for failure to meet certain
deadlines for the filing of and effectiveness of the registration statement.
</P>
<P align=justify>Holders of the Debentures may require the Company to redeem the
Debentures upon the occurrence of any one or more of events of default specified
in the Debentures. The shares of common stock issuable upon conversion of the
Debentures, as amended pursuant to the Amendment, are not required to be
registered under the transaction documents. </P>
<font FACE="Times New Roman" SIZE="2">
<p align="justify">The conversion price for the Debentures, as amended, and the
exercise price for the Adjustment Warrants, the Additional Adjustment Warrants
(as described below) and the warrants issued in the Private Placement are
subject to adjustment at a floating rate tied to our achieving certain
milestones tied to trailing revenues and earnings before interest, taxes,
depreciation and amortization (&quot;EBITDA&quot;). In the event that we fail to achieve
these milestones, the conversion price for the Debentures and the exercise price
for the warrants will be reduced (but not increased) to equal the lesser of (a)
the conversion price then in effect, (b) the &quot;market price&quot; (equal to the volume
weighted average price of our common stock during the immediately preceding five
(5) consecutive trading days) for shares of our common stock, as determined on
the applicable milestone date, or (c) the market price, as determined on the
date that is five (5) trading days after the date that Company files its next
periodic report with the Securities and Exchange Commission following the end of
the applicable milestone period. </p>
<p align="justify">For our fiscal quarter ended April 30, 2009 (a milestone
date), the Company was required under the Debentures to achieve revenues no less
than $1.5 million and to maintain its accounts payable at less than $1.75
million. The Company failed to achieve these targets and, as a result, was in
default under the Debentures. </p>
<p ALIGN="JUSTIFY">The Company has obtained a waiver from the holders of the
Debentures for such default; however, pursuant to the terms of the Debentures,
as a result of the Company's failure to achieve these targets the conversion
price of the outstanding Debentures and the exercise price for the Adjustment
Warrants and the warrants issued in the Private Placement was reduced to $0.14,
the volume weighted average price of our common stock during the five (5)
consecutive trading days immediately preceding April 30, 2009. The weighted
average market price in the five days following the filing of the 10Q was not
less than $0.14, so that a further reduction in price was not required nor made.
The reduction in the exercise price of the Adjustment Warrants and the warrants
issued in the Private Placement resulted in the issuance of the following
warrants effective June 21, 2009: (i)10,476,197 additional Series A Warrants
(&quot;Series A Additional Adjustment Warrants&quot;), (ii) 20,952,386 additional Series B
warrants (&quot;Series B Additional Adjustment Warrants&quot;), and (iii) 34,285,722
additional Series C warrants (&quot;Series C Additional Adjustment Warrants&quot;),
(Series A Additional Adjustment Warrants, Series B Additional Adjustment
Warrants and Series C Additional Adjustment Warrants collectively referred to
herein as the &quot;Additional Adjustment Warrants&quot;). </p>
<p>The Company will not be required to register any of the shares of common
stock issuable upon exercise of any such Additional Adjustment Warrants. </p>
</font>
<P align=justify>This registration includes (i) 6,666,666 shares of common stock
issuable upon the exercise of Series A Adjustment Warrants issued, (ii)
19,999,998 shares of common stock issuable upon the exercise of Series B
Adjustment Warrants issued , and (iii) 6,666,666 shares of common stock issuable
upon the exercise of Series C Adjustment Warrants issue.</P>
<P align=justify>We are also registering for resale by certain selling
stockholders (i) 2,000,000 shares issuable to certain selling stockholders upon
the conversion of Class A Exchangeable Shares of 1260491 Alberta Inc., our
wholly owned subsidiary on a one-for-one basis (see &#147;Management's Discussion and
Analysis of Financial condition and Results of Operations - Reorganization of
the Corporation&#148;); and (ii) 811,581 shares issued by us as consideration for
consulting services rendered to us by certain of the selling stockholders. See
&#147;Selling Security Holders&#148;.</P>
<P align=justify><B>Additional Information </B></P>
<P align=justify>Our executive offices are located at 7075 Place Robert-Joncas,
Montr&#233;al, Qu&#233;bec, Canada, H4M 2Z2. Our web site address is
http://www.icpsolar.com. Information contained on our web site is not to be
considered a part of this prospectus. </P>
<P align=center>5 </P>
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<P align=center><B>RISK FACTORS</B> </P>
<P align=justify><B>YOU SHOULD CAREFULLY CONSIDER THE RISKS AND UNCERTAINTIES
DESCRIBED BELOW AND THE OTHER INFORMATION CONTAINED OR INCORPORATED BY REFERENCE
IN THIS PROSPECTUS BEFORE DECIDING WHETHER TO INVEST IN OUR COMMON STOCK.
ADDITIONAL RISKS AND UNCERTAINTIES NOT PRESENTLY KNOWN TO US OR THAT WE
CURRENTLY DEEM IMMATERIAL MAY ALSO IMPAIR OUR BUSINESS OPERATIONS.</B></P>
<P align=justify><B>IF ANY OF THE FOLLOWING RISKS ACTUALLY OCCUR, OUR BUSINESS,
FINANCIAL CONDITION OR OPERATING RESULTS COULD BE MATERIALLY ADVERSELY AFFECTED.
IN SUCH CASE, THE TRADING PRICE OR OUR COMMON STOCK COULD DECLINE AND YOU MAY
LOSE PART OR ALL OF YOUR INVESTMENT.</B></P>
<P align=justify><B>THIS PROSPECTUS ALSO CONTAINS FORWARD-LOOKING STATEMENTS
THAT INVOLVE RISKS AND UNCERTAINTIES. PLEASE SEE &#147;FORWARD-LOOKING STATEMENTS&#148; ON
PAGE 16.</B></P>
<P align=center><B>Risks Related to Our Business, Products and the Solar Power
Industry</B></P>
<P align=justify><B>We may need to raise significant additional capital in order
to fund our operations and to continue to grow our business, which subjects us
to the risk that we may be unable to maintain or grow our business as planned
and that our stockholders may be subject to substantial additional dilution.
</B></P>
<P align=justify>Although we believe that we have the financial resources to
complete our plan of operation for the next twelve months, we anticipate that we
may require additional funding to further enhance our operating infrastructure,
to secure our supply of solar panels and to advance our research and development
programs that are key to refining our products.</P>
<P align=justify>We may also require additional capital to respond to
competitive pressures and acquire complementary businesses or necessary
technologies. We do not know whether or not we will be able to raise additional
financing at all or on terms favorable to us. If adequate funds are not
available or are not available on acceptable terms, our ability to fund our
operations, to develop and expand our solar panel supplier network and
distribution network, to maintain our research and development efforts or to
otherwise respond to competitive pressures would be significantly impaired. If
financing is not available or obtainable, our ability to meet our financial
obligations and pursue our plan of operation will be substantially limited and
investors may lose a substantial portion or all of their investment. Moreover,
any additional funds raised through the issuance by us of shares of our capital
stock, or through securities exchangeable or convertible into shares of our
capital stock, would result in a reduction in the percentage ownership of our
existing stockholders. In addition, any such newly issued securities may contain
rights, privileges or preferences senior to those held by our existing
stockholders.</P>
<P align=justify><B>We have a history of losses, expect to incur substantial
further losses and may not achieve or maintain profitability in the future,
which may decrease the market value of our stock. </B></P>
<P align=justify>ICP was founded in 1988. Headquartered in Montreal, Canada, ICP
operates in the solar energy industry. ICP markets, and sells solar panel based
products to the consumer goods, Original Equipment Manufacturers ("OEM") and
integrated building materials markets through its distribution channels in over
50 countries. Since inception, we have incurred significant net losses,
including a net loss of $ 5,982,660 for the quarter ended April 30, 2009. As a
result of ongoing operating losses, we had an accumulated deficit of $
24,912,588 as of April 30, 2009. We expect to continue to incur substantial
losses for the foreseeable future, and we may never become profitable. Even if
we do achieve profitability, we may be unable to sustain or increase our
profitability in the future, which could materially decrease the market value of
our common stock.</P>
<P align=justify>We do not know whether our revenues will grow at all and even
if we do achieve profitability, we may be unable to sustain or increase our
profitability in the future, which could materially decrease the market value of
our common stock. We expect to continue to make significant capital expenditures
and anticipate that our expenses will increase substantially in the foreseeable
future as we seek to:</P>
<P align=center>6 </P>
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<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">expand our supplier network, whether domestically or internationally;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">develop our distribution network;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">continue to perform research and development to improve existing products
  and develop new products;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">implement internal systems and infrastructure in conjunction with our
  growth; and
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">hire additional personnel. </LI></UL>
<P align=justify>We do not know whether our revenues will grow at all or grow
rapidly enough to absorb these expenses, and our limited operating history makes
it difficult to assess the extent of these expenses or their impact on our
operating results.</P>
<P align=justify>Potential investors should also be aware of the difficulties
normally encountered by a new enterprise and the high rate of failure of such
enterprises. The potential for future success must be considered in light of the
problems, expenses, difficulties complications and delays encountered in
connection with the development of a business in the area in which we intend to
operate and in connection with the formation and commencement of operations of a
new business in general. These include, but are not limited to, unanticipated
problems relating to research and development programs, marketing, approvals by
government agencies, competition and additional costs and expenses that may
exceed current estimates. The Company has no substantial history upon which to
base any assumption as to the likelihood that our business will prove to be
successful, and there can be no assurance that we will generate any operating
revenues or ever achieve profitable operations.</P>
<P align=justify><B>Our dependence on a limited number of third party
manufacturers for solar panels, key components for our solar power products,
could prevent us from delivering our products to our customers within required
timeframes, which could result in order cancellations and loss of market share.
</B></P>
<P align=justify>We obtain all of our solar power products using third party
manufacturers and assemblers and using materials and components procured from a
limited number of third-party suppliers. If we fail to develop or maintain our
relationships with these or our other manufacturers and/or suppliers, we may be
unable to manufacture our products or our products may be available only at a
higher cost or after a long delay, which could prevent us from delivering our
products to our customers within required time frames and which may, in turn,
result in order cancellations and loss of market share. We currently do not have
contracts with many of our suppliers and may not be able to procure sufficient
quantities of the materials and components necessary to manufacture our products
on acceptable commercial terms or at all. To the extent that the processes that
our suppliers use to manufacture materials and components are proprietary, we
may be unable to obtain comparable materials and components from alternative
suppliers on favorable terms, or at all. The failure of a supplier to supply
materials and components in a timely manner, or to supply materials and
components that meet our quality, quantity and cost requirements could impair
our ability to manufacture our products or increase their component costs,
particularly if we are unable to obtain substitute sources of these materials
and components on a timely basis or on terms acceptable to us.</P>
<P align=justify><B>We may fail to successfully bring to market our new solar
power products under development, which may prevent us from achieving increased
sales and market share. </B></P>
<P align=justify>Although ICP has been selling its solar power products since
1988, we expect to derive a substantial portion of our revenues from sales of
our new solar power products that are under development and not yet commercially
available. If we fail to successfully develop our new solar power products or
technologies, we will likely be unable to recover losses incurred to date in the
development of these products and technologies, and we may be unable to increase
our sales sufficiently to allow us to become profitable.</P>
<P align=justify><B>Our solar power products may not gain market acceptance,
which would prevent us from achieving increased sales and market share. </B></P>
<P align=justify>The development of a successful market for our solar power
products may be adversely affected by a number of factors, many of which are
beyond our control, including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>our failure to produce solar power products that compete favorably against
  other solar power products on the basis of cost, quality and performance; <br>
&nbsp;</LI>
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">our failure to produce solar power products that compete favorably against
  conventional energy sources and alternatively distributed generation
  technologies, such as wind and biomass, on the basis of cost, quality and
  performance;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">whether or not customers will accept our new module designs under
  development and the techniques we are developing mount them; and
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">our failure to develop and maintain successful relationships with
  distributors, systems integrators and other resellers, as well as strategic
  partners. </LI></UL>
<P align=center>7 </P>
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<P align=justify>If our solar power products fail to gain market acceptance, we
may be unable to increase our sales and market share and to achieve and sustain
profitability.</P>
<P align=justify><B>Technological changes in the solar power industry could
render our solar power products uncompetitive or obsolete, which could reduce
our market share and cause our sales to decline. </B></P>
<P align=justify>Our failure to further refine our technology and to develop and
introduce new solar power products could cause our products to become
uncompetitive or obsolete, which could reduce our market share and cause our
sales to decline. The solar power industry is rapidly evolving and competitive.
We will need to invest significant financial resources in research and
development to keep pace with technological advances in the solar power industry
and to effectively compete in the future. We believe that a variety of competing
solar power technologies are under development by other companies that could
result in lower manufacturing costs or higher product performance than those
expected for our solar power products. Our development efforts may be rendered
obsolete by the technological advances of others and other technologies may
prove more advantageous for the commercialization of solar power products.</P>
<P align=justify><B>Our ability to increase market share and sales depends on
our ability to successfully maintain our existing distribution relationships and
expand our existing distribution channels. </B></P>
<P align=justify>We currently sell our solar power products primarily to
distributors, system integrators and other value-added resellers within and
outside of North America, which typically resell our products to end-users
globally. If we are unable to successfully refine our existing distribution
relationships and expand our existing distribution channels, our revenues and
future prospects may be materially harmed. As we seek to grow our sales by
entering new markets in which we have little experience selling our solar power
products, our ability to increase market share and sales will depend
substantially on our ability to expand our distribution channels by identifying,
developing and maintaining relationships with resellers both within and outside
of North America. We may be unable to enter into relationships with resellers in
the markets we target or on terms and conditions favorable to us, which could
prevent us from entering these markets at all or in accordance with our current
plans. Our ability to enter into and maintain relationships with resellers will
be influenced by factors beyond our control, including the relationships between
these resellers and our competitors, market acceptance of our products and our
low brand recognition as a new entrant.</P>
<P align=justify><B>Our dependence on a small number of resellers may cause
significant fluctuations or declines in our product revenues. </B></P>
<P align=justify>Historically, all of our sales to resellers have been made
through purchase orders without long-term commitments, including under
arrangements that may be cancelled without cause and on short notice and that
generally do not require minimum purchases. Consequently, our resellers are
generally permitted to obtain products from other providers of solar power
products without further obligation to us. The concentration of our product
sales also exposes us to credit risks associated with the financial viability of
these resellers. We anticipate that sales of our solar power products to a
limited number of key resellers will continue to account for a significant
portion of our total product revenues for the foreseeable future. Consequently,
any one of the following events may cause material fluctuations or declines in
our product revenues and negatively impact our operating results:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">reduction, delay or cancellation of orders from one or more of our
  significant resellers;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">selection by one or more of our significant resellers of products
  competitive with ours;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">loss of one or more of our significant resellers and our failure to
  recruit additional or replacement resellers; and
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">failure of any of our significant resellers to make timely payment of our
  invoices. </LI></UL>
<P align=center>8 </P>
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<P align=justify><B>Problems with product quality or product performance may
cause us to incur warranty expenses and may damage our market reputation and
prevent us from achieving increased sales and market share. </B></P>
<P align=justify>As is consistent with standard practice in our industry, the
duration of our product warranties is lengthy, and has recently been increasing
relative to expected product life. Our current standard product warranty
includes a two-year warranty period for defects in material and workmanship and
a ten-year warranty period for declines in power performance. We believe our
warranty periods are consistent with industry practice. Due to the long warranty
periods, we bear the risk of extensive warranty claims long after we have
shipped product and recognized revenues. The possibility of future product
failures could cause us to incur substantial expense to repair or replace
defective products. Furthermore, widespread product failures may damage our
market reputation and reduce our market share and cause sales to decline.</P>
<P align=justify><B>Our success in the future may depend on our ability to
establish and maintain strategic alliances, and any failure on our part to
establish and maintain such relationships would adversely affect our market
penetration and revenue growth. </B></P>
<P align=justify>We intend to continue to establish strategic relationships with
third parties in the solar power industry, particularly in international
markets. Our ability to establish strategic relationships will depend on a
number of factors, many of which are outside our control, such as the
competitive position of our technology and our products relative to those of our
competitors. We can provide no assurance that we will be able to establish new
strategic relationships in the future.</P>
<P align=justify>In addition, any new strategic alliances that we establish may
subject us to a number of risks, including risks associated with sharing
proprietary information, loss of control of operations that are material to our
business and profit-sharing arrangements. Moreover, strategic alliances may be
expensive to implement and subject us to the risk that the third party will not
perform its obligations under the relationship, which may subject us to losses
over which we have no control or to expensive termination arrangements. As a
result, even if our strategic alliances with third parties are successful, our
business may be adversely affected by a number of factors that are outside of
our control which may, in turn, cause the market price of our common stock to
decline.</P>
<P align=justify><B>Existing regulations and changes to such regulations may
present technical, regulatory and economic barriers to the purchase and use of
solar power products, which may significantly reduce demand for our
products.</B></P>
<P align=justify>The market for electricity generation products is heavily
influenced by foreign, federal, state and local government regulations and
policies concerning the electric utility industry, as well as internal policies
and regulations promulgated by electric utilities. These regulations and
policies often relate to electricity pricing and technical interconnection of
customer-owned electricity generation. In the United States and a number of
other countries, these regulations and policies are being modified and may
continue to be modified. Customer purchases of, or further investment in the
research and development of, alternative energy sources, including solar power
technology, could be deterred by these regulations and policies, which could, in
turn, result in a significant reduction in the potential demand for solar power
products in general. For example, utility companies commonly charge fees to
larger, industrial customers for disconnecting from the electric grid or for
having the capacity to use power from the electric grid only for back-up
purposes. These fees could increase the cost to our customers of using our solar
power products and make them less desirable, thereby harming our business,
prospects, results of operations and financial condition. We anticipate that our
solar power products and their installation will be subject to oversight and
regulation in accordance with national and local ordinances relating to building
codes, safety, environmental protection, utility interconnection and metering
and related matters, all of which may change over time. There is also a burden
in having to track the requirements of individual states and design equipment to
comply with the varying standards. Any new government regulations or utility
policies pertaining to our solar power products may result in significant
additional expenses to us and our resellers and their customers and, as a
result, could cause a significant reduction in demand for our solar power
products.</P>
<P align=justify><B>Compliance with environmental regulations can be expensive,
and noncompliance with these regulations may result in adverse publicity and
potentially significant monetary damages and fines. </B></P>
<P align=justify>We are required to comply with all applicable foreign, federal,
state and local regulations regarding protection of the environment. If more
stringent regulations are adopted in the future, the costs of compliance with
these new regulations could be substantial. We believe that we have all
necessary permits to conduct our business as it is presently conducted. If we
fail to comply with any applicable present or future environmental regulations,
however, we may be required to pay substantial fines, suspend production or
cease operations. We use, generate and discharge toxic, volatile and otherwise
hazardous chemicals and wastes in our research and development and manufacturing
activities. Any failure by us to control the use of, or to restrict adequately
the discharge of, hazardous substances could subject us to, among other things,
potentially significant monetary damages and fines, criminal proceedings and
penalties, third party property damage or personal injury claims or suspensions
in our business operations. In addition, under some foreign, federal and state
statutes and regulations, a governmental agency may seek recovery and response
costs from operators of property where releases of hazardous substances have
occurred or are ongoing, even if the operator was not responsible for such
release or otherwise at fault.</P>
<P align=center>9 </P>
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<P align=justify><B>We face intense competition from other companies producing
solar power and other energy generation products. If we fail to compete
effectively, we may be unable to increase our market share and sales. </B></P>
<P align=justify>The solar power market is intensely competitive and rapidly
evolving. Our competitors have established a market position more prominent than
ours, and if we fail to attract and retain customers and establish a successful
distribution network for our solar power products, we may be unable to increase
our sales and market share. There are a large number of companies in the world
that produce solar power products, including BP Solar, Kyocera Corporation,
Sharp Corporation, Mitsubishi, Solar World AG and Sanyo Corporation. We also
expect that future competition will include new entrants to the solar power
market offering new technological solutions. Further, many of our competitors
are developing and are currently producing products based on new solar power
technologies. Most of our competitors are substantially larger than we are, have
longer operating histories and have substantially greater financial, technical,
manufacturing and other resources than we do. Our competitors' greater size in
some cases provides them with a competitive advantage with respect to
manufacturing costs due to their ability to allocate fixed costs across a
greater volume of production and purchase raw materials at lower prices. Many
also have greater name recognition, a more established distribution network and
a larger installed base of customers. In addition, many of our competitors have
well-established relationships with our current and potential resellers and
their customers and have extensive knowledge of our target markets. As a result,
our competitors may be able to devote greater resources to the research,
development, promotion and sale of their products and respond more quickly to
evolving industry standards and changing customer requirements than we can.</P>
<P align=justify><B>The success of our business depends on the continuing
contributions of our key personnel and our ability to attract and retain new
qualified employees in a competitive labor market. </B></P>
<P align=justify>We have attracted a highly skilled management team. If we were
to lose the services of our executive officers and key employees, our business
could be materially and adversely impacted. We do not carry key person life
insurance on any of our senior management or other key personnel.</P>
<P align=justify>Our success will largely depend on the performance of our
management and on the management of ICP. We are currently dependent upon a
limited number of employees and consultants. As such, our success will also
depend on our ability to attract and retain highly skilled technical, research,
management, regulatory compliance, sales and marketing personnel. Competition
for such personnel is intense. The loss of the services of such personnel or the
inability to attract and retain other key personnel could impair the development
of our business, operating results and financial condition.</P>
<P align=justify><B>Our management team may not be able to successfully
implement our business strategies. </B></P>
<P align=justify>If our management team is unable to execute our business
strategies, then our product development, the expansion of our distribution
network and our sales and marketing activities may be materially and adversely
affected. In addition, we may encounter difficulties in effectively managing the
budgeting, forecasting and other process control issues presented by this rapid
growth. We may seek to augment or replace members of our management team or we
may lose key members of our management team, and we may not be able to attract
new management talent with sufficient skills and experience.</P>
<P align=center>10 </P>
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<P align=justify><B>If solar power technology is not suitable for widespread
adoption or sufficient demand for solar power products does not develop or takes
longer to develop than we anticipate, our sales will not significantly increase
and we may be unable to achieve or sustain profitability. </B></P>
<P align=justify>The market for solar power products is emerging and rapidly
evolving, and its future success is uncertain. If solar power technology proves
unsuitable for widespread commercial deployment or if demand for solar power
products fails to develop sufficiently, we will be unable to generate enough
revenue to achieve and sustain profitability. In addition, demand for solar
power products in the markets and geographic regions we target may not develop
or may develop more slowly than we anticipate. Many factors will influence the
widespread adoption of solar power technology and demand for solar power
products, including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">cost-effectiveness of solar power technologies as compared with
  conventional and non-solar alternative energy technologies;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">performance and reliability of solar power products as compared with
  conventional and non-solar alternative energy products;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">success of alternative distributed generation technologies such as fuel
  cells, wind power and micro turbines;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">fluctuations in economic and market conditions that impact the viability
  of conventional and non-solar alternative;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">energy sources, such as increases or decreases in the prices of oil and
  other fossil fuels;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">capital expenditures by customers that tend to decrease when the United
  States or global economy slows;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">continued deregulation of the electric power industry and broader energy
  industry; and
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">availability of government subsidies and incentives. </LI></UL>
<A name=page_14></A>
<P align=justify><B>Product liability claims against us could result in adverse
publicity and potentially significant monetary damages. </B></P>
<P align=justify>Like other retailers and distributors of products that are used
by consumers, we face an inherent risk of exposure to product liability claims
in the event that the use of the solar power products we sell results in injury.
Since our products are electricity producing devices, it is possible that
consumers could be injured or killed by our products, whether by product
malfunctions, defects, improper installation or other causes. In addition, since
sales of our existing products have been modest and the products we are
developing incorporate new technologies and use new installation methods, we
cannot predict whether product liability claims will be brought against us in
the future or the effect of any resulting adverse publicity on our business.
Moreover, we may not have adequate resources in the event of a successful claim
against us. We have evaluated the potential risks we face and believe that we
have appropriate levels of insurance for product liability claims. We rely on
our general liability insurance to cover product liability claims and have not
obtained separate product liability insurance. The successful assertion of
product liability claims against us could result in potentially significant
monetary damages and, if our insurance protection is inadequate to cover these
claims, could require us to make significant payments.</P>
<P align=justify><B>Our business, and therefore our results of operations and
financial condition, may be adversely affected by the current disruption in the
global credit markets and instability of financial systems. </B></P>
<P align=justify>The recent disruption in the global credit markets, the
re-pricing of credit risk and the deterioration of the financial and real estate
markets generally, particularly in the U.S. and Europe, have all contributed to
a reduction in consumer spending and a decline in the overall U.S. economy.
Although the recent disruptions were initially in the housing, financial and
insurance sectors, this deterioration has further expanded to the general
economy and other sectors, including the solar energy sector. Tight credit,
increased unemployment and reduced consumer confidence have had negative effects
on demand for alternative sources of energy and consequently for our product and
service offerings. In addition, some economists are predicting that the U.S.
economy, and possibly the global economy, has entered into a prolonged recession
or even a depression as a result of the foregoing factors. Such a prolonged
downturn in the U.S. or global economy could have a material adverse effect on
our business in a number of ways, including lower sales and renewal cycles if
there is a reduction in demand for solar energy products and could have a
material adverse effect on our liquidity, results of operations and financial
condition.<B> </B></P>
<P align=justify>In addition, if these conditions continue or worsen, they may
result in reduced worldwide demand for energy and additional difficulties in
obtaining financing, which may adversely affect our business. Risks we might
face could include: potential declines in revenues in our business segments due
to reduced orders or other factors caused by economic challenges faced by our
customers and prospective customers, potential adverse impacts on our ability to
access credit and other financing sources beyond the approved credit lines we
currently have, and increased costs associated with accessing further credit and
financing sources. Further, if these conditions continue or worsen, our ability
to finance future acquisitions or significant capital expenditures relating to
new projects and lines of business may be adversely affected.<B> </B></P>
<P align=justify><B>Risks Related to Our Supply Chain</B></P>
<P align=justify><B>We will continue to be dependent on a limited number of
third-party suppliers for certain raw materials and components for our products,
which could prevent us from delivering our products to our customers within
required timeframes, which could result in sales and installation delays,
cancellations, liquidated damages and loss of market share. </B></P>
<P align=justify>We rely on a limited number of third-party suppliers for
certain raw materials and components for our products. If we fail to develop or
maintain our relationships with our limited suppliers, we may be unable to
manufacture our products or our products may be available only at a higher cost
or after a long delay, which could prevent us from delivering our products to
our customers within required timeframes and we may experience order
cancellation and loss of market share. To the extent the processes that our
suppliers use to manufacture components are proprietary, we may be unable to
obtain comparable components from alternative suppliers. In addition, the
current economic environment and credit markets could limit our suppliers'
ability to raise capital if required to expand their production or satisfy their
operating capital requirements. As a result, they could be unable to supply
necessary raw materials, inventory and capital equipment to us which we would
require to support our planned sales operations which would in turn negatively
impact our sales volumes and cash flows. The failure of a supplier to supply raw
materials or components in a timely manner, or to supply raw materials or
components that meet our quality, quantity and cost requirements, could impair
our ability to manufacture our products or increase their costs. If we cannot
obtain substitute materials or components on a timely basis or on acceptable
terms, we could be prevented from delivering our products to our customers
within required timeframes, which could result in sales and installation delays,
cancellations, liquidated damages and loss of market share, any of which could
have a material adverse effect on our business and results of operations.</P>
<P align=center>11 </P>
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<P align=justify><B>Risks Related to Our Intellectual Property</B></P>
<P align=justify><B>If we are unable to protect our intellectual property
adequately, we could lose our competitive advantage in the solar power
market.</B></P>
<P align=justify>Our ability to compete effectively against competing solar
power technologies will depend, in part, on our ability to protect our current
and future proprietary technology and product designs through a combination of
patent, copyright, trademark, trade secret and unfair competition laws. We may
not be able to adequately protect our intellectual property and may need to
defend our products and services against infringement claims, either of which
could result in the loss of our competitive advantage in the solar power market
and materially harm our business and profitability. We face the following risks
in protecting our intellectual property and in developing, marketing and selling
our products and services:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">we cannot be certain that our pending United States and foreign patent
  applications will result in issued patents or that the claims allowed are or
  will be sufficiently broad to protect our technology or processes;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">given the costs of obtaining patent protection, we may choose not to
  protect certain innovations that later turn out to be important;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">third parties may design around our patented technologies or seek to
  challenge or invalidate our intellectual property rights and there is no
  assurance that our intellectual property rights will deter infringement or
  misappropriation of our intellectual property;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">we may incur significant costs and diversion of management resources in
  prosecuting or defending intellectual property infringement suits;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">we may not be successful in prosecuting or defending intellectual property
  infringement suits and, as a result, may need to seek to obtain a license of
  the third party's intellectual property rights, which may not be available to
  us, whether on reasonable terms or at all; and
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">the contractual provisions we rely on to protect our trade secrets and
  proprietary information, such as our confidentiality and non-disclosure
  agreements with our employees, consultants and other third parties, may be
  breached and our trade secrets and proprietary information may be disclosed to
  competitors, strategic partners and the public. </LI></UL>
<P align=justify>We own 17 registered patents and 5 patents pending, and 41
registered trademarks and 3 trademarks pending.</P>
<P align=justify><B>If we are subject to litigation and infringement claims,
they could be costly and disrupt our business. </B></P>
<P align=justify>In recent years, there has been significant litigation
involving patents and other intellectual property rights in many
technology-related industries. There may be patents or patent applications in
the United States or other countries that are pertinent to our business of which
we are not aware. The technology that we incorporate into and use to develop our
current and future solar power products may be subject to claims that they
infringe the patents or other proprietary rights of others. The success of our
technology efforts will also depend on our ability to develop new technologies
without infringing or misappropriating the proprietary rights of others. We may
receive notices from third parties alleging patent, trademark or copyright
infringement claims, claims regarding trade secrets or contract claims. Receipt
of these notices could result in significant costs as a result of the diversion
of the attention of management from our technology efforts. No third party has a
current filed intellectual property lawsuit, arbitration or other proceeding
against us. We may, however, be involved in future lawsuits, arbitrations or
other legal proceedings alleging patent infringement or other intellectual
property rights violations. If a successful claim were brought against us, we
would have to attempt to license the intellectual property right from the
claimant or to spend time and money to design around or avoid the intellectual
property. Any such license may not be available at reasonable terms, or at all.
In addition, litigation, arbitration or other legal proceedings may be necessary
to:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">assert claims of infringement or misappropriation of or otherwise enforce
  our intellectual property rights;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">protect our trade secrets or know-how; or
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">determine the enforceability, scope and validity of our intellectual
  property rights or those of others. </LI></UL>
<P align=justify>We may be unsuccessful in defending or pursuing these lawsuits
or claims. Regardless of the outcome, litigation can be very costly and can
divert management's efforts. An adverse determination may subject us to
significant liabilities or require us to seek licenses to other parties'
intellectual property rights. We may also be restricted or prevented from
developing, marketing or selling a solar power product or service that we
develop. Further, we may not be able to obtain any necessary licenses on
acceptable terms, if at all.</P>
<P align=center>12 </P>
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<P align=justify>In addition, we may have to participate in proceedings before
the United States Patent and Trademark office, or before foreign patent and
trademark offices, with respect to our patents, patent applications, trademarks
or trademark applications or those of others. These actions may result in
substantial costs to us as well as a diversion of management attention.
Furthermore, these actions could place our patents, trademarks and other
intellectual property rights at risk and could result in the loss of patent,
trademark or other intellectual property rights protection for the products and
services on which our business strategy depends.</P>
<P align=justify><B>We may be unable to adequately protect or enforce our
proprietary information, which may result in its unauthorized use or reduced
sales or otherwise reduce our ability to compete. </B></P>
<P align=justify>Our business and competitive position depend upon our ability
to protect our proprietary technology, including any solar power products that
we develop. Despite our efforts to protect this information, unauthorized
parties may attempt to obtain and use information that we regard as proprietary.
Any patents issued in connection with our efforts to develop new technology for
solar power products may not be broad enough to protect all of the potential
uses of the technology.</P>
<P align=justify>In addition, when we do not control the prosecution,
maintenance and enforcement of certain important intellectual property, such as
a technology in-licensed to us, the protection of the intellectual property
rights may be out of our control. If the entity that controls the intellectual
property rights does not adequately protect those rights, our rights may be
impaired, which may impact our ability to develop, market and commercialize the
related solar power products.</P>
<P align=justify>Our means of protecting our proprietary rights may not be
adequate, and our competitors may:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">independently develop substantially equivalent proprietary information,
  products and techniques;
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">otherwise gain access to our proprietary information; or
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">design around our patents or other intellectual property. </LI></UL>
<P align=justify>We pursue a policy of having our employees, consultants and
advisors execute proprietary information and invention agreements when they
begin working for us. However, these agreements may not provide meaningful
protection for our trade secrets or other proprietary information in the event
of unauthorized use or disclosure. If we fail to maintain trade secret and
patent protection, our potential, future revenues may be decreased.</P>
<P align=justify><B>If the effective term of our patents is decreased due to
changes in patent laws or if we need to re-file some of our patent applications,
the value of our patent portfolio and the revenues we derive from it may be
decreased. </B></P>
<P align=justify>The value of our patents depends in part on their duration. A
shorter period of patent protection could lessen the value of our rights under
any patents that we obtain and may decrease the revenues we derive from our
patents. For example, the United States patent laws were amended in 1995 to
change the term of patent protection from 17 years after the date of a patent's
issuance to 20 years after the earliest effective filing date of the application
for a patent, unless the application was pending on June 8, 1995, in which case
the term of a patent's protection expires either 17 years after its issuance or
20 years after its filing, whichever is later. Because the average time from
filing of patent application to issuance of a patent is usually at least one
year and, depending on the subject matter, may be more than three years, a
20-year patent term from the filing date may result in substantially shorter
patent protection. Also, we may need to re-file some of our patent applications
to disclose additional subject matter and, in these situations, the patent term
will be measured from the date of the earliest priority application to which
benefit is claimed in such a patent application. This would shorten our period
of patent exclusivity and may decrease the revenues that we might obtain from
the patents.</P>
<P align=justify>International intellectual property protection is particularly
uncertain and costly, and we have not obtained or sought patent or trademark
protection in many foreign countries where our solar power products and services
may be developed, marketed or sold by us or by others. Intellectual property law
outside the United States is even more uncertain and costly than in the United
States and is currently undergoing review and revision in many countries.
Further, the laws of some foreign countries may not protect our intellectual
property rights to the same extent as United States laws.</P>
<P align=center>13 </P>
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<P align=justify><B>Risks Related to Our Securities</B></P>
<P align=justify><B>We may conduct further offerings in the future, in which
case your shareholdings will be diluted. </B></P>
<P align=justify>Since our inception, we have relied on equity sales of our
common stock and issuances of convertible debt and warrants convertible or
exercisable into shares of our common stock to fund our operations. We may
conduct further equity and/or convertible debt offerings in the future to
finance our current projects or to finance subsequent projects that we decide to
undertake. If common stock is issued in return for additional funds, or upon
conversion or exercise of outstanding convertible debentures or warrants, the
price per share could be lower than that paid by our current stockholders. We
anticipate continuing to rely on equity sales of our common stock and issuances
of convertible debt and/or warrants in order to fund our business operations. If
we issue additional stock, your percentage interest in us will be lower. This
condition is often referred to as "dilution." The result of this could reduce
the value of your stock.</P>
<P align=justify><B>Because our common stock is considered a &#147;penny stock&#148;,
stockholders will be more limited in their ability to sell their shares.
</B></P>
<P align=justify>Our common stock is considered to be a "penny stock" since it
does not qualify for one of the exemptions from the definition of "penny stock"
under Section 3a51-1 of the Securities Exchange Act of 1934 (the "Exchange
Act"). Our common stock is a "penny stock" because it meets one or more of the
following conditions (i) the stock trades at a price less than $5.00 per share;
(ii) it is not traded on a "recognized" national exchange; (iii) it is not
quoted on the NASDAQ Stock Market, or even if so, has a price less than $5.00
per share; or (iv) is issued by a company that has been in business less than
three years with net tangible assets less than $5 million.</P>
<P align=justify>The principal result or effect of being designated a "penny
stock" is that securities broker-dealers participating in sales of our common
stock will be subject to the "penny stock" regulations set forth in Rule 3a51-1
and Rules 15-2 through 15g-9 promulgated under the Exchange Act. For example,
Rule 15g-2 requires broker-dealers dealing in penny stocks to provide potential
investors with a document disclosing the risks of penny stocks and to obtain a
manually signed and dated written receipt of the document at least two business
days before effecting any transaction in a penny stock for the investor's
account. Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve
the account of any investor for transactions in such stocks before selling any
penny stock to that investor. This procedure requires the broker-dealer to (i)
obtain from the investor information concerning his or her financial situation,
investment experience and investment objectives; (ii) reasonably determine,
based on that information, that transactions in penny stocks are suitable for
the investor and that the investor has sufficient knowledge and experience as to
be reasonably capable of evaluating the risks of penny stock transactions; (iii)
provide the investor with a written statement setting forth the basis on which
the broker-dealer made the determination in (ii) above; and (iv) receive a
signed and dated copy of such statement from the investor, confirming that it
accurately reflects the investor's financial situation, investment experience
and investment objectives. Compliance with these requirements may make it more
difficult and time consuming for holders of our common stock to resell their
shares to third parties or to otherwise dispose of them in the market or
otherwise.</P>
<P align=justify><B>Because the Board of Directors may designate and authorize
issuance of preferred shares, the rights of the holders of Common Stock may be
adversely affected. </B></P>
<P align=justify>The Board of Directors may designate and authorize issuance of
preferred shares which could have rights, preferences or privileges in priority
to our common stockholders and which may further dilute our common stockholders.
The authorized capital of the Company includes 1,000,000 shares of ''blank
check'' preferred stock, of which no shares have been issued. The Board of
Directors has the authority to issue shares of preferred stock and to determine
the price, designation, rights, preferences, privileges, restrictions and
conditions, including voting rights and dividend rights, of these shares of
preferred stock without any vote or action by the stockholders. The rights of
the holders of shares of our common stock will be subject to, and may be
adversely affected by, the rights of holders of any preferred stock that we may
issue in the future. The issuance of preferred stock, while providing desirable
flexibility in connection with possible acquisitions and other corporate
purposes, could make it more difficult for a third party to acquire a majority
of the outstanding voting stock of the Company. At this time, the Company has no
present plans of issuing any preferred stock.</P>
<P align=justify><B>Because we do not intend to pay dividends, stockholders will
benefit from an investment in our common stock only if it appreciates in value.
</B></P>
<P align=justify>We have never declared or paid any cash dividends on our common
stock. We anticipate that we will retain our earnings to support operations and
to finance the growth and development of our business and do not expect to pay
cash dividends in the foreseeable future. As a result, the success of an
investment in our common stock will depend upon any future appreciation in its
value. There is no guarantee that our common stock will appreciate in value or
even maintain the price at which stockholders have purchased their shares. </P>
<P align=center>14 </P>
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<P align=justify><B>The conversion of outstanding convertible debentures and the
exercise of outstanding warrants could result in a substantial number of
additional shares of our common stock being issued in the event that we fail to
achieve certain milestones. </B></P>
<P align=justify>On June 13, 2008, we closed a private placement (the &#147;Private
Placement&#148;) involving the issuance of (i) 11% senior secured convertible
debentures in the Company issued at a 10% discount with an aggregate face value
of $3,333,333, convertible into shares of common stock of the Company at an
initial conversion price of US $0.50 (subject to adjustment) (the &#147;Debentures&#148;);
(ii) 6,666,666 Series A purchase warrants each exercisable to purchase one share
of common stock of the Company, at an initial exercise price of US $0.50 per
share (subject to adjustment); (iii) 6,666,666 Series B purchase warrants, each
exercisable to purchase one share of common stock of the Company at an initial
exercise price of US $1.00 per share (subject to adjustment) and (iv) 6,666,666
Series C purchase warrants, each exercisable to purchase one share of common
stock of the Company at an initial exercise price of US $1.00 per share warrants
(subject to adjustment). </P>
<P align=justify>On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the &#147;Amendment&#148;) to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">The principal balance of the Debentures, as amended, now constitutes 115%
  of the sum of (i) principal amount of the Debentures outstanding immediately
  prior to the date of the Amendment, plus (ii) all accrued and unpaid interest
  through December 31, 2008, for a total outstanding principal amount of:
  $2,953,688.37. The principal amount and the interest are to be paid out to the
  Buyers according to the terms set out in the Amendment.
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">The exercise price of the Series A purchase warrants was reduced from
  $0.50 to $0.25, resulting in the issuance of 6,666,666 additional Series A
  warrants (the &#147;Series A Adjustment Warrants&#148;); the exercise price of the
  Series B purchase warrants was reduced from $0.50 to $0.25, resulting in the
  issuance of 19,999,998 additional Series B warrants (the &#147;Series B Adjustment
  Warrants&#148;); and the exercise price of the Series C purchase warrants was
  reduced from $1.00 to $0.50, resulting in the issuance of 6,666,666 additional
  Series C warrants (the &#147;Series C Adjustment Warrants&#148;) (the Series A
  Adjustment Warrants, Series B Adjustment Warrants and Series C Adjustment
  Warrants are collectively referred to as the &#147;Adjustment Warrants&#148;) </LI></UL>
<P align=justify>The conversion price for the Debentures, as amended, and the
exercise price for the Adjustment Warrants, the Additional Adjustment Warrants
(as described below) and the warrants issued in the
Private Placement are subject to adjustment at a floating rate tied to our
achieving certain milestones tied to trailing revenues and earnings before
interest, taxes, depreciation and amortization (&#147;EBITDA&#148;). In the event that we
fail to achieve these milestones, the conversion price for the Debentures and
the exercise for the warrants will be reduced (but not increased) to equal the
lesser of (a) the conversion price then in effect, (b) the &#147;market price&#148; (equal
to the volume weighted average price of our common stock during the immediately
preceding five (5) consecutive trading days) for shares of our common stock, as
determined on the applicable milestone date, or (c) the market price, as
determined on the date that is five (5) trading days after the date that Company
files its next periodic report with the Securities and Exchange Commission
following the end of the applicable milestone period. </P>
<font FACE="Times New Roman" SIZE="2">
<p>For our fiscal quarter ended April 30, 2009 (a milestone date), the Company
was required under the Debentures to achieve revenues no less than $1.5 million
and to maintain its accounts payable at less than $1.75 million. The Company
failed to achieve these targets and, as a result, was in default under the
Debentures. </p>
<p ALIGN="JUSTIFY">The Company has obtained a waiver from the holders of the
Debentures for such default; however, pursuant to the terms of the Debentures,
as a result of the Company's failure to achieve these targets the conversion
price of the outstanding Debentures and the exercise price for the Adjustment
Warrants and the warrants issued in the Private Placement was reduced to $0.14,
the volume weighted average price of our common stock during the five (5)
consecutive trading days immediately preceding April 30, 2009. The weighted
average market price in the five days following the filing of the 10Q was not
less than $0.14, so that a further reduction in price was not required nor made.
The reduction in the exercise price of the Adjustment Warrants and the warrants
issued in the Private Placement resulted in the issuance of the following
warrants effective June 21, 2009: (i)10,476,197 additional Series A Warrants
(&quot;Series A Additional Adjustment Warrants&quot;), (ii) 20,952,386 additional Series B
warrants (&quot;Series B Additional Adjustment Warrants&quot;), and (iii) 34,285,722
additional Series C warrants (&quot;Series C Additional Adjustment Warrants&quot;),
(Series A Additional Adjustment Warrants, Series B Additional Adjustment
Warrants and Series C Additional Adjustment Warrants collectively referred to
herein as the &quot;Additional Adjustment Warrants&quot;). </p>
</font>
<P align=justify>Holders of Debentures, the warrants issued in the Private
Placement, Adjustment Warrants and Additional Adjustment Warrants may
convert such Debentures or exercise such warrants immediately. In addition, we
may make payments of interest or principal under the Debentures in the form of
shares of common stock; provided, generally, that we are not in default under
the Debentures at such time and we have met certain equity conditions described
in the Debentures. If we make payments of interest in the form of shares of
common stock, such shares must be registered and free-trading. If the Company
elects to make principal payments in shares of common stock, the conversion rate
will be the lesser of (a) the conversion price then in effect, or (b) 85% of the
average of the three (3) lowest closing bid prices of the common shares over the
twenty (20) trading day period ending on the trading day ending immediately
preceding the applicable monthly redemption date. If we fail to achieve the
milestones described above, or if we elect to make payments of principal on the
Debentures in the form of shares of our common stock, the outstanding
Debentures, the warrants issued in the Private Placement, the Adjustment
Warrants and the Additional Adjustment Warrants will be exercisable for a greater
number of shares. This could decrease the price of our common stock and
encourage short selling which, in turn, could produce additional downward
pressure on the market price of our common stock. Any resulting lower market
prices could result in further downward adjustment to the prevailing conversion
and/or exercise prices described herein, meaning that we could be required to
issue an increasingly greater number of shares of our common stock to holders of
Debentures, the warrants issued in the Private Placement, the Adjustment
Placement and the Additional Adjustment Warrants upon conversion or exercise
thereof, further depressing the market price for our common stock. </P>
<P align=center>15 </P>
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<P align=justify>The conversion of the outstanding Debentures and the exercise
of outstanding warrants issued in the Private Placement, Adjustment Warrants,
Additional Adjustment Warrants and any interest or principal
payments on the Debentures made by us in the form of shares of common stock, may
result in substantial dilution to the interests of other holders of our common
stock. Even though no selling stockholder may convert its Debentures if upon
such conversion the selling stockholder, together with its affiliates, would
acquire a number of shares of common stock exceeding 4.99% of our then
outstanding common stock, excluding for purposes of such determination shares of
common stock issuable upon conversion of any portion of the Debentures which
have not been converted and upon exercise of warrants issued in the Private
Placement, the Adjustment Warrants and/or the Additional Adjustment Warrants
which have not been exercised, this restriction does not prevent a selling
stockholder from selling a substantial number of shares in the market or from
unilaterally choosing to raise the 4.99% limit. By periodically selling shares
into the market, an individual selling stockholder could eventually sell more
than 4.99% of our outstanding common stock while never holding more than 4.99%
at any specific time. In the event we receive a tender offer or an offer to
merge with another entity in a transaction in which we are not the surviving
entity, or in the event we are in default under the Debentures, this percentage
is automatically increased to 9.99% .</P>
<P align=center><B>FORWARD-LOOKING STATEMENTS </B></P>
<P align=justify>This prospectus includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;), and Section 21E of the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;). All statements, other than statements of
historical fact, contained in this prospectus constitute forward-looking
statements. In some cases you can identify forward-looking statements by terms
such as "may," "intend," "might," "will," "should," "could," "would," "expect,"
"believe," "estimate," "anticipate," "predict," "project," "potential," or the
negative of these terms and similar expressions intended to identify
forward-looking statements.</P>
<P align=justify>Forward-looking statements are based on assumptions and
estimates and are subject to risks and uncertainties. We have identified in this
prospectus some of the factors that may cause actual results to differ
materially from those expressed or assumed in any of our forward-looking
statements. There may be other factors not so identified. You should not place
undue reliance on our forward-looking statements. As you read this prospectus,
you should understand that these statements are not guarantees of performance or
results. Further, any forward-looking statement speaks only as of the date on
which it is made and, except as required by law, we undertake no obligation to
update any forward-looking statement to reflect events or circumstances after
the date on which it is made or to reflect the occurrence of anticipated or
unanticipated events or circumstances. New factors emerge from time to time that
may cause our business not to develop as we expect and it is not possible for us
to predict all of them. Factors that may cause actual results to differ
materially from those expressed or implied by our forward-looking statements
include, but are not limited to, those described under the heading "Risk
Factors" beginning on page 6, as well as the following:</P>
<ul>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our ability to generate enough positive cash flow to
  pay our creditors; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our dependence on key personnel; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our need to attract and retain technical and managerial
  personnel; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our ability to execute our business strategy; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Competition with established leaders in the solar energy
  industry; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our ability to protect our intellectual property and
  proprietary technologies; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Costs associated with potential intellectual infringement
  claims asserted by a third party; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our exposure to product liability claims resulting from
  the use of our products; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">The current disruption in the global credit markets,
  re-pricing of credit risk and the deterioration of the financial and real estate
  markets generally; </P>
  </li>
</ul>
<P align=center>16 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_20></A>
<ul>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">General economic and capital market conditions, including
  political and economic uncertainty in various areas of the world where we do
  business; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our exposure to unanticipated and uncontrollable business
  interruptions; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Pricing and product actions taken by our competitors;
</P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Financial conditions of our customers; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Customers' perception of our financial condition
  relative to that of our competitors; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Reliance upon suppliers and risks of production disruptions
  and supply and capacity constraints; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our dependence on our marketing partners; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Costs of raw materials and energy; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Unforeseen liabilities arising from litigation; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our ability to successfully complete the integration
  of any future acquisitions; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our exposure to undisclosed liabilities of the public
  shell corporation; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our ability to project the market for our products based
  upon estimates and assumptions; and </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">Our ability to obtain approvals needed to market our
  products.</P>
  </li>
</ul>
<P align=center><B>USE OF PROCEEDS</B> </P>
<P align=justify>We are not selling any of the shares of common stock in this
offering and, therefore, will not receive any proceeds therefrom.</P>
<P align=justify>Upon exercise for cash of all warrants at their current
exercise price for which shares of common stock issuable upon exercise thereof
are being registered hereunder, we expect to receive aggregate proceeds of
approximately $16,666,665. We expect to use any such cash proceeds from the
exercise of these warrants for general working capital purposes. In the event
that the warrants are exercised other than for cash, we will receive no proceeds
from such exercise.</P>
<P align=center><B>MARKET PRICE OF OUR COMMON STOCK AND RELATED STOCKHOLDER
MATTERS</B></P>
<P align=justify>Our common stock is quoted on the Over-The-Counter Bulletin
Board (the "OTC Bulletin Board") under the symbol "ICPR". Our shares were first
traded on the OTC Bulletin Board in June, 2005. The following table indicates
the high and low bid prices of our common stock obtained during the periods
indicated: </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD align=left >&nbsp; </TD>
      <TD colspan="2" align=center>For the period ended April 30, 2009 </TD>
      <TD colspan="2" align=center>For the period ended April 30, 2008 </TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="19%" align=center>High
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="19%" align=center>Low
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="19%" align=center>High
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="19%" align=center>Low
      </TD>
    </TR>
    <TR>
      <TD >&nbsp; </TD>
      <TD width="19%" align=center>&nbsp; </TD>
      <TD width="19%" align=center>&nbsp; </TD>
      <TD width="19%" align=center>&nbsp; </TD>
      <TD width="19%" align=center>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left style="border-bottom-style: solid; border-bottom-width: 1" >Second Quarter <BR>
        (May to July) </TD>
      <TD bgColor=#e6efff width="19%" align=center>$0.82<BR></TD>
      <TD bgColor=#e6efff width="19%" align=center>$0.42<BR></TD>
      <TD bgColor=#e6efff width="19%" align=center>$3.35 <BR></TD>
      <TD bgColor=#e6efff width="19%" align=center>$2.17 <BR></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left style="border-top-style: solid; border-top-width: 1" >Third Quarter <BR>
        (Aug. to Oct.) </TD>
      <TD width="19%" align=center>$0.53<BR></TD>
      <TD width="19%" align=center>$0.20 <BR></TD>
      <TD width="19%" align=center>$3.14 <BR></TD>
      <TD width="19%" align=center>$1.80 <BR></TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left style="border-bottom-style: solid; border-bottom-width: 1" >Fourth Quarter <BR>
        (Nov. to Jan.) </TD>
      <TD bgColor=#e6efff width="19%" align=center>$0.45<BR></TD>
      <TD bgColor=#e6efff width="19%" align=center>$0.13 <BR></TD>
      <TD bgColor=#e6efff width="19%" align=center>$2.99 <BR></TD>
      <TD bgColor=#e6efff width="19%" align=center>$0.36 <BR></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left style="border-top-style: solid; border-top-width: 1" >First Quarter <BR>
        (Feb. to Apr.) </TD>
      <TD width="19%" align=center>$0.21<BR></TD>
      <TD width="19%" align=center>$0.10 <BR></TD>
      <TD width="19%" align=center>$1.07 <BR></TD>
      <TD width="19%" align=center>$0.25 <BR></TD>
    </TR>
  </TABLE>
</DIV>
<P align=center>17 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_21></A>
<P align=justify>The range of high and low price quotes of our common stock as
set out in the table above is as quoted on the OTC Bulletin Board. The market
quotations provided reflect inter-dealer prices, without retail markup,
mark-down or commission and may not represent actual transactions. </P>
<P align=justify>The number of holders of record of our shares of our common
stock, as of July 29, 2009, was 59. </P>
<P align=justify><B>Penny Stock Rules</B></P>
<P align=justify>The United States Securities and Exchange Commission (&#147;SEC&#148;)
has adopted rules that regulate broker-dealer practices in connection with
transactions in penny stocks. Penny stocks are generally equity securities with
a price of less than $5.00, other than securities registered on certain national
securities exchanges; provided, that current price and volume information with
respect to transactions in such securities is provided by the exchange or
system. The penny stock rules require a broker-dealer, prior to a transaction in
a penny stock not otherwise exempt from those rules, to deliver a standardized
risk disclosure document prepared by the SEC, which: (a) contains a description
of the nature and level of risk in the market for penny stocks in both public
offerings and secondary trading; (b) contains a description of the broker's or
dealer's duties to the customer and of the rights and remedies available to the
customer with respect to a violation of such duties or other requirements of
securities laws; (c) contains a brief, clear, narrative description of a dealer
market, including bid and ask prices for penny stocks and significance of the
spread between the bid and ask price; (d) contains a toll-free telephone number
for inquiries on disciplinary actions; (e) defines significant terms in the
disclosure document or in the conduct of trading in penny stocks; and (f)
contains such other information and in such form as the SEC shall require by
rule or regulation. The broker-dealer also must, prior to effecting any
transaction in a penny stock, provide the customer with: (a) bid and offer
quotations for the penny stock; (b) the compensation of the broker-dealer and
its salesperson in the transaction; (c) the number of shares to which such bid
and ask prices apply, or other comparable information relating to the depth and
liquidity of the market for such stock; and (d) monthly account statements
showing the market value of each penny stock held in the customer's account. In
addition, the penny stock rules require that, prior to a transaction in a penny
stock that is not otherwise exempt from those rules, the broker-dealer must: (a)
make a special written determination that the penny stock is a suitable
investment for the purchaser; and (b) receive from the purchaser his or her
written acknowledgement of receipt of the determination and a written agreement
to the transaction.</P>
<P align=justify>These disclosure requirements may have the effect of reducing
the trading activity in the secondary market for our common stock and therefore
stockholders may have difficulty selling those securities.</P>
<P align=justify><B>Securities Authorized for Issuance Under Equity Compensation
Plans </B></P>
<P align=justify>On November 1, 2006, the Board of Directors approved our 2006
Stock Incentive Plan (the "Plan"). On November 7, 2006, majority shareholder
approval for the Plan was received. Under the Plan, up to 2,000,000 shares of
common stock may be issued upon the exercise of options granted to directors,
management, employees and consultants. As of April 30, 2009 , options to
purchase a total of 1,790,000 shares of our common stock had been granted under
the Plan to certain of the Company's employees and directors. See "Executive
Compensation". </P>
<P align=justify><B>Equity Compensation Plan Information</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">Number of Securities </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">Weighted- </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">Number of Securities </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">to be issued upon </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">Average </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">remaining available for </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">exercise of </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">Exercise Price of </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">future issuance under </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">outstanding options <SUP>(1)</SUP></TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">outstanding </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">equity compensation </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">&nbsp; </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">options </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="19%" align=center valign="bottom">plan </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">Equity Compensation Plans Approved by Security Holders</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">1,790,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">$</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">&nbsp;0.44 </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">210,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">Equity Compensation Plans Not Approved by Security Holders</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">None </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">None </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">N/A </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 15; margin-right: 10">Total </TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">1,790,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">$</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">&nbsp;0.44 </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD bgColor=#e6efff width="19%" align=right valign="bottom">210,000 </TD>
    <TD bgColor=#e6efff width="2%" align=left valign="bottom">&nbsp;</TD></TR></TABLE>
<P align=justify>(1) Amount shown reflects the forfeiture of options to purchase
877,500 shares of our common stock by former employees. Pursuant to the terms of
the Plan, these shares will be available for re-issuance in connection with
future option grants.</P>
<P align=center>18 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_22></A>
<P align=justify><B>Dividend Policy</B></P>
<P align=justify>We have never declared or paid any cash dividends on our common
stock. We currently intend to retain future earnings, if any, to finance the
expansion of our business. As a result, we do not anticipate paying any cash
dividends in the foreseeable future.</P>
<P align=center><B>SELLING SECURITY HOLDERS</B></P>
<P align=justify><B>Background</B> </P>
<P align=justify>On June 13, 2008, we completed a private placement (the
&#147;Private Placement&#148;) of securities in reliance upon the exemption from
registration provided by Regulation D promulgated under the Securities Act for
net proceeds of US $3,000,000. In connection with this private placement, we
issued to the participating investors: (i) 11% senior secured convertible
debentures in the Company issued at a 10% discount with an aggregate face value
of $3,333,333,convertible into shares of common stock of the Company at an
initial conversion price of US $0.50 (subject to adjustment) (the &#147;Debentures&#148;);
(ii) 6,666,666 Series A purchase warrants each exercisable to purchase one share
of common stock of the Company, at an initial exercise price of US $0.50 per
share (subject to adjustment); (iii) 6,666,666 Series B purchase warrants, each
exercisable to purchase one share of common stock of the Company at an initial
exercise price of US $1.00 per share (subject to adjustment); and (iv) 6,666,666
Series C purchase warrants, each exercisable to purchase one share of common
stock of the Company at an initial exercise price of US $1.00 per share (subject
to adjustment). No Series C warrants may be exercised until such time as all
Series B warrants have been exercised.</P>
<P align=justify>On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the &#147;Amendment&#148;) to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">The principal balance of the Debentures issued in the Private Placement,
  as amended, now constitutes 115% of the sum of (i) principal amount of the
  Debentures outstanding immediately prior to the date of the Amendment, plus
  (ii) all accrued and unpaid interest through December 31, 2008, for a total
  outstanding principal amount on December 31, 2008 of $2,953,688.37. The
  principal amount and the interest shall be paid out to the Buyers according to
  the terms set out in the Amendment.
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">The exercise price of the Series A purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  6,666,666 additional Series A warrants (the &#147;Series A Adjustment Warrants&#148;);
  the exercise price of the Series B purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  19,999,998 additional Series B warrants (the &#147;Series B Adjustment Warrants&#148;);
  the exercise price of the Series C purchase warrants issued in the Private
  Placement was reduced from $1.00 to $0.50, resulting in the issuance of
  6,666,666 additional Series C warrants (the &#147;Series C Adjustment Warrants&#148;)
  (the Series A Adjustment Warrants, Series B Adjustment Warrants and Series C
  Adjustment Warrants, are collectively referred to herein as the &#147;Adjustment
  Warrants&#148;) </LI></UL>
<P align=justify>Holders of Debentures may require the Company to redeem the
Debentures upon the occurrence of any one or more events of default specified in
the Debentures. </P>
<font FACE="Times New Roman" SIZE="2">
<p align="justify">The conversion price for the Debentures, as amended, and the
exercise price for the Adjustment Warrants, the warrants issued in the Private
Placement and the Additional Adjustment Warrants (as described below) are
subject to adjustment at a floating rate tied to our achieving certain
milestones tied to trailing revenues and earnings before interest, taxes,
depreciation and amortization (&quot;EBITDA&quot;). In the event that we fail to achieve
these milestones, the conversion price for the Debentures and the exercise price
for the warrants will be reduced (but not increased) to equal the lesser of (a)
the conversion price then in effect, (b) the &quot;market price&quot; (equal to the volume
weighted average price of our common stock during the immediately preceding five
(5) consecutive trading days) for shares of our common stock, as determined on
the applicable milestone date, or (c) the market price, as determined on the
date that is five (5) trading days after the date that Company files its next
periodic report with the Securities and Exchange Commission following the end of
the applicable milestone period. </p>
<p align="justify">For our fiscal quarter ended April 30, 2009, the Company
failed to achieve certain milestones (as defined in the Debentures), as a result
of which the conversion price of the outstanding Debentures and the exercise
price for the Adjustment Warrants and the warrants issued in the Private
Placement was reduced to $0.14, the volume weighted average price of our common
stock during the five (5) consecutive trading days immediately preceding April
30, 2009. The reduction in the exercise price of the Adjustment Warrants and the
warrants issued in the Private Placement resulted in the issuance of the
following warrants effective June 21, 2009: (i) 10,476,197 additional Series A
Warrants (&quot;Series A Additional Adjustment Warrants&quot;), (ii) 20,952,386 additional
Series B warrants (&quot;Series B Additional Adjustment Warrants&quot;) and (iii)
34,285,722 additional Series C warrants (&quot;Series C Additional Adjustment
Warrants&quot;), (Series A Additional Adjustment Warrants, Series B Additional
Adjustment Warrants and Series C Additional Adjustment Warrants collectively
referred to herein as the &quot;Additional Adjustment Warrants&quot;). See &quot;Prospectus
Summary &#150; The Offering &#150; Background of the Offering&quot;. </p>
</font>
<P align=justify>This registration includes (i) 6,666,666 shares of common stock
issuable upon the exercise of Series A Adjustment Warrants issued, (ii)
19,999,998 shares of common stock issuable upon the exercise of Series B
Adjustment Warrants issued , and (iii) 6,666,666 shares of common stock issuable
upon the exercise of Series C Adjustment Warrants issued. </P>
<P align=justify>We are also registering for resale by certain selling
stockholders (i) 2,000,000 shares of our common stock issuable to certain
selling stockholders upon the conversion of Class A Exchangeable Shares of
1260491 Alberta Inc., our wholly owned subsidiary on a one-for-one basis (see
&#147;Management's Discussion and Analysis of Financial condition and Results of
Operations - Reorganization of the Corporation&#148;), and (v) 811,581 shares of
common stock held by certain selling stockholders.</P>
<P align=justify><B>Selling Stockholder Table</B> </P>
<P align=justify>The following table provides information regarding the
beneficial ownership of the outstanding shares of our common stock by the
selling stockholders. In computing the number of shares beneficially owned by a
selling stockholder and the percentage ownership of that selling stockholder, we
have included the number of shares of our common stock issuable upon conversion
of or otherwise pursuant to the Debentures and upon exercise of all warrants
issued in the Private Placement, the Adjustment Warrants issued pursuant to
the Amendment and the Additional Adjustment Warrants (see &#147;Selling Security Holders
- Background&#148;), in each case as held
by such selling stockholder. The number of shares beneficially owned by any
selling stockholder does not give effect to the 4.99% limitation on the number
of shares that may be held by any one selling stockholder, together with its
affiliates (which limitation may be waived upon 61 days' prior written notice to
us by the selling stockholder) and a further, non-waivable, 9.99% limitation, in
each case as described in the Debentures, as amended. Those shares, however, are
not deemed outstanding for the purpose of computing the percentage ownership of
any other person. Each selling stockholder's percentage ownership in the
following table is based on 41,262,497 shares of our common stock outstanding as
of July 29, 2009. </P>
<P align=center>19 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_23></A>
<P align=justify>The selling stockholders may offer the shares for sale from
time to time in whole or in part. Except where otherwise noted, each of the
selling stockholders named in the following table has, to our knowledge, sole
voting and investment power with respect to the shares beneficially owned by
such person. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>Name</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=center><B>Number of</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Number of</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Number of</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Percentage of</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=center><B>Shares Owned</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Shares</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Shares Owned</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Class</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=center><B>Prior to the</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Being</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>after the</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>After the</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=center><B>Offering</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Registered</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Offering</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="14%" align=center><B>Offering</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >BridgePointe Master Fund Ltd.
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>69,429,949</TD>
    <TD bgColor=#e6efff  width="2%" align=left><SUP>(1)</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>16,666,673</TD>
    <TD bgColor=#e6efff  width="2%" align=left><SUP>(8)</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>52,763,276 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>27.08% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Joel Cohen<SUP>(2)</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>1,477,581</TD>
    <TD  width="2%" align=left><SUP>(3)</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>811,581</TD>
    <TD  width="2%" align=left><SUP>(9)</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>666,000 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=left>
    <p align="right">&nbsp; * </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Gemini Master Fund, Ltd. </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>22,894,098</TD>
    <TD bgColor=#e6efff  width="2%" align=left><SUP>(4)</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>5,555,547</TD>
    <TD bgColor=#e6efff  width="2%" align=left><SUP>(10)</SUP>
</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>17,338,551 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>8.90% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Sass Peress<SUP>(5)</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>18,435,800</TD>
    <TD  width="2%" align=left><SUP>(6)</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>2,000,000</TD>
    <TD  width="2%" align=left><SUP>(11)</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>16,435,800 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=left>
    <p align="right">&nbsp;8.43% </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Platinum Long Term Growth VI,
      LLC </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>41,368,085</TD>
    <TD bgColor=#e6efff  width="2%" align=left><SUP>(7)</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>11,111,110</TD>
    <TD bgColor=#e6efff  width="2%" align=left><SUP>(12)</SUP>
</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>30,256,975 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>15.53% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Total </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>153,605,513 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>35,744,911 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>117,460,602 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>60.28% </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>* Less than 1%</P>
<P align=justify>(1) Represents (a) 9,345,503 shares of common stock issuable
upon conversion of convertible debentures, (b) 11,904,761 shares of common stock
issuable upon the exercise of Series A warrants at the exercise price of $0.14
per share, (c) 23,809,521 shares of common stock issuable upon the exercise of
Series B warrants at the exercise price of $0.14 per share, (d) 23,809,521
shares of common stock issuable upon the exercise of Series C warrants at the
exercise price of $0.14 per share, (e) a total of 590,643 shares of common stock
which may be issued in the event the Company elects to make payments of interest
on the convertible debentures in the form of shares of common stock. </P>
<P align=justify>(2) Mr. Cohen serves as a director and as the Secretary and
Treasurer, of the Company and previously served as Chief Financial Officer of
the Company (and its predecessor FC Financial Services, Inc.) from October 30,
2006 through January 1, 2007. </P>
<P align=justify>(3) Includes 100,000 shares of common stock issuable upon the
exercise of options and 240,000 shares of common stock issuable upon the
exercise of warrants. </P>
<P align=justify>(4) Represents (a) 2,880,252 shares of common stock issuable
upon conversion of convertible debentures, (b) 3,968,254 shares of common stock
issuable upon the exercise of Series A warrants at the exercise price of $0.14
per share, (c) 7,936,507 shares of common stock issuable upon the exercise of
Series B warrants at the exercise price of $0.14 per share, (d) ) 7,936,507
shares of common stock issuable upon the exercise of Series C warrants at the
exercise price of $0..14 per share, and (e) a total of 172,578 shares of common
stock which may be issued in the event the Company elects to make payments of
interest on the convertible debentures in the form of shares of common stock.
</P>
<P align=justify>(5) Mr. Peress serves as the Company's Chairman of the Board,
President and Chief Executive Officer.</P>
<P align=justify>(6) Includes 850,000 shares of common stock issuable upon the
exercise of options. </P>
<P align=center>20 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_24></A>
<P align=justify>(7) Represents (a) 1,590,265 shares of common stock issuable
upon conversion of convertible debentures, (b) 7,936,507 shares of common stock
issuable upon the exercise of Series A warrants at the exercise price of $0.14
per share, (c) 15,873,014 shares of common stock issuable upon the exercise of
Series B warrants at the exercise price of $0.14 per share, (d) 15,873,014
shares of common stock issuable upon the exercise of Series C warrants at the
exercise price of $0.14 per share, and (e) a total of 95,285 shares of common
stock which may be issued in the event the Company elects to make payments of
interest on the convertible debentures in the form of shares of common stock.
</P>
<P align=justify>(8) Represents (a) 3,333,335 shares of common stock issuable
upon the exercise of Series A warrants at the exercise price of $0.25 per share
, (b) 10,000,003 shares of common stock issuable upon the exercise of Series B
warrants at the exercise price of $0.25 per share, (c) 3,333,335 shares of
common stock issuable upon the exercise of Series C warrants at the exercise
price of $0.50 per share.</P>
<P align=justify>(9) Represents 348,000 shares of common stock issued to Mr.
Cohen as a finder's fee in connection with a financing based on the Company's
receivables secured for the Company (see Note 22 to the accompanying financial
statements for the fiscal year ended January 31, 2009 for additional
information) and 463,581 shares of common stock issued by the Company to Mr.
Joel Cohen in lieu of payment for consulting fees owed to Mr. Cohen for
consulting services rendered to the Company.</P>
<P align=justify>(10) Represents (a) 1,111,109 shares of common stock issuable
upon the exercise of Series A warrants at the exercise price of $0.25 per share,
(b) 3,333,329 shares of common stock issuable upon the exercise of Series B
warrants at the exercise price of $0.25 per share, (c) 1,111,109 shares of
common stock issuable upon the exercise of Series C warrants at the exercise
price of $0.50 per share.</P>
<P align=justify>(11) Represents 2,000,000 shares of common stock issuable to
Mr. Peress upon the conversion of Class A Exchangeable Shares of 1260491 Alberta
Inc., our wholly owned subsidiary, held by him on a one-for-one basis (see
&#147;Management's Discussion and Analysis of Financial condition and Results of
Operations - Reorganization of the Corporation&#148;)</P>
<P align=justify>(12) Represents (a) 2,222,222 shares of common stock issuable
upon the exercise of Series A warrants at the exercise price of $0.25 per share,
(b) 6,666,666 shares of common stock issuable upon the exercise of Series B
warrants at the exercise price of $0.25 per share, (c) 2,222,222 shares of
common stock issuable upon the exercise of Series C warrants at the exercise
price of $0.50 per share.</P>
<P align=center><B>PLAN OF DISTRIBUTION</B></P>
<P align=justify>Each selling stockholder of the common stock 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 OTC Bulletin Board 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:</P>
<ul>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">ordinary brokerage transactions and transactions in which the broker-dealer
  solicits purchasers;</P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">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;</P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">purchases by a broker-dealer as principal and resale by the broker-dealer for
  its account; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">an exchange distribution in accordance with the rules of the applicable exchange;
</P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">privately negotiated transactions;</P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">settlement of short sales entered into after the effective date of the registration
  statement of which this prospectus is a part; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">broker-dealers may agree with the selling stockholders to sell a specified number
  of such shares at a stipulated price per share; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">through the writing or settlement of options or other hedging transactions,
  whether through an options exchange or otherwise; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">a combination of any such methods of sale; or  </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 12">any other method permitted pursuant
  to applicable law.</P>
  </li>
</ul>
<P align=center>21 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_25></A>
<P align=justify>The selling Stockholders may also sell shares under Rule 144
under the Securities Act, if available, rather than under this prospectus.</P>
<P align=justify>Broker-dealers engaged by the selling stockholders may arrange
for other broker-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, but, except as set forth in a supplement to this prospectus, in the
case of an agency transaction not in excess of a customary brokerage commission
in compliance with NASDR Rule 2440; and in the case of a principal transaction a
markup or markdown in compliance with NASDR IM-2440. </P>
<P align=justify>In connection with the sale of the 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 of the 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 such
broker-dealer or other financial institution of shares offered by this
prospectus, which shares such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such
transaction).</P>
<P align=justify>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 such sales. In such event, any
commissions received by such 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 the Company that it does not have any written or oral 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%).</P>
<P align=justify>The Company is required to pay certain fees and expenses
incurred by the Company incident to the registration of the shares. The Company
has agreed to indemnify the selling stockholders against certain losses, claims,
damages and liabilities, including liabilities under the Securities Act. </P>
<P align=justify>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 including Rule 172 thereunder. 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 resale shares by the selling
stockholders.</P>
<P align=justify>We agreed to keep this prospectus effective until the earlier
of (i) the date on which the shares may be resold by the selling stockholders
without registration and without regard to any volume limitations by reason of
Rule 144 under the Securities Act or any other rule of similar effect or (ii)
all of the shares have been sold pursuant to this prospectus or Rule 144 under
the Securities Act or any other rule of similar effect. The resale shares will
be sold only through registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states, the resale
shares may not be sold unless they have been registered or qualified for sale in
the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.</P>
<P align=justify>Under applicable rules and regulations under the Exchange Act,
any person engaged in the distribution of the resale shares may not
simultaneously engage in market making activities with respect to the common
stock for the applicable restricted period, as defined in Regulation M, 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 the 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 (including
by compliance with Rule 172 under the Securities Act).</P>
<P align=center>22 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_26></A>
<P align=center><B>DESCRIPTION OF SECURITIES </B></P>
<P align=justify><B>General </B></P>
<P align=justify>Our authorized capital consists of 200,000,000 shares of common
stock, with a par value of $0.00001 per share and 100,000,000 shares of
preferred stock with a par value of $0.0001 per share. As of July 29, 2009,
there were 41,262,497 shares of our common stock issued and outstanding and no
issued and outstanding shares of preferred stock. </P>
<P align=justify><B>Common Stock </B></P>
<P align=justify>The following is a summary of the material rights and
restrictions associated with our capital stock. This description does not
purport to be a complete description of all of the rights of our stockholders
and is subject to, and qualified in its entirety by the provisions of our most
current Articles of Incorporation and bylaws. </P>
<P align=justify>The holders of our common stock have the right to cast one vote
for each share held of record on all matters submitted to a vote of the holders
of our common stock, including the election of directors. Holders of our common
stock do not have cumulative voting rights in the election of directors.
Pursuant to the provisions of Section 78.320 of the Nevada Revised Statutes (the
"NRS") and our bylaws, a majority of the outstanding shares of stock entitled to
vote must be present, in person or by proxy, at any meeting of the stockholders
of the Company in order to constitute a valid quorum for the transaction of
business. Actions taken by stockholders at a meeting in which a valid quorum is
present are approved if the number of votes cast at the meeting in favor of the
action exceeds the number of votes cast in opposition to the action. Certain
fundamental corporate changes such as the liquidation of substantially all of
our assets, mergers or amendments to our Articles of Incorporation require the
approval of holders of a majority of the outstanding shares entitled to vote.
Holders of our common stock do not have any preemptive rights to purchase shares
in any future issuances of our common stock or any other securities. There are
no redemption or sinking fund provisions applicable to our common stock. All
outstanding shares of our common stock are fully paid and non-assessable. </P>
<P align=justify>The holders of our common stock are entitled to receive
dividends pro rata based on the number of shares held, when and if declared by
our Board of Directors, from funds legally available for that purpose. In the
event of the liquidation, dissolution or winding up of the affairs of the
Company, all our assets and funds remaining after the payment of all debts and
other liabilities are to be distributed, pro rata, among the holders of our
common stock. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no dividend
restrictions that limit our ability to pay dividends on our common stock in our
Articles of Incorporation or bylaws. Section 78.288 of Chapter 78 of the NRS
prohibits us from declaring dividends where, after giving effect to the
distribution of the dividend: (a) we would not be able to pay our debts as they
become due in the usual course of business; or (b) except as may be allowed by
our Articles of Incorporation, our total assets would be less than the sum of
our total liabilities plus the amount that would be needed, if we were to be
dissolved at the time of the distribution, to satisfy the preferential rights
upon dissolution of stockholders who may have preferential rights and whose
preferential rights are superior to those receiving the distribution. The
Holder, as the holder of the Debenture, shall be entitled to receive such
dividends paid and distributions made to the holders of Common Stock to the same
extent as if the Holder had completely converted the Debenture into Common Stock
(without regard to any limitations on Conversion herein or elsewhere and without
regard to whether or not a sufficient number of shares are authorized and
reserved to effect any such exercise and issuance) and had held such shares of
Common Stock on the record date for such dividends and distributions. Payments
under the preceding sentence shall be made concurrently with the dividend or
distribution to the holders of Common Stock.</P>
<P align=justify><B>Preferred Stock</B></P>
<P align=justify>The Board of Directors has the authority to issue shares of
preferred stock and to determine the price, designation, rights, preferences,
privileges, restrictions and conditions, including voting rights and dividend
rights, of these shares of preferred stock without any further vote or action by
the stockholders. No preferred shares have been issued and the board has not
designated any series of preferred stock. </P>
<P align=center><B>LEGAL MATTERS </B></P>
<P align=justify>Burns &amp; Levinson LLP, 125 Summer Street, Boston, MA 02110
will opine on the validity of the common stock offered in this prospectus. </P>
<P align=center><B>EXPERTS</B> </P>
<P align=justify>ICP Solar's financial statements for the years ended January
31, 2009 and 2008 included in this registration statement have been audited by
RSM Richter, LLP, Montreal, Quebec, an independent registered public accounting
firm, as stated in their report, and have been so included in reliance upon the
report of said firm and their authority as experts in accounting and auditing.
This report expresses an unqualified opinion and includes an explanatory
paragraph relating to the Company's ability to continue as a going concern. </P>
<P align=center>23 </P>
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<P align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS</B></P>
<P align=justify>This Management's Discussion and Analysis of Financial
condition and Results of Operations (&#147;MD&amp;A&#148;) is designed to assist investors
in understanding the nature and the importance of the changes and trends, as
well as the risks and uncertainties associated with the Company's operations and
financial position. Some sections of this MD&amp;A contain forward-looking
statements that, because of their nature, necessarily involve a number of known
and unknown risks and uncertainties, including statements regarding our capital
needs, business strategy and expectations. Any statements contained herein that
are not statements of historical facts may be deemed to be forward-looking
statements. In some cases, forward-looking statements can be identified by
terminology such as &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;plan,&#148; &#147;intend,&#148;
&#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;predict,&#148; &#147;potential&#148; or &#147;continue,&#148; the
negative of such terms or other comparable terminology. The Company's actual and
future results could therefore differ materially from those indicated or
underlying these forward-looking statements. In evaluating these statements, you
should consider various factors, including the risks discussed below, and, from
time to time, in other reports filed by the Company with the SEC. See &#147;Risk
Factors&#148; and &#147;Forward-Looking Statements&#148;.</P>
<P align=justify>Although the Company deems the expectations reflected in these
forward-looking statements to be reasonable, the Company cannot provide any
guarantee as to the materialization of the expectations reflected in these
forward-looking statements.</P>
<P align=justify><B>Basis of Presentation</B></P>
<P align=justify>This MD&amp;A on the Company's operating results and cash flows
for the fiscal years ended January 31, 2009 and January 31, 2008 as well as its
financial position at January 31, 2009, should be read in conjunction with the
consolidated financial statements and accompanying notes contained in this
report and also with the unaudited consolidated financial statements for the
three month period ended April 30, 2009 and 2008 and the notes thereto.</P>
<P align=justify><B>Company Overview</B></P>
<P align=justify>Headquartered in Montreal, Canada, ICP operates in the solar
energy industry. ICP manufactures, markets, and sells solar panel based products
to the consumer goods, Original Equipment Manufacturers ("OEM") and integrated
building materials markets through its distribution channels in over 50
countries. We operate our business through a wholly owned subsidiary of ICP, ICP
Global Technologies Inc. (Canada).</P>
<P align=justify>We develop, and market solar power products that provide
reliable and environmentally clean electric power throughout the world. Solar
power products use interconnected photovoltaic cells to generate electricity
from sunlight. Solar power products can provide a cost-competitive, reliable
alternative for powering highway call boxes, microwave stations, portable
highway road signs, remote street or billboard lights, vacation homes, rural
homes in developed and developing countries, water pumps and battery chargers
for recreational vehicles and other consumer applications. Furthermore, solar
power products can provide on-grid customers with a clean, renewable source of
alternative or supplemental electricity.</P>
<P align=justify>Our plan of operation for the next twelve months is to engage
in our R&amp;D, marketing and sales efforts. We plan to expand our current
distribution depth within the markets of North America, Europe and Japan for our
consumer goods segment through the marketing of our internal brand Sunsei
<SUP>TM</SUP>, as well as licensed brand Coleman&#174;.</P>
<P align=justify>Our immediate goal is to market our ISUN&#174; solar charger for
electronics and our Sunsei Greenmeter&#174; . We can provide no assurances that
commercialization of these products will be successfully achieved. </P>
<P align=justify>Although there can be no assurances, we plan to deliver on a
sustainable growth strategy across each of our main targets. We also intend to
increase our addressable markets, further sales and solidify our brand through
strategic partnerships with best practice distribution partners worldwide.
Strategic partnerships for both distribution channel and technology are expected
to be key drivers of our expansion plans. </P>
<P align=justify><B>Off-Balance Sheet Arrangements</B></P>
<P align=justify>During our fiscal year ended January 31, 2009, the Company had
no off-balance sheet arrangements. </P>
<P align=center>24 </P>
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<P align=justify><B>Reorganization of the Corporation</B></P>
<P align=justify>On September 29, 2006, ICP Solar Technologies Inc. ("ICP")
entered into a share exchange agreement with ICP Solar Technologies Inc.
(formerly FC Financial Services Inc.) ("ICP Solar"), an inactive public shell
company, for the acquisition by ICP Solar of all the issued and outstanding
shares of ICP.</P>
<P align=justify>Under accounting principles generally accepted in the United
States, the share exchange was considered to be a capital transaction in
substance, rather than a business combination. That is, the share exchange was
equivalent to the issuance of stock by ICP for the net monetary assets of ICP
Solar accompanied by a recapitalization, and was accounted for as a change in
capital structure. Accordingly, the accounting for the share exchange was
identical to that resulting from a reverse acquisition, except that no goodwill
was recorded. Under reverse takeover accounting, the post reverse acquisition
comparative historical financial statements of the legal acquirer, ICP Solar,
became those of the legal acquiree, ICP, which was also considered to be the
accounting acquirer.</P>
<P align=justify>We structured the acquisition of ICP to enable ICP stockholders
to receive tax-rollover treatment in Canada. Under Canadian law, when a
stockholder disposes of shares, the disposal is considered to be a deemed
disposition of the shares and therefore is a taxable event unless the shares are
exchanged for the shares of an equal value in another Canadian company. </P>
<P align=justify>All of the ICP shares, through a series of transactions, were
exchanged for Class A exchangeable shares (the &#147;Exchangeable Shares&#148;) of ICP
Solar's wholly-owned subsidiary, 1260491 Alberta Inc. The Exchangeable Shares
are exchangeable for an equivalent number of shares of our common stock. Until
such time as the holders of the Exchangeable Shares wish to exchange their
shares for shares of our common stock, such shares are held in trust by a
trustee on behalf of the exchangeable shareholders. See &#147;Security Ownership of
Certain Beneficial Owners and Management&#148;. The trustee shall be entitled to the
voting rights in ICP Solar as stated in the terms of an exchange and voting
agreement and shall exercise these voting rights according to the instructions
of the holders of the Exchangeable Shares on a basis of one vote for every
Exchangeable Share held. Upon conversion of Exchangeable Shares by the holders
thereof into shares of our common stock, the Exchangeable Shares will be
cancelled on a one for one basis.</P>
<P align=justify><B>Sale of 100% of Shares of ICP UK </B></P>
<P align=justify>On May 9, 2007, the Company signed a Share Purchase Agreement
(the &#147;Agreement&#148;) with ISE LLC (&#147;ISE&#148;). Under the terms of the Agreement, the
Company sold 85% of the shares of ICP UK (name changed to EPOD Solar (Wales)
Ltd. ("EPOD") on June 26, 2007) for an aggregate amount of $3,000,000. On May
10, 2007, the Company and ISE signed an Amendment to the Agreement, revising the
modalities of payment. These modalities were subsequently changed on April 18,
2008, when the Company and ISE signed a second Amendment to the Agreement
(&#147;Second Amendment&#148;). According to the terms of the Second Amendment, the rights
and obligations under the Agreement, Amendment and Second Amendment were
assigned to EPOD Solar Inc., and the remaining 15% interest held by the Company
in EPOD was transferred to EPOD Solar Inc. Based on the Second Amendment, EPOD
Solar Inc. is to pay the Company an amount equivalent to $3,000,000 as follows:
</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD>
      <P align=justify>$150,000 was paid upon signing of the original Agreement
      and $350,000 in kind in the form of solar panels;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD>
      <P align=justify>An additional $150,000 upon signing the Second Amendment
      and $19,827 in kind in the form of solar panels;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">c) </TD>
    <TD>
      <P align=justify>The outstanding balance of the loan is forgiven by
      $88,973;</P></TD></TR></TABLE>
<P align=justify>The remaining amount due to ICP Solar Technologies Inc. of
$2,241,200 has the following terms:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">i) </TD>
    <TD>
      <P align=justify>A loan receivable in the principal amount of $1,060,600,
      non-interest bearing, shall be paid in cash on a monthly basis of $40,000
      per month commencing on the Second Amendment date until the balance is
      fully paid. This loan has been discounted to a fair value of $927,162
      based on an effective interest rate of 12%. As at January 31, 2009,
      $78,947 of the discount has been amortized. The loan has been written down
      to $Nil because no repayments have been made, either in cash or in-kind,
      since May 2008 and collectability was not assured.</P></TD></TR></TABLE>
<P align=center>25 </P>
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<p>
<A name=page_29></A><BR>
</p>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>The Company participated in EPOD Solar Inc.'s convertible
      debenture financing round and, on August 8, 2008, received 1,180 units in
      lieu of the remaining $1,180,000 CDN owing. Each unit consisted of a $1,000
      CDN face value 12% convertible debenture due August 8, 2011.</P></TD></TR></TABLE>
<P align=justify>The investment in the convertible debenture value of $967,600
has been written down to $1.00 due to the uncertainty in the initial public
filing referred to below. A fair value has not been allocated to the warrants as
it has been determined that their value is nominal. The determination of the
fair value of the warrants used insignificant unobservable inputs and therefore
would be categorized as a level 2 hierarchy item in note 4. </P>
<P align=justify>Both the convertible debenture and the loan receivable have
been assigned to the investors in the Private Placement (see Note 12 to the
accompanying financial statements). In the event of a &quot;Qualifying Transaction&quot;
(as defined in the debenture) the debenture will be convertible, at the
Company's option, into
shares of common stock of EPOD Solar Inc. which can be liquidated to pay off the
investors. Until such time as EPOD Solar Inc. goes public, the shares are
restricted securities, as such term is defined pursuant to Rule 144 under the
Securities Act.</P>
<P align=justify><B>Going Concern</B></P>
<P align=justify>The accompanying financial statements have been prepared
assuming the Company will continue as a going concern. The Company has reported
an accumulated deficit of $ 24,912,588 as at April 30, 2009 (January 31, 2009 -
$18,125,706). </P>
<P align=justify>To date, these losses have been financed principally through
the issuance of capital stock and long-term debt, and through debt from related
parties. Additional capital and/or borrowings will be necessary in order for the
Company to continue in existence and attain profitable operations.</P>
<P align=justify>Management has continued to develop a strategic plan to develop
a management team, maintain reporting compliance and establish contracts with
clients. Management anticipates generating revenue through manufacturing and
commercializing its products during the next year. Should the Company be unable
to continue as a going concern, it may be unable to realize the carrying value
of its assets and to meet its liabilities as they become due.</P>
<P align=justify><B>Compliance with Generally Accepted Accounting
Principles</B></P>
<P align=justify>Unless otherwise indicated, the financial information presented
in this MD&amp;A, including tabular amounts, is expressed in US dollars and
prepared in accordance with accounting principles generally accepted in the
United States (&#147;GAAP&#148;).</P>
<P align=justify><B>Use of Estimates</B></P>
<P align=justify>The preparation of financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Significant estimates in
these financial statements include the allowance for doubtful accounts, recovery
of future income taxes, impairment of long-lived assets, stock-based
compensation costs, determination of the fair value of the warrants issued and
the resulting impact on the allocation of the proceeds between the shares and
warrants. Actual results could differ from those estimates.</P>
<P align=justify>The financial statements include estimates based on currently
available information and management's judgment as to the outcome of future
conditions and circumstances.</P>
<P align=justify>Changes in the status of certain facts or circumstances could
result in material changes to the estimates used in the preparation of the
financial statements and actual results could differ from the estimates and
assumptions.</P>
<P align=justify><B>Significant Accounting Policies</B></P>
<P align=justify>Critical accounting policies are described below and all
significant accounting policies are described in note 3 accompanying the
financial statements contained in this prospectus. </P>
<P align=justify><B>Revenue Recognition</B></P>
<P align=justify>The Company recognizes revenue from product sales at the time
of passage of title and risk of loss to the customer either at FOB Shipping
Point or FOB Destination, based upon terms established with the customer where
persuasive evidence of an arrangement exists and where collectability is
reasonably assured. The Company's selling price to its customers is a fixed
amount that is not subject to refund or adjustment and is not contingent upon
additional rebates. There are no further obligations on the part of the Company
subsequent to revenue recognition except for product warranty and returns from
the Company's customers. The Company does accept returns of products, if
properly requested, authorized, and approved by the Company. The Company records
an estimate of returns and records the provision for the estimated amount of
such future returns based on historical experience and any notification the
Company receives of pending returns.</P>
<P align=center>26 </P>
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<P align=justify><B>Share-Based Payments</B></P>
<P align=justify>The Company accounts for share based payments in accordance
with the provisions of FAS 123R "Share based payments (Revised)" and accordingly
recognizes in its financial statements share based payments at their fair value.
In addition, it recognizes in the financial statements an expense based on the
grant date fair value of stock options granted to employees. This expense is
recognized on a straight line basis over the vesting period and the offsetting
credit is recorded in additional paid-in capital. Upon exercise of options, the
consideration paid, together with the amount previously recorded as additional
paid-in capital, is recognized as equity. The Company estimates its forfeiture
rate in order to determine its compensation expense arising from stock-based
awards. The Company uses the Black-Scholes-Merton option pricing model to
determine the fair value of the options. </P>
<P align=justify>The Company accounts for stock-based compensation expense for
non-employees using the fair value method prescribed by EITF 96-18 "Accounting
for Equity Investments That Are Issued to Other Than Employees for Acquiring or
in Conjunction with Selling, Goods or Services&#148;, and the Black-Scholes-Merton
option principal method, and records the fair value of non-employee stock
options as an expense over the vesting term of option.</P>
<P align=justify>If an equity award is modified after the grant date, an
incremental compensation cost will be recognized in an amount equal to the
excess of the fair value of the modified award, if any, over the fair value of
the original award on the modification date.</P>
<P align=justify>The Company uses the Black-Scholes-Merton option pricing model
which requires the input of highly subjective assumptions. These assumptions,
including estimating the length of time option holders will retain their stock
options before exercising them (&#147;the expected term&#148;), the expected volatility of
our common stock price over the expected term and the number of options that
will ultimately not complete their vesting requirements (&#147;forfeitures&#148;). The
amount of stock-based compensation recognized in the consolidated statement of
operations could be materially different under different assumptions.</P>
<P align=justify><B>Impairment of Long-Lived Assets</B></P>
<P align=justify>Long-lived assets, comprising property and equipment, that are
held and used by the Company are reviewed for possible impairment whenever
events or changes in circumstances indicate the carrying amount of an asset may
not be recoverable. Recoverability of assets to be held and used is measured by
a comparison of the carrying amount of the assets to the estimated undiscounted
cash flows expected to be generated by the asset. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by
which the carrying amount of the asset exceeds the fair value thereof.</P>
<P align=justify><B>Income Taxes</B></P>
<P align=justify>The Company accounts for income taxes in accordance with SFAS
No. 109, "Accounting for Income Taxes". Deferred taxes are provided on the
liability method whereby deferred tax assets are recognized for deductible
temporary differences, and deferred tax liabilities are recognized for taxable
temporary differences. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax bases. Deferred tax
assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets
will not be realized. Deferred tax assets and liabilities are adjusted for the
effects of changes in tax laws and rates on the date of enactment.</P>
<P align=justify>On February 1, 2007, the Company adopted Financial Accounting
Standards Board (FASB) Interpretation (FIN) No. 48, "Accounting for Uncertainty
in Income Taxes - an Interpretation of FASB Statement No. 109" (&#147;FIN 48&#148;), which
clarifies the accounting for uncertainty in tax positions. This Interpretation
requires that the Company recognize in its financial statements the impact of a
tax position, if the position is more likely than not for being sustained on
audit, based on the technical merits of the position. The adoption of FIN 48 did
not have a material impact on our consolidated financial statements. The Company
is currently subject to a four year statute of limitations by major tax
jurisdictions. The Company and its subsidiaries file income tax returns in
Canada and the United States.</P>
<P align=center>27 </P>
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<P align=justify><B>Foreign Currency Translation</B></P>
<P align=justify>It is management's view that the United States dollar best
portrays the economic results of the worldwide operations and thereby best
achieves the objectives of foreign currency translation. The method used to
translate the results and financial position for items and transactions
denominated in non-US currencies are as follows: </P>
<P style="MARGIN-LEFT: 5%" align=justify>Monetary items &#150; at exchange rates in
effect at the balance sheet date; <BR>Non-monetary items &#150; at exchange rates in
effect on the dates of the transactions; <BR>Revenue and expenses &#150; at average
exchange rates prevailing during the period, except for inventories and
amortization which are translated at rates prevailing when the related assets
were acquired. </P>
<P align=justify>Gains and losses arising from foreign currency translation are
included in income. </P>
<P align=justify><B>Recently Issued Accounting Pronouncements</B></P>
<P align=justify>In March 2008, the Financial Accounting Standards Board issued
SFAS Statement No. 161, "Disclosures about Derivative Instruments and Hedging
Activities" ("FAS 161"). This standard is intended to improve financial
reporting about derivative instruments and hedging activities by requiring
enhanced disclosures to enable investors to better understand their effects on
an entity's financial position, financial performance, and cash flows. It is
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008, with early application encouraged. The
Company is currently evaluating the impact, if any, that this statement will
have on its disclosures related to derivative instruments and hedging
activities.</P>
<P align=justify>The FASB issued FSP 133-1 and FIN 45-4, &#145;Disclosures about
Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No.
133 and FASB Interpretation No. 45; and Clarification of the Effective Date of
FASB Statement No. 161&#148;. This FSP is intended to improve disclosures about
credit derivatives by requiring more information about the potential adverse
effects of changes in credit risk on the financial position, financial
performance, and cash flows of the sellers of credit derivatives. In addition,
it requires an additional disclosure about the current status of the
payment/performance risk of a guarantee. It also clarifies the effective date in
FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging
Activities. This FSP is effective for reporting periods (annual or interim)
ending after November 15, 2008. The Company is currently evaluating the impact
of this statement on its consolidated financial statements. </P>
<P align=justify>In October 2008, the FASB issued FSP No. FAS 157-3,
&#147;Determining the Fair Value of a Financial Asset When the Market for That Asset
Is Not Active&#148; (&#147;FSP FAS 157-3&#148;), which clarifies the application of FAS 157 and
provides an example to illustrate key considerations in determining the fair
value of a financial asset when the market for that financial asset is not
active. FSP FAS 157-3 applies to financial assets within the scope of accounting
pronouncements that require or permit fair value measurements in accordance with
FAS 157. FSP FAS 157-3 was effective for the Company upon issuance on October
10, 2008 and the adoption did not have a material impact on the Company's
Consolidated Financial Statements. </P>
<P align=justify>The FASB issued SFAS 162, &#147;The Hierarchy of Generally Accepted
Accounting Principles&#148;. The new standard is intended to improve financial
reporting by identifying a consistent framework, or hierarchy, for selecting
accounting principles to be used in preparing financial statements that are
presented in conformity with U.S. generally accepted accounting principles
(GAAP) for nongovernmental entities. Statement 162 is effective 60 days
following the Securities and Exchanges Commission's approval of the Public
Company Accounting Oversight Board Auditing amendments to AU Section 411, The
Meaning of Present Fairly in Conformity with Generally Accepted Accounting
Principles. The Company is currently evaluating the impact of this Statement on
its consolidated financial statements. </P>
<P align=justify>The FASB issued FSP APB-14-1, <I>Accounting for Convertible
Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial
Cash Settlement)</I>. FSP APB 14-1 clarifies that convertible debt instruments
that may be settled in cash upon conversion (including partial cash settlement)
are not addressed by paragraph 12 of APB Opinion No. 14, <I>Accounting for
Convertible Debt and Debt Issued with Stock Purchase Warrants</I>. Additionally,
this FSP specifies that issuers of such instruments should separately account
for the liability and equity components in a manner that will reflect the
entity's nonconvertible debt borrowing rate when interest cost is recognized in
subsequent periods. This FSP is effective for financial statements issued for
fiscal years beginning after December 15, 2008, and interim periods within those
fiscal years. Early adoption is not permitted. The Company is currently
evaluating the impact of this Statement on its consolidated financial
statements. </P>
<P align=center>28 </P>
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<P align=justify>The FASB issued SFAS 163, Accounting for Financial Guarantee
Insurance Contracts. Statement 163 clarifies how FASB Statement No. 60,
Accounting and Reporting by Insurance Enterprises, applies to financial
guarantee insurance contracts issued by insurance enterprises, including the
recognition and measurement of premium revenue and claim liabilities. It also
requires expanded disclosures about financial guarantee insurance contracts.
Statement 163 is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and all interim periods within those fiscal
years, except for disclosures about the insurance enterprise's risk-management
activities, which are effective the first period beginning after May 23, 2008.
The Company is currently evaluating the impact of this Statement on its
consolidated financial statements. </P>
<P align=justify>The FASB issued FSP FAS 142-3, Determination of the Useful Life
of Intangible Assets. This FSP amends the factors that should be considered in
developing renewal or extension assumptions used to determine the useful life of
a recognized intangible asset under FASB Statement No. 142, Goodwill and Other
Intangible Assets. This FSP is effective for financial statements issued for
fiscal years beginning after December 15, 2008, and interim periods within those
fiscal years. The Company is currently evaluating the impact of this Statement
on its consolidated financial statements. </P>
<P align=justify>The FASB issued FSP SOP 90-7-a, An Amendment of AICPA Statement
of Position 90-7 Financial Reporting by Entities in Reorganization under the
Bankruptcy Code. This FSP states that an entity emerging from bankruptcy that
uses fresh-start reporting would only follow the accounting standards in effect
at the date of emergence as opposed to within the 12 months following the
adoption of fresh-start reporting. This FSP is effective for financial
statements issued subsequent to April 24, 2008. The Company is currently
evaluating the impact of this Statement on its consolidated financial
statements. </P>
<P align=justify>The FASB issued FSP EITF 03-6-1, Determining Whether
Instruments Granted in Share-Based Payment Transactions Are Participating
Securities. This FSP states that unvested share-based payment awards that
contain nonforfeitable rights to dividends or dividend equivalents (whether paid
or unpaid) are participating securities and shall be included in the computation
of earnings per share pursuant to the two-class method. The FSP is effective for
financial statements issued for fiscal years beginning after December 15, 2008,
and interim periods within those years. The Company is currently evaluating the
impact of this Statement on its consolidated financial statements. </P>
<P align=justify>EITF 07-5, Determining Whether an Instrument (or Embedded
Feature) Is Indexed to an Entity's Own Stock was ratified by the FASB. This EITF
addresses the determination of whether an instrument (or an embedded feature) is
indexed to an entity's own stock. This EITF is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and
interim periods within those fiscal years. The Company is currently evaluating
the impact of this Statement on its consolidated financial statements. </P>
<P align=justify>EITF 08-3, Accounting by Lessees for Nonrefundable Maintenance
Deposits was ratified by the FASB. This EITF prescribes the accounting for all
nonrefundable maintenance deposits. This EITF is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and
interim periods within those fiscal years. The Company is currently evaluating
the impact of this Statement on its consolidated financial statements. </P>
<P align=justify>EIT 08-4, Transition Guidance for Conforming Changes to Issue
No. 98-5, 'Accounting for Convertible Securities with Beneficial Conversion
Features or Contingently Adjustable Conversion Ratios' was ratified by the FASB.
This EITF Integrates the requirements of EITF 00-21 into EITF 98-5. This EITF is
effective for financial statements issued for fiscal years ending after December
15, 2008. The Company is currently evaluating the impact of this Statement on
its consolidated financial statements. </P>
<P align=center>29</P>
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width="100%" noShade>
<A name=page_33></A>
<P align=justify>The FASB issued FSP FAS 132(R)-1, &#147;Employers' Disclosures about
Postretirement Benefit Plan Assets&#148;. This FSP provides guidance on an employer's
disclosures about plan assets of a defined benefit pension or other
postretirement plan. This FSP also includes a technical amendment to Statement
132R that requires a nonpublic entity to disclose net periodic benefit cost for
each annual period for which a statement of income is presented. This FSP is
effective for fiscal years ending after December 15, 2008. The Company is
currently evaluating the impact of this Statement on its consolidated financial
statements. </P>
<P align=justify>The EITF issued EITF 08-6, &#147;Equity Method Investment Accounting
Considerations&#148;. This EITF considers whether all of the provisions of Statement
141(R) and Statement 160 should be applied when accounting for an equity method
investment. This EITF is effective on a prospective basis in fiscal years
beginning on or after December 15, 2008 and interim periods within those fiscal
years. The Company is currently evaluating the impact of this Statement on its
consolidated financial statements. </P>
<P align=justify>The EITF issued EITF 08-7, &#147;Accounting for Defensive Intangible
Assets&#148;. This issue discusses how defensive intangible assets should be
accounted for subsequent to their acquisition, including the estimated useful
life that should be assigned to such assets. This EITF is effective
prospectively for intangible assets acquired on or after the beginning of the
first annual reporting period beginning on or after December 15, 2008. The
Company is currently evaluating the impact of this Statement on its consolidated
financial statements. </P>
<P align=justify>The EITF issued EITF 08-8, &#147;Accounting for an Instrument (or an
Embedded Feature) with a Settlement Amount That Is Based on the Stock of an
Entity's Consolidated Subsidiary&#148;. This Issue addresses the determination of
whether a financial instrument for which the payoff to the counterparty is
based, in whole or in part, on the stock of an entity's consolidated subsidiary,
is indexed to the reporting entity's own stock and therefore should not be
precluded from qualifying for the first part of the scope exception in paragraph
11(a) of Statement 133 or being within the scope of Issue 00-19. This EITF is
effective for fiscal years beginning on or after December 15, 2008, and interim
periods within those fiscal years. The Company is currently evaluating the
impact of this Statement on its consolidated financial statements </P>
<P align=center>30 </P>
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width="100%" noShade>
<A name=page_34></A>
<P align=justify><B>Selected Consolidated Annual Information</B></P>
<P align=justify>(in thousands of $, except per-share amounts)</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 2px solid"><B>Fiscal Years Ended January 31,</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>5,903</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,541 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Gross margin </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>1,334</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,166 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expenses </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>6,421</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>7,722 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Operating Loss </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(5,087</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(5,556</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Net earnings (loss) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(9,285</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(4,222</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Earnings (loss) per Class A share </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;(basic and diluted) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(0.28</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(0.14</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Weighted average number of </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Class A shares outstanding (in thousands) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>34,091</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>30,149 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Cash dividends paid
      on Class A shares </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<p>
<BR>
</p>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Balance Sheet
      Data </B>(as at January 31) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2008 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>2,531</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,199 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Shareholders' equity </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(2,973</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,467 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total interest-bearing debt <SUP>(1)</SUP>
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>190</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,812 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Cash and
      short-term investments </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>194</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>526
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>(1) Including long-term debt and its current portion, bank
advances and loans, interest bearing portion of director's loan payable,
government grants, capital lease obligations and their current portion as well
as convertible notes.</P>
<P align=justify><B>Seasonality</B></P>
<P align=justify>ICP's business is subject to certain seasonal cycles,
especially during the summer period corresponding to the part of the second
quarter and part of the third quarter, traditionally the slowest of the
Company's fiscal year, and the month of December as a result of the end-of-year
holidays.</P>
<P align=justify><B><U>Operating Results for the Fiscal Year Ended January 31,
2009</U></B></P>
<P align=justify><U>Net Sales</U></P>
<P align=justify>During the fiscal year ended January 31, 2009, ICP's
<B>consolidated</B> <B>net sales</B> decreased by 10% or $638 thousand to $5.9
million, down from $6.5 million for the year ended January 31, 2008. As sales
programs are established with customers up to a year in advance, the lack of
funding from sales programs in fiscal 2008 resulted in reduced inventory supply
available for fiscal 2009. Consequently, the related production and delivery
delays resulted in a loss of orders in the first three quarters of the year.
</P>
<P align=justify>Sales to one customer amounted to approximately 12% (13% in
2008) of total sales. Outstanding accounts receivable for this customer as at
January 31, 2009 accounted for approximately 18% (5% in 2008) of total accounts
receivable.</P>
<P align=justify>By geographic location, sales in North America accounted for
approximately 71% (60% in 2008) of total sales, Europe 24% (27% in 2008), Asia
5% (9% in 2008) and Africa nil (4% in 2008).</P>
<P align=justify><U>Gross Margin</U></P>
<P align=justify>The gross margin decreased by 38% or $832 thousand to $1.3
million. The gross profit margin as a percentage of sales was to 23%, compared
to 33% the previous year. This decrease reflects lower sales as explained above,
increased purchase cost of materials due to an increase in foreign exchange
rates relative to the US dollar, as well as material and labour cost, coupled
with the inability to increase sales prices proportionately due to previous
sales commitments. </P>
<P align=center>31 </P>
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<P align=justify><U>Operating expenses</U></P>
<P align=justify><B>Selling and general and administrative expenses
</B>decreased by $1.8 million to $5.7 million during the fiscal year ended
January 31, 2009, from $7.5 million for fiscal 2008. Total stock-based
compensation paid to employees, directors and consultants decreased from $2.7
million in fiscal 2008 to $1.8 million in fiscal 2009, a decrease of $931
thousand. Excluding the effects of issued options and warrants expense and the
expense related to the modification of the exercise price of outstanding options
and warrants (see Note 16 to the accompanying financial statements), selling,
general and administrative expenses decreased by a further $839 thousand.</P>
<P align=justify>This decrease reflects a decrease in selling expenses of $202
thousand, a decrease in administrative expenses of $253 thousand, a decrease in
professional fees of $236 thousand, and a decrease in operating expenses of
approximately $148 thousand. The company expects further overhead reductions
during the fiscal year ending January 31, 2010 although not as much as was
achieved in fiscal 2009.</P>
<P align=justify>Research and development expenses were $643 thousand for the
year compared to $88 thousand in the corresponding period a year earlier as the
Company increased R&amp;D efforts relating to metering, monitoring, and
hand-held portable solar charger development.</P>
<P align=justify>Including depreciation of $82 thousand and the gain on foreign
exchange of $77 thousand, <B>operating losses </B>amounted to $5.09 million
compared to losses of $5.56 million for the corresponding period a year
earlier.</P>
<P align=justify><B>Net</B> <B>Interest expense</B> amounted to $274 thousand
during the fiscal year ended January 31, 2009, compared to $277 thousand for
fiscal 2008. The decrease of $3 thousand results from the conversion during the
year of $850 thousand of convertible notes to shares of common stock and the
issuance of net $3.0 million in senior secured convertible debentures detailed
further in Note 12 of the accompanying financial statements. </P>
<P align=justify>The issuance of the senior secured convertible debentures
(detailed in Note 12 of the accompanying financial statements) resulted in
financing costs of $383 thousand, a discount of $1.61 million, and $600 thousand
interest expense on common stock purchase warrants in addition to the interest
expense on the debentures disclosed in the preceding paragraph. The modification
of the debenture agreement on December 31, 2008 (see Note 12 of the accompanying
financial statements) resulted in a gain of $603 thousand. The renegotiation of
the payment terms on the sale of 100% of ICP UK (see Note 9 of the accompanying
financial statements) resulted in a forgiveness of loan of $89 thousand, an
accretion of loan discounts(income)of $89 thousand and a write down of $1.92
million. There was also a discount on convertible notes of $166 thousand charged
during the fiscal year ended January 31, 2009.</P>
<P align=justify>After giving effect to these items the net loss for the fiscal
year ended January 31, 2009 amounted to $9.3 million, compared to a net loss of
$4.2 million for the fiscal year ended January 31, 2008.</P>
<P align=justify>The loss per Class A exchangeable share of share of 1260491
Alberta Inc. (basic and diluted) amounted to $0.28 on a weighted average of
34,090,717 outstanding shares for the fiscal year ended January 31, 2009,
compared with a loss per share of $0.14 on 30,148,509 shares for the fiscal year
ended January 31, 2008. The increased weighted average number of outstanding
shares is due to the Class A exchangeable shares issued in connection with the
exercise of warrants, as consideration for the acquisition of Wes Power
Technology Inc. (Note 8 of the accompanying financial statements), conversion of
convertible notes, conversion of senior secured convertible notes and payment of
consulting fees to a supplier and director as explained in further detail in
Note 15 of the accompanying financial statements. </P>
<P align=center>32 </P>
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width="100%" noShade>
<A name=page_36></A>
<P align=justify><U>Income Taxes</U></P>
<P align=justify>There were no income taxes for the year ended January 31, 2009
(see Note 17 in the accompanying financial statements). </P>
<P align=justify><B><U>Principal Cash Flows for the Fiscal Year Ended January
31, 2009</U></B></P>
<P align=justify><B>Operating activities</B> <B>before net change in non-cash
working capital items</B> used cash flows of $3.92 million for the fiscal year
ended January 31, 2009, compared to $2.83 million during fiscal 2008. Net change
in non-cash working capital items related to operations generated cash flows of
$2.14 million for the fiscal year ended January 31, 2009, compared to $1.45
million used in fiscal 2008. After net change in non-cash working capital
balances, and foreign exchange loss of $207 thousand, operating activities used
net cash flows of $1.99 million for the fiscal year ended January 31, 2009,
compared with $1.38 million in fiscal 2008. This increase in use of cash relates
primarily to the net loss incurred during fiscal 2009 after adjusting for
non-cash items. </P>
<P align=justify><B>Financing activities</B> provided cash flows of $1.28
million in the fiscal year ended January 31, 2009, primarily as a result of
receipt of funds for the issuance of approximately net $3.1 million convertible
debentures. In addition, the Company repaid bank indebtedness of $1.1 million,
$943 thousand of convertible debentures and government grants of $50 thousand,
while issuing shares of common stock for $277 thousand. Financing activities
provided cash flows of $1.03 million in fiscal 2008. </P>
<P align=justify><B>Investing activities</B> generated cash flows of $891
thousand in the fiscal year ended January 31, 2009, primarily from the receipts
of $500 thousand term deposit and $436 thousand loan receivable related to the
sale of ICP UK (see Note 9 of the accompanying financial statements), offset by
additions to property and equipment of $15 thousand, the acquisition of Wes
Power Technology Inc. for $25 thousand (see Note 8 of the accompanying financial
statements) and repayments of employee loans of $12 thousand. In fiscal 2008,
investing activities generated cash flows of $132 thousand.</P>
<P align=justify>After also deducting the $8 thousand exchange loss on cash
denominated in foreign currency, aggregate cash inflows and outflows for fiscal
2008 provided net cash flows of $173 thousand. ICP ended fiscal 2009 with
<B>cash</B> of $193,517, an increase from $20,967 for the fiscal year ended
January 31, 2008. </P>
<P align=justify><B>Financial Position as at January 31, 2009</B></P>
<P align=justify><B>Total assets</B> amounted to $2.5 million for the fiscal
year ended January 31, 2009, a decrease of $3.7 million compared to $6.2 million
for the fiscal year ended January 31, 2008. Reflected in this $3.7 million
decrease are a decrease in loan receivable related to the sale of the ICP UK in
2008 (see Note 9 in the accompanying financial statements), shown as loan
receivable of $2.2 million. The balance of the decrease is explained by the
decrease in term deposit of $505 thousand, decrease in trade accounts receivable
of $251 thousand, decrease in inventory of $934 thousand, a decrease of $74
thousand in prepaid expenses, which was offset by increases in cash of $172
thousand, a decrease in fixed assets of $3 thousand and a decrease in intangible
property of $121 thousand.</P>
<P align=justify><B>Working capital </B>totaled $417 thousand as at January 31,
2009 for a current ratio of 1.2:1 compared with working capital of $1.9 million
as at January 31, 2008 for a current ratio of 1.9:1.</P>
<P align=justify>The company had cash on hand at January 31, 2009 of $194
thousand. Due to the seasonal nature of the business, management believes that
this represents a low point in the Company's sale cycle, and an increase in
sales and the Company's improved gross margin should result in a cash increase
over the Company's next two fiscal quarters, which are historically higher. The
Company expects increased revenues in fiscal 2010 due to new product releases
and new licensing deals. This should help to generate cash from operating
activities. </P>
<P align=justify>The liability component of convertible notes amounted to nil as
at January 31, 2009, compared with $683 thousand during fiscal 2008, this $683
thousand decrease reflects the conversion during fiscal 2009 of all the
remaining face value of the notes totaling $850 thousand. During the fiscal year
ended January 31, 2009, the Company issued senior secured convertible debentures
with a face value of $3.33 million (see Note 12 to the accompanying financial
statements) in connection with a private placement. At January 31, 2009, these
debentures were being carried at $172 thousand (including an unamortized
discount of $2.7 million). In addition, $53 million worth of common stock
purchase warrants that were issued to the convertible debenture holders in
connection with the private placement, having a face value of $3.6 million at
January 31,2009 (see Note 12 to the accompanying as at January 31, 2009
financial statements), these warrants were being carried at $3.6 million.
Interest-bearing debt (consisting of senior secured convertible debentures,
convertible notes, and bank indebtedness) amounted to approximately $172
thousand as at January 31, 2009, down from $1.8 million as at January 31, 2008.
The outstanding principal and interest at December 31, 2008 of $2,568,425 was
revised to 115% or $2,953,688 resulting in recognition of a discount of
$385,263. As a result of this December 31, 2008 amendment, the Company has
recorded a gain of $602,726 in accordance with EITF 96-19 whereby the old
convertible debenture balance was written off and replaced by the new
convertible debenture balance because its discounted fair value was greater by
10% of the discounted fair value under the old terms. The $2,708,934 discount
against the new convertible debenture balance of $2,880,450 recorded will be
amortized over the remaining 17 months of the debenture.</P>
<P align=center>33 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_37></A>
<P align=justify>In accordance with its senior secured convertible debenture
agreement, the Company was required to comply with revenues greater than $1.5
million for the fiscal quarter ended April 30, 2009 and revenues greater than $2
million and EBITDA greater than ($125) thousand for the fiscal quarter ending
July 31,2009. In addition, accounts payable must remain less than $1.75 million
from now until the maturity date of June 13, 2010. As of January 31, 2009, the Company was in compliance with these covenants; however,
as of April 30, 2009, the Company was in default of the revenues and accounts
payable covenants and has obtained a waiver from senior secured convertible
debenture holders for all defaults. See &quot;Prospectus Summary - The Offering -
Background of the Offering&quot;.</P>
<P align=justify><B>Shareholders' (deficiency) equity </B>amounted to ($3.04)
million as at January 31, 2009, compared to $3.5 million as at January 31, 2008.
The decrease is attributable to the net loss for the period of $9.3 million,
foreign currency translation adjustment of ($207) thousand, the conversion of
notes of $850 thousand, the issuance of common stock of $323 thousand, and the
increase in paid-in capital of $1.9 million related to issuance of stock options
and warrants.</P>
<P align=justify><B>Other Contractual Commitments</B></P>
<P align=justify>Minimum lease payments, exclusive of occupancy and escalation
charges, under an operating lease expiring in 2012, are approximately as
follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>2010 </TD>
    <TD bgColor=#e6efff  width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;23,000</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>2011 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>23,000</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>2012 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>2,000</B> </TD>
    <TD bgColor=#e6efff  width="2%"
  align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>During the fiscal year ended January 31, 2009, the Company
incurred rental expenses amounting to approximately $26,000 (2008 &#150; $25,000).
</P>
<P align=justify>In accordance with a royalty agreement terminating in 2012, the
Company is committed to annual minimum advertising expenditures and royalty
fees, totaling as follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>2010 </TD>
    <TD bgColor=#e6efff  width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;128,000</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>2011 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>128,000</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>2012 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>128,000</B> </TD>
    <TD bgColor=#e6efff  width="2%"
  align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><B><U>Operating Results for the Three Month Period Ended April
30, 2009</U></B></P>
<P align=justify><U>Net Sales</U> </P>
<P align=justify>During the first quarter ended April 30, 2009, ICP's
<B>consolidated net sales </B>posted a decrease of 24% or $445 thousand to $1.45
million, down from $1.89 million for the three month period ended April 30,
2008. This difference can be explained by the loss of approximately $213
thousand in OEM business from Asia, $165 thousand from Europe and the remaining
$67 thousand from North America. The lost business was due to the global
economic crisis. Retailers chose to take a conservative position and rather than
buy inventory for the summer season chose to sell existing stock or wait until
volumes increased. The Company was also left with low inventory on a few high
demand products and had a lack of resources to renew those depleted inventories
to fulfill orders.</P>
<P align=justify>By geographic location, sales in North America accounted for
approximately 75% (2008-64%) of total sales, Europe 23 %(2008-23%) ,and Asia
2%(2008-13%). </P>
<P align=center>34 </P>
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width="100%" noShade>
<A name=page_38></A>
<P align=justify><U>Gross Margin</U></P>
<P align=justify>The gross margin decreased by 41% or $287 thousand to $413
thousand during the current quarter ended April 30, 2009, compared with $699
thousand for the three months ended April 30, 2008. Of this decrease $164
thousand was a result of lower sales. The remaining $123 thousand was because
the gross profit margin as a percentage of sales worked out to 28.5% for the
three month period ended April 30, 2009, compared to 37.0 % for the
corresponding three month period during the previous year. </P>
<P align=justify><U>Operating expenses</U> </P>
<P align=justify><B>Selling and general and administrative expenses </B>during
the current quarter ended April 30, 2009<B> </B>decreased to $ 1 million from
$1.58 million a year earlier .for the corresponding three month period during
the previous year. This decrease of 36% or $575thousand is explained by a $375
thousand reduction in stock based compensation, (a non-cash charge), from
approximately $683 thousand for the three month period ended April 30, 2008 to
$308 thousand for the current quarter ended April 30, 2009. General and
administrative costs decreased by $70 thousand , $33 thousand in salary and
benefits, $ 23 thousand in professional fees, and the remaining $44 thousand
made up of overhead, offset by an increase of $30 thousand in warehousing due to
a 30% increase in US warehouse sales. Selling costs decreased by $129 thousand
including $56 thousand reduction in salaries, $30 thousand in travel and the
remaining $43 thousand in selling and marketing costs due to lower sales. </P>
<P align=justify>Research and development costs increased by $4 thousand as the
Company had three months of R&amp;D costs compared to only two months the prior
year. </P>
<P align=justify>Including depreciation of $21 thousand and the foreign exchange
loss of $37 thousand, <B>operating losses </B>amounted to $694 thousand compared
to a loss of $935 thousand for the prior year's three month period ended April
30, 2008. </P>
<P align=justify>Including interest expense of $78 thousand, the accretion of
discount on senior secured convertible debentures of $847 thousand, the change
in fair value of derivative liability-embedded conversion option of $221
thousand and the interest expense on put warrants of $4.1 million the net loss
amounted to $6.0 million compared to $910 thousand the prior year. Please refer
to Note 6 on the April 30, 2009 financial statements for an explanation of the
non-cash charges relating to the conversion option and put warrants..</P>
<P align=justify>The loss per common share (basic and diluted) amounted to $0.17
on a weighted average of 34,367,817 outstanding shares during the current
quarter ended April 30, 2009, compared with loss per share of $0.03 on
32,861,695 shares during the corresponding three month period during the
previous year. </P>
<P align=justify><B><U>Principal Cash Flows for the Three Month Period Ended
April 30, 2009</U></B></P>
<P align=justify><B>Operating activities </B>before net change in non-cash
working capital items used cash flows of $408 thousand during the period,
compared to used cash flows of $272 thousand during the corresponding three
month period during the previous year. Net change in non-cash working capital
items related to operations generated cash flows of $295 thousand for the three
months ended April 30, 2009, compared to $247 thousand for the first quarter
ended April 30, 2008. Operating activities used net cash flows of $114 thousand
during the current quarter ended April 30, 2009, compared with a use of cash of
$25 thousand for the corresponding period the previous year. </P>
<P align=justify><B>Financing activities </B>from continuing operations used
cash flows of $31 thousand, primarily as a result of senior secured convertible
debenture repayments, for the three month period ended April 30, 2009. The prior
year's financing activities provided cash flows of $54 thousand, primarily as a
result of shares of common stock issued. </P>
<P align=justify><B>Investing activities </B>used cash of $30 thousand in the
prior year as a result of the assets acquired through Wes Power. The current
year's quarter<B> </B>reported no<B> </B>cash flows from investing activities.
</P>
<P align=justify>The aggregate cash inflows and outflows for the three month
period ended April 30, 2009 used net cash flows of $145 thousand compared to
$nil for the same period last year. ICP ended the three month period ended April
30, 2009 with <B>cash </B>of $48 thousand, up by $27 thousand from $21 thousand
as at April 30, 2008. </P>
<P align=center>35 </P>
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width="100%" noShade>
<A name=page_39></A>
<P align=justify><B><U>Financial Position as at April 30, 2009</U></B></P>
<P align=justify>Total assets amounted to $2.4 million as at April 30, 2009,
compared to $2.5 million as at January 31, 2009. This decrease primarily
reflects the reduction in inventory offset by increases in accounts receivable
and prepaids. </P>
<P align=justify><B>Working capital </B>was $1.5 million as at April 30, 2009,
compared to $418 thousand as at January 31, 2009. The working capital deficit is
due to increases in accounts payable and senior secured convertible debentures.
The current ratio as at April 30, 2009 was at 0.59:1 and at 1.22:1 at January
31, 2009. </P>
<P align=justify>Considering the accumulated losses to date and the increase in
total debt, the Company is not in compliance with certain ratios contained in
the covenants related to its senior secured convertible debenture agreements and
could be required to repay on demand all amounts due ($2.5 million as of April
30, 2009) under these agreements. The Company has not received any default
notice from its lenders thus far. The Company has obtained the necessary waivers
to these credit agreements from its lenders.</P>
<P align=justify><B>Shareholders' deficit </B>amounted to $9.1 million at April
30,2009, compared to $2.9 million as at January 31, 2009, as a result of a $6
million loss .offset by increases in APIC (See Consolidated Interim Statement of
Shareholder's Deficiency) </P>
<P align=justify><B><U>Acquisition of WES Power Technology Inc. ("WES")</U></B>
</P>
<P align=justify>On March 5, 2008, the Company executed a Share Purchase Agreement
  ("Agreement") with the majority shareholders of WES Power Technology Inc. ("WES
  Majority Shareholders"), pursuant to which the Company purchased from the WES
  majority shareholders all of the issued and outstanding shares of WES. This
  Agreement supersedes and annuls the share purchase agreement signed between
  the parties on August 27, 2007.</P>
<P align=justify>Under the terms of the Agreement, the Company acquired 100% of
all of the shares of WES for the following consideration: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>A cash consideration of $1;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>Issuance by the Company of 104,050 shares of its common
      shares;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Issuance by the Company of 250,000 warrants to purchase
      common shares of the Company. The warrants will expire on March 5, 2013
      and have an exercise price of $0.50;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>Execution of employment agreements by the Company with
      each of the WES Majority Shareholders.</P></TD></TR></TABLE>
<P align=justify>The total consideration to acquire the net assets of WES, was
$134,831 including transaction costs. The excess consideration paid over the
purchase price of $174,114 is accounted for as part of the intellectual
property. </P>
<P align=justify>The assigned values of the assets and liabilities purchased
based on our preliminary allocation are as follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>Assets Acquired: </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp;
</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;92,100</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Property and equipment </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>16,855</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Intellectual property </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>174,114</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total Assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;283,069</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Liabilities Assumed: </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current liabilities </TD>
    <TD bgColor=#e6efff  width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;96,794</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Long-term debt </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>51,444</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Total Liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>148,238</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net Assets at Fair
      Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;134,831</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Consideration: </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash </TD>
    <TD bgColor=#e6efff  width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;1</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Issuance of 104,050 common shares </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>45,980</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Issuance of 250,000 warrants </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>63,850</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transaction costs
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>25,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Total Consideration</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;134,831</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=center>36</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_40></A>
<P align=justify>The common shares were attributed a fair value of $0.44 per
share which represents the average of the closing price two days before and two
days after the date of acquisition.</P>
<P align=justify>The warrants were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following
assumptions:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected volatility </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>75% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5 years </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Risk-free interest rate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2.59% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Nil </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Weighted average fair value of warrants at grant date </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;0.2554 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>Following is a table which represents the pro-forma
consolidated statement of operations as if the acquisition of WES Power
Technology Inc. had taken place on February 1, 2007.</P>
<P align=center><B>Pro-forma Consolidated Statement of Operations <BR>Wes
Technology Acquisition as of February 1, 2007</B> </P>
<P align=center><STRONG>Year Ended</STRONG>&nbsp;<BR><STRONG>January 31,
2009</STRONG>&nbsp;&nbsp;&nbsp; </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>ICP Solar</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Wes Power</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Technologies</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Technology</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Total</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Inc.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Inc.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Sales</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;5,903,196</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;-</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;5,903,196</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Expenses</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>15,158,804</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>29,859</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>15,188,663</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Net Loss</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;(9,255,608</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;(29,859</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;(9,285,467</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left><B>)</B> </TD></TR></TABLE>
<P align=center>Year Ended&nbsp;&nbsp;<BR>January 31, 2008&nbsp;&nbsp;&nbsp;
</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>ICP Solar </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Wes Power </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Technologies </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Technology </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Total </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Inc.
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Inc.
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Sales </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;6,541,232 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;132,372 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;6,673,604 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expenses </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>10,763,970 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>119,156 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>10,883,126 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net Loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(4,222,738</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;13,216 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(4,209,522</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD></TR></TABLE>
<P align=justify><B><U>Stock Options</U></B></P>
<P align=justify><B>Modification of Exercise Price</B></P>
<P align=justify>On February 14, 2008, the Board of Directors of the Company
authorized the modification of the exercise price of the options then issued and
outstanding pursuant to the Company's 2006 Stock Incentive Plan from $2.25 -
$2.35 to $0.50. This modification of the options to purchase common stock of the
Company was applied to a total of 1,415,000 options issued to employees and
Directors on May 18, 2007.</P>
<P align=justify>This modification was accounted for by recording, over the
vesting period, the difference between the fair value of the options immediately
prior to the modification and the fair value of the options determined at the
date of modification. The incremental compensation expense related to this
modification amounted to $217,832 of which $119,056 was expensed in the first
quarter of fiscal 2009 and $98,776 will be expensed over the remaining vesting
period. The fair value was determined by the Black-Scholes-Merton valuation
model using the following weighted average assumptions:</P>
<P align=center>37 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<p>
<A name=page_41></A><BR>
</p>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
      align=left>Expected volatility </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>76% </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5.38 years </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Risk-free interest rate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2.71 % </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;Nil </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Weighted average fair value of options at modification date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;0. 30 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><B>b) New Issues</B></P>
<P align=justify><B>Grants</B></P>
<P align=justify>On February 14, 2008, the Company granted options to purchase a
total of 45,000 shares of common stock to current employees and granted options
to purchase a total of 190,000 shares of common stock to current directors.
Options granted to current employees and 90,000 of the options granted to
current directors vest over a two year period at the rate of 25% every six
months, while 100,000 of the options granted to current directors vest on August
14, 2008. The Company will recognize a compensation expense of $57,553 over the
vesting period, based on an exercise price of $0.50 per share.</P>
<P align=justify>These options were accounted for at their fair value as
determined by the Black-Scholes-Merton valuation model, using the following
weighted average assumptions:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
      align=left>Expected volatility </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>76% </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5.65 years </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Risk-free interest rate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2.81% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;Nil </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Weighted average fair value of options at grant date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;0.306 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>On May 6, 2008, the Company issued a total of 75,000 stock
purchase options to the CFO, vesting over a two year period, 25% every six
months. The options have an exercise price of $0.50 and expire on May 6, 2013.
The Company recorded a compensation expense of $ 8,453 for the year ended
January 31, 2009, and will recognize the remaining expense of $14,089 over the
vesting period.</P>
<P align=justify>These options were accounted for at their fair value as
determined by the Black-Scholes-Merton valuation model, using the following
assumptions:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
      align=left>Expected volatility </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>76% </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3.25 years </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Risk-free interest rate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4.58% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Nil </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Fair value of
      options at grant date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;0.376 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><B><U>Warrants - Modification of Exercise Price</U></B></P>
<P align=justify>On February 14, 2008, the Board of Directors of the Company
authorized the modification of the exercise price from $2.25 to $0.50 of common
stock purchase warrants, issued on May 18, 2007 as consulting fees to a member
of the immediate family of the President and CEO of the Company (100,000
warrants) and to a director and former CFO of the Company (525,000
warrants).</P>
<P align=justify>This modification will be accounted for by recording the
difference between the fair value of the warrants immediately prior to the
modification and the fair value of the warrants determined at the date of
modification. The incremental compensation expense related to this modification
amounted to $110,000 which was expensed in the first quarter of fiscal 2009 as
determined by the Black-Scholes-Merton valuation model using the following
assumptions:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
      align=left>Expected volatility </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>76% </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2.63 years </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Risk-free interest rate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2. 01 % </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;Nil </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Weighted average fair value of warrants at modification date
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;0.2161 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=center>38 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_42></A>
<P align=justify>On March 25, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price from $1.00 to $0.50 on common
stock purchase warrants issued in 2006. This modification applied to 3,000,000
common stock purchase warrants.</P>
<P align=justify>This modification was accounted for by recording the difference
between the fair value immediately prior to the modification and the fair value
determined at the date of modification. The incremental compensation expense
related to this modification amounted to $50,700 which was expensed in the first
quarter of fiscal 2009 as determined by the Black-Scholes-Merton valuation model
using the following assumptions:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
      align=left>Expected volatility </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>104% </TD>
    <TD style="BORDER-TOP: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4 months </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Risk-free interest rate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1.24 % </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;Nil </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Weighted average fair value of warrants at modification date
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;0. 196 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><B><U>Financial Instruments</U></B></P>
<P align=justify>The Company estimates the fair value of its financial
instruments based on current interest rates, market value and pricing of
financial instruments with comparable terms. Unless otherwise indicated, the
carrying value of these financial instruments approximates their fair market
value. The fair value of advances from a director is impossible to determine
with sufficient reliability due to the lack of repayment terms, their related
party nature and the absence of a market for such instrument</P>
<P align=justify><B><U>Conversion of Convertible Notes</U></B></P>
<P align=justify>Subsequent to April 30, 2008, 850,000 common shares were issued
as a result of the conversion of $850,000 of convertible notes. </P>
<P align=justify><B><U>Issuance of Senior Secured Convertible Debentures and
Warrants</U></B></P>
<P align=justify>On June 13, 2008, the Company issued Original Issue Discount
11% Senior Secured Convertible Debentures (the &#147;Debentures&#148;), due June 13, 2010,
having a principal face amount of $3,333,334 and generating net proceeds of
$3,000,000. </P>
<P align=justify>The principal amount under the Debentures is repayable to the
holders in 18 equal monthly installments of $185,185, beginning November 1,
2008. Interest on the Debentures is payable monthly and began on June 13, 2008.
The Company may elect to make principal and interest payments in the form of
shares of its common stock; provided, generally, that the Company is not in
default under the Debentures at such time and has met certain equity conditions
described in the Debentures. If the Company elects to make principal payments in
shares of common stock, the conversion rate will be the lesser of (a) the
Conversion Price (as defined below), or (b) 85% of the average of the three (3)
lowest closing bid prices of the common shares over the twenty (20) trading day
period ending on the trading day ending immediately preceding the applicable
monthly redemption date.</P>
<P align=justify>At any time, holders may convert the Debentures into shares of
common stock at a fixed conversion price of $0.50, subject to adjustment in the
event the Company issues shares of common stock (or securities convertible into
or exercisable for shares of common stock) at a price below the conversion price
then in effect (the &#147;Conversion Price&#148;).</P>
<P align=justify>The Debentures rank senior to all current and future
indebtedness and are secured by substantially all of the assets of the
Company.</P>
<P align=justify>Also on June 13, 2008, the Company issued to the investors
Series A six-year warrants to purchase an aggregate amount of up to 6,666,666
shares of common stock at an exercise price of $0.50 per share (subject to
adjustment), Series B six-year warrants to purchase an aggregate amount of up to
6,666,666 shares of common stock at an exercise price of $1.00 per share
(subject to adjustment), and Series C six-year warrants to purchase an aggregate
amount of up to 6,666,666 shares of common stock at an exercise price of $1.00
per share (subject to adjustment) (collectively, the &#147;Warrants&#148;). The Series C
warrants cannot be exercised until such time as all of the Series B warrants
have been exercised.</P>
<P align=center>39 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_43></A>
<P align=justify>On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the &#147;Amendment&#148;) to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement. As a result of these amendments, among
other things, the exercise price of the Series A purchase warrants issued in the
Private Placement was reduced from $0.50 to $0.25, resulting in the issuance of
6,666,666 additional Series A warrants; the exercise price of the Series B
purchase warrants issued in the Private Placement was reduced from $0.50 to
$0.25, resulting in the issuance of 19,999,998 additional Series B warrants; the
exercise price of the Series C purchase warrants issued in the Private Placement
was reduced from $1.00 to $0.50, resulting in the issuance of 6,666,666
additional Series C warrants.</P>
<font FACE="Times New Roman" SIZE="2">
<p align="justify">For our fiscal quarter ended April 30, 2009, the Company was
required under the Debentures to achieve revenues no less than $1.5 million and
to maintain its accounts payable at less than $1.75 million. The Company failed
to achieve these targets and, as a result, was in default under the Debentures.
The Company has obtained a waiver from the holders of the Debentures for such
default; however, pursuant to the terms of the Debentures, as a result of the
Company's failure to achieve these targets the conversion price of the
outstanding Debentures and the exercise price for the Adjustment Warrants and
the warrants issued in the Private Placement was reduced to $0.14, the volume
weighted average price of our common stock during the five (5) consecutive
trading days immediately preceding April 30, 2009. The weighted average market
price in the five days following the filing of the 10Q was not less than $0.14,
so that a further reduction in price was not required nor made. The reduction in
the exercise price of the Adjustment Warrants and the warrants issued in the
Private Placement resulted in the issuance of the following warrants effective
June 21, 2009: (i) 10,476,197 additional Series A Warrants (&quot;Series A Additional
Adjustment Warrants&quot;), (ii) 20,952,386 additional Series B warrants (&quot;Series B
Additional Adjustment Warrants&quot;)and (iii) 34,285,722 additional Series C
warrants (&quot;Series C Additional Adjustment Warrants&quot;), (Series A Additional
Adjustment Warrants, Series B Additional Adjustment Warrants and Series C
Additional Adjustment Warrants collectively referred to herein as the
&quot;Additional Adjustment Warrants&quot;). </p>
</font>
<P align=center><B>OUR BUSINESS</B></P>
<P align=justify>On September 29, 2006, ICP Solar Technologies Inc, formerly FC
Financial Services Inc. ("ICP Solar"), a Nevada corporation, directly and
indirectly through its Canadian wholly owned subsidiary, completed the
acquisition of 100% of the issued and outstanding shares of ICP Solar
Technologies Inc., a Canadian corporation ("ICP"). ICP, organized in 1988, has
continued its operations as a subsidiary of ICP Solar (the "ICP Acquisition").
We operate our business through our wholly owned subsidiary of ICP, ICP Global
Technologies Inc. (Canada). </P>
<P align=justify>We are headquartered in Montreal, Canada and we operate in the
solar energy industry. We market, and sell solar panel based products to the
consumer goods, Original Equipment Manufacturers ("OEM") and integrated building
materials markets through our distribution channels in over 50 countries. Our
products include: <B>Sunsei <SUP>TM</SUP></B> <B>12V solar chargers</B>
(from 135mAmps to 8Amp sizes, Charge Controllers, Mounting and Expansion Kits,
Coleman solar chargers from 100mAmps to 3.6Amps, 4A Charge Controller), <B>OEM
Modules</B> (from 54mm to 600mm in size VW Solar Charger, Winnebago Solar
Charger for RV Roof), and <B>Solar Tiles (BIPV)</B> (in development).</P>
<P align=justify>We were incorporated in the State of Nevada on November 19,
2003 under the name &#147;FC Financial Services Inc.&#148;. Prior to completing the
acquisition of ICP, we were in the business of providing indirect financing of
installment contracts for automobile purchases and leases. Our business model
involved automobile dealers making arrangements with us to finance the purchase
or lease of a vehicle. On September 29, 2006 we acquired through our wholly
owned subsidiary all of the issued and outstanding shares of ICP. In order to
focus our resources on developing ICP's technology and business, we no longer
are proceeding with automobile financing business activities.</P>
<P align=justify><B>MARKET AND PRODUCTS </B></P>
<P align=justify>ICP operates in the following three main market verticals:</P>
<P align=justify>1. Consumer Goods,<BR>2. Original Equipment Manufacturers
("OEM"), <BR>3. Integrated Building Material Market, and <BR>4. Monitoring
equipment </P>
<P align=justify>The following is a list of ICP's current products on the market
or in development: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Sunsei <SUP>TM </SUP>12V solar chargers </B>(from
  135mAmps to 8Amp sizes, Charge Controllers, Mounting and Expansion Kits,
  Coleman solar chargers from 100mAmps to 3.6Amps, 4A Charge Controller)
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>OEM Modules </B>(from 54mm to 600mm in size VW Solar Charger, Winnebago
  Solar Charger for RV Roof)
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Hybrid (solar and wind) communications monitors and controllers.
  </B>(in development) </LI></UL>
<P align=justify><B>Consumer Goods </B></P>
<P align=justify>The consumer goods market makes up approximately 10% of the
solar panel industry. The consumer goods market is comprised of larger retail
chain stores and specialty stores. ICP sells its integrated solar energy systems
and other solar products under two main brands: Sunsei <SUP>TM </SUP>its
proprietary brand and Coleman&#174;, (for which it is the holder of a license), to
the consumer goods market. Sunsei <SUP>TM </SUP>is positioned as our premium
brand and Coleman&#174; is ICP's value brand line.</P>
<P align=center>40 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_44></A>
<P align=justify>ICP's products under the Coleman&#174; brand are distributed to
large retail chains such as Costco, Wal-Mart, Target, Sam's Club, and LeRoy
Merlin. ICP believes that consumers in the large retail chain space are cost
conscious purchasers who also look for quality products. ICP plans to continue
to develop this segment through additional retail chains, but there can be no
assurances that ICP will be able to sign on additional retail chains.</P>
<P align=justify>ICP sells its Sunsei <SUP>TM </SUP>brand to specialty retailers
in the marine market or battery market such as West Marine and Battery Alliance.
ICP's current product line is composed of turn key portable panel systems used
for camping, yachting, battery recharging and other portable use.</P>
<P align=justify>ICP's online market is composed of its own online shopping
website at <U><FONT color=#0000ff>www.solarchargers.com </FONT></U>,
<U>www.sunsei.com</U> and other third party online shopping websites. The third
party online shopping websites include Amazon.com, Samsclub.com, Costco.com,
Westmarine.com and HomeDepot.com.</P>
<P align=justify><B>OEM Market </B></P>
<P align=justify>In 2003, ICP entered into the OEM market, and is presently
focusing on the automotive sector with a product that is used to allow a car
battery to retain its electric charge when the car engine is not turned on for
extended periods of time. The product consists of a proprietary small portable
charger that is affixed onto the inside of the windshield of a car and plugged
into the cigarette lighter or OBD (on-board diagnostic). ICP also supplies
Winnebago, the leading worldwide RV manufacturer, with outdoor roof-mounted
solar panels.</P>
<P align=justify><B>Integrated Building Material Market </B></P>
<P align=justify>The Integrated Building Material market is the largest segment
of the solar panel industry. ICP has a patented roof-tile technology that we
hope to finalize development of over the next six to nine months and
subsequently enter the building materials market.</P>
<P align=justify>Our new patented technology for a thin film amorphous solar
cell can be seamlessly integrated into roofing lines for homes, buildings and
other structures. Unlike standard poly-crystalline solar cell based panels that
can interfere with the esthetics of a roof line, the thin film integrated tiles
seamlessly integrates into roofing lines. Although the required panel area per
kilowatt of electricity generated for amorphous panels is twice that of
poly-silicon panels, the overall costs of power generation for amorphous based
systems is less than that of poly-silicon based systems. Amorphous solar cells
can generate more power on a watt for watt basis than traditional solar cells
and utilize only 5% of the raw material used to make traditional poly-silicon
cells. We believe that these panels can be sold to both the grid connected and
off grid sectors of the market.</P>
<P align=justify>Our amorphous solar tiles are expected to be available within
the next nine to twelve months, pending final development and certification.
However, there can be no assurances that the final development will be
successful or that we will be able to commercialize the amorphous solar tiles at
a profit, if at all.</P>
<P align=justify><B>Business Strategy</B></P>
<P align=justify>We plan to expand our client base with large retail chains and
specialty retailers in addition to further penetrating our existing clients. We
intend to work closely with our sales agents as part of our overall sales growth
strategy. We also plan to utilize the Internet for marketing and sales of our
products.</P>
<P align=justify>Our strategy is to gain market share by positioning the final
product through the OEM channel with global installer partners for a variety of
applications. At the present time, we have identified potential marketing
partners for the thin film roof tile technology and, although there can be no
assurances, we expect strong demand upon commercialization. We intend to
continue to market our existing products to the rural areas of developing
countries. ICP has a history of installing panels in such countries as Kenya and
we expect to expand our presence in the rural sectors in South America, Africa
and Asia. We plan to continue to reduce our costs with respect to our products
by improving efficiency and innovating new technologies.</P>
<P align=center>41 </P>
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width="100%" noShade>
<A name=page_45></A>
<P align=justify><B>Solar Energy Industry</B></P>
<P align=justify>The electric power industry is one of the world's largest
industries. With the recent deregulation, the advent of economic, environmental
and national security issues, and technological advances, new opportunities
exist for new entrants into the electric power industry. As electric power has
become vital component of the world's economy as a result of the increasing
dependence on electricity-reliant technology, reliable electricity has become
critical to economic growth.</P>
<P align=justify>Traditionally, sources of fuel for generating electricity
include coal, natural gas, oil, nuclear power, and renewable resources. However,
the following factors have made increasing reliance on these traditional sources
unattractive:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify><U>Environmental regulations. </U>Recent environmental
      regulations seek to limit emissions by fossil fuel including international
      treaties and national and regional air pollution regulations to restrict
      the release of greenhouse gasses;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify><U>Infrastructure reliability. </U>Investment in
      electricity transmission and distribution infrastructure has not kept pace
      with increased demand. Expanding the aging infrastructure will be capital
      intensive and time consuming, and may be restricted by environmental
      concerns; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify><U>Fossil fuel supply constraints and cost pressures</U>.
      The supply of fossil fuels is finite. Depletion of fossil fuels may impact
      prices and infrastructure requirements over this century. Political
      instability, labor unrest, war and the threat of terrorism in oil
      producing regions have disrupted oil production, increased the volatility
      of fuel prices and raised concerns over foreign
  dependency.</P></TD></TR></TABLE>
<P align=justify>As a result of these challenges, we believe that future demand
for electricity will not be met through traditional fossil fuel-based
technologies alone. The solar panel industry is a growing market and the use of
solar energy has been around for more than 100 years, but only in the past few
decades, increased efficiency as a result of new technologies is making solar
energy a more viable alternative to nonrenewable energy sources. Solar energy
provides the following advantages over the traditional solutions: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><U>Modularity and scalability</U>. Solar power products can be deployed in
  various sizes and configurations and can be installed almost anywhere;
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><U>Reliability</U>. With no need for moving parts and fuel supply, solar
  power systems reliably provide power to many demanding applications;
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><U>Dual use</U>. Solar modules are able to serve as both a power generator
  and the skin of the building; and
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><U>Environment friendly</U>. Solar power systems consume no fuel and
  produce no air, water or noise emissions.<BR>Solar energy works by using
  photovoltaic solar cells made up of silicon compounds such as poly-silicon,
  which produces a current when exposed to sunlight. Many interconnected cells
  are packaged into solar modules, which protect the cells and collect the
  electricity generated. In general, the solar industry is generally broken down
  into three main categories: </LI></UL>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>On-grid, which is solar derived electricity that is
      connected into the main electrical grids, which occupies 56% of the total
      solar energy consumption;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Off-grid, which is mostly made up of solar derived power
      in rural areas where access to conventional electric power is not
      economical or physically feasible and OEM equipment such as automotive,
      garden lights, telecom and remote site power, which occupies 34% of the
      total solar energy consumption; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>Consumer products, such as small portable solar powered
      equipment for use in recreational vehicles, yachting and camping, battery
      recharging and so on, which occupies 10% of the total solar energy
      consumption.</P>
      <P align=justify>Governments around the world have
launched incentive programs to reward solar power users. For instance, the
Japanese government has spent hundreds of millions of dollars in subsidies to
encourage citizens to install solar energy systems in their homes. Germany has
implemented a program whereby it purchases a solar energy derived kilowatt hour
for up to $0.55 daily. Italy and Spain have set up a similar program. In the US,
last year's energy bill included subsidies for the use of solar energy, and many
states have started to implement subsidy programs such as California which has
recently rolled out an aggressive $2.9 billion subsidy plan over the next 10
years.</P></TD></TR></TABLE>
<P align=center>42 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_46></A>
<P align=justify><B>Competition</B></P>
<P align=justify>The solar power market is intensely competitive and rapidly
evolving. Our competitors have established a market position more prominent than
ours, and if we fail to secure our supply chain, attract and retain customers,
and establish a successful distribution network for our solar power products, we
may be unable to increase our sales and market share. The solar cell
manufacturing arena includes some 100 manufacturers worldwide. The ten largest
manufacturers comprise more than three quarters of the market. At present
suppliers are having difficulty keeping up with increasing market demands,
largely due to technological developments that decrease solar energy costs and
government incentives, which translates into a lower competitive environment for
the sector at the moment. Although there are no assurances, the market is
expected to continue to undergo strong growth over the next ten years which will
be conducive to sustaining existing suppliers and allowing for new market
entrants to capture market share as well.</P>
<P align=justify>We believe that we are well positioned within the solar market.
ICP is a well diversified innovative company that provides solar energy products
to diversified market segments. Over the years, ICP has built a reputation for
quality and reliability as well as a brand name and distribution network, while
acquiring its own solar cell supply chain. Over the years, ICP has built a
presence in various global niche markets as well. ICP has also developed new
technology in the area of amorphous solar cells which management believes will
allow it to enter into the large on-grid and off-grid solar electrical markets.
</P>
<P align=justify>The entire solar industry also faces competition from other
power generation sources, both conventional sources as well as other emerging
technologies. Solar power has certain advantages and disadvantages when compared
to other power generating technologies. The advantages include the ability to
deploy products in many sizes and configurations, to install products almost
anywhere in the world, to provide reliable power for many applications, to serve
as both a power generator and the skin of a building and to eliminate air, water
and noise emissions. Whereas solar generally is cost effective for off-grid
applications, the high up-front cost of solar relative to most other solutions
is the primary market barrier for on-grid applications. Furthermore, unlike most
conventional power generators, which can produce power on demand, solar power
cannot generate power where sunlight is not available, although it is often
matched with battery storage to provide highly reliable power solutions. </P>
<P align=justify><B>Order Book</B></P>
<P align=justify>The amount of orders on hand at April 30, 2009 was
approximately $710,259.00.</P>
<P align=justify><B>Intellectual Property and Patent Protection</B></P>
<P align=justify>We plan to aggressively continue to protect our intellectual
property and technology by applying for patent protection in the United States
and in the most relevant foreign markets in anticipation of future
commercialization opportunities. The cost of patents and trademarks are expensed
when incurred. </P>
<P align=justify>We also rely on trade secrets, common law trademark rights and
trademark registrations and intend to protect our intellectual property through
non-disclosure agreements, license agreements and appropriate restrictions and
controls on the distribution of information. </P>
<P align=center>43 </P>
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width="100%" noShade>
<A name=page_47></A>
<P align=justify>At present <I>,</I> ICP has the following patents, registered
trademarks and designs: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=5 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Country</B> <BR></TD>
    <TD width="20%" align=left><B>Type</B> <BR></TD>
    <TD width="20%" align=left><B>App. No. or</B> <BR><STRONG>Registration
      No.</STRONG> </TD>
    <TD width="20%" align=left><B>Trademark</B> <BR></TD>
    <TD width="20%" align=left><B>ICP Status Note</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD bgColor=#e6efff width="20%" align=left>TMA669,469 </TD>
    <TD bgColor=#e6efff width="20%" align=left>ISUN </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>TMA622,453 </TD>
    <TD width="20%" align=left>ICP GLOBAL TECHNOLOGIES Design </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD bgColor=#e6efff width="20%" align=left>TMA628,201 </TD>
    <TD bgColor=#e6efff width="20%" align=left>Let our power give you freedom
    </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>TMA675,977 </TD>
    <TD width="20%" align=left>ATF </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>European Community (OHIM) </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD bgColor=#e6efff width="20%" align=left>App. No. 005441373 </TD>
    <TD bgColor=#e6efff width="20%" align=left>SUNSEI </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>Australia </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 1,142,137 </TD>
    <TD width="20%" align=left>SUNSEI </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD bgColor=#e6efff width="20%" align=left>TMA674,928 </TD>
    <TD bgColor=#e6efff width="20%" align=left>SUNSEI </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>USA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>Reg'n No. 3,262,491 </TD>
    <TD width="20%" align=left>SUNSEI </TD>
    <TD width="20%" align=left>Registered </TD></TR></TABLE></DIV>
<P align=center>44 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<p>
<A name=page_48></A><BR>
</p>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=5 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Country</B> <BR></TD>
    <TD width="20%" align=left><B>Type</B> <BR></TD>
    <TD width="20%" align=left><B>App. No. or</B> <BR><B>Registration No.</B>
    </TD>
    <TD width="20%" align=left><B>Trademark</B> <BR></TD>
    <TD width="20%" align=left><B>ICP Status Note</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 1,333,273 </TD>
    <TD bgColor=#e6efff width="20%" align=left>GREENMETER </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 76/690,996 </TD>
    <TD width="20%" align=left>GREENMETER </TD>
    <TD width="20%" align=left>Pending </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>European Community (OHIM) </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 006 931 141 </TD>
    <TD bgColor=#e6efff width="20%" align=left>GREENMETER </TD>
    <TD bgColor=#e6efff width="20%" align=left>Abandoned </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 77/510,653 </TD>
    <TD width="20%" align=left>ISUN </TD>
    <TD width="20%" align=left>Pending </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 1,393,896 </TD>
    <TD bgColor=#e6efff width="20%" align=left>PLUG N' PLAY </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Approved for Advertisement </TD></TR>
  <TR vAlign=top>
    <TD align=left>European Community (OHIM) </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 006 931 109 </TD>
    <TD width="20%" align=left>ISUN </TD>
    <TD width="20%" align=left>Allowed &#150; Regn Fee paid </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 77/510,527 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>RENEWABLE ENERGY POWER TILE </TD>
    <TD bgColor=#e6efff width="20%" align=left>Pending </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>76/467,624 </TD>
    <TD width="20%" align=left>ICP GLOBAL TECHNOLOGIES &amp; DESIGN </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 78/346,960 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>ICP SOLAR TECHNOLOGIES &amp; DESIGN </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 78?377,570 </TD>
    <TD width="20%" align=left>SUNSAVER </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 60/519,555 </TD>
    <TD bgColor=#e6efff width="20%" align=left>SOLARVENT </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 78/346,476 </TD>
    <TD width="20%" align=left>BATTERY SAVER SE </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 78/331,020 </TD>
    <TD bgColor=#e6efff width="20%" align=left>AUTOVENT </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 78/359,160 </TD>
    <TD width="20%" align=left>BATTERY SAVER PLUS </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 76/448,811 </TD>
    <TD bgColor=#e6efff width="20%" align=left>TRACTORSAVER </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 78/109,085 (Now 2,839,191) </TD>
    <TD width="20%" align=left>BATPACK </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 76/039,122 (Now 2,709,752) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left><I>SolarPRO</I> <I>plug'n'play (stylized)</I> </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 76/140,194 </TD>
    <TD width="20%" align=left><I>iSUN (Stylized)</I> </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 76/140,193 (Now 2,575,542) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left><I>LET OUR POWER</I> <I>GIVE YOU</I> <I>FREEDOM</I>
      <I>(Stylized)</I> </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 76/255,870 (Now 2,626,915) </TD>
    <TD width="20%" align=left><I>POCKETPV</I> </TD>
    <TD width="20%" align=left>Registered </TD></TR></TABLE></DIV>
<P align=center>45 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<p>
<A name=page_49></A><BR>
</p>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=5 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Country</B> <BR></TD>
    <TD width="20%" align=left><B>Type</B> <BR></TD>
    <TD width="20%" align=left><B>App. No. or</B> <BR><B>Registration No.</B>
    </TD>
    <TD width="20%" align=left><B>Trademark</B> <BR></TD>
    <TD width="20%" align=left><B>ICP Status Note</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>US
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 78/147,527 (Now 2,835,615) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>THE MOST VERSATILE BATTERY CHARGER IN THE UNIVERSE </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 76/255,869 </TD>
    <TD width="20%" align=left>SOLAR BOOSTER </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 1,081,632 (Now 2,634,557) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left><I>LET OUR POWER</I> <I>GIVE YOUR</I> <I>FREEDOM</I> </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 537,063/ TMA315,973 </TD>
    <TD width="20%" align=left><I>FIRST CHOICE &#150;</I> <I>PREMIERE CHOIX</I> </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 1,076,749/ TMA569,033 </TD>
    <TD bgColor=#e6efff width="20%" align=left><I>Isun &amp; Design</I> </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 1,147,986/ TMA601,092 </TD>
    <TD width="20%" align=left>THE MOST VERSATILE BATTERY CHARGER IN THE
      UNIVERSE </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>`CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 716,424/ TMA435,293 </TD>
    <TD bgColor=#e6efff width="20%" align=left>NEVERMISS </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 712,850/ TMA427,521 </TD>
    <TD width="20%" align=left>SHIATSU </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 1,136,102 TMA590,567 </TD>
    <TD bgColor=#e6efff width="20%" align=left>SOLAR BOOSTER </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 1,081,631/ TMA589,526 </TD>
    <TD width="20%" align=left><I>SolarPRO</I> <I>Plug'n'play</I> </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 1,121,392 TMA591,037 </TD>
    <TD bgColor=#e6efff width="20%" align=left>SOLARPAQ </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 1,131,151/ TMA573,818 </TD>
    <TD width="20%" align=left>BATTPAK </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. TMA602,574 </TD>
    <TD bgColor=#e6efff width="20%" align=left>3P </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 2,839,171 </TD>
    <TD width="20%" align=left>BATTPAK </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 2,137,576 </TD>
    <TD bgColor=#e6efff width="20%" align=left>NEVERMISS </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD align=left>UK </TD>
    <TD width="20%" align=left>TM </TD>
    <TD width="20%" align=left>App. No. 2,313,930 </TD>
    <TD width="20%" align=left><I>iSUN &amp; Design</I> </TD>
    <TD width="20%" align=left>Registered </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>UK </TD>
    <TD bgColor=#e6efff width="20%" align=left>TM </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>App. No. 1,271,719 </TD>
    <TD bgColor=#e6efff width="20%" align=left><I>SOLARVENT</I> </TD>
    <TD bgColor=#e6efff width="20%" align=left>Registered
</TD></TR></TABLE></DIV>
<P align=center>46 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<p>
<A name=page_50></A><BR>
</p>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=5 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Country </B><BR></TD>
    <TD width="20%" align=left><B>Type </B><BR></TD>
    <TD width="20%" align=left><B>App. No. or </B><BR><B>Registration No.
    </B></TD>
    <TD width="20%" align=left><B>Patent </B><BR></TD>
    <TD width="20%" align=left><B>Status </B><BR></TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>10 / 710,077 Patent No. 7442077 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Modular Cable System for Solar Power Sources </TD>
    <TD bgColor=#e6efff width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD align=left>CDN </TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>2,472,548 </TD>
    <TD width="20%" align=left>Solar Panel Having Visual Indicator </TD>
    <TD width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>10/895,956 (Now Pat No. 7,224,286) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Modular Cable System for Solar Powered Sources </TD>
    <TD bgColor=#e6efff width="20%" align=left>Issued. </TD></TR>
  <TR vAlign=top>
    <TD align=left>CDN </TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>2,480,366 </TD>
    <TD width="20%" align=left>Photovoltaic Building Elements </TD>
    <TD width="20%" align=left>Pending. </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD bgColor=#e6efff width="20%" align=left>11/ 298,663 Patent No. 7501789
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Solar Powered Battery Charger with Voltage Regulation Circuit
      Apparatus </TD>
    <TD bgColor=#e6efff width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD align=left>UK </TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>218104.8 Patent No. 2391704 </TD>
    <TD width="20%" align=left>PHOTOVOLT AIC BUILDING ELEMENTS </TD>
    <TD width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>EP </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD bgColor=#e6efff width="20%" align=left>04761581.0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Solar Panel Having Visual Indicator </TD>
    <TD bgColor=#e6efff width="20%" align=left>Pending </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>10/932196 </TD>
    <TD width="20%" align=left>Photovoltaic Building Structure </TD>
    <TD width="20%" align=left>Pending </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>CA </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD bgColor=#e6efff width="20%" align=left>2,409,465 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>MODULAR SOLAR BATTERY CHARGER </TD>
    <TD bgColor=#e6efff width="20%" align=left>Issued. </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>09/987,93 6 (Now6,650,085) </TD>
    <TD width="20%" align=left>MODULAR SOLAR BATTERY CHARGER </TD>
    <TD width="20%" align=left>Issued. </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>PCT </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD bgColor=#e6efff width="20%" align=left>PCT/CA2008/00019 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Hybrid Renewable Power Monitor and Data Logger </TD>
    <TD bgColor=#e6efff width="20%" align=left>Filed </TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>516437.1 </TD>
    <TD width="20%" align=left>PHOTOVOLT AIC BUILDING ELEMENTS </TD>
    <TD width="20%" align=left>Issued. </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>PCT </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD bgColor=#e6efff width="20%" align=left>PCT/CA2008/001794 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Integrated Photovoltaic Roof Tile </TD>
    <TD bgColor=#e6efff width="20%" align=left>Pending </TD></TR>
  <TR vAlign=top>
    <TD align=left>PCT </TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>PCT/CA2008/001796 </TD>
    <TD width="20%" align=left>Autonomous Hybrid Renewable Energy Controller
    </TD>
    <TD width="20%" align=left>Pending </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>29/165,690 (NOW D476,950) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Hand portable Battery Pack </TD>
    <TD bgColor=#e6efff width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD align=left>CA </TD>
    <TD width="20%" align=left>P </TD>
    <TD width="20%" align=left>101002 </TD>
    <TD width="20%" align=left>Briefcase Solar Power Generator </TD>
    <TD width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>D </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>29/165,689 (now D479,191) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Briefcase Solar Power Generator </TD>
    <TD bgColor=#e6efff width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD align=left>US </TD>
    <TD width="20%" align=left>D </TD>
    <TD width="20%" align=left>29/165,688 (now D487,884) </TD>
    <TD width="20%" align=left>Detachable Solar Panel </TD>
    <TD width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>US </TD>
    <TD bgColor=#e6efff width="20%" align=left>P </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>29/062,623 (now D395,279) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Solar Powered Battery Trickle Charger </TD>
    <TD bgColor=#e6efff width="20%" align=left>Issued </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>US </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%" align=left>P </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%"
      align=left>29/176,029 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%"
      align=left>Packaging for a solar panel </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%" align=left>Issued
    </TD></TR></TABLE></DIV>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=5 width="100%">
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>US
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>D </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>29/127402 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Floating Solar- Powered Fountain </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Issued </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>US </TD>
      <TD width="20%" align=left>P </TD>
      <TD width="20%" align=left>07/202,351 (now 4,899,645) </TD>
      <TD width="20%" align=left>Solar Powered Ventilator </TD>
      <TD width="20%" align=left>Issued </TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>US </TD>
      <TD bgColor=#e6efff width="20%" align=left>P </TD>
      <TD bgColor=#e6efff width="20%" align=left>60/489,084 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=left>Solar Panel Having Visual Indicator </TD>
      <TD bgColor=#e6efff width="20%" align=left>Issued </TD>
    </TR>
  </TABLE>
</DIV>
<div align="center">47 </div>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_51></A>
<P align=justify><B>Government Regulation</B></P>
<P align=justify>The Company uses, generates and discharges toxic, volatile or
otherwise hazardous chemicals and waste in its research and development
activities. We are subject to a variety of foreign, federal, state and local
governmental regulations related to the storage, use and disposal of hazardous
materials. </P>
<P align=justify>We believe that we have all environmental permits necessary to
conduct our business. We believe that we have properly handled our hazardous
materials and wastes and have not contributed to any contamination at any of our
past or current premises. We are not aware of any environmental investigation,
proceeding or action by foreign, federal or state agencies involving our past or
current facilities. If we fail to comply with present or future environmental
regulations, we could be subject to fines, suspension of production or a
cessation of operations. Any failure by us to control the use of or to restrict
adequately the discharge of hazardous substances could subject us to substantial
financial liabilities, operational interruptions and adverse publicity, any of
which could materially and adversely affect our business, results of operations
and financial condition. In addition, under some foreign, federal and state
statutes and regulations, a governmental agency may seek recovery and response
costs from operators of property where releases of hazardous substances have
occurred or are ongoing, even if the operator was not responsible for the
release or otherwise was not at fault. </P>
<P align=justify><B>Research and Development</B></P>
<P align=justify>Our immediate goal is to complete the development of our ISUN&#174;
solar charger for electronics, our Sunsei Greenmeter&#174;, and our thin film
amorphous solar cell which can be seamlessly integrated into roofing lines for
homes, buildings and other structures.</P>
<P align=justify>During fiscal 2009, research and development expenses were
$643,629, as compared with$87,812 in fiscal 2008. </P>
<P align=justify><B>Environmental Regulatory Compliance</B></P>
<P align=justify>We believe that we are fully compliant with environmental
regulations of our facility located in Montreal, Quebec.</P>
<P align=justify><B>Employees</B> </P>
<P align=justify>As of April 30, 2009, other than our executive officers and
directors, we had 11 full time employees.</P>
<P align=center>48 </P>
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width="100%" noShade>
<A name=page_52></A>
<P align=justify><B>Description of Property </B></P>
<P align=justify>We do not own any real property or any rights to acquire any
real property. Our head office is located at 7075 Place Robert-Joncas, Unit 131
Montreal, Quebec, Canada H4M 2Z2. ICP's material property commitments include
our lease commitment in Montreal, Quebec, described in the table below. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><U>Location</U></B> </TD>
    <TD width="25%" align=left><B><U>Term</U></B> </TD>
    <TD width="25%" align=right><B><U>Square Feet</U></B> </TD>
    <TD width="25%" align=right><B><U>Monthly Commitment</U></B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%">&nbsp; </TD>
    <TD width="25%">&nbsp; </TD>
    <TD width="25%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Montreal, Quebec </TD>
    <TD bgColor=#e6efff width="25%" align=left>March 1, 2006 to Feb 28, 2011
    </TD>
    <TD bgColor=#e6efff width="25%" align=right>3,878 </TD>
    <TD bgColor=#e6efff width="25%" align=right>$2,342.96 <SUP>1</SUP> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="25%" align=left>&nbsp; </TD>
    <TD width="25%" align=left>&nbsp; </TD>
    <TD width="25%" align=right>$2,504.54 <SUP>2</SUP> </TD></TR></TABLE>
<P align=justify><SUP>1 </SUP>Representing the lease commitment from February 1,
2009-February 28, 2009 in Canadian dollars (approx $2,130 USD, based upon the
exchange rate of $1.10 at July 22, 2009.</P>
<P align=justify><SUP>2 </SUP>Representing the lease commitment from March 1,
2009- February 28, 2011 in Canadian dollars (approx $2,277 USD, based upon the
exchange rate of $1.10 at July 22, 2009.</P>
<P align=justify><B>Recent Developments </B></P>
<P align=justify><U>Private Placement</U></P>
<P align=justify>On June 9, 2008 the Company's Board of Directors approved a
private placement offering (the &#147;Private Placement&#148;) in reliance upon the
exemption from securities registration afforded by Rule 506 under Regulation D
promulgated under the Securities Act. In connection with the Private Placement,
the Company issued to the participating investors 11% secured convertible
debentures, Series A warrants, Series B warrants and Series C warrants. On June
13, 2008 (the &#147;Closing Date&#148;), the Company completed the private placement
offering for net proceeds of US $3,000,000. </P>
<P align=justify>A portion of the proceeds from the Private Placement were used
to redeem all of the outstanding principal and accrued interest on the Company's
credit facility with Royal Bank of Canada dated December 7, 2006. </P>
<P align=justify>The Private Placement consisted of (i) 11% senior secured
convertible debentures in the Company (the &#147;Debentures&#148;), issued at a 10%
discount with an aggregate face value of $3,333,333 and a maturity date of June
13, 2010, with interest payable monthly, convertible into shares of common stock
of the Company at a fixed initial conversion price (subject to adjustment) of US
$0.50; (ii) 6,666,666 Series A purchase warrants each exercisable to purchase
one share of common stock of the Company, at an initial exercise price of US
$0.50 per share (subject to adjustment) for a period of 6 years from the date of
the Closing; (iii) 6,666,666 Series B purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date; and (iv) 6,666,666 Series C purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date. The Series C warrants may not be exercised until such time as all
of the Series B warrants have been exercised.</P>
<P align=justify>The Company registered the shares of common stock issuable upon
exercise of the warrants issued in the Private Placement, as well as shares of
common stock which may be issued to the selling stockholders in the event we
elect to make interest payments on their Debentures in the form of shares of
common stock (see below), pursuant to a registration statement on Form S-1 filed
with the SEC on July 15, 2008.</P>
<P align=justify>On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the &#147;Amendment&#148;) to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 5">The principal balance of the Debentures issued in the Private Placement,
  as amended, now constitutes 115% of the sum of (i) principal amount of the
  Debentures outstanding immediately prior to the date of the Amendment, plus
  (ii) all accrued and unpaid interest through December 31, 2008, for a total
  outstanding principal amount of: $2,953,688.37. The principal amount and the
  interest shall be paid out to the Buyers according to the terms set out in the
  Amendment. </LI>
  <LI>
  <p style="margin-top: 0; margin-bottom: 5">The exercise price of the Series A purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  6,666,666 additional Series A warrants (the &#147;Series A Adjustment Warrants&#148;);
  the exercise price of the Series B purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  19,999,998 additional Series B warrants (the &#147;Series B Adjustment Warrants&#148;);
  the exercise price of the Series C purchase warrants issued in the Private
  Placement was reduced from $1.00 to $0.50, resulting in the issuance of
  6,666,666 additional Series C warrants (the &#147;Series C Adjustment Warrants&#148;)
  (the Series A Adjustment Warrants, Series B Adjustment Warrants and Series C
  Adjustment Warrants, collectively referred to herein as the &#147;Adjustment
  Warrants&#148;). </LI></UL>
<P align=center>49 </P>
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width="100%" noShade>
<A name=page_53></A>
<font FACE="Times New Roman" SIZE="2">
<p align="justify">The Company has agreed to register the shares of common stock
issuable upon exercise of the Adjustment Warrants and is doing so pursuant to
the registration statement on Form S-1 of which this prospectus is a part. The
Company may be subject to various penalties for failure to meet certain
deadlines for the filing of and effectiveness of the registration statement. </p>
<p align="justify">The Debentures are secured by a first lien on all of the
assets of the Company. The Company's obligations under the Debentures are
guaranteed by the following subsidiaries: 1260491 Alberta, Inc., ICP Solar
Technologies, ICP Global Technologies, Inc., and WES Power Technology, Inc. The
following subsidiaries are not guarantors: ICP Asia Ltd. and ICP Global Tech PTY
Ltd. </p>
<p align="justify">We may make payments of interest or principal under the
Debentures in the form of shares of common stock; provided, generally, that we
are not in default under the Debentures at such time and we have met certain
equity conditions described in the Debentures. If we make payments of interest
in the form of shares of common stock, such shares must be registered and
free-trading. If the Company elects to make principal payments in shares of
common stock, the conversion rate will be the lesser of (a) the Conversion Price
(as defined below), or (b) 85% of the average of the three (3) lowest closing
bid prices of the common shares over the twenty (20) trading day period ending
on the trading day ending immediately preceding the applicable monthly
redemption date. </p>
<p align="justify">Holders of Debentures may require the Company to redeem their
Debentures upon the occurrence of any one or more of events of default, as
specified therein, including: failure to make any payments due and owing under
the Debentures; unavailability of a registration statement relating to the
shares of common stock issuable upon exercise of the warrants issued in the
Private Placement, the Adjustment Warrants and the Additional Adjustment
Warrants; failure to deliver shares of our common stock upon conversion of the
Debentures or upon exercise of the warrants issued in the Private Placement, the
Adjustment Warrants and the Additional Adjustment Warrants; and failure to file
any periodic report with the SEC within five (5) days of the due date thereof or
upon any extended due date therefor. </p>
<p align="justify">The conversion price for the Debentures, and the exercise
price for the warrants issued in the Private Placement, the Adjustment Warrants
and the Additional Adjustment Warrants, are subject to adjustment at a floating
rate tied to our achieving certain milestones tied to trailing revenues and
earnings before interest, taxes, depreciation and amortization (&quot;EBITDA&quot;). In
the event that we fail to achieve these milestones, the conversion price for the
Debentures and the exercise for all warrants will be reduced (but not increased)
to equal the lesser of (a) the conversion price then in effect, (b) the &quot;market
price&quot; (equal to the volume weighted average price of our common stock during
the immediately preceding five (5) consecutive trading days) for shares of our
common stock, as determined on the applicable milestone date, or (c) the market
price, as determined on the date that is five (5) trading days after the date
that Company files its next periodic report with the SEC following the end of
the applicable milestone period. </p>
<p align="justify">For our fiscal quarter ended April 30, 2009 (a milestone
date), the Company was required under the Debentures to achieve revenues no less
than $1.5 million and to maintain its accounts payable at less than $1.75
million. The Company failed to achieve these targets and, as a result, was in
default under the Debentures. </p>
<p ALIGN="JUSTIFY">The Company has obtained a waiver from the holders of the
Debentures for such default; however, pursuant to the terms of the Debentures,
as a result of the Company's failure to achieve these targets the conversion
price of the outstanding Debentures and the exercise price for the Adjustment
Warrants and the warrants issued in the Private Placement was reduced to $0.14,
the volume weighted average price of our common stock during the five (5)
consecutive trading days immediately preceding April 30, 2009. The weighted
average market price in the five days following the filing of the 10Q was not
less than $0.14, so that a further reduction in price was not required nor made.
The reduction in the exercise price of the Adjustment Warrants and the warrants
issued in the Private Placement resulted in the issuance of the following
warrants effective June 21, 2009: (i)10,476,197 additional Series A Warrants
(&quot;Series A Additional Adjustment Warrants&quot;), (ii) 20,952,386 additional Series B
warrants (&quot;Series B Additional Adjustment Warrants&quot;), and (iii) 34,285,722
additional Series C warrants (&quot;Series C Additional Adjustment Warrants&quot;),
(Series A Additional Adjustment Warrants, Series B Additional Adjustment
Warrants and Series C Additional Adjustment Warrants collectively referred to
herein as the &quot;Additional Adjustment Warrants&quot;). </p>
<p align="justify">The Company will not be required to register any of the
shares of common stock issuable upon exercise of any such Additional Adjustment
Warrants. </p>
<p align="justify">The conversion price for the Debentures, and the exercise
price for the warrants issued in the Private Placement, the Adjustment Warrants
and the Additional Adjustment Warrants, is also subject to adjustment in the
event we issue shares of our common stock (or securities convertible into or
exercisable for shares of common stock) at a price below the conversion price
for the Debentures then in effect. </p>
<p align="justify">In connection with the Private Placement, the officers and
directors of the Company agreed to a lockup of sales of Company securities owned
by them for certain time periods as specified in a Lockup Agreement. The
President and CEO of the Company agreed to vote, or to cause to be voted, all
Company shares owned or controlled by him in favor of any amendment to the
Company's Certificate of Incorporation or other governing documents necessary to
ensure the Company's compliance with its obligation to maintain a sufficient
number of authorized shares of our common stock for issuance upon conversion of
the Debentures and/or exercise of the warrants issued in the Private Placement,
the Adjustment Warrants and the Additional Adjustment Warrants. </p>
</font>
<P align=center>50 </P>
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width="100%" noShade>
<A name=page_54></A>
<font FACE="Times New Roman" SIZE="2">
<p align="justify">The conversion of the outstanding Debentures, and the
exercise of outstanding warrants issued in the Private Placement  the
Adjustment Warrants and /or Additional Adjustment Warrants and any interest or
principal payments on the Debentures made by us in the form of shares of common
stock, may result in substantial dilution to the interests of other holders of
our common stock. Even though no selling stockholder may convert its Debentures
if upon such conversion the selling stockholder, together with its affiliates,
would acquire a number of shares of common stock exceeding 4.99% of our then
outstanding common stock, excluding for purposes of such determination shares of
common stock issuable upon conversion of any portion of the Debentures which
have not been converted, and upon exercise of warrants, the Adjustment Warrants
and /or Additional Adjustment Warrants which have not been exercised, this
restriction does not prevent a selling stockholder from selling a substantial
number of shares in the market or from unilaterally choosing to raise the 4.99%
limit. By periodically selling shares into the market, an individual selling
stockholder could eventually sell more than 4.99% of our outstanding common
stock while never holding more than 4.99% at any specific time. In the event we
receive a tender offer or an offer to merge with another entity in a transaction
in which we are not the surviving entity, or in the event we are in default
under the Debentures, this percentage is automatically increased to 9.99% . </p>
</font>
<P align=justify><B>Legal Proceedings </B></P>
<P align=justify>The Company is a defendant in a claim filed in the Quebec
Superior Court on June 11, 2008 by Leon Assayag, our former Chief Financial
Officer, seeking severance payments totaling $150,462. Management believes the
claim is without merit and no provision for the claim has been made in the
accounts. </P>
<P align=justify>The Company has been issued a claim for approximately $28,000
for product liability which will be covered through the Company's product
liability insurance. Accordingly, no provision for the claim has been made in
the accounts.</P>
<P align=justify>A supplier has instituted a claim against the Company for approximately $510,000
including $453,000 for research and development work and $57,000 for interest.
The Company has previously recorded the $453,000 as research and development
expenses. No provision has been made in the Company's accounts for interest.</P>
<P align=center><B>DIRECTORS AND EXECUTIVE OFFICERS</B></P>
<P align=justify>The following sets forth certain biographical information
concerning our current directors and executive officers: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Name</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="18%" align=center
    ><B>Age</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="65%" align=left
    ><B>Position(s)</B> </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Sass Peress </TD>
    <TD bgColor=#e6efff width="18%" align=center >48 </TD>
    <TD bgColor=#e6efff width="65%"
    align=left >Chairman of the Board, President, Chief Executive Officer, Chief
      Financial Officer </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Joel Cohen </TD>
    <TD width="18%" align=center
    >37 </TD>
    <TD width="65%" align=left
    >Director, Secretary, Treasurer </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>David Dangoor </TD>
    <TD bgColor=#e6efff width="18%" align=center >59 </TD>
    <TD bgColor=#e6efff width="65%" align=left >Director </TD></TR>
  <TR vAlign=top>
    <TD align=left>Paul Maycock </TD>
    <TD width="18%" align=center
    >73 </TD>
    <TD width="65%" align=left
    >Director </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>David McDowell </TD>
    <TD bgColor=#e6efff width="18%" align=center >65 </TD>
    <TD bgColor=#e6efff width="65%" align=left >Director
  </TD></TR></TABLE>
<P align=justify>All directors hold office until the next annual meeting of
stockholders and until their successors have been duly elected and qualified.
There are no agreements with respect to the election of directors. There is no
family relationship between any of our directors or executive officers. As at
April 30, 2009, there was no known litigation pending or active against any of
our directors or executive officers. None of our directors or executive officers
has served as a general partner or executive officer of any company that has
filed, or has had filed against it, any petition for bankruptcy, either at the
time such filing was made or during the preceding two years. Set forth below is
a summary description of the principal occupation and business experience of
each of our directors and executive officers for at least the last five years.
</P>
<P align=justify><B>Sass Peress, Chairman, President, CEO, CFO </B></P>
<P align=justify>Prior to founding ICP, Mr. Peress was the VP of Sales for a
market-leading automotive accessory distributor. In 1985, he founded and headed
an automotive aftermarket manufacturing company that went on to capture more
than 70% of market share within two years. He then founded ICP in 1988 and, as
President and CEO, has reshaped the company into its current market-leading
state within the solar energy industry. With his scientific background and
manufacturing experience, he has co-authored much of ICP's intellectual
property. Mr. Peress' educational background includes studies in health
sciences, organic chemistry and finance. He graduated with honors from Concordia
University's MBA International Business Program in Montreal, Canada. </P>
<P align=justify>Mr. Peress was recently nominated for the Ernst &amp; Young
Canadian Entrepreneur of the Year award and is an active member of the Canadian
Solar Energy Society and the American Solar Energy Society. </P>
<P align=center>51 </P>
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<A name=page_55></A>
<P align=justify><B>Joel Cohen, Director, Secretary and Treasurer</B> </P>
<P align=justify>Mr. Cohen was Chief Financial Officer of ICP Solar Technologies
Inc., formerly FC Financial Services Inc., from October 30, 2006 to January 9,
2007. Mr. Cohen has extensive experience in biotechnology and high tech
financings and in financial analysis. From 2002 until present, Mr. Cohen has
been consulting CFO for Osta Biotechnologies, a publicly traded company on the
TSX venture. From 1999 to 2002, Mr. Cohen was an investment banker at Canaccord
Capital Corporation, where he specialized in biotechnology financings. He has
worked on numerous IPOs and private and public financings worth over $100
million for various companies including Neurochem, Adherex, Bioniche,
Diagnocure, Qbiogene and Aeterna. Mr. Cohen holds a Bachelor of Commerce degree
in Finance from Concordia University and is a Chartered Financial Analyst. </P>
<P align=justify><B>David Dangoor, Director</B> </P>
<P align=justify>Mr. Dangoor is President of <I>Innoventive Partners LLC</I> and
a managing partner of <I>Cato Dangoor &amp; Associates</I> in London, England,
both primarily specializing in Marketing and Public Relations. He is a member of
the Board of Directors of <I>BioGaia AB</I> , a public Swedish bio-tech company,
where he was one of the original founding investors. Mr. Dangoor is also a
member of the Advisory Board of the Denihan Hospitality Group, He was until
recently when the company was sold, a director of, and subsequently chaired the
Special Committee of, <I>Provide-Commerce Inc</I> . in San Diego, a public
company that operates an e-commerce marketplace for perishable goods. </P>
<P align=justify>Mr. Dangoor retired from <I>Philip Morris International</I> ,
Lausanne, Switzerland in 2002 where he over 27 years held senior executive
positions in several countries including Head of Marketing <I>PM Germany</I>
residing in Munich, Managing Director <I>Seven Up Northern Europe</I> in London,
England, President <I>Philip Morris (B &amp; H) Canada</I> in Montreal, and
Senior VP Marketing <I>Philip Morris USA</I> in New York. In 1992 he was
appointed Executive VP <I>Philip Morris</I> <I>International</I> based in New
York before the company moved to Lausanne in 2002. </P>
<P align=justify>Mr. Dangoor was a member of the board of directors of
<I>Rothman's, Benson &amp; Hedges Inc</I> ., Toronto, Canada 1987-2002,
<I>Philip Morris GMBH</I> , Munich 2001-02 and of <I>AMER Sports
International</I> , Montreal 1984-87 (a subsidiary of AMER Group, Helsinki,
Finland). He is currently a member of the Board of Directors of the <I>New York
City Ballet Company</I> , the <I>Swedish-American Chamber of Commerce</I> ,
where he was chairman 1997-2001, and a member of the Board of Trustees of the
<I>American Scandinavian Foundation</I> (ASF). </P>
<P align=justify><B>Paul Maycock, Director</B> </P>
<P align=justify>Mr. Maycock is the president of Photovoltaic Energy Systems,
the leading PV market research firm. Mr. Maycock edits the monthly newsletter,
"PV News," which goes to readers in 58 countries. His annual estimates and
projections of PV sales, based on confidential interviews of every key player in
the industry, are used worldwide for planning and analysis purposes. Before
starting PV Energy in 1981, Mr. Maycock was director of the PV Energy Systems
division of the US Department of Energy. He also spent 11 years at Texas
Instruments in a variety of strategic planning positions. He concurrently serves
as the chairman of the board of the Solar Electric Light Fund, a non-profit
organization that has installed over 5,000 PV systems in the developing world.
</P>
<P align=center>52 </P>
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<A name=page_56></A>
<P align=justify><B>David McDowell, Director</B> </P>
<P align=justify>Mr. McDowell has an extensive background in worldwide sales and
business development which includes over 10 years of senior telecommunications
management and more than 20 years of high technology sales and marketing
management expertise. Mr. McDowell joined QUALCOMM in 1996 as vice president of
sales for QUALCOMM's Consumer Products Division. In August 1997 he was promoted
to senior vice president. Prior to joining QUALCOMM, McDowell served as chief
operating officer of Japan Radio Company, Inc. (JRC), where he successfully led
the company to expand into the consumer analog cellular, GPS module and cellular
fixed station markets. Previous to that, Mr. McDowell served as president and
COO of NovAtel and vice president of subscriber products for Hughes Network
Systems, where he was responsible for Hughes' entry into the digital cellular
market. McDowell also served as managing director for ComputerLand, Europe and
began his career at IBM Canada and IBM World Trade Corporation. </P>
<P align=justify><B>Key Personnel and Consultants</B> </P>
<P align=justify><B>Tom Clark, VP Sales- North American Markets </B></P>
<P align=justify>Mr. Clark has several years experience as VP Sales into the
North American automotive accessory aftermarket, big box hardware chains and
specialty stores. He recently completed a one-year mandate at West Marine as a
merchandising manager. His experience includes positions held as VP Sales and
Marketing at Shrin Corporation Coverking, Automotive Division, VP Sales at
PlastiColor Inc. and National Sales Manager at Eagle One Industries (Automotive
Aftermarket). Mr. Clark has a Bachelor of Science in English.</P>
<P align=justify><B>Pascal Petit, Vice-President Sales- EMEA PAC Consumer and
OEM applications </B></P>
<P align=justify>Mr. Petit joined ICP Solar 3 years ago as Sales Manager -
France and Spain. He is now Vice President Sales for the EMEA-PAC region
(Europe, Middle East, Africa, Asia and Pacific). His careers spans over 20 years
of high tech and innovative product sales such as GPS and Satellite
Communication Systems in Europe and Africa. Pascal is an expert in setting up
and supporting distribution networks. He brought to ICP Solar a very large
experience in the retail and consumer markets in Europe and Africa. Pascal
graduated in Business Administration in Poitiers (France) and Oxford (UK).</P>
<P align=justify><B>Committees of the Board of Directors</B> </P>
<P align=justify>On April 23, 2007, we formed our Audit Committee and
Compensation Committee. </P>
<P align=justify><B>Audit Committee</B> </P>
<P align=justify>Our audit committee assists our board of directors in
fulfilling its responsibilities for oversight and supervision of financial and
accounting matters. The chairman of the audit committee is Dave McDowell and the
members are Joel Cohen and David Dangoor. Joel Cohen serves as our audit
committee financial expert. </P>
<P align=justify>Our audit committee's responsibilities include, among others
(i) recommending to the board of directors the engagement of the external
auditor and the terms of the external auditor's engagement; (ii) overseeing the
work of the external auditor, including dispute resolution between management
and the external auditor, if required; (iii) pre-approving all non-audit service
to be provided to us by our external auditor; (iv) reviewing our financial
statements, management's discussion and analysis and annual and interim earnings
press releases before this information is publicly disclosed; (v) assessing the
adequacy of procedures for our public disclosure of financial information; (vi)
establishing procedures to deal with complaints received by us relating to our
accounting and auditing matters; and (vii) reviewing our hiring policies
regarding employees of our external auditor or former auditor. The Board of
Directors has adopted a written charter of the audit committee setting out the
mandate and responsibilities of the audit committee which provides that the
audit committee convene no less than four times per year. </P>
<P align=justify><B>Compensation Committee</B> </P>
<P align=justify>Our compensation committee reviews and makes recommendations to
our Board of Directors concerning the compensation of our executive officers and
key employees, which include the review of our executive compensation and other
human resource policies, the review and administration of any bonuses and stock
options and major changes to our benefit plans and the review of and
recommendations regarding the performance of the Chief Executive Officer of the
Company. The Chairman of the compensation committee is Joel Cohen and its
members are Dave McDowell and Paul Maycock. </P>
<P align=center>53 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_57></A>
<P align=justify><B>Code of Ethics </B></P>
<P align=justify>In December, 2006, we adopted a Code of Ethics and Corporate
Governance applicable to our Chief Executive Officer, principal financial and
accounting officers and persons performing similar functions. A Code of Ethics
and Corporate Governance is a written standard designed to deter wrongdoing and
to promote: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Honest and ethical conduct,
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Full, fair, accurate, timely and understandable disclosure in regulatory
  filings and public statements, compliance with applicable laws, rules and
  regulations,
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">The prompt reporting violation of the code, and </LI></UL>
<P align=justify>Accountability for adherence to the Code. A copy of our Code of
Ethics can be found on our website at <U>www.icpsolar.com</U>.</P>
<P align=justify><B><U>Nominating Committee</U></B> </P>
<P align=justify>We do not have a Nominating Committee or Nominating Committee
Charter. We have elected not to have a Nominating Committee in that we are a
development stage company with limited operations and resources. </P>
<P align=justify>We do not have a policy regarding the consideration of any
director candidates which may be recommended by our stockholders, including the
minimum qualifications for director candidates, nor has our Board of Directors
established a process for identifying and evaluating such director nominees.
While there have been no nominees for recommended to date by our stockholders,
in the event such a proposal is made, all members of our Board of Directors will
participate in the consideration of such nominee(s).</P>
<P align=center><B>EXECUTIVE COMPENSATION</B></P>
<P align=justify><B>Summary Compensation Table</B></P>
<P align=justify>The following table provides a summary of the compensation paid
to date during the last two completed fiscal years to our President and Chief
Executive Officer, Chief Financial Officer, the next two highest paid executive
officers whose salary and bonus exceeds $100,000 (referred to collectively in
this prospectus as our "Named Executive Officers") and certain non-executive
officers, each as of the end of our most recently completed fiscal year. </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>Name </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>and </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=right>Salary </TD>
    <TD width="11%" align=right>Bonus </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>principal </TD>
    <TD width="11%" align=right>Year </TD>
    <TD width="11%" align=right>($) </TD>
    <TD width="11%" align=right>($) </TD>
    <TD width="11%" align=right>Stock </TD>
    <TD width="11%" align=right>Option </TD>
    <TD width="11%" align=right>Non-Equity </TD>
    <TD width="11%" align=right>Nonqualified </TD>
    <TD width="11%" align=right>All Other </TD></TR>
  <TR vAlign=top>
    <TD align=left>position </TD>
    <TD width="11%" align=right>Ended </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=right>Awards </TD>
    <TD width="11%" align=right>Awards(1) </TD>
    <TD width="11%" align=right>Incentive </TD>
    <TD width="11%" align=right>Deferred </TD>
    <TD width="11%" align=right>Compensation </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="11%" align=right>January </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=right>($) </TD>
    <TD width="11%" align=right>($) </TD>
    <TD width="11%" align=right>Plan </TD>
    <TD width="11%" align=right>Compensation </TD>
    <TD width="11%" align=right>($) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="11%" align=right>31 </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD width="11%" align=right>Compensation </TD>
    <TD width="11%" align=right>Earnings ($) </TD>
    <TD width="11%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>($) </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Sass <BR>Peress <BR>President <BR>CEO &amp;
      <BR>CFO , <BR>Director </TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>2009 <BR><BR>2008
    <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>$279,910 <BR><BR>$250,232
      <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>Nil <BR><BR>Nil
<BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>Nil <BR><BR>Nil
<BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>$559,162 <BR><BR>$577,125
      <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>Nil <BR><BR>Nil
<BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>Nil <BR><BR>Nil
<BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right><BR>Nil <BR><BR>Nil
  <BR><BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Leon <BR>Assayag <BR>former <BR>CFO </TD>
    <TD bgColor=#e6efff width="11%" align=right>2009(2) <BR><BR>2008 <BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$51,024 <BR><BR>$141,435
    <BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$91,135 <BR><BR>$96,188
<BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Joel <BR>Cohen, <BR>Former <BR>CFO
      <BR>Director </TD>
    <TD bgColor=#e6efff width="11%" align=right>2009 <BR><BR>2008(3)
    <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$209,064 <BR><BR>$864,308
      <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil <BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$181,830(4) <BR><BR>$96,000(4)
      <BR><BR></TD></TR></TABLE></DIV>
<P align=center>54 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<p>
<A name=page_58></A><BR>
</p>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Tom <BR>Clark, <BR>Vice- <BR>President,
      <BR>Sales, <BR>Americas </TD>
    <TD bgColor=#e6efff width="11%" align=right>2009 <BR><BR>2008(5)
      <BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$113,836 <BR><BR>$59,116
      <BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil
<BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil
<BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$54,669 <BR><BR>$57,513
      <BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil
<BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR>Nil
<BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$1,500(6) <BR><BR>$2,357(6)
      <BR><BR><BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD>
    <TD width="11%" align=right>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Sheldon <BR>Reinhart, <BR>former <BR>CFO
      and <BR>COO </TD>
    <TD bgColor=#e6efff width="11%" align=right>2009 (7) <BR><BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$65,144 <BR><BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>$37,500 <BR><BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil <BR><BR><BR><BR></TD>
    <TD bgColor=#e6efff width="11%" align=right>Nil
  <BR><BR><BR><BR></TD></TR></TABLE></DIV>
<P align=justify>(1) ) Amount expensed for the year ended January 31, 2009 is
based upon the aggregate grant date fair value calculated in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 123R, Share Based
Payments. The Company's policy and assumptions made in the valuation of share
based payments are contained in Note 14 to the Company's January 31, 2008
financial statements. Stock options awarded vest over a two-year period from the
date of grant, 25% every six months.</P>
<P align=justify>(2) Mr. Leon Assayag resigned as Chief Financial Officer of the
Company on May 2, 2008 and is included in the Summary Compensation Table solely
pursuant to Item 402(m)(2)(ii) of Regulation S-K promulgated under the
Securities Act. Mr. Assayag had been granted 125,000 stock options in May 2007
which have since been forfeited. </P>
<P align=justify>(3) Mr. Joel Cohen was acting CFO from March 1, 2006 to January
9, 2007.</P>
<P align=justify>(4) This amount was paid as consulting fees to CCI Financial
Group Inc., of which Mr. Cohen is a shareholder.</P>
<P align=justify>(5) Mr. Tom Clark has been with the Company since June 13,
2007.</P>
<P align=justify>(6) This amount represents an allowance for automobile
expenses. </P>
<P align=justify>(7) Mr. Sheldon Reinhart resigned as Chief Financial Officer
and Chief Operating Officer of the Company effective November 17, 2008 and is
included in the Summary Compensation Table solely pursuant to Item 402(m)(2)(ii)
of Regulation S-K promulgated under the Securities Act. Mr. Reinhart was granted
75,000 stock options in May 2008. </P>
<P align=justify><B>Executive Employment Agreements</B></P>
<P align=justify><U>Employment Agreement with Sass Peress</U>. On April 23,
2007, the Company entered into an employment agreement with Sass Peress, our
President and Chief Executive Officer, for an indefinite term. As compensation
for his services, Mr. Peress receives an annual base salary of $300,000 and is
entitled to an annual bonus in an amount established by the Board of Directors,
based upon the achievement by Mr. Peress of pre-determined performance targets
set by our Board of Directors. The Company also agreed to pay Mr. Peress a car
allowance in the amount of $1,000 per month and to reimburse him for out of
pocket expenses on a monthly basis. Mr. Peress is also entitled to participate
in any benefit plans and policies as we may make available. Pursuant to the
terms of his agreement, Mr. Peress has agreed that during and for two (2) years
following termination of his employment with the Company, he will not (a)
provide support or assistance to, or be employed by, any business anywhere in
North America engaged in the manufacture, license, marketing or distribution of
products competitive with those of the Company, or (b) solicit any existing
customer of the Company or attempt to induce any existing executive or employee
of the Company. </P>
<P align=justify>Pursuant to his employment agreement, Mr. Peress was also
granted an option to purchase up to 650,000 shares of common stock of the
Company in accordance with the Plan. See &#147;Executive Compensation &#151; Outstanding
Equity Awards at 2009 Fiscal Year End&#148; for a description of vesting and other
terms applicable to his option awards.</P>
<P align=center>55 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_59></A>
<P align=justify><U>Employment Agreement with Tom Clark</U>. On June 13, 2007,
the Company entered into an employment agreement with Tom Clark, our
Vice-President Sales, North American Consumer Markets, for an indefinite term.
As compensation for his services, Mr. Clark receives an annual base salary of
US$100,000 and is entitled to an annual bonus up to a maximum amount of
US$35,000, based upon the achievement by Mr. Clark of performance targets
mutually agreed upon by Mr. Clark and the Company. The Company also agreed to
pay Mr. Clark a car allowance in the amount of US$500 per month and to reimburse
him for out of pocket expenses on a monthly basis. Pursuant to the terms of his
agreement, Mr. Clark has agreed that during and for one year following
termination of his employment with the Company, he will not (a) provide support
or assistance to, or be employed by, any business anywhere in North America
engaged in the manufacture, license, marketing or distribution of products
competitive with those of the Company, or (b) solicit any existing customer of
the Company or attempt to induce any existing executive or employee of the
Company. </P>
<P align=justify>Pursuant to his employment agreement, Mr. Clark was also
granted an option to purchase up to 75,000 shares of common stock of the Company
in accordance with the Plan. See &#147;Executive Compensation &#151; Outstanding Equity
Awards at 2009 Fiscal Year End&#148; for a description of vesting and other terms
applicable to his option awards.</P>
<P align=justify><B>Payments Upon Termination</B></P>
<P align=justify>Each of the employment agreements entered into between the
Company and Messrs. Peress and Clark contain provisions which entitle each of
them to payments following termination of their employment in certain
circumstances, as described below. </P>
<P align=justify><U>Termination by the Company or by the Employee or Consultant
Without Cause</U>. Each of the agreements between us and Messrs. Peress and
Clark provide that, in the event their employment or other relationship with us
is terminated by the Company, other than for &#147;cause&#148; (as defined below), they
are entitled to receive the following severance benefits: </P>
<P align=justify>Pursuant to the employment agreement with Mr. Peress, he may
terminate his employment upon six (6) months' prior written notice to the
Company and the Company may terminate his employment at any time. Following
termination by the Company, Mr. Peress is entitled to receive an amount equal to
twenty-four (24) months of his base salary then in effect and benefits.</P>
<P align=justify>Pursuant to the employment agreement with Mr. Clark, either he
or the Company may terminate his employment upon three (3) months' prior written
notice to the other. Following termination by the Company, we may, in lieu of
providing him with notice, pay Mr. Clark an amount equal to three (3) months of
his base salary then in effect and benefits.</P>
<P align=justify>&#147;Cause&#148;, as defined under the employment agreement with Mr.
Peress includes, but is not limited to, the taking of any of the following
actions by him:</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
His inability to provide the services required pursuant to his
agreement.&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Dishonesty, theft, conviction for a felony or crime of moral
turpitude.&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Material breach of his
agreement.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
His failure to perform the services required pursuant to his agreement and to
correct this breach within thirty (30) days of receipt of notice of such failure
from the Company.</P>
<P align=justify>&#147;Cause&#148;, as defined under the employment agreements with Mr.
Clark, includes, but is not limited to, the taking of any of the following
actions by him:</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
His inability to provide the services required pursuant to his employment
agreement.&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Fraud, dishonesty, theft, conviction for a felony or crime of moral
turpitude.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Material breach of his employment
agreement.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
His failure to perform the services required pursuant to his employment
agreements and to correct this breach within thirty (30) days of receipt of
notice of such failure from the Company.</P>
<P align=justify>See &#147;Management's Discussion and Analysis of Financial
condition and Results of Operations &#150; Stock Options &#150; Modification of Exercise
Price&#148; for a discussion of recent changes to the exercise price of outstanding
options, including those held by our Named Executive Officers.</P>
<P align=center>56 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_60></A>
<P align=justify>See &#147;Management's Discussion and Analysis of Financial
condition and Results of Operations &#150; Warrants &#150; Modification of Exercise Price&#148;
for a discussion of recent changes to the exercise price of outstanding
warrants.</P>
<P align=justify><B>Outstanding Equity Awards at 2009 Fiscal Year-End Table
</B></P>
<P align=justify>The table below sets forth information concerning grants of
stock options and restricted stock unit awards to our Named Executive Officers
as of January 31, 2009. </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
      <TD colspan="4"
      align=center style="BORDER-BOTTOM: #000000 1px solid"> Stock Awards </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Name <BR> <BR> <BR> <BR></TD>
      <TD width="20%" align=right>Number of <BR>
        Securities <BR>
        Underlying <BR>
        Unexercised <BR>
        Options (#) <BR>
        Exercisable<BR></TD>
      <TD width="20%" align=right>Number of <BR>
        Securities <BR>
        Underlying <BR>
        Unexercised <BR>
        Options (#) <BR>
        Unexercisable </TD>
      <TD width="20%" align=right>Option <BR>
        Exercise <BR>
        Price <BR>
        ($) <BR></TD>
      <TD width="20%" align=right>Option Expiration <BR>
        Date <BR> <BR> <BR></TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><BR>
        Sass Peress <BR></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=right>562,500 <BR>
        12,500 <BR></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=right>187,500 <BR>
        37,500 <BR></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=right>$0.50 <BR>
        $0.50 <BR></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="20%"
    align=right>May 18, 2017 <BR>
        Feb 14, 2018 <BR></TD>
    </TR>
    <TR>
      <TD><BR> <BR>
        Joel Cohen </TD>
      <TD width="20%" align=right><BR> <BR>
        12,500 </TD>
      <TD width="20%" align=right><BR> <BR>
        37,500 </TD>
      <TD width="20%" align=right><BR> <BR>
        $0.50 </TD>
      <TD width="20%" align=right><BR> <BR>
        Feb 14, 2018 </TD>
    </TR>
    <TR>
      <TD bgColor=#e6efff><BR>
        Tom Clark </TD>
      <TD bgColor=#e6efff width="20%" align=right><BR>
        56,250 </TD>
      <TD bgColor=#e6efff width="20%" align=right><BR>
        18,750 </TD>
      <TD bgColor=#e6efff width="20%" align=right><BR>
        $0.50 </TD>
      <TD bgColor=#e6efff width="20%" align=right><BR>
        June 22, 2017 </TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify>On January 31, 2009, the Company granted options for the
purchase of up to a total of 1,340,000 shares of common stock pursuant to our
2006 Stock Incentive Plan (the &#147;Plan&#148;). On February 2, 2009, the Company granted
options to purchase up to an aggregate amount of 300,000 shares of common stock
under the Plan to certain of our employees and directors, as follows: (a) Sass
Peress was granted an option to purchase up to 50,000 shares of common stock at
an exercise price of $0.25, vesting semi-annually over a two-year period; (b)
Joel Cohen was granted an option to purchase up to 50,000 shares of common stock
at an exercise price of $0.25, vesting semi-annually over a two-year period; (c)
David McDowell was granted an option to purchase up to 50,000 shares of common
stock at an exercise price of $0.25, vesting semi-annually over a two-year
period; (d) Paul Maycock was granted an option to purchase up to 50,000 shares
of common stock at an exercise price of $0.25, vesting semi-annually over a
two-year period ; (e) David Dangoor was granted an option to purchase up to
50,000 shares of common stock at an exercise price of $0.25, vesting
semi-annually over a two-year period; and (f) Steve Carkner was granted an
option to purchase up to 50,000 shares of common stock at an exercise price of
$0.25, vesting semi-annually over a two-year period.</P>
<P align=center>57 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_61></A>
<P align=justify><B>Long-Term Incentive Plans</B></P>
<P align=justify>On November 1, 2006, the Company's Board of Directors
established the 2006 Stock Incentive Plan expiring on November 1, 2016. See
&#147;Executive Compensation; Stock Option Plans&#148; for a discussion of the terms of
this plan.</P>
<P align=justify><B>Stock Option Plans </B></P>
<P align=justify>Our Board of Directors adopted the 2006 Stock Incentive Plan
(the &#147;Plan&#148;) on November 1, 2006. Grants of either &#147;incentive stock options&#148;, as
defined in Section 422 of the Internal Revenue Code, as amended (the &#147;Code&#148;), or
stock options that are non-qualified for United States Federal income tax
purposes, may be made under the Plan to eligible officers, employees, directors
and consultants of the Company and any parent or subsidiary of the Company. A
total of 2,000,000 shares of our common stock have been reserved for issuance
under the Plan, subject to certain adjustments reflecting changes in the
Company's capitalization. Shares of common stock subject to options which are
not exercised prior to their termination shall again be available for grant
under the Plan, to the fullest extent permitted by law. All options granted
under the Plan are subject to the terms and conditions of an option agreement
entered into by the Company and each participant at the time of grant. Options
will become exercisable only after they vest in accordance with such option
agreement.</P>
<P align=justify>The Board of Directors, as the &#147;administrator&#148; of the Plan, has
full and final discretion to determine, subject to applicable laws, (i) the
types of options to be granted under the Plan and the total number of shares of
our common stock subject to such grants, (ii) the directors, officers, employees
and consultants of the Company or its subsidiaries or parent companies who are
eligible to receive options under the Plan (&#147;Participants&#148;), (iii) the time when
and the price at which such stock options will be granted (subject to the
restrictions described below), (iv) the time when and the price at which such
stock options may be exercised, and (v) the conditions and restrictions on the
exercise of such options. </P>
<P align=justify>Pursuant to the terms of the Plan, no option may be granted (i)
with respect to any option granted that it an incentive stock option, at an
exercise price per share equal to less than 100% of the fair market value of our
common stock on the date of grant, or (ii) with respect to any option granted
that is a non-qualified stock option or to a Participant serving as a consultant
to the Company, at an exercise price per share equal to less than 75% of the
fair market value of our common stock on the date of grant. No option granted
pursuant to the Plan may be exercised more than 10 years from the date of grant.
</P>
<P align=justify>Grants of incentive stock options made to any Participant who
owns shares of our common stock representing more than 10% of the voting rights
attributable to all classes of capital stock of the Company (as determined in
accordance with Section 422 of the Code), the exercise price per share of any
incentive stock option may not be less than 110% of the fair market value of
such shares on the date of grant. Incentive stock options may be granted under
the Plan only to employees who are employees of the Company at the time of
grant, and not a consultant, advisor, service provider or independent
contractor. To the extent that the aggregate fair market value of the shares of
common stock (determined at the time of grant) exceeds $100,000 with respect to
the number of incentive stock options exercisable for the first time by a
Participant during any calendar year, any excess over such amount shall be
considered a non-qualified option. In the event that a Participant has been
granted 2 or more such incentive stock options that become exercisable for the
first time in the same calendar year, this limitation shall be applied according
to the order in which such incentive stock options were granted.</P>
<P align=justify>Pursuant to the terms of the Plan (which can, in this instance,
be modified by the terms and conditions of the applicable option agreement
evidencing the option grant), if a Participant ceases to be an employee,
officer, director of, or consultant to, the Company, or its subsidiaries or
parent companies, as a result of termination for &#147;cause&#148; (as defined below), all
unexercised options will immediately terminate. If a Participant ceases to be an
employee, officer, director of, or consultant to, the Company, or its
subsidiaries or parent companies, for any reason other than termination for
cause, or as a result of such Participant's &#147;disability&#148; (as defined below),
retirement or death, options granted under the Plan may be exercised not later
than the earliest to occur of (a) (i) in the case of termination following
retirement of the Participant, up to 30 days from the date of retirement, or
(ii) in the case of termination following disability or death of the
Participant, up to 6 months from the date of such disability or death, and (b)
the expiry date of the option. In the event that facts which would have
constituted grounds for termination of a Participant for cause are discovered
following the termination of such Participant's employment or other relationship
with the Company for other reasons, any options then held by such Participant
may be immediately terminated. </P>
<P align=center>58 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_62></A>
<P align=justify>The Plan provides that, in the event of a &#147;corporate
transaction&#148; (as defined below) involving the Company, all outstanding options
shall either (a) be assumed, or substituted for an equivalent right or option,
by the surviving or successor corporation or its parent, as applicable, or (b)
if not so assumed or substituted, shall become fully vested and exercisable by
Participants for a specific period of time, upon giving Participants written
notice to that effect, following which time all options shall terminate upon
completion of the corporate transaction. </P>
<P align=justify>Options granted under the Plan may not be transferred, assigned
or pledged other than on the death of a Participant. No Participant shall have
any rights whatsoever as an shareholder with respect to unexercised options.
</P>
<P align=justify>As of April 30, 2009, options to purchase a total of 1,790,000
shares of our common stock had been granted under the Plan to certain of the
Company's employees and directors. </P>
<P align=justify>Certain terms used above are defined in the Plan as
follows:</P>
<P align=justify>&#147;Cause&#148;, except as otherwise defined in any option agreement,
employment or services agreement between the Participant and the Company or any
subsidiary or parent of the Company, means as a material breach of the
employment or services agreement between a Participant and the Company,
dishonesty, fraud, misconduct, unauthorized use or disclosure of confidential
information or trade secrets, or conviction or confession of a crime punishable
by law (except minor violations), in each case as determined by the Board of
Directors, as administrator of the Plan, whose determination is conclusive. See
&#147;Executive Employment Agreements&#148; for a description of the definitions of
&#147;cause&#148; in certain employment agreements between the Company and certain of its
named executive officers.</P>
<P align=justify>&#147;Disability&#148;, except as otherwise defined with respect to any
grant by the Board of Directors, as administrator of the Plan, means a mental or
physical impairment of the Participant that is expected to result in death or
that has lasted or is expected to last for a continuous period of 12 months or
more and that causes the Participant to be unable, in the Company's opinion, to
perform his or her duties for the Company or any subsidiary or parent of the
Company, and to be engaged in any substantial gainful activity.</P>
<P align=justify>&#147;Corporate Transaction&#148;, except as otherwise defined in any
option agreement, employment or services agreement between the Participant the
Company or any subsidiary or parent of the Company, means the completion of (a)
a merger or consolidation of the Company with or into any other corporation,
entity or person (except for reincorporation mergers or any merger or
consolidation in which the holders of shares of our common stock immediately
prior to such transaction hold at least a majority of the shares of common stock
in the successor entity immediately following such transaction), or (b) a sale,
lease, exchange or other transfer, in one transaction or series of related
transactions, of all or substantially all of the Company's outstanding
securities or assets, except for any such sale of assets to a wholly-owned
subsidiary of the Company. Transactions entered into for the sole purpose of
creating a holding company which will be owned in substantially the same
proportion by the persons who held securities of the Company immediately prior
to such transaction shall not constitute a corporate transaction for purposes of
the Plan.</P>
<P align=center>59 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_63></A>
<P align=justify><B>Compensation of Directors</B></P>
<P align=justify>We have not compensated our directors for service on the Board
of Directors or any committee thereof, but directors are entitled to be
reimbursed for expenses incurred for attendance at meetings of the Board of
Directors or any committee of the Board of Directors. Our directors received no
compensation in their capacity as directors during our fiscal years ended
January 31, 2009 and January 31, 2008. A description of grants to certain
directors of options to purchase shares of our common stock during the fiscal
year ended January 31, 2009 is set forth in the table below:</P>
<P align=justify><B>Compensation of Directors at 2009 Fiscal Year End
Table</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">

  <TR vAlign=top>
    <TD align=left>Name <BR><BR><BR><BR><BR><BR><BR>(a) </TD>
    <TD width="12%" align=right>Fees <BR>Earned <BR>or <BR>Paid in <BR>Cash
      <BR>($) <BR><BR>(b) </TD>
    <TD width="12%" align=right>Stock <BR>Awards <BR>($)
      <BR><BR><BR><BR><BR>(c) </TD>
    <TD width="12%" align=right>Option <BR>Awards <BR>($)
      <BR><BR><BR><BR><BR>(d) </TD>
    <TD width="12%" align=right>Non-Equity <BR>Incentive Plan <BR>Compensation
      <BR>($) <BR><BR><BR><BR>(e) </TD>
    <TD width="12%" align=right>Nonqualified <BR>Deferred <BR>Compensation
      <BR>Earnings <BR>($) <BR><BR><BR>(f) </TD>
    <TD width="12%" align=right>All Other <BR>Compensation <BR>($)
      <BR><BR><BR><BR><BR>(g) </TD>
    <TD width="12%" align=right>Total <BR>($) <BR><BR><BR><BR><BR><BR>(h)
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>David Dangoor </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>$ 13,240 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>$ 13,240 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Dave McDowell </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Nil
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Nil
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$
      13,240 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Nil
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Nil
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Nil
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$
      13,240 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Paul Maycock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>$ 13,240 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>Nil </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>$ 13,240 </TD></TR></TABLE></DIV>
<P align=center><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT</B> </P>
<P align=justify>The following table sets forth certain information as of July
29, 2009 with respect to the beneficial ownership of our common stock, by (a)
each stockholder known to be the beneficial owner of more than 5% of our common
stock, (b) by each of our directors and executive officers, and (c) all of our
directors and executive officers as a group. The address of each person listed
below, unless otherwise indicated, is c/o ICP Solar Technologies Inc., 7075
Place Robert-Joncas, Unit 131, Montreal Quebec, H4M 2Z2. Unless otherwise
indicated in the table footnotes, shares will be owned of record and
beneficially by the named person. For purposes of the following table, a person
is deemed to be the beneficial owner of any shares of common stock (a) over
which the person has or shares, directly or indirectly, voting or investment
power, or (b) of which the person has a right to acquire beneficial ownership at
any time within 60 days after the effective time of the acquisition of ICP.
"Voting power" is the power to vote or direct the voting of shares and
"investment power" includes the power to dispose or direct the disposition of
shares.</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">

  <TR vAlign=top>
    <TD align=center><BR>Title of Class <BR><BR></TD>
    <TD width="25%" align=center><BR>Name and Address <BR>of Beneficial Owner
      <BR></TD>
    <TD width="25%" align=center>Amount and Nature <BR>of Beneficial
      <BR>Ownership <SUP>(1)</SUP> <BR></TD>
    <TD width="25%" align=center><BR>Percentage of Class <SUP>(1)</SUP>
      <BR><BR></TD></TR>
  <TR>
    <TD bgColor=#e6efff align=center>Common Stock </TD>
    <TD bgColor=#e6efff width="25%" align=center>Equity Transfer &amp;
      Trust <BR>Company <BR>120 Adelaide St. W., Ste <BR>420 Toronto, Ont. M5H
      4C3 <BR>(1) </TD>
    <TD bgColor=#e6efff width="25%" align=center><BR>17,640,311
      <SUP>(2)</SUP> <BR>Direct <BR><BR></TD>
    <TD bgColor=#e6efff width="25%" align=center><BR><BR>42.8%
  <BR><BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=center><br>
    <BR>Common Stock <BR><BR><BR></TD>
    <TD width="25%" align=center><br>
    <BR>Sass Peress <SUP>(1)</SUP>
      <BR><BR><BR></TD>
    <TD width="25%" align=center>17,640,311 <SUP>(2)</SUP> <BR>Indirect
      <BR><BR>413,992 <BR>Direct </TD>
    <TD width="25%" align=center><BR>42.8% <BR><BR><BR>1% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=center>Sub-total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>18,054,303 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>43.8% </TD></TR>
  <TR>
    <TD vAlign=bottom align=center><BR>Common Stock <BR></TD>
    <TD vAlign=bottom width="25%" align=center><BR>Joel Cohen
      <SUP>(1)</SUP> <BR></TD>
    <TD vAlign=bottom width="25%" align=center>1,137,581
      <BR>Direct </TD>
    <TD vAlign=bottom width="25%" align=center><BR>2.8% <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=center>Common Stock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>David Dangoor </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>None </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>0% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>Common Stock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%" align=center>Paul
      Maycock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%" align=center>None
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%" align=center>0%
    </TD></TR></TABLE></DIV>
<P align=center>60 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<p>
<A name=page_64></A><BR>
</p>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Common Stock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%"
      align=center>David McDowell </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%" align=center>None
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%" align=center>0%
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Common Stock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>Tom Clark </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>None </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="25%"
    align=center>0% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Common Stock <BR><BR></TD>
    <TD width="25%" align=center>All directors and executive <BR>officers as a
      group <BR>(6 persons) </TD>
    <TD width="25%" align=center>19,171,884 <BR><BR></TD>
    <TD width="25%" align=center>46.5% <BR><BR></TD></TR></TABLE></DIV>
<P align=justify>Notes</P>
<P align=justify>(1) As at September 29, 2007, Equity Transfer &amp; Trust
Company held 20,000,000 shares of our common stock (the "Trust Shares") as
"Trustee" pursuant to the terms of the Exchange and Voting Trust Agreement dated
September 29, 2006 (the "Voting Trust Agreement") among the Company, 1260491
Alberta Inc., our wholly owned subsidiary ("Exchangeco"), Sass Peress, the
Peress Family Trust, the Sass Peress Family Trust, Eastern Liquidity Partners
Ltd., Arlene Ades, and Joel Cohen (collectively, the "Beneficiaries"), Taras
Chebountchak and Orit Stolyar. Under the terms of the Exchange and Voting Trust
Agreement the Trust Shares are to be cancelled as each Exchangeable Shares is
exchanged by the Beneficiaries for shares of ICP Solar and the Voting Rights to
the Trust Shares are beneficially held by the Trustee for the Beneficiaries are
as follows: (i) 301,497 Trust Shares, Eastern Liquidity Partners Ltd.,
beneficially owned by Sass Peress, (ii) 440,529 Trust Shares, The Sass Peress
Family Trust, beneficially owned by Sass Peress, (iii) 6,626,787 Trust Shares,
The Peress Family Trust, beneficially owned by Sass Peress, (iv) 11,222,995
Trust Shares, Sass Peress, (v) 879,706 Trust Shares, Arlene Ades, and (vi)
528,486 Trust Shares, Joel Cohen.</P>
<P align=justify>The Trustee, as the holder of record of the deposited shares,
shall be entitled to all of the Voting Rights, including the right to vote in
person or by proxy the 20,000,000 shares of ICP Solar common stock deposited by
Taras Chebountchak and Orit Stolyar (the "Deposited Shares") on any matters,
questions, proposals or propositions whatsoever that the Beneficiaries are
entitled to vote on at a Company meeting at which holders of capital stock of
the Company are entitled to vote or in connection with a written consent sought
by the Company. The Voting Rights shall be and remain vested in and exercised by
the Trustee. As further particularized in the Voting Trust Agreement, the
Trustee shall exercise the Voting Rights only on the basis of instructions
received from the Beneficiaries entitled to instruct the Trustee as to voting
thereof at the time at which the Company stockholders meeting is held or the
Company's stockholders' consent is sought.</P>
<P align=justify>(2) As at April 30, 2009, the following beneficiaries had
exchanged their Exchangeable Shares into shares of common stock of the Company:
(i) On January 29, 2008, Joel Cohen exchanged 528,486 Exchangeable Shares,
representing all of the Exchangeable Shares held by him, into an equal number of
shares of common stock of the Company, and 528,486 Trust Shares were cancelled;
(ii) On January 29, 2008, Eastern Liquidity Partners Ltd. exchanged 301,497
Exchangeable Shares, representing all of the Exchangeable Shares held by it,
into an equal number of shares of common stock of the Company, and 301,497 Trust
Shares were cancelled; (iii) On January 29, 2008, Arlene Ades exchanged 879,706
Exchangeable Shares, representing all of the Exchangeable Shares held by her,
into an equal number of shares of common stock of the Company, and 879,706 Trust
Shares were cancelled; and (iv) On January 29, 2008, Sass Peress exchanged
250,000 Exchangeable Shares, representing 2.2% of the Exchangeable Shares held
by him, into an equal number of shares of common stock of the Company, and
250,000 Trust Shares were cancelled. On May 27, 2009, Mr. Peress exchanged
400,000 Exchangeable Shares, representing 2.2% of the Exchangeable Shares held
by him, into an equal number of shares of common stock of the Company, and
400,000 Trust Shares were cancelled. See "Management's Discussion and Analysis
of Financial condition and Results of Operations &#150; Reorganization of the
Corporation."</P>
<P align=center>61 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_65></A>
<P align=center><B>CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS;
DIRECTOR INDEPENDENCE </B></P>
<P align=justify>Except as described below, none of the following parties has
had, since the beginning of our last fiscal year, any material interest, direct
or indirect, in any transaction with us or in any presently proposed transaction
that has or will materially affect us in which the amount involved exceeded
$120,000:</P>
<ul>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 0">Any of our directors or executive officers; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 0">Any person who beneficially owns, directly or indirectly, shares carrying
  more than 5% of the voting rights attached to our outstanding shares of common
  stock; </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 0">Any of our promoters; and </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 0">Any member of the immediate family (including spouse, parents, children,
  siblings and in-laws) of any of the foregoing persons. </P>
  </li>
</ul>
<P align=justify>On June 20, 2008, Mr. Joel Cohen, a director of the Company,
received the following as a finder's fee in connection with the private
placement which closed June 13, 2008: (i) payment of $120,000; and (ii) warrants
to purchase up to 240,000 shares of common stock at an exercise price of $0.50
per share. The warrants expire on June 20, 2010. The total exercise price of the
warrants is $120,000. </P>
<P align=center><B>DIRECTOR INDEPENDENCE </B></P>
<P align=justify>Because our common stock is traded on the Over the Counter
Bulletin Board, we are not subject to the independence requirements of any
securities exchange of the NASDAQ regarding members of our Board of Directors.
Nevertheless, we have determined that David Dangoor, David McDowell and Paul
Maycock meet the definition of "independent" as defined pursuant to Rule
4200(a)(15) of the Marketplace Rules of the NASDAQ Stock Market, Inc. (the
"Marketplace Rules"). Under the Marketplace Rules, an "independent director" is,
generally, one who is not an executive officer or employee of the Company or any
other individual who has a relationship which, in the opinion of our Board of
Directors, would interfere with the exercise of his or her independent judgment
in carrying out his or her responsibilities as a director. Examples of directors
who may not be considered independent under the Marketplace Rules are: </P>
<P align=justify>(a) a director who is, or at any time during the past three
years was, employed by the Company; </P>
<P align=justify>(b) a director who accepted, or who has a spouse, parent, child
or sibling, or anyone residing in such person's home (each, a "Family Member")
who accepted, any compensation from the Company in excess of $120,000 during any
period of twelve consecutive months within the three years preceding the
determination of independence, other than (i) compensation for board service;
(ii) compensation paid to a Family Member who is an employee (other than an
executive officer) of the Company; or (iii) benefits under a tax-qualified
retirement plan or non-discretionary compensation; </P>
<P align=justify>(c) a director who is a Family Member of an individual who is,
or at any time during the past three years was, employed by the Company as an
executive officer; </P>
<P align=justify>(d) a director who is, or has a Family Member who is, a partner
in, or a controlling shareholder or an executive officer of, any organization to
which the company made, or from which the Company received, payments for
property or services in the current or any of the past three fiscal years that
exceed 5% of the recipient's consolidated gross revenues for that year, or
$200,000, whichever is more, other than (i) payments arising solely from
investments in the company's securities; or (ii) payments under
non-discretionary charitable contribution matching programs; </P>
<P align=justify>(e) a director of the Company who is, or has a Family Member
who is, employed as an executive officer of another entity where at any time
during the past three years any of the executive officers of the Company serve
on the compensation committee of such other entity; or </P>
<P align=justify>(f) a director who is, or has a Family Member who is, a current
partner of the Company's outside auditor, or was a partner or employee of the
Company's outside auditor who worked on the Company's audit at any time during
any of the past three years.</P>
<P align=center><B>INTERESTS OF NAMED EXPERTS AND COUNSEL</B></P>
<P align=justify>No expert or counsel named in this prospectus as having
prepared or certified any part of this prospectus or having given an opinion
upon the validity of the securities being registered or upon other legal matters
in connection with the registration or offering of the shares of common stock
was employed on a contingency basis or had, or is to receive, in connection with
the offering, a substantial interest, directly or indirectly, in the registrant
nor was any such person connected with the registrant as a promoter, managing or
principal underwriter, voting trustee, director, officer or employee.</P>
<P align=center>62 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_66></A>
<P align=center><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION </B></P>
<P align=justify>We file reports, proxy statements and other information with
the Securities and Exchange Commission, or SEC. You may read and copy the
registration statement and these reports, proxy statements and other information
at the SEC's Public Reference Room at 100 F Street, N.E. Washington DC 20549.
Please call the SEC at 1-800-SEC-0330 for further information on the Public
Reference Room. The SEC maintains an internet site at http://www.sec.gov that
contains reports, proxy and information statements and other information
regarding issuers that file electronically with the SEC, including our company.
</P>
<P align=justify>This prospectus does not contain all of the information set
forth in the registration statement and the exhibits and schedules thereto. For
further information with respect to us and the shares of common stock offered
under this prospectus, reference is made to the registration statement,
including the exhibits and schedules thereto. Statements contained in this
prospectus as to the contents of any contract or other document are not
necessarily complete and, where any such contract or document is an exhibit to
the registration statement, each statement with respect to the contract or
document is qualified in all respects by the provisions of the relevant exhibit,
which is hereby incorporated by reference. </P>
<P align=justify>We make available free of charge on or through our internet
website copies of our Code of Ethics, annual report on Form 10-K and quarterly
reports on Form 10-Q (and any successor forms), current reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable
after we electronically file this material with, or furnish it to, the SEC. Our
internet website address is <U>http://www.icpsolar.com</U>. The information
contained on our website is not incorporated by reference in this prospectus and
should not be considered a part of the prospectus.</P>
<P align=center>63 </P>
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noShade SIZE=5>



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<A name="page_11"></A>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="17%">&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD align=left><B><font size="5">ICP Solar Technologies Inc.</font></B><font size="5">
    </font> </TD>
    <TD align=right width="17%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="4">Consolidated Financial Statements</font></B><font size="4">
    </font> </TD>
    <TD align=right width="17%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="4">January 31, 2009</font></B><font size="4">
    </font> </TD>
    <TD align=right width="17%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="4">(Expressed in U.S. Funds)</font></B><font size="4">
    </font> </TD>
    <TD align=right width="17%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="17%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Contents</B> </TD>
    <TD align=right width="17%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="17%" align="right">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Report of Independent Registered Public
      Accounting Firm </TD>
    <TD align=right width="17%" bgColor=#e6efff>F-1 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance Sheets </TD>
    <TD align=right width="17%">F-2 &#150; F-3</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Statements of Shareholder's Equity (deficiency
    )</TD>
    <TD align=right width="17%" bgColor=#e6efff>F-4</TD></TR>
  <TR vAlign=top>
    <TD align=left>Statements of Operations and Comprehensive Loss </TD>
    <TD align=right width="17%">F-5</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Statements of Cash Flows </TD>
    <TD align=right width="17%" bgColor=#e6efff>F-6 &#150; F-7</TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Financial Statements </TD>
    <TD align=right width="17%">F-8 &#150; F-36 </TD></TR></TABLE>
<p>&nbsp;</p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" DIR="ltr" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="83%"><font FACE="Times New Roman" SIZE="4"><b>Consolidated
    Financial Statements</b></font></td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="83%"><font FACE="Times New Roman" SIZE="4"><b>April 30, 2009</b></font></td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="83%"><font FACE="Times New Roman" SIZE="4"><b>(Expressed in U.S.
    Funds)</b></font></td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="83%">&nbsp;</td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="83%" bgcolor="#E6EFFF"><font FACE="Times New Roman" SIZE="2">
    Balance Sheets</font></td>
    <td WIDTH="17%" align="right" bgcolor="#E6EFFF">
    <font size="2">F-37</font></td>
  </tr>
  <tr>
    <td WIDTH="83%"><font FACE="Times New Roman" SIZE="2">Statements of
    Shareholder's Equity</font></td>
    <td WIDTH="17%" align="right"><font size="2">F-38</font></td>
  </tr>
  <tr>
    <td WIDTH="83%" bgcolor="#E6EFFF"><font FACE="Times New Roman" SIZE="2">
    Statements of Operations and Comprehensive Loss</font></td>
    <td WIDTH="17%" align="right" bgcolor="#E6EFFF">
    <font size="2">F-39</font></td>
  </tr>
  <tr>
    <td WIDTH="83%"><font FACE="Times New Roman" SIZE="2">Statements of Cash
    Flows</font></td>
    <td WIDTH="17%" align="right"><font size="2">F-40</font></td>
  </tr>
  <tr>
    <td WIDTH="83%" bgcolor="#E6EFFF"><font FACE="Times New Roman" SIZE="2">
    Notes to Financial Statements</font></td>
    <td WIDTH="17%" align="right" bgcolor="#E6EFFF">
    <font size="2">F-41 &#150; F-53</font></td>
  </tr>
  <tr>
    <td WIDTH="83%">&nbsp;</td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
</table>

<p align="center">64</p>

<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>

<font FACE="Times New Roman" SIZE="2"><b>
<p align="right">RSM Richter S.E.N.C.R.L./LLP</b> <b><br>
Comptables agr&#233;&#233;s</b> <b><br>
Chartered Accountants</b> <br>
2, Place Alexis Nihon <br>
Montr&#233;al, (Qu&#233;bec) H3Z 3C2 <br>
T&#233;l&#233;phone / Telephone : (514) 934-3400 <br>
T&#233;l&#233;copieur / Facsimile : (514) 934-3408 <br>
www.rsmrichter.com </p>
<b>
<p>Report of Independent Registered Public Accounting Firm</b> </p>
<p>To the Shareholders and Board of Directors of <b><br>
ICP Solar Technologies Inc.</b> </p>
<p align="justify">We have audited the accompanying consolidated balance sheets
of ICP Solar Technologies Inc. as at January 31, 2009 and 2008 and the related
consolidated statements of operations and comprehensive loss, shareholders'
equity and cash flows for the years 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 audits. </p>
<p align="justify">We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. 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
audits provide a reasonable basis for our opinion. </p>
<p align="justify">In our opinion, these consolidated financial statements
present fairly in all material respects, the financial position of the Company
as at January 31, 2009 and 2008 and the results of its operations and its cash
flows for the years then ended in accordance with accounting principles
generally accepted in the United States. We were not engaged to examine
management's assertion about the effectiveness of the Company's internal control
over financial reporting at January 31, 2009 included in Item 9A (T) of the 10-K
filing and, accordingly, we do not express an opinion thereon. </p>
<p align="justify">The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. As described in note
2 to the financial statements, the Company has experienced operating losses and
requires significant capital to finance operations and repay existing
indebtedness. This raises substantial doubt about its ability to continue as a
going concern. Management's plans in regard to these matters are also described
in note 2. The financial statements do not include any adjustments that may
result from the outcome of this uncertainty. </p>
<p><u>[signed] RSM Richter LLP</u> <sup>1</sup> <b><br>
Chartered Accountants</b> <br>
Montreal, Quebec <br>
April 30, 2009 </p>
</font><font FACE="Times New Roman" SIZE="1"><sup>
<p>1</sup>CA auditor permit n<sup>o</sup>15522 </font>
</p>
<p align="center">F-1</p>

<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>

<!--$$/page=--><A name=page_14></A>
<P align=justify><B><font size="4">ICP Solar Technologies Inc.</font></B><font size="4">
</font><B><font size="4"><br>
</font> <font size="3">Consolidated Balance Sheets <BR>As at January 31, 2009
<BR>(Expressed in U.S. Funds) </font> </B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>January 31,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">January 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="4">Assets</font></B><font size="4"> </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Current</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp;</TD>
    <TD align=right width="2%" >&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp;</TD>
    <TD align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>193,517</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>20,967 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Term deposit </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">505,301 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Accounts receivable (note 5) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>622,981</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>873,976 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Inventories (note
      6) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,492,808</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2,426,177 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Prepaid expenses
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>12,941</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>86,898 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>2,322,247</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">3,913,319 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Property and Equipment </B>(note 7) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>88,030</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>85,478 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Intangible</B>, net of accumulated amortization of
      $53,200 (2008 - $Nil) (note 8) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>120,914</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Investment in EPOD Solar (Wales) Ltd.
      </B>(note 9) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Loan Receivable, </B>net of $ 952,729 write- down (2008
      - $Nil) (note 9) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2,200,158 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Investment in Convertible Debenture</B>,
      net of $967,599 write-down (2008 - $Nil) (note 9) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"
    bgColor=#e6efff><STRONG>$</STRONG></TD>
    <TD align=right width="12%" bgColor=#e6efff><STRONG>2,531,192</STRONG> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>6,198,956&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>See accompanying notes </P>
<P align=justify><B>Approved on Behalf of the Board </B></P>
<P align=justify><u><b>___________________________</b></u></P>
<P align=justify><u><b>___________________________</b></u></P>
<P align=center>F-2 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<p><A name=page_15></A><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>January 31,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">January 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="4">Liabilities</font></B><font size="4">
    </font> </TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp;</TD>
    <TD align=right width="2%" >&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp;</TD>
    <TD align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Current</B> </TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Bank indebtedness (note 10) </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;1,102,311 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Accounts payable
      and accrued liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,648,019</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">920,396 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Put option liability (note 11) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>67,555</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Government grants
      payable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>17,533</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">27,036 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left
      bgColor=#e6efff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior
      secured convertible debentures, less unamortized discount of $2,708,934
      (2008 - $Nil) (note 12) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>171,517</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>1,904,624</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">2,049,743 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Convertible Notes, </B>less
      unamortized discount of $Nil (2008 - $167,492) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>682,508 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Put Warrants
      </B>(note 12) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>3,600,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Commitments </B>(note 13) </TD>
    <TD align=right width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=right width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=right width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Contingencies </B>(note 14) </TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B><font size="4">Shareholders' Deficiency</font></B><font size="4">
    </font> </TD>
    <TD align=right width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=right width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=right width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Capital Stock </B>(note 15) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>351</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">328 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Additional Paid-In Capital </B>(note 16)
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>16,157,548</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>13,105,085 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Accumulated Other Comprehensive Loss</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(1,005,625</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(798,469</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Accumulated Deficit</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(18,125,706</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(8,840,239</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(2,973,432</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">3,466,705 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;2,531,192</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;6,198,956 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>See accompanying notes </TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=right width="2%" >&nbsp;</TD></TR></TABLE>
<P align=center>F-3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_16></A>
<P align=justify><B><font size="4">ICP Solar Technologies Inc.</font></B><font size="4">
<br>
</font><B><font size="3">Consolidated Statements of Shareholders' Equity (Deficiency)
<br>
For the Years Ended January 31, <br>
(Expressed in U.S. Funds) </font> </B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><font size="2">&nbsp; </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Accumulated</font></B><font size="2">
    </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">&nbsp; </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Additional</font></B><font size="2">
    </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Other</font></B><font size="2">
    </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Total</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">&nbsp; </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="17%" colSpan=4><B><font size="2">Capital Stock</font></B><font size="2">
    </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Paid-In</font></B><font size="2">
    </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Comprehensive</font></B><font size="2">
    </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Accumulated</font></B><font size="2">
    </font> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%"><B><font size="2">Shareholders'</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><font size="2">&nbsp;
    </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="7%"><B><font size="2">Shares</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="7%"><B><font size="2">Amounts</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="7%"><B><font size="2">Capital</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="7%"><B><font size="2">Loss</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="7%"><B><font size="2">Deficit</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="7%"><B><font size="2">Deficiency</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD><font size="2">&nbsp; </font> </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B><font size="2">Balance - January 31, 2007</font></B><font size="2">
    </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">29,000,000 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><font size="2">$&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>290 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><font size="2">$</TD>
    <TD align=right width="7%" bgColor=#e6efff>&nbsp;6,482,923 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><font size="2">$</TD>
    <TD align=right width="7%" bgColor=#e6efff>&nbsp;(800,719</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="7%" bgColor=#e6efff>&nbsp;(4,617,501</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="7%" bgColor=#e6efff><B>&nbsp;1,064,993</B> </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">Common stock issued </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">3,719,445 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">38 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">3,849,961 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">3,849,999</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><font size="2">Stock-based compensation
    </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">1,088,828 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">1,088,828</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">Warrants issued </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">1,400,173 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">1,400,173</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><font size="2">Modification of warrants
    </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">283,200 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">283,200</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">Foreign currency translation </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">2,250 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">2,250</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><font size="2">Net loss </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">(4,222,738</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">(4,222,738</font></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">&nbsp; </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B><font size="2">Balance - January 31, 2008</font></B><font size="2">
    </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">32,719,445</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B><font size="2">$</font></B></TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">328</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B><font size="2">$</font></B></TD>
    <TD align=right width="7%" bgColor=#e6efff><B>&nbsp;13,105,085</B> </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B><font size="2">$</font></B></TD>
    <TD align=right width="7%" bgColor=#e6efff><B>&nbsp;(798,469</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="7%" bgColor=#e6efff><B>&nbsp;(8,840,239</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="7%" bgColor=#e6efff><B>&nbsp;3,466,705</B> </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="2">Common stock issued</font></B><font size="2">
    </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">1,492,550</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">15</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">322,965</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">322,980</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B><font size="2">Stock-based compensation</font></B><font size="2">
    </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">1,262,057</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">1,262,057</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="2">Warrants issued</font></B><font size="2">
    </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">266,217</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">266,217</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B><font size="2">Modification of warrants</font></B><font size="2">
    </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">160,700</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">160,700</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="2">Modification of stock</font></B><font size="2"> <B>options</B>
    </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">190,532</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">190,532</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B><font size="2">Conversion of debentures</font></B><font size="2">
    </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">850,000</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">8</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">849,992</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">850,000</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B><font size="2">Foreign currency</font></B><font size="2"> <B>translation</B>
    </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">(207,156</font></B></TD>
    <TD align=left width="2%" ><B>)</B> </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">-</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">(207,156</font></B></TD>
    <TD align=left width="2%" ><B>)</B> </font> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B><font size="2">Net loss</font></B><font size="2">
    </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">-</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">-</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">-</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">-</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">(9,285,467</font></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">(9,285,467</font></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </font> </TD></TR>
  <TR>
    <TD><font size="2">&nbsp; </font> </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%"><font size="2">&nbsp; </font> </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><font size="2">Balance -
      January 31, 2009</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B><font size="2">35,061,995</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B><font size="2">$</font></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>351</B> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B><font size="2">$</font></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>&nbsp;16,157,548</B> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B><font size="2">$</font></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>&nbsp;(1,005,625</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>&nbsp;(18,125,706</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>&nbsp;( 2,973,432</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </font> </TD></TR></TABLE>
<P align=justify>See accompanying notes</P>
<p align="center">F-4</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_17></A>
<P align=justify><B><font size="4">ICP Solar Technologies Inc. <br>
</font><font size="3">Consolidated Statements of Operations and Comprehensive Loss
<br>
For the Years Ended January 31, <br>
(Expressed in U.S. Funds)
</font> </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Net Sales</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;5,903,196</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;6,541,232 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Cost of
      Sales</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>4,569,435</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">4,375,063 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Gross Margin</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1,333,761</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>2,166,169 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Expenses</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Selling, general and
      administrative </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>5,772,124</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>7,513,739 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Depreciation and amortization </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>82,034</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">109,661 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Research and
      development </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>643,629</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>87,812 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Foreign exchange loss (gain) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(76,832</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">10,484 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>6,420,955</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>7,721,696 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Operating Loss</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(5,087,194</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(5,555,527</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest expense </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(287,420</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(299,352</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest income </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>13,008</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">22,077 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Forgiveness of loan receivable </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(88,973</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Write-down of loan receivable and convertible debenture </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>(1,920,328</B></TD>
    <TD align=left width="2%"><B>)</B> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(229,128</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accretion of discount on convertible notes
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(167,495</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(586,163</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Discount on loan receivable </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>166,404</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(644,619</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Discount on convertible debentures </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(1,612,390</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Gain on modification of convertible debenture (note 12) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>602,726</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Financing costs </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(382,761</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Accretion of discount on loan receivable </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>78,947</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">344,767 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest expense on put warrant </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(600,000</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Gain on
      disposition of subsidiary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>9</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">2,818,207 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(4,198,273</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1,425,789 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Net Loss Before Income Taxes</B> </TD>
    <TD align=left width="1%"><B>$</B></TD>
    <TD align=right width="12%"><B>&nbsp;(9,285,467</B></TD>
    <TD align=left width="2%"><B>)</B> </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">&nbsp;(4,129,738</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Income Taxes </B>(note 17) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>93,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Net Loss</B>
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%"><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>&nbsp;(9,285,467</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(4,222,738</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Other Comprehensive Loss</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Foreign currency
      translation adjustment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(207,156</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2,250
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Comprehensive Loss</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;(9,492,623</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;(4,220,488</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Basic Weighted
      Average Number of Shares Outstanding</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>34,090,717</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">30,148,509 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Basic and
      Diluted Loss Per Share </B>(note 19) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(0.28</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(0.14</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>See accompanying notes </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<p align="center">F-5</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_18></A>
<P align=justify><B><font size="4">ICP Solar Technologies Inc.<br>
</font><font size="3">Consolidated Statements of Cash Flows <br>
For the Years Ended
January 31, <br>
(Expressed in U.S. Funds)
</font></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Funds Provided (Used)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Operating Activities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Net loss </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(9,285,467</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>(4,222,738</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Depreciation and amortization </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>82,034</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">109,661 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Interest expense on
      convertible notes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>200,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Write-down of property and equipment
</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">4,346 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Foreign exchange (gain)
      loss </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(76,832</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>10,484 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Gain on disposal of subsidiary </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(9</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(2,818,207</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Interest expense on put
      warrant </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>600,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Forgiveness of loan receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>88,973</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Write-down of loan
      receivable and convertible debenture </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1,920,328</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>229,128 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Stock-based compensation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,262,057</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,088,828 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Warrants issued </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>202,367</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,400,173 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Modification of warrants </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>160,700</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">283,200 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Modification of stock
      options </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>190,532</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Discount on loan receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(166,404</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">644,619 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accretion of discount
      on loan receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(78,947</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(344,767</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Accretion of discount on convertible
      debenture </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,612,390</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Gain on modification of
      convertible debenture </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(602,726</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Accretion of discount on convertible notes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>167,495</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">586,163 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(3,923,509</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(2,829,110</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Changes in non-cash operating elements of working capital
      (note 18) </TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%"><B>2,139,550</B> </TD>
    <TD align=left width="2%" ></TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%">1,448,311 </TD>
    <TD align=left width="2%" ></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Foreign exchange </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(207,156</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>2,250 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(1,991,115</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(1,378,549</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Financing Activities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Bank indebtedness </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(1,109,112</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(57,378</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Issuance of convertible
      debentures </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>3,824,134</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Discount of convertible debentures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(718,598</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Repayment of
      convertible debentures </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(942,851</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Long-term debt </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(190,204</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Loan payable, director
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(577,036</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Obligation under capital lease </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(49,752</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Government grants
      payable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(49,581</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(96,887</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Common shares issued </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>277,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">2,000,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1,280,992</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1,028,743 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=center>F-6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=justify><B><font size="4">ICP Solar Technologies Inc.</font></B><font size="4">
<br>
</font><font size="3">
<br>
</font><B><font size="3">Consolidated Statements of Cash Flows <br>
For the Years Ended
January 31, <br>
(Expressed in U.S. Funds) </font> </B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Investing Activities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Additions to property
      and equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;(14,527</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(17,737</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Loan receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>436,207</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">150,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Proceeds from
      disposition of subsidiary </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>10</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Loan receivable from employees </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(11,367</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Acquisition of WES
      Power Technology Inc. </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(25,001</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Term deposit </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>505,300</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>890,622</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>132,264 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Effect of
      Foreign Exchange on Cash Balances</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(7,949</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Increase (Decrease) in Cash</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>172,550</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(217,542</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;<B>Cash - Beginning of Year</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>20,967</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">238,509 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp;<B>Cash - End of Year</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;193,517</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;20,967 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>See accompanying notes</P>
<P align=center>F-7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name="page_20"></A>

<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align="justify">
<B>1. Basis of Presentation</B> </P>
<P align="justify">
The Company, ICP Solar Technologies Inc., is a Nevada corporation and is engaged in the business of assembling and distributing renewable solar energy products worldwide. </P>
<P align="justify">
The consolidated financial statements include the accounts of the Company and its subsidiary companies. On consolidation, all material inter-entity transactions and balances have been eliminated. </P>
<P align="justify">
The financial statements are expressed in U.S. funds. </P>
<P align="justify">
<B>2. Going Concern </B></P>
<P align="justify">
These consolidated financial statements for the fiscal year ended January 31, 2009, were prepared under the assumption that the Company will continue operations as a going concern.</P>
<P align="justify">
The Company has reported a net loss of &#36;9,285,467, &#36;4,222,738, &#36;2,626,565 and &#36;1,396,672 and negative cash flows from operating activities of &#36;1,991,115, &#36;1,380,799, &#36;3,828,787, and &#36;978,067 for the fiscal years ended
January 31, 2009, 2008, 2007 and 2006 respectively. As of January 31, 2009, the Company had an accumulated deficit of &#36;18,125,706, working capital of &#36;589,136 and cash and cash equivalents of &#36;193,517. Until and unless the Company's
operations generate significant revenues and cash flow, we will attempt to continue to fund operations from cash on hand and through the sources of capital described below. The Company's long-term liquidity is contingent upon achieving sales
and positive cash flows from operating activities, and/or obtaining additional financing. The most likely sources of financing include private placements of the Company's equity or debt securities or bridge loans to the Company from third-party
lenders. Subsequent to year end, the Company entered into an agreement to factor its accounts receivable to a financial institution for up to &#36;720,000 (note 22). The Company can give no assurances that any additional capital that it is able to
obtain will be sufficient to meet its needs, or on terms favourable to it. During the fourth quarter of 2009, the Company significantly reduced overhead expenditures, reduced product costs and is continually expanding its customer pipeline.
Management believes these factors will contribute toward achieving profitability. Despite these initiatives however, the Company still requires capital to sustain its existing operations. The Company may, however, choose to raise additional capital
before January 31, 2010 to fund future development activities or to take advantage of other strategic opportunities. This could include the securing of funds through new strategic partnerships and/or the sale of common stock or other securities.
There can be no assurance that such capital will be available to the Company on favourable terms, or at all. There are a number of risks and uncertainties related to the Company's attempt to complete a financing or strategic partnering
arrangement that are outside its control. The Company may not be able to obtain additional financing on terms acceptable to it, or at all. If the Company is unsuccessful at obtaining additional financing as needed, it may be required to
significantly curtail or cease operations. The Company will need additional financing thereafter until it achieves profitability, if ever. </P>
<P align="justify">
Should the Company be unable to continue as a going concern it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. These financial statements do not include any adjustments that may result from
the outcome of this uncertainty.</P>
<P align="center">
F-8</P>

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<!--$$/page=-->
<A name="page_21">
<p>
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> </font>
</A>

<font FACE="Times New Roman PS" size="3"><br>
</font>
<A name="page_21">
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
</p>
</A>

<P align="justify">
<B>3. Summary of Significant Accounting Policies </B><BR>
</P>
<P align="justify">
<B>Use of Estimates</B><BR>
</P>
<P align="justify">
The preparation of financial statements in accordance with United States Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include the allowance for doubtful accounts,
inventory provision, recovery of deferred income taxes, recoverability of loan receivable and investment in convertible debenture, impairment of long-lived assets, stock-based compensation costs, determination of the fair value of the warrants
issued and the resulting impact on the allocation of the proceeds between the shares and warrants. Actual results could differ from those estimates. </P>
<P align="justify">
<B>Revenue Recognition</B><BR>
</P>
<P align="justify">
The Company recognizes revenue from product sales at the time of passage of title and risk of loss to the customer either at FOB shipping point or FOB destination, based upon terms established with the customer where persuasive evidence of an
arrangement exists and where collectability is reasonably assured. The Company's selling price to its customers is a fixed amount that is not subject to refund or adjustment and is not contingent upon additional rebates. There are no further
obligations on the part of the Company subsequent to revenue recognition except for product warranty and returns from the Company's customers. The Company records an estimate of returns and records the provision for the estimated amount of such
future returns, based on historical experience and any notification the Company receives of pending returns. </P>
<P align="justify">
<B>Product Warranty</B><BR>
</P>
<P align="justify">
The Company's current product warranty includes a ten year, up to a lifetime warranty period for defects in materials, workmanship and power performance. Accruals for product warranties are recorded at the time of shipment of products to customers.
The Company accrues a provision for estimated future warranty costs based upon the historical relationship of warranty claims to sales. The Company periodically reviews the adequacy of its products warranties and adjusts, if necessary, the warranty
percentage and accrued warranty reserve for actual historical experience. As at January 31, 2009, the total provision for warranties amounted to approximately &#36;51,000 (2008 - &#36;63,000). </P>
<P align="justify">
<B>Valuation of Inventories</B><BR>
</P>
<P align="justify">
Raw materials are valued at the lower of cost and replacement cost. Finished goods are valued at the lower of cost and net realizable value. Cost is determined on an average cost base. </P>
<P align="justify">
<B>Financial Instruments</B><BR>
</P>
<P align="justify">
The Company estimates the fair value of its financial instruments based on current interest rates, market value and pricing of financial instruments with comparable terms. Unless otherwise indicated, the carrying value of these financial instruments
approximates their fair market value. </P>
<P align="justify">
<B>Sales Taxes</B><BR>
</P>
<P align="justify">
The Company presents taxes collected from customers and remitted to government authorities on a net basis in the consolidated statements of operations.</P>
<P align="center">
F-9</P>

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<p>
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> </font>
</A>

<font FACE="Times New Roman PS" size="3"><br>
</font>
<A name="page_22">
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
</p>
</A>

<P align="justify">
<B>3. Summary of Significant Accounting Policies (Cont'd)</B></P>
<P align="justify">
<B>Share-Based Payments</B><BR>
</P>
<P align="justify">
The Company accounts for share based payments in accordance with the provisions of FAS 123R "Share based payments (Revised)" and accordingly recognizes in its financial statements share based payments at their fair value.  In addition, it recognizes
in the financial statements an expense based on the grant date fair value of stock options granted to employees. The expense are recognized on a straight line basis over the vesting period and the offsetting credit is recorded in additional paid in
capital. Upon exercise of options, the consideration paid together with the amount previously recorded as additional paid in capital is recognized as capital stock. The Company estimates its forfeiture rate in order to determine its compensation
expense arising from stock-based awards. The Company uses the Black Scholes option pricing model to determine the fair value of the options.</P>
<P align="justify">
The Company accounts for stock-based compensation expense for non-employees using the fair value method prescribed by EITF 96-18 "Accounting for Equity Investments that are issued to Other Than Employees for acquired or in conjunction with selling,
Goods or Services, and the Black Scholes option principal method, and recorded, the fair value of non-employee stock options as an expense over the vesting term of option. </P>
<P align="justify">
If an equity award is modified after the grant date, an incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the modified award, if any, over the fair value of the original award on the modification
date. </P>
<P align="justify">
The Company uses the Black Scholes option pricing model which requires the input of subjective assumptions. These assumptions, including estimating the length of time option holders will retain their stock options before exercising them (&#147;the
expected term&#148;), the expected volatility of the Company's common stock price over the expected term and the number of options that will ultimately not complete their vesting requirements (&#147;forfeitures&#148;). The amount of stock-based
compensation recognized in the consolidated statements of operations could be materially different under different assumptions. </P>
<P align="justify">
<B>Accounts Receivable</B><BR>
</P>
<P align="justify">
The majority of the Company's accounts receivable are due from companies in the retail, mass merchant and OEM industries. The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a
review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current
economic conditions. The Company writes off trade receivables when they are deemed uncollectible. The Company records recoveries of trade receivables previously written-off when they receive them. The Company does not believe that it is exposed to
an unusual level of customer credit risk (note 5). Management considers an allowance for doubtful accounts is not required to cover any exposure to loss in its January 31, 2009 and January 31, 2008 accounts receivable. </P>
<P align="justify">
<B>Investment Tax Credits</B><BR>
</P>
<P align="justify">
Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and
assumptions in determining the expenditures eligible for investment tax credits claimed.</P>
<P align="center">
F-10</P>

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<p>
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> </font>
</A>
<font FACE="Times New Roman PS" size="3"><br>
</font>
<A name=page_23>

<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
</p>
</A>
<P align=justify><B>3. Summary of Significant Accounting Policies (Cont'd)</B> </P>
<P align=justify>
<B>Property and Equipment</B> </P>
<P align=justify>Property and equipment are recorded at cost. Provisions for
depreciation are based on their estimated useful lives using the declining
balance method as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Machinery and equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>20% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Furniture and fixtures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">20% </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Computer equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>30% </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>Upon retirement or disposal, the cost of the asset disposed of
and the related accumulated depreciation are removed from the accounts and any
gain or loss is reflected in income. Expenditures for repairs and maintenance
are expensed as incurred. </P>
<P align=justify><B>Intangible </B></P>
<P align=justify>The intangible is comprised of intellectual property which is
amortized on a straight-line basis over 36 months. </P>
<P align=justify><B>Impairment of Long-Lived Assets</B> </P>
<P align=justify>Long-lived assets, comprising property and equipment and
intangible, that are held and used by the Company are reviewed for possible
impairment whenever events or changes in circumstances indicate the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held
and used is measured by a comparison of the carrying amount of the assets to the
estimated undiscounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognized is
measured by the amount by which the carrying amount of the asset exceeds the
fair value thereof. </P>
<P align=justify><B>Income Taxes</B> </P>
<P align=justify>The Company accounts for income taxes in accordance with SFAS
109, "Accounting for Income Taxes". Deferred taxes are provided on the liability
method whereby deferred tax assets are recognized for deductible temporary
differences, and deferred tax liabilities are recognized for taxable temporary
differences. Temporary differences are the differences between the reported
amounts of assets and liabilities and their tax bases. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more
likely than not that some portion or all of the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of
changes in tax laws and rates on the date of enactment. </P>
<P align=justify>The Company is currently subject to a four year statute of
limitations by major tax jurisdictions. The Company and its subsidiaries file
income tax returns in Canada and the United States.</P>
<P align=center>F-11</P>
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<A name="page_24">
<p>
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> </font>
</A>

<font FACE="Times New Roman PS" size="3"><br>
</font>
<A name="page_24">
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
</p>
</A>

<P align="justify">
<B>3. Summary of Significant Accounting Policies (Cont'd)</B></P>
<P align="justify">
<B>Valuation of the Put Warrant Liability</B><BR>
</P>
<P align="justify">
The valuation of the warrant is determined by the Black-Scholes option pricing model. A warrant liability is determined in accordance with FAS 150, &#147;Accounting for Certain Financial Instruments with Characteristics of both Liabilities and
Equity&#148; (&#147;FAS 150&#148;). Based on FAS 150, warrants which are determined to be classified as liabilities are marked-to-market at each reporting period, with a corresponding non-cash gain or loss charged to the current period.<B> </B></P>
<P align="justify">
<B>Foreign Currency</B><BR>
</P>
<P align="justify">
It is management's view that the United States dollar best portrays the economic results of the worldwide operations and thereby best achieves the objectives of foreign currency translation. the method used to translate the results and
financial position for items and transactions denominated in non-US currencies are as follows: </P>
<P align="justify" style="margin-left: 25pt; margin-top: -11.5pt">
Monetary items &#150; at exchange rates in effect at the balance sheet date; <br>
Non-monetary items &#150; at exchange rates in effect on the dates
of the transactions;  <br>
Revenue and expenses &#150; at average exchange rates prevailing during the period, except for inventories and  amortization which are translated at rates prevailing when the related assets were acquired.
<br>
 Gains and losses arising from foreign currency translation are included in income. </P>
<P align="justify">
<B>Recently Issued Accounting Pronouncements</B><BR>
</P>
<P align="justify">
In March 2008, the Financial Accounting Standards Board issued SFAS Statement No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161"). This standard is intended to improve financial reporting about derivative
instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position, financial performance, and cash flows. It is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company is currently evaluating the impact, if any, that this statement will have on its disclosures related to derivative instruments and
hedging activities.</P>
<P align="justify">
The FASB issued FSP 133-1 and FIN 45-4, &#145;Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No.
161&#148;. This FSP is intended to improve disclosures about credit derivatives by requiring more information about the potential adverse effects of changes in credit risk on the financial position, financial performance, and cash flows of the
sellers of credit derivatives. In addition, it requires an additional disclosure about the current status of the payment/performance risk of a guarantee. It also clarifies the effective date in FASB Statement No. 161, Disclosures about Derivative
Instruments and Hedging Activities. This FSP is effective for reporting periods (annual or interim) ending after November 15, 2008. The Company is currently evaluating the impact of this statement on its consolidated financial statements. </P>
<P align="center">
F-12 </P>

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<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align="justify">
<B>3. Summary of Significant Accounting Policies (Cont'd)</B></P>
<P align="justify">
<B>Recently Issued Accounting Pronouncements</B><BR>
</P>
<P align="justify">
In October 2008, the FASB issued FSP No. FAS 157-3, &#147;Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active&#148; (&#147;FSP FAS 157-3&#148;), which clarifies the application of FAS 157 and provides an
example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. FSP FAS 157-3 applies to financial assets within the scope of accounting pronouncements that require
or permit fair value measurements in accordance with FAS 157. FSP FAS 157-3 was effective for the Company upon issuance on October 10, 2008 and the adoption did not have a material impact on the Company's consolidated financial statements. </P>
<P align="justify">
The FASB issued SFAS 162, &#147;The Hierarchy of Generally Accepted Accounting Principles&#148;. The new standard is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to
be used in preparing financial statements that are presented in conformity with U.S. generally accepted accounting principles (GAAP) for nongovernmental entities. Statement 162 is effective 60 days following the Securities and Exchanges Commission's
approval of the Public Company Accounting Oversight Board Auditing amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles. The Company is currently evaluating the impact of this
Statement on its consolidated financial statements. </P>
<P align="justify">
The FASB issued FSP APB-14-1, <I>Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)</I>. FSP APB 14-1 clarifies that convertible debt instruments that may be settled in cash
upon conversion (including partial cash settlement) are not addressed by paragraph 12 of APB Opinion No. 14, <I>Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants</I>. Additionally, this FSP specifies that issuers of such
instruments should separately account for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. This FSP is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. Early adoption is not permitted. The Company is currently evaluating the impact of this Statement on its consolidated financial
statements. </P>
<P align="justify">
The FASB issued SFAS 163, Accounting for Financial Guarantee Insurance Contracts. Statement 163 clarifies how FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises, applies to financial guarantee insurance contracts issued by
insurance enterprises, including the recognition and measurement of premium revenue and claim liabilities. It also requires expanded disclosures about financial guarantee insurance contracts. Statement 163 is effective for financial statements
issued for fiscal years beginning after December 15, 2008, and all interim periods within those fiscal years, except for disclosures about the insurance enterprise's risk-management activities, which are effective the first period beginning after
May 23, 2008. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. </P>
<P align="justify">
The FASB issued FSP FAS 142-3, Determination of the Useful Life of Intangible Assets. This FSP amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible
asset under FASB Statement No. 142, Goodwill and Other Intangible Assets. This FSP is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The Company is
currently evaluating the impact of this Statement on its consolidated financial statements.</P>
<P align="center">
F-13</P>

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<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align="justify">
<B>3. Summary of Significant Accounting Policies (Cont'd)</B></P>
<P align="justify">
<B>Recently Issued Accounting Pronouncements</B><BR>
</P>
<P align="justify">
The FASB issued FSP SOP 90-7-a, An Amendment of AICPA Statement of Position 90-7 Financial Reporting by Entities in Reorganization under the Bankruptcy Code. This FSP states that an entity emerging from bankruptcy that uses fresh-start reporting
would only follow the accounting standards in effect at the date of emergence as opposed to within the 12 months following the adoption of fresh-start reporting. This FSP is effective for financial statements issued subsequent to April 24, 2008. The
Company is currently evaluating the impact of this Statement on its consolidated financial statements. </P>
<P align="justify">
The FASB issued FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities. This FSP states that unvested share-based payment awards that contain nonforfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The FSP is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and interim periods within those years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. EITF 07-5, Determining Whether an Instrument (or Embedded Feature)
Is Indexed to an Entity's Own Stock was ratified by the FASB. This EITF addresses the determination of whether an instrument (or an embedded feature) is indexed to an entity's own stock. This EITF is effective for financial statements issued for
fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. </P>
<P align="justify">
EITF 08-3, Accounting by Lessees for Nonrefundable Maintenance Deposits was ratified by the FASB. This EITF prescribes the accounting for all nonrefundable maintenance deposits. This EITF is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. </P>
<P align="justify">
EIT 08-4, Transition Guidance for Conforming Changes to Issue No. 98-5, 'Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios' was ratified by the FASB. This EITF Integrates the
requirements of EITF 00-21 into EITF 98-5. This EITF is effective for financial statements issued for fiscal years ending after December 15, 2008. The Company is currently evaluating the impact of this Statement on its consolidated financial
statements. </P>
<P align="justify">
The FASB issued FSP FAS 132(R)-1, &#147;Employers' Disclosures about Postretirement Benefit Plan Assets&#148;. This FSP provides guidance on an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan.
This FSP also includes a technical amendment to Statement 132R that requires a nonpublic entity to disclose net periodic benefit cost for each annual period for which a statement of income is presented. This FSP is effective for fiscal years ending
after December 15, 2008. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. </P>
<P align="justify">
The EITF issued EITF 08-6, &#147;Equity Method Investment Accounting Considerations&#148;. This EITF considers whether all of the provisions of Statement 141(R) and Statement 160 should be applied when accounting for an equity method investment.
This EITF is effective on a prospective basis in fiscal years beginning on or after December 15, 2008 and interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial
statements. </P>
<p align="center">F-14</p>

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<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align="justify">
<B>3. Summary of Significant Accounting Policies (Cont'd)</B></P>
<P align="justify">
<B>Recently Issued Accounting Pronouncements</B><BR>
</P>
<P align="justify">
The EITF issued EITF 08-7, &#147;Accounting for Defensive Intangible Assets&#148;. This issue discusses how defensive intangible assets should be accounted for subsequent to their acquisition, including the estimated useful life that should be
assigned to such assets. This EITF is effective prospectively for intangible assets acquired on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company is currently evaluating the impact of
this Statement on its consolidated financial statements. </P>
<P align="justify">
The EITF issued EITF 08-8, &#147;Accounting for an Instrument (or an Embedded Feature) with a Settlement Amount That Is Based on the Stock of an Entity's Consolidated Subsidiary&#148;. This Issue addresses the determination of whether a financial
instrument for which the payoff to the counterparty is based, in whole or in part, on the stock of an entity's consolidated subsidiary, is indexed to the reporting entity's own stock and therefore should not be precluded from qualifying for the
first part of the scope exception in paragraph 11(a) of Statement 133 or being within the scope of Issue 00-19. This EITF is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years. The
Company is currently evaluating the impact of this Statement on its consolidated financial statements. </P>
<P align="justify">
In December 2007, FASB issued SFAS No. 141 (Revised 2007), &#147;Business Combinations&#148; (&#147;SFAS 141R&#148;). SFAS 141R will significantly change the accounting for business combinations. Under SFAS 141R, an acquiring entity will be required
to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. SFAS 141R will change the accounting treatment for certain specific acquisition related items including: (1)
expensing acquisition related costs as incurred; (2) valuing non-controlling interests at fair value at the acquisition date; and (3) expensing restructuring costs associated with an acquired business. SFAS 141R also includes a substantial number of
new disclosure requirements. SFAS 141R is to be applied prospectively to business combinations for which the acquisition date is on or after January 1, 2009. We expect SFAS 141R will have an impact on our accounting for future business combinations
once adopted but the effect is dependent upon the acquisitions that are made in the future.</P>
<P align="justify">
In December 2007, the FASB issued SFAS No. 160, &#147;Non-controlling Interests in Consolidated Financial Statements&#148; (&#147;SFAS 160&#148;). SFAS 160 establishes new accounting and reporting standards for the non-controlling interest in a
subsidiary and for the deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary (minority interest) is an ownership interest in the consolidated entity that should be reported as equity in the Consolidated
Financial Statements and separate from the parent company's equity. Among other requirements, this statement requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the
non-controlling interest. It also requires disclosure, on the face of the Consolidated Statement of Operations, of the amounts of consolidated net income attributable to the parent and to the non-controlling interest. The guidance will become
effective for the fiscal year beginning after December 15, 2008. We expect SFAS No. 160 will have an impact on our accounting for future business combinations once adopted but the effect is dependent upon the acquisitions that are made in the
future.</P>
<P align="center">
F-15</P>

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<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align=justify><B>4. Adoption of New Accounting
Standards</B></P>
<P align=justify><B>Fair Value Measurements </B><BR></P>
<P align=justify>FAS 157 is effective for financial assets and liabilities in
fiscal years beginning after November 15, 2007, and for non-financial assets and
liabilities in fiscal years beginning after November 15, 2008. The Company
adopted FAS 157 for financial assets and liabilities in the first quarter of
fiscal 2009 with no material impact to the consolidated financial statements.
The Company is currently evaluating the potential impact of the application of
FAS 157 on the non-financial assets and liabilities found on its consolidated
financial statements. </P>
<P align=justify>FAS 157 applies to all assets and liabilities that are being
measured and reported on a fair value basis. FAS No. 157 requires new disclosure
that establishes a framework for measuring fair value in GAAP, and expands
disclosure about fair value measurements. This statement enables the reader of
the financial statements to assess the inputs used to develop those measurements
by establishing a hierarchy for ranking the quality and reliability of the
information used to determine fair values. The statement requires that assets
and liabilities carried at fair value be classified and disclosed in one of the
following three categories: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Level 1: </TD>
    <TD align=left bgColor=#e6efff>Quoted market prices in active
      markets for identical assets or liabilities. </TD></TR>
  <TR vAlign=top>
    <TD align=left>Level 2: </TD>
    <TD align=left>Observable market based inputs or unobservable
      inputs that are corroborated by market data. </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Level 3: </TD>
    <TD align=left bgColor=#e6efff>Unobservable inputs that are
      not corroborated by market data. </TD></TR></TABLE>
<P align=justify>In determining the appropriate levels, the Company performs a
detailed analysis of the assets and liabilities that are subject to FAS 157. At
each reporting period, all assets and liabilities for which the fair value
measurement is based on significant unobservable inputs are classified as Level
3. </P>
<P align=justify>The following summarizes the changes in the fair value of the
convertible notes for the year ended January 31, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><B>Opening Balance - January 31, 2008</B>
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><B>&nbsp;682,508</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest accretion </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>167,492</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Conversion of notes to 850,000 common shares on May 22,
      2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(850,000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Ending Balance &#150; January 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;Nil</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>The loan receivable uses significant unobservable inputs and
thus are shown as Level 3 hierarchy items. The fair value of the loan receivable
is calculated by discounting the stream of future receipts of interest and
principal at the prevailing market rate for a similar receivable. Results of
discounted cash flow calculations may be adjusted, as appropriate, to reflect
other market conditions or the perceived changes in the credit risk of the
lender. The loan receivable is recorded at fair value on a non recurring
basis.</P>
<P align=center>F-16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_29></A>

<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align=justify><B>4. Adoption of New Accounting Standards (Cont'd)</B><BR></P>
<P align=justify>The following summarizes the changes in the fair value of the
loan receivable for the year ending January 31, 2009:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><B>Opening Balance - January 31, 2008</B>
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><B>&nbsp;2,200,158</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Modification of balance due to Second Amendment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(1,192,978</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Discount net of interest accretion </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(54,491</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Write-down of
      balance </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(952,689</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Ending Balance &#150; January 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;Nil</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>Fair Value of Financial Instruments</B><BR></P>
<P align=justify>Following are the assets and liabilities recognized on the
balance sheet on a recurring basis. The table below presents the carrying value
and fair value of Company's financial instruments. The disclosure excludes
leases.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="23%"
    colSpan=4><B>January 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="23%"
    colSpan=4>January 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="10%"><B>Carrying</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="10%"><B>Estimated</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="10%">Carrying </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="10%">Estimated </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%"><B>Value</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%"><B>Fair Value</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%">Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="10%">Fair
      Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Financial assets</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;193,517</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;193,517</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;20,967 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;20,967 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Term deposit </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">505,301 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">505,301 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Loan receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,200,158 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,200,158 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Financial liabilities</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Bank indebtedness </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,102,311 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,102,311 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accounts payable and
      accrued liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>1,648,023</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>1,648,023</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>920,396 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>920,396 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Government grants payable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>17,533</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>17,533</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">27,036 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">27,036 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Convertible notes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>682,508 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>682,508 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Senior secured convertible debentures
    </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>171,527</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>2,880,450</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Put warrants </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>3,600,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>3,600,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Put option liability </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>67,555</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>67,555</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P align=center>F-17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_30>

<p>
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> </font>
</A>
<font FACE="Times New Roman PS" size="3"><br>
</font>
<A name=page_30>

<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
</p>
</A>
<P align=justify><B>4. Adoption of New Accounting Standards (Cont'd)</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="36%"
    colSpan=7><B>Fair Value Measurement at January 31, 2009 Using</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Quoted Prices in</B> </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap>&nbsp; </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap>&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Active Markets</B> </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Significant Other</B> </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Significant</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>For Identical</B> </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Observable</B> </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Unobservable</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Assets</B> </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Inputs</B> </TD>
    <TD align=center width="2%" nowrap >&nbsp;</TD>
    <TD align=center width="1%" nowrap >&nbsp;</TD>
    <TD align=center width="10%" nowrap><B>Inputs</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Description</B>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%" nowrap><B>(Level 1)</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%" nowrap
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%" nowrap
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%" nowrap><B>(Level 2)</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%" nowrap
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%" nowrap
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%" nowrap><B>(Level 3)</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Convertible notes </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Put warrants </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>3,600,000</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Put option liability </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>67,555</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>The fair value represents management's best estimates based on
a range of methodologies and assumptions. The carrying value of receivables and
payables arising in the ordinary course of business, the term deposit and the
government grants payables approximate fair value because of the relatively
short period of time between their origination and expected realization.</P>
<P align=justify>The convertible notes use significant unobservable inputs and
thus are shown as Level 3 hierarchy items. The fair value of the convertible
notes is calculated by discounting the stream of future payments of interest and
principal at the prevailing market rate for a similar liability that does not
have an associated equity component. Results of discounted cash flow
calculations may be adjusted, as appropriate, to reflect other market conditions
or the perceived changes in credit risk of the borrower. The convertible notes
were recorded as accretion of discount on the consolidated statement of
operations.</P>
<P align=justify>Put warrants were valued using the binomial method. </P>
<P align=justify>Put option liability was recorded as the value of the exercise
price multiplied by the number of put options. </P>
<P align=justify><B>5. Accounts Receivable</B></P>
<P align=justify>The Company has entered into an agreement with a Canadian
government agency to guarantee certain accounts receivable as to credit risk. As
at January 31, 2009, approximately $416,000 (2008 - $854,000) of accounts
receivable are guaranteed. </P>
<P align=justify><B>6. Inventories</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Raw materials </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;198,684</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;701,222 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Finished goods </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>1,294,124</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">1,724,955 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;1,492,808</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;2,426,177 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>Total goods in transit included in raw materials and finished
goods is approximately $nil (2008 - $114,000) and $130,000 (2008 - $76,000)
respectively. A provision for inventory has been recorded as at January 31, 2009
of approximately $192,000 (2008 - $20,000).</P>
<P align=center>F-18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_31><A name=page_30>

<p>
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> </font>
</A>
<font FACE="Times New Roman PS" size="3"><br>
</font>
<A name=page_30>

<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
</p>
</A>
</A>
<P align=justify><B>7. Property and Equipment</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>January 31,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">January 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>2009</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2008 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Accumulated </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Net Carrying</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Net Carrying </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">Cost
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">Amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>Amount</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">Amount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Machinery and equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;582,322 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;542,091 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;40,231</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;39,659 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Furniture and fixtures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">142,530 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">122,470 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>20,060</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">18,965 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Computer equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>205,262 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>177,523 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>27,739</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>26,854 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;930,114 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;842,084 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>&nbsp;88,030</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;85,478 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>8. Acquisition of WES Power Technology Inc. (&#147;WES&#148;) </B></P>
<P align=justify>On March 5, 2008, the Company executed a Share Purchase
Agreement ("Agreement") with the majority shareholders of WES Power Technology
Inc. ("WES Majority Shareholders"), pursuant to which the Company purchased from
the WES majority shareholders all of the issued and outstanding shares of WES.
This Agreement supersedes and annuls the share purchase agreement signed between
the parties on August 27, 2007.<B> </B></P>
<P align=justify>Under the terms of the Agreement, the Company acquired 100% of
all of the shares of WES for the following consideration:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>A cash consideration of $1;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>Issuance by the Company of 104,050 shares of its common
      shares;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Issuance by the Company of 250,000 warrants to purchase
      common shares of the Company. The warrants will expire on March 5, 2013
      and have an exercise price of $0.50;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>Execution of employment agreements by the Company with
      each of the WES Majority Shareholders.</P></TD></TR></TABLE>
<P align=justify>The total consideration to acquire the net assets of WES, was
$134,831 including transaction costs. The excess consideration paid over the
purchase price of $174,114 is accounted for as part of the intellectual
property.</P>
<P align=center>F-19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_32></A>

<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align=justify><B>8. Acquisition of WES Power Technology Inc. (&#147;WES&#148;) (Cont'd)
</B></P>
<P align=justify>The assigned values of the assets and liabilities purchased
based on our preliminary allocation are as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 1">Assets Acquired: </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="12%" style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;92,100</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Property and equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>16,855</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Intellectual property </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>174,114</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total Assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>&nbsp;283,069</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Liabilities Assumed: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;96,794</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-term debt </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>51,444</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Total Liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>148,238</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net Assets at Fair
      Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>&nbsp;134,831</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Consideration: </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;1</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Issuance of 104,050 common shares </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>45,980</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Issuance of 250,000 warrants </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>63,850</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transaction costs
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>25,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Total Consideration</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;134,831</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>The common shares were attributed a fair value of $0.44 per
share which represents the average of the closing price two days before and two
days after the date of acquisition. </P>
<P align=justify>The warrants were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following
assumptions: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">75% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">5 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2.59% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Weighted average fair value of warrants at grant date </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;0.2554 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P align=center>F-20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_33></A>

<P align="justify">
<font FACE="Times New Roman PS" size="3"><b>
ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds)
</b></font>
<BR>
</P>
<P align=justify><B>8. Acquisition of WES Power Technology Inc. (&#147;WES&#148;) (Cont'd)
</B></P>
<P align=justify>Following is a table which represents the pro-forma
consolidated statement of operations as if the acquisition of WES Power
Technology Inc. had taken place on February 1, 2007. </P>
<P align=center><B>Pro-forma Consolidated Statement of Operations
</B><BR><B>Wes Technology Acquisition as of February 1, 2007</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center colSpan=9>&nbsp;<B>Year Ended</B>&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=9>&nbsp;<B>January 31, 2009</B>&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>ICP Solar</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Wes Power</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>Technologies Inc.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>Technology Inc.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Sales</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;5,903,196</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="10%" bgColor=#e6efff><B>&nbsp;5,903,196</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Expenses</B>
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>15,158,804</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>29,859</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>15,188,663</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Net Loss</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>&nbsp;(9,255,608</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>&nbsp;(29,859</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>&nbsp;(9,285,467</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#FFFFFF>&nbsp; </TD>
    <TD width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD width="10%" bgColor=#FFFFFF>&nbsp; </TD>
    <TD width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD width="10%" bgColor=#FFFFFF>&nbsp; </TD>
    <TD width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD width="10%" bgColor=#FFFFFF>&nbsp; </TD>
    <TD width="2%"  bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=9 bgcolor="#FFFFFF">&nbsp;Year Ended&nbsp; </TD>
    <TD align=center width="2%" bgcolor="#FFFFFF" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center bgColor=#FFFFFF colSpan=9>&nbsp;January 31, 2008&nbsp;
</TD>
    <TD align=center width="2%"  bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD align=left width="1%" bgcolor="#FFFFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#FFFFFF">ICP Solar </TD>
    <TD align=left width="2%" bgcolor="#FFFFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#FFFFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#FFFFFF">Wes Power </TD>
    <TD align=left width="2%" bgcolor="#FFFFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#FFFFFF" >&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#FFFFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#FFFFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#FFFFFF>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF>Technologies Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF>Technology Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Sales </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">&nbsp;6,541,232 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">&nbsp;132,372 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">&nbsp;6,673,604 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#FFFFFF>Expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF>10,763,970 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF>119,156 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF>10,883,126 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">Net Loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF">&nbsp;(4,222,738</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF">&nbsp;13,216 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF">&nbsp;(4,209,522</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >) </TD></TR></TABLE>
<P align=center>F-21 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>


<!--$$/page=--><A name=page_1></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>9. Sale of 100% of Shares of ICP UK </B></P>
<P align=justify>On May 9, 2007, the Company signed a Share Purchase Agreement
(the &#147;Agreement&#148;) with ISE LLC (&#147;ISE&#148;). Under the terms of the Agreement, the
Company sold 85% of the shares of ICP UK (name changed to Epod Solar (Wales)
Ltd. ("EPOD") on June 26, 2007) for an aggregate amount of $3,000,000. On May
10, 2007, the Company and ISE signed an Amendment to the Agreement, revising the
modalities of payment. These modalities were subsequently changed on April 18,
2008, when the Company and ISE signed a second Amendment to the Agreement
(&#147;Second Amendment&#148;), and the remaining 15% interest of the Company in EPOD was
transferred to ISE for $10 on July 30, 2008. Based on the Second Amendment, ISE
is to pay the Company an amount equivalent to $3,000,000 as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD>
      <P align=justify>$150,000 was paid upon signing of the original Agreement
      and $350,000 in kind in the form of solar panels;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD>
      <P align=justify>An additional $150,000 upon signing the Second Amendment
      and $19,827 in kind in the form of solar panels and;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">c) </TD>
    <TD>
      <P align=justify>The outstanding balance of the loan is forgiven by
      $88,973;</P></TD></TR></TABLE>
<P align=justify>The remaining amount due to ICP Solar Technologies Inc. of
$2,241,200 has the following terms:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">i) </TD>
    <TD>
      <P align=justify>A loan receivable in the principal amount of $1,060,600, non-interest bearing, shall be paid in cash
      on a monthly basis of $40,000 per month commencing on the Second Amendment
      date until the balance is fully paid. This loan has been discounted to a
      fair value of $927,162 based on an effective interest rate of 12%. As at
      January 31, 2009, $78,947 of the discount has been amortized. The loan has
      been written down to $Nil because no repayments have been made neither in
      cash or in-kind since May 2008 and collectability was not
  assured.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>The Company  participated in EPOD's convertible
      debenture financing round on August 8, 2008 and received 1,180 units in lieu of the remaining
      $1,180,000 CDN owing. Each unit consisted of a $1,000 CDN face value 12%
      convertible debenture due August 8, 2011.</P></TD></TR></TABLE>
<P align=justify>The 667 warrants are convertible into 667 common shares of EPOD
at an exercise price of $3 per share. The warrants expire in one year after EPOD
files for an initial public offering on the TSX or TSX Venture Exchange ("IPO").
</P>
<P align=justify>The convertible debenture will automatically convert into
common shares of EPOD at a rate of $1.50 per share, one year after EPOD files an
IPO. The Company has the option to convert after EPOD files its IPO but prior to
the one year automatic conversion date at a conversion price of the lesser of
$1.20 per share and an amount calculated based on a formula. The convertible
debenture matures on February 12, 2011. </P>
<P align=justify>The investment in the convertible debenture value of $967,600
has been written down to $1.00 due to the uncertainty in the initial public
filing referred to above. A fair value has not been allocated to the warrants as
it has been determine that their value is nominal. </P>
<P align=justify>Both the convertible debenture and the loan receivable have
been assigned to the Senior Secured Convertible Debenture holders (note 12).</P>
<P align=center>F-22</P>
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noShade SIZE=5>
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<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>10. Bank Indebtedness </B></P>
<P align=justify>The Company paid off its bank indebtedness on June 19, 2008. At
that time all security held by the bank was released.</P>
<P align=justify><B>11. Put Option Liability </B></P>
<P align=justify>On January 20, 2009, as payment for consulting fees to a
director the Company issued 326,000 put options in relation to 326,000 shares
issued for $47,000 (note 15). The option entitles the holder of the option to
sell all or any portion of the 326,000 shares back to the Company for a price of
$0.144 Canadian per share during the period June 22, 2009 to June 22, 2010. The
value of these put options was calculated based on the option price multiplied
by the number of options acquired and are $ 37,555. </P>
<P align=justify>On January 22, 2009, as payment for consulting fees to
suppliers, the Company issued 200,000 put options in relation to 200,000 shares
issued for $30,000 (note 15). The option entitles the holder the option to sell
all or any portion of the 200,000 back to the Company for a price of $0.15 per
share during the period June 22, 2009 to June 22, 2010. The value of these put
options was calculated based on the option price multiplied by the number of
options acquired and are $ 30,000.</P>
<P align=justify><B>12. Senior Secured Convertible Debentures </B></P>
<P align=justify>On June 13, 2008 the Company entered into convertible debenture
agreements with investors for amounts totaling gross $3,333,333. The debentures were
issued with a 10% discount. The terms of the debenture require capital
repayments to commence November 1, 2008 and will be repaid in 18 equal monthly
installments. The convertible debentures bear interest at the rate of 11% per
annum and are repayable on June 13, 2010. Interest is payable monthly. The
Company may, at its option, elect to pay the interest by the issuance of shares
of common stock provided certain conditions are met on each of the twenty
business days immediately preceding the date of payment. The number of shares is
to be determined by dividing the amount of the interest payment by the interest
share conversion price which will be the lower of the share price on the
interest payment date or the share delivery date. The full face value of the
debentures is convertible into common stock of the Company, at the option of the
holders, at a rate of $0.50 per share.</P>
<P align=justify>The Company also issued to the holders: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Series A stock purchase warrants to purchase 6,666,666 shares at an
  exercise price of $0.50 per share
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Series B stock purchase warrants to purchase 6,666,666 shares at an
  exercise price of $1.00 per share
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Series C stock purchase warrants to purchase 6,666,666 shares at an
  exercise price of $1.00 per share </LI></UL>
<P align=justify>The Series A and B warrants are exercisable immediately;
however, the Series C warrants are only exercisable once the Series A and B
warrants have been fully exercised. </P>
<P align=justify>The Company paid approximately $383,000 in cash consideration
for transaction costs. In addition, transaction costs were incurred through the
issuance of warrants . These transaction costs were expensed. </P>
<P align=justify>On November 5, 2008 the Company repaid $842,851 of the
debentures including $36,211 in interest. </P>
<p align="center">F-23</p>
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<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>12. Senior Secured Convertible Debentures (Cont'd) </B></P>
<P align=justify>On December 31, 2008 the Company revised the terms and amended
the convertible debenture agreements: </P>
<P align=justify>The outstanding principal and interest at December 31, 2008 of
$2,568,425 was revised to 115% or $2,953,688 resulting in recognition of a
discount of $385,263. </P>
<P align=justify>The conversion price was reduced from $0.50 to $0.25. </P>
<P align=justify>The repayment terms were amended whereby the outstanding
principal and interest at May 31, 2009 shall be repaid in 13 equal monthly
installments commencing on June 1, 2009. </P>
<P align=justify>The total number of warrants issued of 53,333,328 and their
exercise price were revised as follows: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Series A stock purchase warrants to purchase 13,333,332 shares at an
  exercise price of $0.25 per share from an initial exercise price of $0.50 per
  share;<LI>
  <p style="margin-top: 0; margin-bottom: 0">Series B stock purchase warrants to purchase 26,666,664 shares at an
  exercise price of $0.25 per share from an initial exercise price of $0.50 per
  share; and</LI>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">Series C stock purchase warrants to purchase 13,333,332 shares
at an exercise price of $0.50 per share from an initial exercise price of $1.00
  per share;</LI></UL>
<P align=justify>As a result of this December 31, 2008 amendment, the Company
has recorded a gain of $602,726 in accordance with EITF 96-19 whereby the old
convertible debenture balance was written off and replaced by the new
convertible debenture balance because its discounted fair value was greater by
10% of the discounted fair value under the old terms. The $2,708,934 discount
against the new convertible debenture balance of $2,880,450 recorded will be
amortized over the remaining 17 months of the debenture.</P>
<P align=justify>The Company has agreed to remit to the holders commencing on
February 1, 2009 10% of its weekly collections and any and all monthly receipts
on the EPOD loan receivable until the Senior Secured Convertible Debentures have
been repaid in full.</P>
<P align=justify>It shall constitute an event of default if the Company's
revenues for the fiscal quarter ended April 30, 2009 are less than $1,500,000 or
the Company's revenues for the fiscal quarter ended July 31, 2009 are less than
$2,000,000 or the Company's EBITDA for the fiscal quarter ended July 31,2009 is
less than $(125,000) or if the Company's accounts payable balance shall have
exceeded $1,750,000 at any time until maturity or if the Company breaches any
term or condition of the Amendment Agreement of December 31, 2008. </P>
<P align=justify>The warrants contain a put feature which enables the holder to
require the Company to redeem the warrants for cash. The Company accounted for
the warrants issued to the investors as a liability under the provisions of FAS
150, &#147;Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity&#148; (&#147;FAS 150&#148;). The fair value of the warrants of
$3,600,000 exceeded the notional amount of the convertible debentures net of the
10% discount, as such the excess amount of, approximately $600,000 was expensed
as interest.</P>
<p align="center">F-24</p>
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<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>12. Senior Secured Convertible Debentures (Cont'd) </B></P>
<P align=justify>The Binomial Valuation Model was used to calculate the fair
value of the warrants. The underlying assumptions included in the Binomial
Valuation Model to value the warrants at January 31, 2009 were as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Series A and
      B Warrants: </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp;Exercise Price </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">0.25 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Expected volatility </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">90.22% </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp;Early exercise Factor </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">1.84 years </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Contractual life </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">5.5 years </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp;Risk-free interest rate </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">1.85 % </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Dividend yield </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">&nbsp;Fair value
      of warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" bgcolor="#E6EFFF">0.07
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Series C Warrants:
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp;Exercise Price </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">0.50 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Expected volatility </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">90.22% </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp;Early exercise Factor </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">1.84 years </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Contractual life </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">5.5 years </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp;Risk-free interest rate </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">1.85 % </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Dividend yield </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">&nbsp;Fair value
      of warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" bgcolor="#E6EFFF">0.06
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR></TABLE>
<P align=justify>In January 2009, 400,000 common shares were issued on
conversion of $100,000 of convertible debenture (note 15).<B> </B></P>
<P align=justify>Substantially all of the assets of the Company have been
pledged as security of the convertible notes. As at January 31, 2009,
approximately $215,000 of interest has been paid, and $1,998,000 of the discount
on the debt has been accreted.</P>
<P align=justify><B>Registration Rights</B></P>
<P align=justify>In connection with the issuance of the Convertible Debentures,
the Company is required to file a Registration Statement to register the shares
issuable upon exercise of the additional warrants. The Company will be obligated
to pay the holders of the Debentures certain liquidation damages in the event
the shares are not registered by June 1, 2009. Liquidation damages would amount
to 2% of the aggregate purchase price paid by the debenture holders.</P>
<P align=center>F-25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>13. Commitments </B></P>
<P align=justify>Minimum lease payments, exclusive of occupancy and escalation
charges, under an operating lease, expiring in 2012, are approximately as
follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>2010 </TD>
    <TD align=left width="1%" bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;23,000</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>2011 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>23,000</B> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>2012 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2,000</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>During the year, the Company incurred rental expenses amounting
to approximately $28,000 (2008 - $25,000). </P>
<P align=justify>In accordance with a royalty agreement terminating in 2012, the
Company is committed to annual minimum advertising expenditures and royalty
fees, totaling approximately as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>2010 </TD>
    <TD align=left width="1%" bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;128,000</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>2011 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>128,000</B> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>2012 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>128,000</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>14. Contingencies </B></P>
<P align=justify><B>Litigation</B></P>
<P align=justify>The Company is involved in litigation and claims which arise
from time to time in the normal course of business amounting to approximately
$178,000. In the opinion of management, any liability that may arise from such
contingencies would not have a significant adverse effect on the financial
statements of the Company. </P>
<P align=justify><B>15. Capital Stock </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%"><B>January 31,</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">January 31, </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%">&nbsp; 2008</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Authorized without limit as to number - </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">100,000,000 common shares authorized, $0.00001 par value
</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">100,000,000 preferred shares authorized, $0.00001 par value
    </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Issued - </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>35,061,995 (2008 &#150;
      32,719,445) common shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%"><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>&nbsp;351</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%">328
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<p align="center">F-26</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_6></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>15. Capital Stock (Cont'd) </B></P>
<P align=justify>On September 5, 2007, convertible notes in the amount of
$250,000 were converted into 250,000 common shares. </P>
<P align=justify>On September 7, 2007, the Company issued 550,000 common shares
from treasury as a result of the exercise of 550,000 warrants on July 26, 2007
for cash consideration of $550,000. </P>
<P align=justify>On September 19, 2007, the Company issued 69,445 common shares
from treasury as payment of the interest of $200,000 as per the terms of the
convertible notes. </P>
<P align=justify>On October 7, 2007, convertible notes in the amount of
$1,400,000 were converted into 1,400,000 common shares. </P>
<P align=justify>On November 7, 2007, the Company issued 450,000 common shares
from treasury as a result of the exercise of 450,000 warrants for cash
consideration of $450,000. </P>
<P align=justify>On November 8, 2007, the Company issued 1,000,000 common shares
from treasury as a result of the exercise of 1,000,000 warrants for cash
consideration of $1,000,000. </P>
<P align=justify>On March 5, 2008, the Company issued 104,050 common shares as
part of the consideration to acquire all of the issued and outstanding shares of
WES Power Technology Inc. (note 8). </P>
<P align=justify>On April 15, 2008, the Company issued 200,000 common shares
from treasury as a result of the exercise of 200,000 warrants on April 15, 2008
for cash consideration of $100,000. </P>
<P align=justify>On April 15, 2008, the Company issued 262,500 common shares
from treasury as a result of the cashless exercise of 525,000 warrants with an
exercise price of $0.50 and a fair value of $1.00. These warrants were initially
granted and the resulting expense was recognized as consulting fees to a
director and former Chief Financial Officer of the Company on May 18, 2007.<B>
</B></P>
<P align=justify>On May 22, 2008 850,000 common shares were issued on conversion
of $850,000 of convertible notes. </P>
<P align=justify>On January 9, 2009 200,000 common shares were issued on
conversion of $50,000 of Senior Secured Convertible Debentures. </P>
<P align=justify>On January 20, 2009 326,000 common shares were issued for
$47,000 as payment to a director for consulting fees. On January 22, 2009
200,000 common shares were issued for $30,000 as payment to suppliers for
consulting fees. On January 22, 2009 200,000 common shares were issued on
conversion of $50,000 of Senior Secured Convertible Debentures.</P>
<P align=center>F-27 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>16. Additional Paid-In Capital </B></P>
<P align=justify><B>Stock Options </B></P>
<P align=justify>In November 2006, the Company adopted the 2006 Stock Incentive
Plan ("Plan") for the purpose of issuing both Incentive Options and Nonqualified
Options to officers, employees, directors and eligible consultants of the
Company. A total of 2,000,000 shares of common stock are reserved for issuance
under this plan. Options may be granted under the Plan on terms and at prices as
determined by the Board of Directors or by the plan administrators appointed by
the Board of Directors, except that the options cannot be granted with an
exercise price of less than 75% of the fair market value of the common stock on
the date of the grant. Each option will be exercisable after the period or
periods specified in the option agreement, but no option may be exercised after
the expiration of 10 years from the date of grant. </P>
<P align=justify>During the second quarter of fiscal 2008, for the first time,
the Company granted 1,907,500 options to certain of its employees and directors
to purchase common shares. The stock options are exercisable at a range of $2.25
to $2.35 per share and have a vesting period of 24 months with 25% of the
options granted becoming exercisable every six months commencing from the date
of grant. On February 14, 2008 (see a) below) the Company revised the exercise
price to $0.50 per share.<B> </B></P>
<P align=justify>The following summarizes the Plan position for the year: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>Weighted</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>Average</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>Options</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>Exercise Price</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance - January 31, 2007 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Granted </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,907,500</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>2.25</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(492,500</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>2.25</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance - January 31, 2008 (see 16 a) below) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,415,000</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>0.50</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Granted </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>310,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>0.50</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exercised </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Expired </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(385,000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>0.50</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Balance - January 31, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1,340,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>0.50</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Options that can be exercised at January 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>381,250</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>2.26</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Options that can be exercised at January 31, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>895,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;0.50</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=center>F-28&nbsp; </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_8></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>16. Additional Paid-In Capital (Cont'd) </B></P>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" DIR="ltr" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td align="center">&nbsp;</td>
    <td COLSPAN="2" align="center" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Outstanding options</b></font></td>
    <td align="center" width="5%">&nbsp;</td>
    <td align="center" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Exercisable options</b></font></td>
  </tr>
  <tr>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-top-style: solid; border-top-width: 1" nowrap>
    <font SIZE="2"><b>Weighted average</b></font></td>
    <td align="center" width="5%" nowrap>&nbsp;</td>
    <td align="center" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td align="center" width="19%" nowrap>&nbsp;</td>
    <td align="center" width="19%" nowrap>&nbsp;</td>
    <td align="center" width="19%" nowrap><font SIZE="2"><b>outstanding</b></font></td>
    <td align="center" width="5%" nowrap>&nbsp;</td>
    <td align="center" width="19%" nowrap>&nbsp;</td>
    <td align="center" width="19%" nowrap><font SIZE="2"><b>Weighted</b></font></td>
  </tr>
  <tr>
    <td align="center" nowrap><font SIZE="2"><b>Range of</b></font></td>
    <td align="center" nowrap><font SIZE="2"><b>Number of</b></font></td>
    <td align="center" nowrap><font SIZE="2"><b>maturity period</b></font></td>
    <td align="center" width="5%" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2"><b>Number of</b></font></td>
    <td align="center" nowrap><font SIZE="2"><b>Average</b></font></td>
  </tr>
  <tr>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2"><b>Exercise Prices</b></font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2"><b>options</b></font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2"><b>period (years)</b></font></td>
    <td align="center" width="5%" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2"><b>options</b></font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2"><b>Exercise Price</b></font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1" bgcolor="#E6EFFF">
    <font SIZE="2">$ <b>0.50</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6EFFF">
    <font SIZE="2"><b>1,045,000</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6EFFF">
    <font SIZE="2"><b>8.30</b></font></td>
    <td align="right" width="5%" bgcolor="#E6EFFF">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6EFFF">
    <font SIZE="2"><b>783,750</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6EFFF">
    <font SIZE="2"><b>$ 0.50</b></font></td>
  </tr>
  <tr>
    <td><font SIZE="2"><b>&nbsp;&nbsp; 0.50</b></font></td>
    <td align="right"><font SIZE="2"><b>75,000</b></font></td>
    <td align="right"><font SIZE="2"><b>8.40</b></font></td>
    <td align="right" width="5%">&nbsp;</td>
    <td align="right"><font SIZE="2"><b>56,250</b></font></td>
    <td align="right"><font SIZE="2"><b>0.50</b></font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>&nbsp;&nbsp; 0.50</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>220,000</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>9.05</b></font></td>
    <td align="right" width="5%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>55,000</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>0.50</b></font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6EFFF">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6EFFF">
    <font SIZE="2"><b>1,340,000</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6EFFF">&nbsp;</td>
    <td align="right" width="5%" bgcolor="#E6EFFF">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6EFFF">
    <font SIZE="2"><b>895,000</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6EFFF">&nbsp;</td>
  </tr>
</table>
<P align=justify>During the year ended January 31, 2009, the Company recognized
$1,201,829 in stock-based compensation for stock options in 2009 (2008 -
$1,088,828). As at January 31, 2009, the Company has $319,875 (2008 &#150;
$1,521,705) of unrecognized stock-based compensation on these options. </P>
<P align=justify>The stock options were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following weighted
average assumptions: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">57% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">5.75 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>4.75 % </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Weighted average
      fair value of options at grant date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;2.06 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify><B>a) Modification of Exercise Price </B></P>
<P align=justify>On February 14, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price of the options issued and
outstanding pursuant to the Company's 2006 Stock Incentive Plan from $2.25 -
$2.35 to $0.50. This modification of the options to purchase common stock of the
Company was applied to a total of 1,415,000 options issued to employees and
Directors between May 18, 2007 and February 13, 2008.</P>
<p align="center">F-29</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_9></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>16. Additional Paid-In Capital (Cont'd) </B></P>
<P align=justify>This modification will be accounted for by recording, over the
vesting period, the difference between the fair value immediately prior to the
modification and the fair value determined at the date of modification. As a
result of this modification, the Company recorded an incremental compensation
expense of $190,532 for the year ended January 31, 2009 and $27,300 will be
expensed over the remaining vesting period. The fair value was determined by the
Black Scholes valuation model using the following weighted average assumptions:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">76% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">5.38 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2.71 % </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Weighted average
      fair value of options at modification date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.30 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify><B>b) Grant </B></P>
<P align=justify>On February 14, 2008, the Company issued a total of 45,000
stock purchase options to current employees and 190,000 options to current
Directors, vesting over a two year period, 25% every six months and vesting on
August 14, 2008, respectively. These options have an exercise price of $0.50,
and expire on February 14, 2018 with the exception of 100,000 options which
expire on August 14, 2018. As a result of the grant, the Company recorded a
compensation expense of $51,774 for the year ended January 31, 2009, and $5,759
will be expensed over the remaining vesting period.</P>
<P align=justify>The options were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following weighted
average assumptions: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">76% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">5.65 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2.81% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Weighted average
      fair value of options at grant date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.306 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>On May 6, 2008, the Company issued a total of 75,000 stock
purchase options to the Company's Chief Financial Officer, vesting over a two
year period, 25% every six months. The options have an exercise price of $0.50
and expire on May 6, 2013. The Company recorded a compensation expense of $
8,453 for the year ended January 31, 2009, and will recognize the remaining
expense of $14,089 over the vesting period. </P>
<P align=center>F-30</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_10></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>16. Additional Paid-In Capital (Cont'd) </B></P>
<P align=justify>The options were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following
assumptions:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">76% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">3.25 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>4.58% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Weighted average
      fair value of options at grant date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.376 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify><B>Warrants </B></P>
<P align=justify><B>a) Modifications of Exercise Price </B></P>
<P align=justify>On February 14, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price from $2.25 to $0.50 of the
common stock purchase warrants issued on May 18, 2007, as consulting fees, to a
member of the immediate family of the President and Chief Executive Officer of
the Company (100,000 warrants) and to a Director and the former Chief Financial
Officer of the Company (525,000 warrants).<B> </B></P>
<P align=justify>This modification was accounted for by recording the difference
between the fair value immediately prior to the modification and the fair value
determined at the date of modification. As a result of this modification, the
Company recorded an incremental compensation expense of $110,000 for the year
ended January 31, 2009 as determined by the Black-Scholes-Merton valuation model
using the following assumptions: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">76% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2.63 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2.01 % </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Weighted average
      fair value of warrants at modification date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.2161 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>On March 25, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price from $1.00 to $0.50 of the
remaining 3,000,000 common share purchase warrants issued in 2006.</P>
<P align=center>F-31</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_11></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>16. Additional Paid-In Capital (Cont'd) </B></P>
<P align=justify>This modification was accounted for by recording the difference
between the fair value immediately prior to the modification and the fair value
determined at the date of modification. As a result of this modification, the
Company recorded an incremental compensation expense of $50,700 for the year
ended January 31, 2009 as determined by the Black Scholes valuation model using
the following assumptions: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">104% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">4 months </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1.24 % </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Weighted average
      fair value of warrants at modification date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.0196 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify><B>b) Grant and Exercise </B></P>
<P align=justify>On February 27, 2008, the Company granted as consulting fees a
total of 335,000 common share purchase warrants at $0.50 per share, vesting over
a four year period, 20% annually and 20% vesting immediately. The warrants
expire on February 27, 2013. As a result of the grant of warrants, the Company
recorded a consulting fee expense of $28,894 for the year ended January 31,
2009. </P>
<P align=justify>The warrants accounted for at their fair value as determined by
the Black Scholes valuation model, using the following assumptions: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">75% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">3.6 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2.25 % </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Fair value of
      warrants at grant date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.225 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>On March 5, 2008 the Company granted 250,000 common share
purchase warrants at $0.50 per share as part of the acquisition cost of Wes
Power Technology Inc. (note 8). </P>
<P align=justify>On April 15, 2008, the Company received $100,000 for the
exercise of 200,000 warrants granted on July 11, 2006. These shares were issued
from treasury on April 15, 2008. </P>
<P align=justify>On April 15, 2008, the Company received $Nil for the exercise
of 525,000 warrants granted on May 18, 2007. 262,500 shares were subsequently
issued on May 8, 2008 (note 15). An amount of $3 was credited to capital stock
from additional paid-in capital.</P>
<P align=center>F-32</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_12></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>16. Additional Paid-In Capital (Cont'd) </B></P>
<P align=justify>On June 20, 2008, the Company granted as fees in the placement
of the Senior Secured Convertible Debentures, 240,000 common share purchase
warrants to a director of the Company, and 240,000 common share purchase
warrants to a debenture holder, both at $0.50 per share, vesting immediately.
The warrants expire on June 20, 2010. As a result of the grant of warrants, the
Company recorded a consulting fee expense of $173,472 for the year ended January
31, 2009. </P>
<P align=justify>The warrants accounted for at their fair value as determined by
the Black Scholes valuation model, using the following assumptions: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">Expected volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">99.5% </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2.0 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2.88 % </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Dividend yield </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Fair value of
      warrants at grant date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.0225 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>A summary of the activity in the Company's warrants during the
period is presented below: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Number of </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">Average </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">Warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">Exercise Price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance - January 31, 2007 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>5,150,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;1.00</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Issued - </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1,075,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1.91</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exercised </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(2,000,000</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1.00</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(150,000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1.00</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Outstanding, as at January 31, 2008 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>4,075,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>0.60</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Transactions during the period: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Issued </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>54,398,328</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>0.32</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Exercised </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(725,000</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>0.50</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(2,800,000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>0.50</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Outstanding, as
      at January 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>54,948,328</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>&nbsp;0.33</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<p><BR>
</p>
<P align=center>F-33</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_13></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>16. Additional Paid-In Capital (Cont'd) </B></P>
<P align=justify>The following table provides additional information with
respect to outstanding warrants at January 31, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Number of </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Average </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Grant Date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">Expiry
      Date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">Warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">Exercise Price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>May 18, 2007 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>May 2012 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>100,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;0.50 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>August 21, 2007 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">August 2009 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">250,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1.80 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>October 25, 2007 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>October 2009 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>200,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.00 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>February 27, 2008 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">February 2013 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">335,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">0.50 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>March 5, 2008 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>March 2013 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>250,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>0.50 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>June 13, 2008 (note 12) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">June 2014 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">53,333,328 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">0.31 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>June 20, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%"
    bgColor=#e6efff>June 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>480,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>0.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Balance &#150;
      January 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>54,948,328</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>&nbsp;0.33</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>The aggregate intrinsic value of the outstanding and
exercisable warrants as at January 31, 2009 amounted to $Nil. </P>
<P align=justify>The intrinsic value of the warrants exercised as at January 31,
2009 amounted to $0.42 per warrant.<B> </B></P>
<P align=justify><B>17. Income Taxes</B></P>
<P align=justify>Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for financial
statement purposes and the amounts used for income tax purposes. Significant
components of the Company's deferred tax liabilities and assets as of January
31, 2009 and 2008 are as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Deferred tax assets: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Net operating losses carryforwards </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;2,076,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;1,649,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Property
      and equipment, and intangible </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>41,000</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">24,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Loan receivable and convertible debentures </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>539,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>96,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>41,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">44,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2,697,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,813,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Valuation allowance </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(2,697,000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(1,813,000</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Net Deferred Tax Assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=center>F-34</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_14></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>17. Income Taxes (Cont'd) </B></P>
<P align=justify>There were Canadian, Provincial and U.S. net operating losses
of approximately $6,831,000 (2008 - $5,246,000), $6,526,000 (2007 - $4,941,000)
and $Nil (2008 &#150; $Nil), respectively that may be applied against earnings of
future years. Utilization of the net operating losses is subject to significant
limitations imposed by the change in control provisions. A portion of the net
operating losses may expire before they can be utilized. </P>
<P align=justify>The reconciliation of the effective income tax rate, to the
statutory rate for the years ended January 31, 2009 and 2008 is as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Statutory income tax rate </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>(31</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="10%" bgColor=#e6efff><B>%</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(32</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="10%" bgColor=#e6efff>% </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Non-deductible expenses </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>12</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">8 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Non-deductible stock based compensation
      expense </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>5</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>19 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Not taxable gain on disposition of a subsidiary </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>-</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(22</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Losses for which no deferred income tax has been recorded
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>14</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>29 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Effective income
      tax rate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>0</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="10%"><B>%</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify>The Company does not expect its unrecognized tax benefits to
change significantly over the next twelve months. </P>
<P align=justify><B>Classification of Interest and Penalties </B></P>
<P align=justify>The Company's policy is to include interest and penalties
related to unrecognized tax benefits within the provision for income taxes.</P>
<P align=justify>The interest and penalties as of January 31, 2009 and for the
years ended January 31, 2008, 2007, 2006 and 2005 were $8,000. </P>
<P align=justify><B>Tax Years and Examination </B></P>
<P align=justify>The Company files tax returns in each jurisdiction in which it
is registered to do business. For each jurisdiction a statute of limitations
period exists. After a statute of limitations period expires, the respective tax
authorities may no longer assess additional income tax for the expired period.
Similarly, the Company is no longer eligible to file claims for refund for any
tax that it may have overpaid. The following table summarizes the Company's
major tax jurisdictions and the tax years that remain subject to examination by
these jurisdictions as of January 31, 2008: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Tax Jurisdictions
    </TD>
    <TD align=left width="33%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="33%">Tax
      Years </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp;</TD>
    <TD align=center width="33%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Federal - Canada </TD>
    <TD align=left width="33%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="33%" bgColor=#e6efff>2003 and onward </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Quebec - Canada </TD>
    <TD align=left width="33%">&nbsp;</TD>
    <TD align=center width="33%">2003 and onward </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<p align="center">F-35</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_15></A>
<font FACE="Times New Roman PS" size="3"><b>
<p>ICP Solar Technologies Inc.</b> <br>
</font>
<font FACE="Times New Roman PS" SIZE="2"><b><br>
Notes to Consolidated Financial Statements <br>
January 31, 2009 <br>
(Expressed in U.S. Funds) </p>
</b></font>
<P align=justify><B>18. Statement of Cash-Flows Information </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;407,702</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;711,750 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Income taxes recoverable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">654,147 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Inventories </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>953,544</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>273,399 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Prepaid expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>73,957</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">133,806 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>704,347</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(324,791</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Changes in non-cash operating element of working capital
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;<B>2,139,550</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;1,448,311 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Additional Cash Flow Information:</B>
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest paid </TD>
    <TD align=left width="1%" ><B>$</B></TD>
    <TD align=right width="12%"><B>&nbsp;287,420</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;145,491 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Income taxes recovered </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(436,169</TD>
    <TD align=left width="2%"  bgColor=#e6efff>)
</TD></TR></TABLE>
<P align=justify><B>19. Loss Per Share</B> </P>
<P align=justify>Basic loss per share is calculated based on the weighted
average number of shares outstanding during the year. The warrants, share-based
compensation and convertible notes have been excluded from the calculation of
diluted loss per share since they are anti-dilutive. </P>
<P align=justify><B>20. Major Customer </B></P>
<P align=justify>Sales to one customer amounted to approximately 12% (2008 &#150;
13%) of total sales. Outstanding accounts receivable for this customer as at
January 31, 2009 accounted for approximately 14% (2008 &#150; 5%) of total accounts
receivable. </P>
<P align=justify><B>21. Related Party Transactions </B></P>
<P align=justify>Included in selling, general and administrative expenses are
$761,458 (2008 - $1,490,233) for options granted to the Chief Executive Officer,
Chief Financial Officer and directors under the 2006 Stock Option Plan. </P>
<P align=justify><B>22. Subsequent Event </B></P>
<P align=justify>Effective April 29, 2009 the Company entered into an agreement with a
financial institution, Brome Financial Corporation, to factor up to
approximately $720,000 of its accounts receivable.</P>
<P align=justify><B>23. Comparative Figures </B></P>
<P align=justify>Certain reclassifications of 2008 amounts have been made to
facilitate comparison with the current year. </P>
<P align=center>F-36</P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_67></A>
<P align=justify><B>Consolidated Interim Balance Sheet <BR>As At April 30, 2009
<BR>(Unaudited) <BR>Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="11%"><B>April 30,</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="11%">January 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center
      width="11%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="11%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Assets</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Current</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Cash
    </TD>
    <TD align=left width="1%" ><B>$</B></TD>
    <TD align=right width="11%"><B>&nbsp;48,541</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="11%">&nbsp;193,517 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff><B>852,832</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>622,981 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Inventories </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%"><B>1,194,763</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">1,492,808 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Prepaid expenses
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff><B>94,430</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff>12,941 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>2,190,566</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%">2,322,247 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B>Property and Equipment</B>
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff><B>82,021</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>88,030 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Intangible </B>(net of accumulated
      amortization of $ 67,710 (2009-$53,200)(note 5) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%"><B>106,414</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">120,914 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B>Loan Receivable, </B>net
      of $953,729 provision </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Investment in Convertible Debt, </B>net of $967,600
      provision </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>1</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%">1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="11%"
    bgColor=#e6efff><B>&nbsp;2,379,002 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="11%"
    bgColor=#e6efff>2,531,192 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Liabilities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B>Current</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%"><B>1,993,057</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">1,648,019 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Put option liability </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff><B>67,555</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>67,555 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Current portion of government grants payable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%"><B>14,670</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">17,533 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Senior Secured Convertible Debentures, less </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;unamortized
      discount of $1,864,464 (2009-$2,708,934)(note 6) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>612,505</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%">171,517 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff><B>2,687,787</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff>1,904,624 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Put Warrant </B>( note 6) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%"><B>7,741,000</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">3,600.000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B>Commitment s </B>(note 7)
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Contingency </B>(note 8) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B>Shareholders' Equity</B>
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Capital Stock </B>(note 9) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%"><B>366</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">351 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B>Additional Paid-In Capital
      </B>(note 10) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff><B>16,840,664</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>16,157,548 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Accumulated Other Comprehensive Loss</B>
    </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%"><B>(1,005,625</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">(1,005,625</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    ><B>Accumulated Deficit</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff><B>(23,885,190</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff>(18,125,706</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>(8,049,785</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%">(2,973,432</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="11%"
    bgColor=#e6efff><B>&nbsp;2,379,002</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="11%"
    bgColor=#e6efff>2,531,192 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>See accompanying notes </P>
<P align=justify><B>Approved on Behalf of the Board </B></P>
<P align=justify><STRONG>____________________________</STRONG></P>
<P align=justify><STRONG>____________________________</STRONG></P>
<P align=center>F-37</P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_68></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Consolidated Interim Statement of Shareholders' Equity <BR>For the Three-Month Period Ended April
30, 2009 <BR>(Unaudited) <BR>Expressed in U.S. Funds </B></P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="9%">&nbsp; </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">&nbsp; </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">Additional </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="14%"  >Accumulated Other </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">&nbsp; </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%"><B>Total </B></TD>
      <TD align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid">Capital
        Stock </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">Paid-In </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="14%" >Comprehensive </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%">Accumulated </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="9%"><B>Shareholders' </B></TD>
      <TD align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="9%">Number </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="9%">Amount </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="9%">Capital </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="14%"
    >Loss </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="9%">Deficit </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="9%"><B>Equity </B></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="14%" >&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff><B>Balance - January 31, 2009 </B></TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>35,061,995 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="9%" bgColor=#e6efff>&nbsp;351 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="9%" bgColor=#e6efff>&nbsp;16,157,548 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="14%" bgColor=#e6efff
    >&nbsp;(1,005,625</TD>
      <TD align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="9%" bgColor=#e6efff>(18,125,706</TD>
      <TD align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
      <TD align=right width="9%" bgColor=#e6efff><B>&nbsp;(2,973,432</B></TD>
      <TD align=left width="1%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR>
      <TD>&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="14%" >&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Conversion of debentures (note 9) </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>1,510,325 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>15 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="14%" bgColor=#e6efff >&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>377,581 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">377,566 </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="14%" >&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Stock-based compensation (note 10) </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="14%" bgColor=#e6efff >- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>278,383 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">278,383 </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="14%" >&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Warrants issued (note 10) </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>3,768 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="14%" bgColor=#e6efff >- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>- </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>3,768 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Modification of stock options (note 10) </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="14%" >- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">23,399 </TD>
      <TD align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="9%" bgColor=#e6efff>23,399 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="14%" bgColor=#e6efff >&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="9%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Net loss </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="14%" >- </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="9%">(5,759,484</TD>
      <TD align=left width="1%" >) </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="9%">&nbsp; </TD>
      <TD align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="9%"
    bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="9%"
    bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="9%"
    bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="14%"
    bgColor=#e6efff >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="9%"
    bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="9%"
    bgColor=#e6efff>(5,759,484</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>) </TD>
    </TR>
    <TR>
      <TD>&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="14%" >&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Balance - April 30, 2009 </B></TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="9%"
    bgColor=#e6efff>36,572,320 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="9%"
    bgColor=#e6efff>&nbsp;366 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="9%"
    bgColor=#e6efff>16,840,664 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="14%"
    bgColor=#e6efff >(1,005,625</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="9%"
    bgColor=#e6efff>(23,885,190</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="9%"
    bgColor=#e6efff><B>&nbsp;(8,049,785</B></TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>) </TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify>See accompanying notes </P>
<P align=center>F-38</P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_69></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Consolidated Interim Statement of Operations and
Comprehensive Loss <BR>(Unaudited) <BR>Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center><B>For the Three-Month </B></TD>
    <TD align=center width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>Period
      Ended April 30, </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center
      width="12%"><B>2009 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Net Sales </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;1,446,959 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;1,891,654 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Cost of Sales </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1,033,581 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1,191,733 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Gross Profit </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>413,378 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>699,921 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Expenses </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Selling,
      general and administrative </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1,007,334 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,584,234 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Depreciation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>20,509 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">6,396 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Research
      and development </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>41,899 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>38,248 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Foreign exchange loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>37,186 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">5,986
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>1,106,928 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">1,634,864 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Operating Loss
      </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(693,550</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(934,943</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Interest expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(78,016</B></TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(36,747</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest expense on put warrants </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(4,141,000</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Interest income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>- </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">4,763 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Forgiveness of loan receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(88,973</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Discount on senior secured convertible debentures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(846,918</B></TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accretion of discount on convertible notes
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(29,922</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Discount on loan receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>- </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">166,404 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Accretion of discount on loan receivable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>- </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>9,272 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(5,065,934</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>24,797 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Net Loss and Comprehensive Loss </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;(5,759,484</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;(910,146</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Basic Weighted Average Number of Shares Outstanding </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>34,367,817 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>32,861,695 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Basic and Diluted Loss Per Share (note 11) </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;(0.17</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;(0.03</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
  </TR>
</TABLE>
<P align=justify>See accompanying notes</P>
<p align="center">F-39</p>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_70></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Consolidated Interim Statement of Cash Flows <BR>(Unaudited)
<BR>Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center><B>For the Three-Month </B></TD>
    <TD align=center width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>Period
      Ended April 30, </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center
      width="12%"><B>2009 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Funds Provided (Used) - </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>Operating
      Activities </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Net loss </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;(5,759,484</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(910,146</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Depreciation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>20,509 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">6,396 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Foreign exchange loss </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>37,186 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>5,986 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Interest expense on put warrants </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>4,141,000 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Forgiveness of loan receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>88,973 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Accretion of discount on senior secured convertible
      debentures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>846,918 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Stock-based compensation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>278,383 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>384,789 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Warrants issued </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>3,768 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">17,588 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Modification of warrants </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>160,700 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Modification of stock options </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>23,399 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">119,056 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Discount on loan receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(166,404</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Accretion of discount on loan receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>- </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(9,272</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Accretion of discount on convertible notes
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>29,922 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Accretion
      of discount on convertible notes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"><B>-
      </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">29,922 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(408,321</B></TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(272,412</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;Changes in non-cash operating elements of working
      capital </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>294,557 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>247,162 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(113,764</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(25,250</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>Financing Activities
      </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Bank indebtedness </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(44,407</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Senior secured convertible debentures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>75,398 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Repayment of senior secured convertible
      debentures </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(103,747</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Common shares issued </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>- </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">100,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;Government grants payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(2,863</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(760</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(31,212</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">54,833 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
</TABLE>
<p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center>&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center><B>For the Three-Month </B></TD>
    <TD align=center width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>Period
      Ended April 30, </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center
      width="12%"><B>2008 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="12%">2007
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>Investing
      Activities </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Term deposit </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(4,624</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Acquisition
      of Wes Power Technology Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"><B>-
      </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(25,001</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;Net cash provided from investing activities from
      continuing operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>- </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(29,625</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Decrease in Cash </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(144,976</B></TD>
    <TD align=left width="2%" ><B>) </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(42</TD>
    <TD align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Cash </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;<B>Beginning of Period </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>193,517 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">20,967 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>End of Period
      </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;48,541 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;20,925 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>See accompanying notes </P>
<p align="center">F-40</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_71></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1. </B></TD>
    <TD>
      <P align=justify><B>Basis of Presentation</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The accompanying unaudited financial statements have been
      prepared in accordance with U.S. generally accepted accounting principles
      for interim financial information and Rule 8-03 of Regulation S-X and are
      prepared using the same accounting policies as outlined in note 3 of ICP
      Solar Technologies Inc. ("ICP Solar") financial statements for the years
      ended January 31, 2009 and 2008. Accordingly, they do not include all of
      the information and footnotes required by generally accepted accounting
      principles for complete financial statements. In the opinion of
      management, all adjustments (consisting of normal recurring accruals)
      considered necessary for a fair presentation have been included. Operating
      results for the three months ended April 30, 2009 are not necessarily
      indicative of the results that may be expected for the year ended January
      31, 2010. The unaudited financial statements should be read in conjunction
      with the financial statements and notes thereto included in the ICP Solar
      audited financial statements for the years ended January 31, 2009 and
      2008.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<p>&nbsp;</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2. </B></TD>
    <TD>
      <P align=justify><B>Going Concern</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>These consolidated financial statements
for the quarter ended April 30, 2009, were prepared under the assumption that
the Company will continue operations as a going concern.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has reported a net loss of
$5,759,484 and negative cash flows from operating activities of $113,764 for the
quarter ended April 30, 2009 as well as net losses of $9,285,467, $4,222,738,
$2,626,565 and $1,396,672 and negative cash flows from operating activities of
$1,991,115, $1,380,799, $3,828,787, and $978,067 for the fiscal years ended
January 31, 2009, 2008, 2007 and 2006 respectively. As of April 30, 2009, the
Company had an accumulated deficit of $23,885,190, negative working capital of
$497,221 and cash and cash equivalents of $48,541. Until and unless the
Company's operations generate significant revenues and cash flow, we will
attempt to continue to fund operations from cash on hand and through the sources
of capital described below. The Company's long-term liquidity is contingent upon
achieving sales and positive cash flows from operating activities, and/or
obtaining additional financing. The most likely sources of financing include
private placements of the Company's equity or debt securities or bridge loans to
the Company from third-party lenders. Effective April 29, 2009 the Company entered into
an agreement with a financial institution to provide up to $720,000 in financing
based on its accounts receivable. The Company can give no assurances that any
additional capital that it is able to obtain will be sufficient to meet its
needs, or on terms favourable to it. During the fourth quarter of 2009, the
Company significantly reduced overhead expenditures, reduced product costs and
is continually expanding its customer pipeline. Management believes these
factors will contribute toward achieving profitability. Despite these
initiatives however, the Company still requires capital to sustain its existing
operations. The Company may, however, choose to raise additional capital before
January 31, 2010 to fund future development activities or to take advantage of
other strategic opportunities. This could include the securing of funds through
new strategic partnerships and/or the sale of common stock or other securities.
There can be no assurance that such capital will be available to the Company on
favourable terms, or at all. There are a number of risks and uncertainties
related to the Company's attempt to complete a financing or strategic partnering
arrangement that are outside its control. The Company may not be able to obtain
additional</P>
<p align="center">F-41 </p>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_73></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>2.</B> </TD>
    <TD align=left width="95%" ><B>Going Concern (cont'd)</B>
  </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>financing on terms acceptable to it, or at all. If the
      Company is unsuccessful at obtaining additional financing as needed, it
      may be required to significantly curtail or cease operations. The Company
      will need additional financing thereafter until it achieves profitability,
      if ever. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>Should the Company be unable to continue as a going
      concern it may be unable to realize the carrying value of its assets and
      to meet its liabilities as they become due. These financial statements do
      not include any adjustments that may result from the outcome of this
      uncertainty. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>3.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Summary of Significant Accounting Policies</B>
  </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Recently Issued Accounting Pronouncements</B>
  </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>In April 2009, the FASB issued FSP No. FAS 107-1 and APB
      28-1, &#147;Interim Disclosures about Fair Value of Financial Instruments&#148;
      (&#147;FSP FAS 107-1 and APB 28-1&#148;). FSP FAS 107-1 and APB 28-1, amends FASB
      Statement No. 107, &#147;Disclosures about Fair Value of Financial
      Instruments&#148;, to require disclosures about the fair value of financial
      instruments in interim as well as in annual financial statements. This FSP
      also amends APB Opinion No. 28, &#147;Interim Financial Reporting&#148;, to require
      those disclosures in summarized financial information at interim reporting
      periods. These standards are effective for periods ending after June 15,
      2009 with early adoption permitted for periods ending after March 15,
      2009. The Company is currently evaluating the impact of this Statement on
      its (consolidated) financial statements. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="95%" >
      <P align=justify>In April 2009, the FASB issued FSP No. FAS 141 (R)-1,
      &#147;Accounting for Assets Acquired and Liabilities Assumed in a Business
      Combination That Arise from Contingencies&#148; (&#147;FSP FAS 141 (R)-1&#148;). FSP FAS
      141 (R)-1 amends and clarifies FASB No. 141 (revised 2007), &#147;Business
      Combinations&#148;, to address application issues raised by preparers,
      auditors, and members of the legal profession on initial recognition and
      measurement, subsequent measurement and accounting, and disclosure of
      assets and liabilities arising from contingencies in a business
      combination. The adoption of FSP No. FAS 141 (R)-1 is not expected to have
      a material effect on the Company's financial position or results of
      operations. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>In April 2009, the FASB issued FSP No. FAS 115-2,
      &#147;Recognition and Presentation of Other-Than-Temporary Impairments&#148; (&#147;FSP
      115-2&#148;), which provides additional guidance for determining whether an
      impairment is other- than-temporary to debt securities in the financial
      statements and requires disclosure of the total other-than- temporary
      impairment in the statement of earnings with an offset for the amount
      recognized in other comprehensive income. FSP 115-2 is effective for
      interim periods ending after June 15, 2009.The adoption of issued FSP No.
      FAS 115-2 is not expected to have a material effect on the Company's
      financial position or results of operations. </P></TD></TR></TABLE>
<p><BR>
</p>
<P align=center>F-42</P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_74></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>3.</B> </TD>
    <TD align=left width="95%" ><B>Summary of Significant
      Accounting Policies (cont'd)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>In April 2009, the Securities and Exchange Commission's
      (&#147;SEC&#148;) Office of the Chief Accountant and Division of Corporation Finance
      issued SEC Staff Accounting Bulletin 111 (&#147;SAB 111&#148;). SAB 111 amends and
      replaces SAB Topic 5M, &#147;Miscellaneous Accounting&#151;Other Than Temporary
      Impairment of Certain Investments in Equity Securities&#148; to reflect FSP FAS
      115-2 and FAS 124-2. This FSP provides guidance for assessing whether an
      impairment of a debt security is other than temporary, as well as how such
      impairments are presented and disclosed in the financial statements. The
      amended SAB Topic 5M maintains the prior staff views related to equity
      securities but has been amended to exclude debt securities from its scope.
      SAB 111 is effective upon the adoption of FSP FAS 115-2 and FAS 124-2.The
      adoption of issued SAB 111 is not expected to have a material effect on
      the Company's financial position or results of operations. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>4.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Adoption of New Accounting Standards</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Fair Value Measurements</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>SFAS 157 is effective for financial assets and
      liabilities in fiscal years beginning after November 15, 2007, and for
      non-financial assets and liabilities in fiscal years beginning after
      November 15, 2008. The Company adopted SFAS 157 for financial assets and
      liabilities in the first quarter of fiscal 2009 with no material impact to
      the consolidated financial statements. The Company adopted SFAS for
      non-financial assets and liabilities in the first quarter of fiscal 2010
      with no material impact on the consolidated financial statements.
  </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>SFAS No. 157 applies to all assets and liabilities that
      are being measured and reported on a fair value basis. SFAS No. 157
      requires new disclosure that establishes a framework for measuring fair
      value in GAAP, and expands disclosure about fair value measurements. This
      statement enables the reader of the financial statements to assess the
      inputs used to develop those measurements by establishing a hierarchy for
      ranking the quality and reliability of the information used to determine
      fair values. The statement requires that assets and liabilities carried at
      fair value be classified and disclosed in one of the following three
      categories: </P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Level 1:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Quoted market prices in active markets for identical assets or liabilities. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Level 2:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Observable market based inputs or unobservable inputs that are corroborated by
market data. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Level 3:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unobservable inputs that are not corroborated by market data. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In determining the appropriate levels,
the Company performs a detailed analysis of the assets and liabilities that are
subject to SFAS No. 157. At each reporting period, all assets and liabilities
for which the fair value measurement is based on significant unobservable inputs
are classified as Level 3. </P>
<P align=center>F-43</P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_75></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>4.</B> </TD>
    <TD align=left width="95%" ><B>Adoption of New Accounting
      Standards (cont'd)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%" ><B>Fair Value of Financial
      Instruments</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>The table below presents the carrying value and fair
      value of Company's financial instruments. The disclosure excludes leases.
      </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>The fair value represents management's best estimates
      based on a range of methodologies and assumptions. The carrying value of
      receivables and payables arising in the ordinary course of business, the
      term deposit, and the government grants payables approximate fair value
      because of the relatively short period of time between their origination
      and expected realization. </P></TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>April 30,</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid">January
      31, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><B>Carrying</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><B>Estimated</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">Carrying </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">Estimated </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>Value</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>Fair Value</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">Fair
      Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Financial assets</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp;Cash </TD>
    <TD align=left width="1%" ><B>$</B></TD>
    <TD align=right width="12%"><B>&nbsp;48,541</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ><B>$</B></TD>
    <TD align=right width="12%"><B>&nbsp;48,541</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;193,517 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;193,517 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Financial liabilities</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1,993,057</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1,993,057</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,648,023 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,648,023 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp;Government grants payable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>14,670</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>14,670</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">17,533 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">17,533 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Convertible debentures
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2,470,970</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2,470,970</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,880,450 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,880,450 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp;Put warrants </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>7,741,000</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>7,741,000</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">3,600,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">3,600,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Put option liability </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>67,555</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>67,555</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>67,555 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>67,555 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<p>
<BR>
</p>
<P align=center>F-44 </P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_76></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD>
      <P align=justify><B>Adoption of New Accounting Standards
    (Cont'd)</B></P></TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="7" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>Fair
      Value Measurement at April 30, 2009 Using</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Quoted Prices in</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Active Markets</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Significant Other</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Significant</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>For Identical</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Observable</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Unobservable</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Assets</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Inputs</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%"><B>Inputs</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Description</B>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="14%"><B>(Level 1)</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="14%"><B>(Level 2)</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="14%"><B>(Level 3)</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="14%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Put warrants </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="14%" bgColor=#e6efff><B>7,741,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Put option liability </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="14%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="14%"><B>67,555</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="14%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The fair value represents management's
best estimates based on a range of methodologies and assumptions. The carrying
value of receivables and payables arising in the ordinary course of business,
the term deposit and the government grants payables approximate fair value
because of the relatively short period of time between their origination and
expected realization.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The convertible debentures use
significant unobservable inputs and thus are shown as Level 3 hierarchy items.
The fair value of the convertible debenture is calculated by discounting the
stream of future payments of interest and principal at the prevailing market
rate for a similar liability that does not have an associated equity component.
Results of discounted cash flow calculations may be adjusted, as appropriate, to
reflect other market conditions or the perceived changes in credit risk of the
borrower. Put warrants were valued using the binomial method. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Put option liability was recorded as
the value of the exercise price multiplied by the number of put options. </P>
<P align=center>F-45 </P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_77></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>Acquisition of WES Power Technology Inc.
      (&#147;WES&#148;)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On March 5, 2008, the Company acquired all the issued and
      outstanding shares of WES.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The excess consideration of $174,114 paid over the
      purchase price is accounted for as an intangible asset and is being
      amortized over a 3 year period.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Following is a table which represents the pro-forma
      consolidated statement of operations as if the acquisition of WES Power
      Technology Inc. had taken place on February 1,
2008.</P></TD></TR></TABLE>
<P align=center><B>Pro-forma Consolidated Statement of Operations <BR>Wes
Technology Acquisition</B></P>
<P align=center><B>Three &#150;month Period Ended <BR>April 30, 2009 </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><B>ICP Solar</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><B>Wes Power</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><B>Technology</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%"><B>Technologies Inc.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%"><B>Inc.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%"><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff ><B>Sales</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;<B>1,446,959</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;<B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;<B>1,446,959</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Expenses</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>7,195,548</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>10,895</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>7,206,443</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      ><B>Net Loss</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;<B>(5,748,589</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;<B>(10,895</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;<B>(5,759,484</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    ><B>)</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=center>Three month Period Year Ended <BR>April
30, 2008 </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="15%">ICP Solar </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">Wes Power </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">Technologies Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">Technology Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Sales </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>1,891,654 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;17,054 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>1,908,708 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">2,798,647 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">78,241 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">2,876,888 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff></TD>
    <TD align=right width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left >Net
      Loss </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;(906,993</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;( 61,187</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;(968,180</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD></TR></TABLE>
<p><BR>
</p>
<P align=center>F-46</P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name="page_78"></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<p>
<BR></p>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>6.</B> 	</TD>
	<TD>
<P align="justify"><B>Senior Secured Convertible Debentures</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">During the first quarter of 2010 1,510,325 common shares (see note 9) were issued on conversion of approximately &#36;378,000 of senior secured convertible debenture (&#147;SSCD&#148;) and accrued interest.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">For the quarter ended April 30, 2009, approximately &#36;75,000 of interest has been accrued, and &#36;847,000 of the discount on the debt has been accreted.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company had agreed to remit to the holders 10% of its weekly collections commencing on February 1, 2009 until May 31, 2009 and any and all monthly receipts on the Loan Receivable (from Epod) until the SSCD have been repaid in
full. Beginning on June 1, 2009 the Company will make thirteen equal monthly repayments of approximately &#36;180,000. At June 1, 2009 the Company had not commenced capital repayments.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">It shall constitute an event of default if the Company's revenues for the fiscal quarter ended April 30, 2009 are less than &#36;1,500,000 or the Company's revenues for the fiscal quarter ended July 31, 2009 are less
than &#36;2,000,000 or the Company's EBITDA for the fiscal quarter ended July 31, 2009 is less than &#36;(125,000) or if the Company's accounts payable balance shall have exceeded &#36;1,750,000 at any time until maturity or if the Company
breaches any term or condition of the Amendment Agreement of December 31, 2008 The Company is in default of the revenues for the first quarter ended April 30,2009, the accounts payable balance as well as the capital repayment requirement above and
has obtained a waiver from the senior secured convertible debenture holders for all defaults.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Substantially all of the assets of the Company have been pledged as security. .</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Registration Rights</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">In connection with the issuance of the SSCD, the Company is required to file a Registration Statement to register the shares issuable upon exercise of the additional warrants. The Company will be obligated to pay the holders of
the SSCD certain liquidation damages in the event the shares are not registered by July
31, 2009. Liquidated damages would amount to 2% of the aggregate purchase price paid by the debenture holders.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Put Warrant</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">During the first quarter of 2009, the Company has recognized &#36;4,141,000 (2009-nil) as interest on put warrants and at April 30, 2009 a liability of &#36;7,741,000 has been recorded. This liability exists due to a requirement
for the Company, in the event of a major transaction, to repurchase the &#36;53,333,328 warrants held by the SSCD holders at April 30, 2009. The Company estimates that it is unlikely that any such major transaction will be occurring now or in the
foreseeable future. If no such transaction occurs before the expiry of the warrants on June 13, 2014 the liability shown at that time will be written off and recognized into income. The binomial method has been used to value these put warrants.</P>
	</TD>
</TR>
</TABLE>
<p>
<BR>
</p>
<P align=center>F-47</P>


<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_79></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<p>
<BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>7.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Commitments</B> </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>The Company leases its premises at $5,750 per quarter
      exclusive of occupancy and escalation charges, under an operating lease,
      expiring in 2012. </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>In accordance with a royalty agreement terminating in
      2012, the Company is committed to quarterly minimum advertising
      expenditures and royalty fees of $32,000. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>8.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Contingency</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="95%" >
      <P align=justify>The Company is involved in litigations and claims which
      arise from time to time in the normal course of business amounting to
      approximately $178,000. In the opinion of management, any liability that
      may arise from such contingencies would not have a significant adverse
      effect on the financial statements of the Company. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>9.</B> </TD>
    <TD align=left width="95%" ><B>Capital Stock</B>
  </TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><B>April 30,</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">January 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=center width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Authorized without limit as to number - </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>100,000,000 common shares authorized,
      $0.00001 par value </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>100,000,000 preferred shares authorized, $0.00001 par value
    </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Issued - </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>36,572,320 (2009 -
      35,061,995) common shares </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>&nbsp;366</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;351 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>On March 4, 2009, the Company issued
200,000 shares of common stock upon conversion of $50,000 of Senior Secured Convertible
Debenture. </P>
<P align=center>F-48 </P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name="page_80"></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<p>
<BR></p>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>9.</B> 	</TD>
	<TD>
<P align="justify"><B>Capital Stock (cont'd)</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">On April 8, 2009, the Company issued 100,000 shares of common
stock k upon conversion of $25,000 of accrued interest on a Senior Secured
Convertible Debenture.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">On April 20, 2009, the Company issued 800,000 shares of common stock on conversion of &#36;200,000 of

Senior Secured Convertible Debenture.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">On April 24, 2009, the Company issued 410,325 shares of common stock
upon conversion of approximately &#36;102,600 of  Senior Secured Convertible Debenture.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>10.</B> 	</TD>
	<TD>
<P align="justify"><B>Additional Paid-In Capital</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Stock Options</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">During the first quarter of 2010, the Company recognized the following stock based compensation expense:</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">-&#36;274,179 (2009 - &#36;364,276) for stock options granted in fiscal 2008. As at April 30, 2009, the Company has &#36;45,697 (2009 - &#36;837,553) of unrecognized stock-based compensation.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">-&#36;23,400 (2009 -&#36;119,056) for the February 14, 2008 modification of exercise price to &#36;0.50 and &#36; 3,900 (2009- &#36;98,776) will be expensed over the remaining vesting period.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">-&#36;1,387 (2009-&#36;20,513) for February 14, 2008 grants, and &#36;4,392 (2009-&#36;37,040), will be expensed over the remaining vesting period.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">-&#36;2,818 (2009-&#36;nil) for May 6, 2008 grants, and &#36;11,271 (2009-nil), will be expensed over the remaining vesting period.</P>
	</TD>
</TR>
</TABLE>
<p>
<BR>
</p>
<P align=center>F-49</P>


<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_81></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<p>
<BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>Additional Paid-In Capital (Cont'd)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The following summarizes the Plan position for the
      quarter:</P></TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><B>Weighted</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><B>Average</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>Options</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>Exercise Price</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance - January 31, 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1,340,000</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD align=right width="12%" bgColor=#e6efff><B>&nbsp;0.50</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Granted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><b>450,000</b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><b>0.25</b> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Balance - April
      30, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>1,790,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>0.44</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Options that can
      be exercised at April 30, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>895,000</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>&nbsp;0.50</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>Warrants </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>During the first quarter of 2010, the
Company recognized the following consulting expense: </P>
<P style="MARGIN-LEFT: 5%" align=justify>-$ nil (2009-$110,000) for the February
14, 2008 modification of exercise price for warrants granted to related parties.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>-$3,769 (2009- $17,588) for the
February 27, 2008 grant, $38,944 (2009 $57,787) will be expensed over the
remaining vesting period. </P>
<P style="MARGIN-LEFT: 5%" align=justify>During the first quarter the Company
recognized as stock based compensation expense: </P>
<P style="MARGIN-LEFT: 5%" align=justify>-$ nil (2009-$50,700) for the February
14, 2008 modification of exercise price for the 3,000,000 remaining outstanding
warrants. </P>
<P align=center>F-50</P>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_82></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<p>
<BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>Additional Paid-In Capital (Cont'd)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A summary of the activity in the Company's warrants
      during the period is presented below:</P></TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><B>Weighted</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%"><B>Average</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>Exercise Price</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Outstanding, as at January 31, 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>54,948,328 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;0.33 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Transactions during the period: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Issued </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Exercised </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Outstanding, as at
      April 30, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">54,948,328 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;0.33 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following table provides additional
information with respect to outstanding warrants at April 30, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">Number of </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">Average </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Grant Date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Expiry Date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Exercise Price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>May 18, 2007 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>May 2012 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>100,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;0.50 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>August 21, 2007 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">August 2009 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">250,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1.80 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>October 25, 2007 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>October 2009 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>200,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1.00 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>February 27, 2008 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">February 2013 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">335,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">0.50 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>March 5, 2008 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>March 2013 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>250,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>0.50 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>June 13, 2008 (note 12) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">June 2014 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">53,333,328 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">0.31 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>June 20, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%"
    bgColor=#e6efff>June 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>480,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>0.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Balance &#150; April
      30, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">54,948,328 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;0.33 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The aggregate intrinsic value of the
outstanding and exercisable warrants as at April 30, 2009 amounted to $Nil.</P>
<P align=center>F-51 </P>


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<A name=page_83></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<p>
<BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>11.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Loss per Share</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>Basic loss per share is calculated based on the weighted
      average number of shares outstanding during the year. The warrants,
      share-based compensation and Senior Secured Convertible Debentures have
      been excluded from the calculation of diluted loss per share since they
      are anti-dilutive. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>12.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Related Party Transactions</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>Included in selling, general and administrative expenses
      are $173,000 (2009 - $368,000) for the first quarter for options granted
      to the CEO, CFO, and directors under the 2006 Stock Option Plan.
</P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>During the quarter the Company incurred consulting fees
      of $ 12,000 (2009- $12,000) to a company in which the director is a
      shareholder. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>The above related party transactions have been measured
      at the exchange amount which is the amount of the consideration
      established and agreed to by the related parties. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>13.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Subsequent Events</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>Pursuant to the Company's agreements with Senior Secured
      Convertible Debenture Holders, in the case where the Company does not
      reach certain thresholds in sales and EBITDA for the quarter ended April
      30, 2009, the conversion price on the $2,476,969 in outstanding debentures
      of $ 0.25 per share , and the exercise price on the 13,333,332 Series A
      and 26,6666,666 Series B Warrants of .$0.25 per share and 13,333,332
      Series C warrants of $0.50/share will change to a lower of: </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%" >
      <P align=justify>1) a weighted average of the previous five days market
      price at April 30,2009 and </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>2) a weighted average of the previous five days market
      price five trading days after filing of the Company's fiscal 2010 first
      quarter 10Q report with the SEC. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>At April 30, 2009 the Company did not meet the threshold
      mentioned above therefore the conversion price and exercise price would
      have been changed to $0.19 per share however the Company had agreed that
      the Senior Secured Convertible Debenture Holders may convert recent
      conversions at $0.14 per share. In the case where the weight average price
      after the 10Q filing is less than the converted price of $0.14 per share
      then all conversions subsequent to April 30, 2009 will be adjusted to the
      new exercise price and additional shares, if necessary will be issued.
    </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>13.</B> </TD>
    <TD align=left width="95%" >
      <P align=justify><B>Subsequent Events (cont'd)</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="95%" >
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%" >
      <P align=justify>On May 11, 2009 the company issued 368,000 common shares
      at a value of approximately $49,000 to a director as consideration for
      obtaining a factoring agreement with a financial institution. This $49,000
      has been accrued as professional fees at April 30, 2009.
</P></TD></TR></TABLE>
<p><BR>
</p>
<P align=center>F-52</P>


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<A name=page_84></A>
<P align=justify><B><FONT size=4>ICP Solar Technologies Inc. </FONT></B></P>
<P align=justify><B>Notes to Consolidated Interim Financial Statements <BR>
  April 30, 2009 <BR>
  (Unaudited) <BR>
  Expressed in U.S. Funds </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>On May 12, 2009 a Senior Secured
Convertible Debenture Holder converted approximately $78,000 at a conversion
price of $0.14 for 552,576 common shares.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On May 13, 2009 the Company issued
463,581 common shares to a director for approximately $60,000 as payment for
consulting services previously provided for and owed to a company in which the
director is a shareholder. In relation to these common shares a put option was
also granted at a value of approximately 60,000 whereby the holder has an option
to have the company repurchase any or all of the common shares at a price of
$0.13/share during the period June 22, 2009 to June 22, 2010.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On May 22, 2009 a Senior Secured
Convertible Debenture Holder converted $25,000 at a conversion price of $0.14
for 178,571 common shares.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On June 8, 2009 Senior Secured
Convertible Debenture Holder converted a total of approximately $128,000 at a
conversion price of $0.14 for 916,781 common shares.</P>
<P align=center>F-53 </P>


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<A name=page_85></A>
<P align=center><B>PART II </B></P>
<P align=center><B>INFORMATION NOT REQUIRED IN THE PROSPECTUS</B> </P>
<P align=justify><B>ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.</B>
</P>
<P align=justify>The following table sets forth the various expenses incurred in
connection with the sale and distribution of the securities described in this
registration statement, all of which will be borne by ICP Solar (not including
any underwriting discounts and commissions and expenses incurred by the selling
stockholders for brokerage, accounting, tax, or legal services or any other
expenses incurred by the selling stockholders in disposing of the shares). All
amounts shown are estimates, except the Securities and Exchange Commission
registration fee. </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Securities and Exchange registration fee
</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;477.96 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Legal fees and expenses </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">&nbsp;15,000 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accounting fees and expenses </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;5,000. </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Total </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">&nbsp;20,477.96 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify><B>ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS.</B> </P>
<P align=justify>Our officers and directors may be indemnified as provided by
the Nevada Revised Statutes (&#147;NRS&#148;), our Articles of Incorporation and our
bylaws. </P>
<P align=justify>Chapter 78 of the NRS, pertaining to private corporations,
provides that we are required to indemnify our officers and directors to the
extent that they are successful in defending any actions or claims brought
against them as a result of serving in that position, including criminal, civil,
administrative or investigative actions and actions brought by or on our behalf.
</P>
<P align=justify>Chapter 78 of the NRS further provides that we are permitted to
indemnify our officers and directors for criminal, civil, administrative or
investigative actions brought against them by third parties and for actions
brought by or on our behalf, even if they are unsuccessful in defending that
action, if the officer or director: </P>
<ul>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 5">is not found liable for a breach of his or her fiduciary
duties as an officer or director or to have engaged in intentional misconduct,
fraud or a knowing violation of the law; or </P>
  </li>
  <li>
<P align=justify style="margin-top: 0; margin-bottom: 5">acted in good faith and in a manner which he reasonably
believed to be in or not opposed to the our best interests, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful; </P>
  </li>
</ul>
<P align=justify>provided, however, that with respect to actions brought by or
on our behalf against our officers or directors, we are not permitted to
indemnify our officers or directors where they are adjudged by a court, after
the exhaustion of all appeals, to be liable to us or for amounts paid in
settlement to us, unless, and only to the extent that, a court determines that
the officers or directors are entitled to be indemnified. Our Articles of
Incorporation and our bylaws provide that we are required to indemnify our
officers and directors to the full extent permitted by the laws of Nevada. Our
Articles of Incorporation and our bylaws further provide that we are required to
pay the costs of defending against any litigation brought against out officers
and directors as they are incurred and in advance of a final disposition on the
matter, so long as such officer or director provides us with an undertaking to
repay those amounts should a court of competent jurisdiction determine that he
or she is not entitled to be indemnified by us. </P>
<P align=justify>The NRS and our Articles of Incorporation and our bylaws
further provide that we are permitted, but not required, to purchase and
maintain insurance on behalf of our officers or directors, regardless of whether
we have the authority to indemnify them against such liabilities or expenses.
</P>
<P align=center>II-1 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name=page_68></A>
<P align=justify><B>ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES</B> </P>
<P align=justify>We completed the following sales of securities that were not
registered pursuant to the Securities Act: </P>
<P align=justify>In May 2006, our Board of Directors approved an offering of up
to 5,000,000 units at $1.00 per unit for gross proceeds of up to $5,000,000.
Each unit consisted of one share and one share purchase warrant entitling the
holder to purchase one share of our common stock at a price of $1.00 per share
during the period ending eighteen months from the date of issuance in reliance
on the exemption from the registration requirements of the Securities Act
provided under Regulation S promulgated thereunder ("Regulation S"). On July 11,
2006 we issued 2,500,000 units to 5 subscribers for gross proceeds of
$2,500,000. Each purchaser represented to us that they were not a "US person" as
defined in Regulation S. We did not engage in a distribution of this offering in
the United States. The purchaser represented their intention to acquire the
securities for investment only and not with a view toward distribution.
Appropriate legends were affixed to the stock certificate issued to each
purchaser in accordance with Regulation S. No finder's fees were paid in
connection with the distribution. On January 11, 2008, our board of directors
approved the extension of the term of the warrants issued on July 11, 2006 by
six months. </P>
<P align=justify>In June 2006, our Board of Directors approved an offering to
investors (the "Note Offering") of up to 3,000 Units (each a "Unit") at a price
of $1,000 US per Unit for gross proceeds of up to $3,000,000, with each Unit
consisting of one 8% Convertible Note in the principal amount of $1,000 US, and
one thousand share purchase warrants (the "Warrants"), with each Warrant
entitling the holder thereof to purchase one additional share of our common
stock for a period of 18 months following the closing of the Note Offering. On
July 11, 2006, we completed the issuance of 2,500 Units for gross proceeds of
$2,500,000 to three subscribers in reliance on the exemption from the
registration requirements of the Securities Act provided under Regulation S.
Each purchaser represented to us that they were not a "US person" as defined in
Regulation S. We did not engage in a distribution of this offering in the United
States. The purchaser represented their intention to acquire the securities for
investment only and not with a view toward distribution. Appropriate legends
were affixed to the stock certificate and convertible notes issued to each
purchaser in accordance with Regulation S. No finder's fees were paid in
connection with the distribution. On January 11, 2008, our Board of Directors
approved the extension of the term of the warrants issued on July 11, 2006 by
six months. </P>
<P align=justify>On October 6, 2006, the Company granted an aggregate of 150,000
warrants to purchase shares of our common stock, as follows: (i) 50,000 warrants
to Craig Leon, (ii) 50,000 warrants to Chris Maverick, and (iii) 50,000 warrants
to Anne Ewe. The warrants were granted at an exercise price of $1.00 per share,
in reliance on the exemption from the registration requirements of the
Securities Act provided under Regulation S. These warrants were due to expire on
October 3, 2008 and were issued in payment of consulting fees. Each of Mr. Leon,
Mr. Maverick and Ms. Ewe, represented to us that he or she was not a "US person"
as defined in Regulation S. We did not engage in a distribution of this offering
in the United States. Each of Mr. Leon, Mr. Maverick and Ms. Ewe represented his
or her intention to acquire the warrants for investment only and not with a view
toward distribution. Appropriate legends were affixed to the forms of warrant in
accordance with Regulation S. No finder's fees were paid in connection with the
issuance. The Company and each of Mr. Leon, Mr. Maverick and Ms. Ewe agreed to
cancel these warrants as of October 25, 2007, following which the Company issued
each of Mr. Leon, Mr. Maverick and Ms. Ewe, replacement warrants, as described
in the following paragraph. </P>
<P align=justify>On May 18, 2007, the Company granted 100,000 warrants at an
exercise price of $2.25, as consulting fees, to Mr. Philippe Peress, a brother
of Mr. Sass Peress, president and CEO of the Company. The warrants vested on
October 3, 2007. The total exercise price of the warrants is $225,000. On May
18, 2007 the Company granted 525,000 warrants at an exercise price of $2.25, as
consulting fees, to Mr. Joel Cohen a director and former CFO of the Company. The
warrants vested on October 3, 2007. The total exercise price of the warrants is
$1,181,250. On October 25, 2007, the Company issued warrants to purchase shares
of our common stock, at an exercise price of $1.00 with an expiry date on
October 25, 2009, as consulting fees to the following persons,: (i) Anne Ewe was
granted 100,000 warrants: (ii) Craig Leon was granted 25,000 warrants: and (iii)
Chris Maverick was granted 75,000 warrants. Each of the warrants described in
this paragraph were issued in reliance on the exemption from the registration
requirements of the Securities Act provided under Regulation S. Each holder
represented to us that they were not a "US person" as defined in Regulation S.
We did not engage in a distribution of this offering in the United States. The
holders represented their intention to acquire the warrants for investment only
and not with a view toward distribution. Appropriate legends were affixed to the
form of warrant and the warrant shares underlying the warrants issued to each
holder in accordance with Regulation S. No finder's fees were paid in connection
with the issuance. </P>
<P align=center>II-2 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<font FACE="Times New Roman" SIZE="2">
<p align="justify">On June 9, 2008 the Company's Board of Directors approved a
private placement offering in reliance upon the exemption from securities
registration afforded by Rule 506 under Regulation D promulgated under the
Securities Act of 1933, as amended (the &quot;Securities Act&quot;) to investors resulting
in up to $3,000,00 in net proceeds to the Company. In connection with the
private placement, the Company issued to the participating investors 11% secured
convertible debentures, Series A warrants, Series B warrants and Series C
warrants. On June 13, 2008 (the &quot;Closing Date&quot;), the Company completed the
private placement offering for net proceeds of US $3,000,000 (the &quot;Private
Placement&quot;). The Private Placement consisted of (i) 11% senior secured
convertible debentures in the Company (the &quot;Debentures&quot;), issued at a 10%
discount with an aggregate face value of $3,333,333 and a maturity date of June
13, 2010, with interest payable monthly, convertible into shares of common stock
of the Company at an initial conversion price (subject to adjustment) of US
$0.50; (ii) 6,666,666 Series A purchase warrants each exercisable to purchase
one share of common stock of the Company, at an initial exercise price of US
$0.50 per share (subject to adjustment) for a period of 6 years from the date of
the Closing; (iii) 6,666,666 Series B purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date; and (iv) 6,666,666 Series C purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date (the securities described in (ii) through (iv), collectively, the
&quot;Warrants&quot;). The Series C warrants may not be exercised until such time as all
of the Series B warrants have been exercised. See &quot;Prospectus Summary &#150; The
Offering &#150; Background of the Offering&quot; in the accompanying prospectus. </p>
<p align="justify">On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the &quot;Amendment&quot;) to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement. As a result of these amendments, among
other things, the exercise price of the Series A purchase warrants issued in the
Private Placement was reduced from $0.50 to $0.25, resulting in the issuance of
6,666,666 additional Series A warrants; the exercise price of the Series B
purchase warrants issued in the Private Placement was reduced from $0.50 to
$0.25, resulting in the issuance of 19,999,998 additional Series B warrants; the
exercise price of the Series C purchase warrants issued in the Private Placement
was reduced from $1.00 to $0.50, resulting in the issuance of 6,666,666
additional Series C warrants. See &quot;Prospectus Summary &#150; The Offering &#150;
Background of the Offering&quot; in the accompanying prospectus. We issued these
warrants under the exemption from registration provided by Section 4(2) of the
Securities Act and/or Rule 506 of Regulation D promulgated thereunder. </p>
<p ALIGN="JUSTIFY">For our fiscal quarter ended April 30, 2009, the Company
failed to achieve certain milestones (as defined in the Debentures), as a result
of which the conversion price of the outstanding Debentures and the exercise
price for the Adjustment Warrants and the warrants issued in the Private
Placement was reduced to $0.14, the volume weighted average price of our common
stock during the five (5) consecutive trading days immediately preceding April
30, 2009. The reduction in the exercise price of the Adjustment Warrants and the
warrants issued in the Private Placement resulted in the issuance of the
following warrants effective June 21, 2009: (i) 10,476,197 additional Series A
Warrants (&quot;Series A Additional Adjustment Warrants&quot;), (ii) 20,952,386 additional
Series B warrants (&quot;Series B Additional Adjustment Warrants&quot;) and (iii)
34,285,722 additional Series C warrants (&quot;Series C Additional Adjustment
Warrants&quot;). See &quot;Prospectus Summary &#150; The Offering &#150; Background of the Offering&quot;
in the accompanying prospectus. We issued these warrants under the exemption
from registration provided by Section 4(2) of the Securities Act and/or Rule 506
of Regulation D promulgated thereunder. </p>
<p align="justify">On June 20, 2008, finders' fees were issued to certain
finders that arranged for purchasers in connection with the private placement
which closed June 13, 2008, as follows: (i) the Company paid an amount of
$120,000 and issued warrants to purchase up to 240,000 shares of common stock at
an exercise price of $0.50 per share, expiring on June 20, 2010, to Joel Cohen,
a director of the Company. See &quot;Certain Relationships and Related Party
Transactions&quot; in the accompanying prospectus; and (ii) the Company paid an
amount of $120,000 and issued warrants to purchase up to 240,000 shares of
common stock at an exercise price of $0.50 per share, expiring on June 20, 2010,
to Bennu Capital Advisors Inc. We issued the warrants under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On January 9, 2009, the Company issued 200,000 shares of
common stock on conversion of $50,000 of the outstanding principal amount of the
Debentures. We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On January 20, 2009 as payment for services rendered by CCI
Financial Group Inc. the company issued 326,000 shares of common stock to Mr.
Joel Cohen, a director of the Company and a principal of CCI Financial Group
Inc., for a value of $47,000. In addition, the Company granted to Mr. Cohen put
options requiring the Company to repurchase all or some of these shares for a
purchase price of $0.1152 cents per share during the period June 20, 2009 to
June 20, 2010. </p>
<p ALIGN="JUSTIFY">On January 22, 2009, the Company issued, 200,000 shares of
common stock as payment to suppliers for consulting fees. We issued these shares
of common stock under the exemption from registration provided by Section 4(2)
of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder </p>
<p ALIGN="JUSTIFY">On January 22, 2009, the Company issued 200,000 shares of
common stock on conversion of $50,000 of the outstanding principal amount of the
Debentures. We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On March 4, 2009, the Company issued 200,000 shares of common
stock upon conversion of $50,000 of the outstanding principal amount of the
Debentures. We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p ALIGN="JUSTIFY">On April 8, 2009, the Company issued 100,000 shares of common
stock as payment of $25,000 of accrued interest on the Debentures. We issued
these shares of common stock under the exemption from registration provided by
Section 4(2) of the Securities Act and/or Rule 506 of Regulation D promulgated
thereunder. </p>
<p align="justify">On April 20, 2009, the Company issued 800,000 shares of
common stock on conversion of $200,000 of the outstanding principal amount of
the Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On April 24, 2009, the Company issued 410,325 shares of
common stock upon conversion of approximately $102,600 of the outstanding
principal amount of Debentures. We issued these shares of common stock under the
exemption from registration provided by Section 4(2) of the Securities Act
and/or Rule 506 of Regulation D promulgated thereunder. </p>
<p align="justify">On May 13, 2009, as payment for services rendered by CCI
Financial Group Inc., the Company issued 463,581 shares of common stock to Joel
Cohen, a director of the Company and a principal of CCI Financial Group Inc. In
addition, the Company granted to Mr. Cohen put options requiring the Company to
repurchase all or some of these shares at a purchase price of $0.155 cents per
share during the period June 22, 2009 to June 22, 2010. We issued these shares
of common stock and put options under the exemption from registration provided
by Section 4(2) of the Securities Act and/or Rule 506 of Regulation D
promulgated thereunder </p>
<p align="justify">On May 13, 2009, the Company issued to Joel Cohen, a director
of the Company, 348,000 shares of common stock as a finder's fee in connection
services rendered by Mr. Cohen in connection with a financing based on the
Company's receivables(as described in note 22 to the Financial Statements for
the year ended January 31, 2009 in the accompanying prospectus). We issued these
shares of common stock under the exemption from registration provided by Section
4(2) of the Securities Act and/or Rule 506 of Regulation D promulgated
thereunder. </p>
<p align="justify">On May 22, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On June 8, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On June 13, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On June 16, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On July 2, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
<p align="justify">On July 21, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder. </p>
</font>
<P align=center>II-3 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_70></A>
<P align=justify><B>ITEM 16. EXHIBITS </B></P>
<P align=justify>EXHIBIT INDEX</P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>Exhibit <BR>Number </TD>
    <TD align=left width="90%">Description of Exhibits <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>2.1 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Share Exchange Agreement dated
      September 29, 2006. (8) </TD></TR>
  <TR vAlign=top>
    <TD align=left>3.1 </TD>
    <TD align=left width="90%">Amended Articles of Incorporation. (2) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>3.2 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Bylaws, as amended. (7) </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.1 </TD>
    <TD align=left width="90%">Form of Share Certificate. (1) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.2 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Form of Common Stock Warrant
      Certificate dated July 11, 2006. (9) </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.3 </TD>
    <TD align=left width="90%">Form of Warrant dated October 6, 2006. (9)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.4 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Warrants dated May 18, 2007
      issued to Philippe Peress. (14) </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.5 </TD>
    <TD align=left width="90%">Warrants dated May 18, 2007 issued to Joel
      Cohen. (14) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.6 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Form of Warrant dated October
      25, 2007, issued to each of Chris Maverick, Anne Ewe, and Craig Leon. (16)
    </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.7 </TD>
    <TD align=left width="90%">Notice of Extension of Warrants issued January
      11, 2008. (19) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.8 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (20) </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="exh51.htm" style="text-decoration: none">5.1 </a> </TD>
    <TD align=left width="90%">
    <a href="exh51.htm" style="text-decoration: none">Opinion of counsel as to legality of securities
      being registered. * </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.1 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Term Sheet between FC Financial
      Services Inc. ("FC") and the stockholders of ICP Solar Technologies Inc.
      (4) </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.2 </TD>
    <TD align=left width="90%">Loan Agreement between FC and ICP Solar
      Technologies Inc. (4) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.3 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Share Pledge Agreement dated
      May 16, 2006 among FC, Sass Peress, Peress Family Trust, Arlene Ades and
      Joel Cohen. (4) </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.4 </TD>
    <TD align=left width="90%">Limited Recourse Guarantee dated May 16, 2006
      between Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in
      favor of FC. (4) </TD></TR></TABLE>
<P align=center>II-4 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_71></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.5 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Promissory Note dated May 16, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (4)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.6 </TD>
    <TD>
      <P align=justify>Amendment 1 to Loan Agreement between FC and ICP Solar
      Technologies Inc dated July 4, 2006. (5)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.7 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Limited Recourse Guarantee dated July 4, 2006 between
      Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in favor of
      FC. (5)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.8 </TD>
    <TD>
      <P align=justify>Promissory Note dated July 4, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (5)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.9 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Form of 8% Convertible Note. (6)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.10 </TD>
    <TD>
      <P align=justify>Share Purchase Agreement dated September 29, 2006 among
      FC Financial Services Inc., ICP Solar Technologies Inc., Sass Peress, the
      Peress Family Trust, Arlene Ades, Joel Cohen, the Sass Peress Family
      Trust, Eastern Liquidity Partners Ltd., Taras Chebountchak, Orit Stolyar,
      and 1260491 Alberta Inc. (8)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.11 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Exchangeable Share Support Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer &amp; Trust Company, Sass Peress, the Peress Family Trust, Arlene
      Ades, Joel Cohen, the Sass Peress Family Trust, and Eastern Liquidity
      Partners. (8)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.12 </TD>
    <TD>
      <P align=justify>Exchange and Trust Voting Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer &amp; Trust Company, Sass Peress, Joel Cohen, Arlene Ades, the
      Sass Peress Family Trust, the Peress Family Trust, Eastern Liquidity
      Partners Ltd., Taras Chebountchak, and Orit Stolyar. (8)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.13 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Lease Agreement dated March 22, 2006 between 2631-1746
      Quebec Inc. and ICP Global Technologies Inc.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.14 </TD>
    <TD>
      <P align=justify>Lease Agreement dated October 10, 2003 among Mardan
      (Norwich) Limited, ICP Solar Technologies UK Limited and ICP Global
      Technologies Inc. (17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.15 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Employment Agreement dated November 6, 2005 between ICP
      Global Technologies Inc. and Arlene Ades.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.16 </TD>
    <TD>
      <P align=justify>Consulting Agreement dated November 24, 2004 between ICP
      Solar Technologies Inc. and Michael Di Domenico.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.17 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Consulting Agreement dated March 1, 2006 between ICP
      Solar Technologies Inc. and 6100864 Canada Inc. (17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.18 </TD>
    <TD>
      <P align=justify>Management Agreement dated May 23, 2006 between ICP Solar
      Technologies Inc. and Les Enterprises Guy Lever Inc and Management
      Agreement Addendum dated August 23, 2006 between ICP Solar Technologies
      Inc. and Les Enterprises Guy Lever Inc. (9)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.19 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Fixed Rate Asset Loan dated July 28, 2006 between ICP
      Solar Technologies Inc. and HSBC Equipment Finance (UK)
  Limited.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.20 </TD>
    <TD>
      <P align=justify>Line of Credit between ICP Global Technologies Inc. and
      Royal Bank of Canada dated May 6, 2005.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.21 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Binding letter of intent between ICP Global Technologies
      Inc. and Tejas Solares. (10)</P></TD></TR></TABLE>
<P align=center>II-5 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_72></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.22 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Binding letter of intent between ICP Solar Technologies
      Inc. and Discover Power Inc. (11)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.23 </TD>
    <TD>
      <P align=justify>ICP Solar Technologies Inc. 2006 Stock Incentive Plan,
      established November 1, 2006. (18)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.24 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Share Purchase Agreement between ICP Solar Technologies
      Inc. and ISE Solar LLC. dated May 9, 2007. (12)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.25 </TD>
    <TD>
      <P align=justify>Amendment to Share Purchase Agreement between ICP Solar
      Technologies Inc. and ISE Solar LLC dated May 10, 2007. (13)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.26 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Consultancy Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Gary Jones. (14)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.27 </TD>
    <TD>
      <P align=justify>Employment Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Tom Clark. (14)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.28 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Employment Agreement dated May 1, 2007 between ICP Solar
      Technologies Inc. and Laurent Lafite. (14)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.29 </TD>
    <TD>
      <P align=justify>Share Purchase Agreement between ICP Solar Technologies
      Inc. and WES Power Technology Inc. dated August 27, 2007. (15)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.30 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.31 </TD>
    <TD>
      <P align=justify>Subsidiary Guarantee, dated June 13, 2008, by ICP Solar
      Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies, ICP
      Global Technologies, Inc., and WES Power Technology, Inc. (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.32 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Form of Series A Warrant to Purchase Common Stock.
      (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.33 </TD>
    <TD>
      <P align=justify>Form of Series B Warrant to Purchase Common Stock.
      (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.34 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Form of Series C Warrant to Purchase Common Stock.
      (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.35 </TD>
    <TD>
      <P align=justify>Registration Rights Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.36 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Security Agreement, dated June 13, 2008, between ICP
      Solar Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies,
      ICP Global Technologies, Inc., WES Power Technology, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (20)</P></TD></TR></TABLE>
<P align=center>II-6 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_73></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.37 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Form of Intellectual Property Security Agreement, dated
      June 13, 2008. (20) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>10.38 </TD>
    <TD align=left width="90%">
      <P align=justify>Escrow Agreement, dated June 13, 2008, between ICP Solar
      Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master Fund,
      Ltd., Platinum Long Term Growth VI, LLC, and Burns &amp; Levinson,
      LLP.(20) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.39 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Voting Agreement Letter, dated June 13, 2008, issued by
      Sass Peress to BridgePointe Master Fund Ltd., Gemini Master Fund, Ltd.,
      and Platinum Long Term Growth VI, LLC. (20) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>10.40 </TD>
    <TD align=left width="90%">
      <P align=justify>Form of Lockup Agreement, dated June 13, 2008. (20)
    </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.41 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Employment Agreement dated November 6, 2006 between ICP
      Solar Technologies Inc. and Leon Assayag. (21). </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>10.42 </TD>
    <TD align=left width="90%">
      <P align=justify>Employment Agreement dated April 23, 2007 between ICP
      Solar Technologies Inc. and Sass Peress (21) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.43 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Employment Agreement dated May 6, 2008 between ICP Solar
      Technologies Inc. and Sheldon Reinhart.(21) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>10.44 </TD>
    <TD align=left width="90%">
      <P align=justify>Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC. (20)
    </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.45 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>10.46 </TD>
    <TD align=left width="90%">
      <P align=justify>Amendment Agreement dated December 31, 2008, between ICP
      Solar Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master
      Fund, Ltd., and Platinum Long Term Growth VI, LLC. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.47 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Registration Rights Agreement, dated
      December 31, 2008, between ICP Solar Technologies, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>10.48 </TD>
    <TD align=left width="90%">
      <P align=justify>Amended and Restated Security Agreement dated December
      31, 2008, between ICP Solar Technologies Inc., and each of its
      subsidiaries on the one hand and , BridgePointe Master Fund Ltd., Gemini
      Master Fund, Ltd., and Platinum Long Term Growth VI, LLC, on the other
      hand. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.49 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Form of Series A Warrant to Purchase
      Common Stock. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>10.50 </TD>
    <TD align=left width="90%">
      <P align=justify>Amended and Restated Form of Series B Warrant to Purchase
      Common Stock. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.51 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Form of Series C Warrant to Purchase
      Common Stock. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>16.1 </TD>
    <TD align=left width="90%">
      <P align=justify>Letter on change in certifying accountant. (9) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>21.1 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Subsidiaries of the Company. (9) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="exh231.htm" style="text-decoration: none">23.1 </a> </TD>
    <TD align=left width="90%">
      <P align=justify><a href="exh231.htm" style="text-decoration: none">Consent of RSM Richter.*
      </a> </P></TD></TR></TABLE>
<P align=center>II-7 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_74></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
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  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>
    <a href="exh51.htm" style="text-decoration: none">23.2 </a> </TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="exh51.htm" style="text-decoration: none">Consent of Burns &amp; Levinson LLP (included with
      Exhibit 5.1) *</a></P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">99.1 </TD>
    <TD>
      <P align=justify>Audit Committee Charter. (3)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>99.2 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Disclosure Committee Charter. (3)</P></TD></TR></TABLE>
<P align=justify>* Filed herewith. </P>
<P align=justify><B>Notes</B> </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Registration
      Statement on Form SB-2 originally filed on March 11, 2004, as
    amended.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 1, 2005.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 10-KSB filed on February 7, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on May 22, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on July 11, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(6) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Quarterly Report
      on Form 10-QSB filed on July 17, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(7) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on September 5, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(8) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on October 5, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(9) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 originally filed on November 14,
      2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(10) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 20, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(11) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on January 18, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(12) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on May 10, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(13) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K Amendment no.1 filed on May 16, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(14) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 Amendment No. 4, filed July 5,
      2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(15) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on August 28, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(16) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 filed January 30, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(17) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Quarterly Report on Form 10-QSB filed on October 23, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(18) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our DEF
      14C filed on November 14, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(19) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 11, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(20) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on June 17, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(21) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form S-1 filed July 15, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(22) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 7,
2009.</P></TD></TR></TABLE>
<P align=center>II-8 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<A name=page_75></A>
<P align=justify><B>Item 17. Undertakings </B></P>
<P align=justify>(a) The undersigned registrant hereby undertakes: </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of
1933; </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 this registration statement. Notwithstanding 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; and </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
That, for purposes 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. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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. </P>
<P align=justify>(c) 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 of 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. </P>
<P align=center>II-9 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_76></A>
<P align=center><B>SIGNATURES</B></P>
<P align=justify>Pursuant to the requirements of the Securities Act of 1933, the
registrant has duly caused this Registration Statement on Form S-1 on its behalf
by the undersigned, thereunto duly authorized, on this 30<SUP>th</SUP> day of
July, 2009.</P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&nbsp; </TD>
    <TD align=left width="45%"><B>ICP SOLAR TECHNOLOGIES INC.</B> </TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="5%">&nbsp; </TD>
    <TD width="45%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">BY: </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left width="45%"><u>/s/
      <I>Sass Peress&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>&nbsp;</u></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&nbsp; </TD>
    <TD align=left width="45%" style="border-top-style: none; border-top-width: medium">Sass Peress, President, Chief Executive </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&nbsp; </TD>
    <TD align=left width="45%">Officer, Director </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&nbsp; </TD>
    <TD align=left width="45%">(Principal Executive Officer) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&nbsp; </TD>
    <TD align=left width="45%">(Principal Accounting Officer)
</TD></TR></TABLE>
<P align=center><B>POWER OF ATTORNEY </B></P>
<P align=justify>Each person whose signature appears below hereby constitutes
and appoints Sass Peress his true and lawful attorney-in-fact and agent, 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 each of said attorney-in-fact and agent
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 said attorney-in-fact and agent, or his substitutes, may
lawfully do or cause to be done by virtue hereof. </P>
<P align=justify>Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement was signed by the following persons in the
capacities and on the dates indicated. </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left height="15"><B><U>Signature</U></B> </TD>
    <TD align=left width="32%" height="15"><B><U>Title</U></B> </TD>
    <TD align=left width="25%" height="15"><B><U>Date</U></B> </TD></TR>
  <TR>
    <TD height="15">&nbsp; </TD>
    <TD width="32%" height="15">&nbsp; </TD>
    <TD width="25%" height="15">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15">&nbsp; </TD>
    <TD align=left width="32%" height="15">President, Chief Executive Officer, </TD>
    <TD align=left width="25%" height="15">July 30, 2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left height="15">
    <u>/s/ <I>Sass
      Peress&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>&nbsp;</u></TD>
    <TD align=left width="32%" height="15">Chief Financial Officer, Director </TD>
    <TD align=left width="25%" height="15">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style: none; border-width: medium" height="15">Sass Peress </TD>
    <TD align=left width="32%" height="15">(Principal Executive Officer) </TD>
    <TD align=left width="25%" height="15">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style: none; border-width: medium" height="15">&nbsp; </TD>
    <TD align=left width="32%" height="15">(Principal Accounting Officer) </TD>
    <TD align=left width="25%" height="15">&nbsp; </TD></TR>
  <TR>
    <TD style="border-style: none; border-width: medium" height="15">&nbsp; </TD>
    <TD width="32%" height="15">&nbsp; </TD>
    <TD width="25%" height="15">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left height="16"><I>
    <u>/s/ Joel
      Cohen</u></I><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u> </TD>
    <TD align=left width="32%" height="16">Director </TD>
    <TD align=left width="25%" height="16">July 30, 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style: none; border-width: medium" height="15">Joel Cohen </TD>
    <TD align=left width="32%" height="15"> </TD>
    <TD align=left width="25%" height="15">&nbsp; </TD></TR>
  <TR>
    <TD style="border-style: none; border-width: medium" height="15">&nbsp; </TD>
    <TD width="32%" height="15">&nbsp; </TD>
    <TD width="25%" height="15">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left height="15">
    <u><I>/s/ Paul
      Maycock</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u> </TD>
    <TD align=left width="32%" height="15">Director </TD>
    <TD align=left width="25%" height="15">July 30, 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style: none; border-width: medium" height="15">Paul Maycock </TD>
    <TD align=left width="32%" height="15">&nbsp; </TD>
    <TD align=left width="25%" height="15">&nbsp; </TD></TR>
  <TR>
    <TD style="border-style: none; border-width: medium" height="15">&nbsp; </TD>
    <TD width="32%" height="15">&nbsp; </TD>
    <TD width="25%" height="15">&nbsp; </TD></TR>
  </TABLE>
<P align=center>II-10 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_77></A>
<P align=center>EXHIBIT INDEX</P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>Exhibit <BR>Number </TD>
    <TD align=left width="90%">Description of Exhibits <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>2.1 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Share Exchange Agreement dated
      September 29, 2006. (8) </TD></TR>
  <TR vAlign=top>
    <TD align=left>3.1 </TD>
    <TD align=left width="90%">Amended Articles of Incorporation. (2) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>3.2 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Bylaws, as amended. (7) </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.1 </TD>
    <TD align=left width="90%">Form of Share Certificate. (1) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.2 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Form of Common Stock Warrant
      Certificate dated July 11, 2006. (9) </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.3 </TD>
    <TD align=left width="90%">Form of Warrant dated October 6, 2006. (9)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.4 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Warrants dated May 18, 2007
      issued to Philippe Peress. (14) </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.5 </TD>
    <TD align=left width="90%">Warrants dated May 18, 2007 issued to Joel
      Cohen. (14) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.6 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Form of Warrant dated October
      25, 2007, issued to each of Chris Maverick, Anne Ewe, and Craig Leon. (16)
    </TD></TR>
  <TR vAlign=top>
    <TD align=left>4.7 </TD>
    <TD align=left width="90%">Notice of Extension of Warrants issued January
      11, 2008. (19) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>4.8 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (20) </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="exh51.htm" style="text-decoration: none">5.1 </a> </TD>
    <TD align=left width="90%">
    <a href="exh51.htm" style="text-decoration: none">Opinion of counsel as to legality of securities
      being registered. * </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.1 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Term Sheet between FC Financial
      Services Inc. ("FC") and the stockholders of ICP Solar Technologies Inc.
      (4) </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.2 </TD>
    <TD align=left width="90%">Loan Agreement between FC and ICP Solar
      Technologies Inc. (4) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>10.3 </TD>
    <TD align=left width="90%" bgColor=#eeeeee>Share Pledge Agreement dated
      May 16, 2006 among FC, Sass Peress, Peress Family Trust, Arlene Ades and
      Joel Cohen. (4) </TD></TR></TABLE>
<P align=center>II-11 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_78></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.4 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Limited Recourse Guarantee dated May 16, 2006 between
      Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in favor of
      FC. (4)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.5 </TD>
    <TD>
      <P align=justify>Promissory Note dated May 16, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (4)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.6 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Amendment 1 to Loan Agreement between FC and ICP Solar
      Technologies Inc dated July 4, 2006. (5)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.7 </TD>
    <TD>
      <P align=justify>Limited Recourse Guarantee dated July 4, 2006 between
      Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in favor of
      FC. (5)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.8 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Promissory Note dated July 4, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (5)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.9 </TD>
    <TD>
      <P align=justify>Form of 8% Convertible Note. (6)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.10 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Share Purchase Agreement dated September 29, 2006 among
      FC Financial Services Inc., ICP Solar Technologies Inc., Sass Peress, the
      Peress Family Trust, Arlene Ades, Joel Cohen, the Sass Peress Family
      Trust, Eastern Liquidity Partners Ltd., Taras Chebountchak, Orit Stolyar,
      and 1260491 Alberta Inc. (8)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.11 </TD>
    <TD>
      <P align=justify>Exchangeable Share Support Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer &amp; Trust Company, Sass Peress, the Peress Family Trust, Arlene
      Ades, Joel Cohen, the Sass Peress Family Trust, and Eastern Liquidity
      Partners. (8)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.12 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Exchange and Trust Voting Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer &amp; Trust Company, Sass Peress, Joel Cohen, Arlene Ades, the
      Sass Peress Family Trust, the Peress Family Trust, Eastern Liquidity
      Partners Ltd., Taras Chebountchak, and Orit Stolyar. (8)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.13 </TD>
    <TD>
      <P align=justify>Lease Agreement dated March 22, 2006 between 2631-1746
      Quebec Inc. and ICP Global Technologies Inc.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.14 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Lease Agreement dated October 10, 2003 among Mardan
      (Norwich) Limited, ICP Solar Technologies UK Limited and ICP Global
      Technologies Inc. (17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.15 </TD>
    <TD>
      <P align=justify>Employment Agreement dated November 6, 2005 between ICP
      Global Technologies Inc. and Arlene Ades.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.16 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Consulting Agreement dated November 24, 2004 between ICP
      Solar Technologies Inc. and Michael Di Domenico.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.17 </TD>
    <TD>
      <P align=justify>Consulting Agreement dated March 1, 2006 between ICP
      Solar Technologies Inc. and 6100864 Canada Inc. (17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.18 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Management Agreement dated May 23, 2006 between ICP Solar
      Technologies Inc. and Les Enterprises Guy Lever Inc and Management
      Agreement Addendum dated August 23, 2006 between ICP Solar Technologies
      Inc. and Les Enterprises Guy Lever Inc. (9)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.19 </TD>
    <TD>
      <P align=justify>Fixed Rate Asset Loan dated July 28, 2006 between ICP
      Solar Technologies Inc. and HSBC Equipment Finance (UK)
  Limited.(17)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.20 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Line of Credit between ICP Global Technologies Inc. and
      Royal Bank of Canada dated May 6, 2008 (17)</P></TD></TR></TABLE>
<P align=center>II-12 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_79></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.21 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Binding letter of intent between ICP Global Technologies
      Inc. and Tejas Solares. (10)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.22 </TD>
    <TD>
      <P align=justify>Binding letter of intent between ICP Solar Technologies
      Inc. and Discover Power Inc. (11)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.23 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>ICP Solar Technologies Inc. 2006 Stock Incentive Plan,
      established November 1, 2006. (18)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.24 </TD>
    <TD>
      <P align=justify>Share Purchase Agreement between ICP Solar Technologies
      Inc. and ISE Solar LLC. dated May 9, 2007. (12)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.25 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Amendment to Share Purchase Agreement between ICP Solar
      Technologies Inc. and ISE Solar LLC dated May 10, 2007. (13)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.26 </TD>
    <TD>
      <P align=justify>Consultancy Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Gary Jones. (14)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.27 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Employment Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Tom Clark. (14)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.28 </TD>
    <TD>
      <P align=justify>Employment Agreement dated May 1, 2007 between ICP Solar
      Technologies Inc. and Laurent Lafite. (14)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.29 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Share Purchase Agreement between ICP Solar Technologies
      Inc. and WES Power Technology Inc. dated August 27, 2007. (15)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.30 </TD>
    <TD>
      <P align=justify>Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.31 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Subsidiary Guarantee, dated June 13, 2008, by ICP Solar
      Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies, ICP
      Global Technologies, Inc., and WES Power Technology, Inc. (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.32 </TD>
    <TD>
      <P align=justify>Form of Series A Warrant to Purchase Common Stock.
      (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.33 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Form of Series B Warrant to Purchase Common Stock.
      (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.34 </TD>
    <TD>
      <P align=justify>Form of Series C Warrant to Purchase Common Stock.
      (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>10.35 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Registration Rights Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">10.36 </TD>
    <TD>
      <P align=justify>Security Agreement, dated June 13, 2008, between ICP
      Solar Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies,
      ICP Global Technologies, Inc., WES Power Technology, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (20)</P></TD></TR></TABLE>
<P align=center>II-13 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_80></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.37 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Form of Intellectual Property Security Agreement, dated
      June 13, 2008. (20) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>10.38 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Escrow Agreement, dated June 13, 2008, between ICP Solar
      Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master Fund,
      Ltd., Platinum Long Term Growth VI, LLC, and Burns &amp; Levinson,
      LLP.(20) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.39 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Voting Agreement Letter, dated June 13, 2008, issued by
      Sass Peress to BridgePointe Master Fund Ltd., Gemini Master Fund, Ltd.,
      and Platinum Long Term Growth VI, LLC. (20) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>10.40 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Form of Lockup Agreement, dated June 13, 2008. (20)
    </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.41 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Employment Agreement dated November 6, 2006 between ICP
      Solar Technologies Inc. and Leon Assayag. (21). </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>10.42 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Employment Agreement dated April 23, 2007 between ICP
      Solar Technologies Inc. and Sass Peress (21) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.43 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Employment Agreement dated May 6, 2008 between ICP Solar
      Technologies Inc. and Sheldon Reinhart.(21) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>10.44 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC. (20)
    </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.45 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>10.46 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Amendment Agreement dated December 31, 2008, between ICP
      Solar Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master
      Fund, Ltd., and Platinum Long Term Growth VI, LLC. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.47 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Registration Rights Agreement, dated
      December 31, 2008, between ICP Solar Technologies, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>10.48 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Amended and Restated Security Agreement dated December
      31, 2008, between ICP Solar Technologies Inc., and each of its
      subsidiaries on the one hand and , BridgePointe Master Fund Ltd., Gemini
      Master Fund, Ltd., and Platinum Long Term Growth VI, LLC, on the other
      hand. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.49 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Form of Series A Warrant to Purchase
      Common Stock. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>10.50 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Amended and Restated Form of Series B Warrant to Purchase
      Common Stock. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>10.51 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Amended and Restated Form of Series C Warrant to Purchase
      Common Stock. (22) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>16.1 </P></TD>
    <TD align=left width="90%">
      <P align=justify>Letter on change in certifying accountant. (9) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>
      <P align=justify>21.1 </P></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify>Subsidiaries of the Company. (9) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify><a href="exh231.htm" style="text-decoration: none">23.1
      </a> </P></TD>
    <TD align=left width="90%">
      <P align=justify><a href="exh231.htm" style="text-decoration: none">Consent of RSM Richter.*
      </a> </P></TD></TR></TABLE>
<P align=center>II-14 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_81></A><BR>
<TABLE
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  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>
    <a href="exh51.htm" style="text-decoration: none">23.2 </a> </TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="exh51.htm" style="text-decoration: none">Consent of Burns &amp; Levinson LLP (included with
      Exhibit 5.1) *</a></P></TD></TR>
  <TR>
    <TD vAlign=top width="10%">99.1 </TD>
    <TD>
      <P align=justify>Audit Committee Charter. (3)</P></TD></TR>
  <TR>
    <TD vAlign=top width="10%" bgColor=#eeeeee>99.2 </TD>
    <TD bgColor=#eeeeee>
      <P align=justify>Disclosure Committee Charter. (3)</P></TD></TR></TABLE>
<P align=justify>* Filed herewith. </P>
<P align=justify><B>Notes</B> </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Registration
      Statement on Form SB-2 originally filed on March 11, 2004, as
    amended.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 1, 2005.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 10-KSB filed on February 7, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on May 22, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on July 11, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(6) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Quarterly Report
      on Form 10-QSB filed on July 17, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(7) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on September 5, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(8) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on October 5, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(9) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 originally filed on November 14,
      2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(10) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 20, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(11) </TD>
    <TD>
      <P align=justify>Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on January 18, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(12) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on May 10, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(13) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K Amendment no.1 filed on May 16, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(14) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 Amendment No. 4, filed July 5,
      2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(15) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on August 28, 2007.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(16) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 filed January 30, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(17) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Quarterly Report on Form 10-QSB filed on October 23, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(18) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our DEF
      14C filed on November 14, 2006.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(19) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 11, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(20) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on June 17, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(21) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Registration Statement on Form S-1 filed July 15, 2008.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(22) </TD>
    <TD>
      <P align=justify>Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 7,
2009.</P></TD></TR></TABLE>
<P align=center>II-15 </P>
<HR align=center width="100%" color=black noShade SIZE=5>
</BODY></HTML>
[{"type": "S-1", "sequence": "1", "filename": "icpsolar_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 970061}]
{"company-data": {"conformed-name": "ICP Solar Technologies Inc.", "cik": "0001281872", "assigned-sic": "3674", "irs-number": "200643604", "fiscal-year-end": "0131"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-160906", "film-number": "09973258"}, "business-address": {"street1": "7075 PLACE ROBERT-JONCAS", "street2": "UNIT 131", "city": "MONTREAL", "state": "A8", "zip": "H4M 2Z2", "phone": "514-270-5770"}, "mail-address": {"street1": "7075 PLACE ROBERT-JONCAS", "street2": "UNIT 131", "city": "MONTREAL", "state": "A8", "zip": "H4M 2Z2"}, "former-company": {"former-conformed-name": "FC FINANCIAL SERVICES INC", "date-changed": "20040226"}}
ICP Solar Technologies Inc.: Form S-1 - Prepared By TNT
Filings Inc.
As filed with the Securities and Exchange Commission on
___________, 2009
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
ICP SOLAR TECHNOLOGIES,
INC.
(Exact Name of Registrant as specified in its
Charter)
NEVADA
3674
20-0643604
(State or other jurisdiction of
(Primary Standard Industrial
(I.R.S. Employer
incorporation or organization)
Classification Code Number)
Identification Number)
7075 Place Robert-Joncas
Montréal, Québec, Canada H4M 2Z2
(514) 270-5770
(Address, including zip code, and telephone
number, including area code, of Registrant's principal executive offices)
Camlex Management
8275 S. Eastern Ave., Suite 200
Las Vegas, Nevada 89123
(Name, address including zip
code, and telephone number, including area code, of Agent for Service)
Copies to:
Andrew J. Merken, Esq.
Burns
& Levinson LLP
125 Summer Street
Boston, Massachusetts 02110
(617) 345-3000
Approximate date of commencement of proposed sale to the
public:
As soon as practicable after this registration statement becomes
effective.
If any 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: [X]
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) 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. [ 
 ]
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. [   ]
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. [   ]
Indicate by 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.
Large Accelerated filer [    ]
Accelerated
      filer                 
       [   ]
Non-accelerated filer  
       [    ]
(Do not check if a smaller reporting
      company)
Smaller reporting company [X]
CALCULATION OF REGISTRATION FEE
Proposed
Proposed
Maximum
Maximum
Aggregate
Amount of
Amount to be
Offering Price
Offering
Registration
Title of Each Class of Securities to be Registered
Registered
(1)
Per
      Share
(2)
Price
Fee
Common Stock underlying Series A warrants exercisable at $0.14 per share
6,666,666
$
0.14
$
933,333.24
$
52.08
Common Stock underlying Series B warrants exercisable at $0.14 per share
19,999,998
$
0.14
$
2,799,999.72
$
156.24
Common Stock underlying Series C warrants exercisable at $0.14 per share
6,666,666
$
0.14
$
933,333.24
$
52.08
Common Stock issuable upon conversion of preferred Class A exchangeable shares on a 1:1 basis
2,000,000
$
0.14
$
280,000.00
$
15.62
Common Stock
811,581
$
0.14
$
113.621.34
$
6.34
Total
36,144,911
$
5,060,287.54
$
282.36
(1)
All of the shares of
common stock registered hereunder will be offered by the selling stockholders
named herein.
Pursuant to Rule 416 under the Securities Act of 1933, as
amended, the shares being registered hereunder include such indeterminate number
of additional shares of common stock as may be issuable with respect to the
shares being registered as a result of stock splits, stock dividends and similar
changes.
(2)
Estimated solely for
the purpose of calculating the registration fee in accordance with Rule 457(c).
We have estimated the offering price to be $0.14 per share based on the reported
average bid and asked price for shares of our stock in the over-the-counter
market on July 29, 2009.
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, as amended, or until the
registration statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY
BE CHANGED. THESE SECURITIES MAY NOT BE SOLD UNTIL THE REGISTRATION STATEMENT
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS
IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO
BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT
PERMITTED.
Subject to Completion, Dated July 30, 2009
PROSPECTUS
ICP SOLAR TECHNOLOGIES, INC.
36,144,911 Shares of Common Stock
This prospectus relates to the offer for sale of 36,144,911
shares of our common stock, $0.00001 par value per share, by certain existing
holders of the securities named herein, referred to as "selling stockholders"
throughout this document.
The shares of common stock to be sold by the selling
stockholders include:
6,666,666 shares issuable to selling stockholders pursuant
  to the exercise of Series A warrants; and
19,999,998 shares issuable to selling stockholders pursuant
  to the exercise of Series B warrants; and
6,666,666 shares issuable to selling stockholders pursuant
  to the exercise of Series C warrants; and
2,000,000 shares issuable to certain selling stockholders
  upon the conversion of Class A Exchangeable Shares of 1260491 Alberta Inc.,
  our wholly-owned subsidiary, on a one-for-one basis; and
811,581 shares issued by us as consideration for consulting
  services rendered to us by certain of the selling stockholders.
The offered shares issuable upon the exercise of the warrants
described above were acquired by certain selling stockholders pursuant to a
series of transactions completed on December 31, 2008. See "Prospectus Summary;
The Offering". We are registering the offer and sale of the shares of common
stock underlying the warrants to satisfy registration rights we have granted to
the selling stockholder who are holders thereof.
All of the shares being offered by this prospectus are being
offered by the selling stockholders named in this prospectus or any supplement
hereto. This offering is not being underwritten. We will not receive any of the
proceeds from the sale of the shares of our common stock in this offering. If
the warrants are exercised so that the underlying shares may be sold, we will
receive the exercise price of the warrants.
The selling stockholders identified in this prospectus, or
their pledgees, donees, transferees or other successors-in-interest, may offer
the common stock or interests therein from time to time through public or
private transactions at prevailing market prices, at prices related to
prevailing market prices, or at privately negotiated prices. We will pay all
expenses of registering this offering of securities. See "Plan of Distribution".
Our common stock is quoted on the Over-The-Counter Bulletin
Board (the "OTC Bulletin Board") under the symbol "ICPR". On July 29, 2009, the
last reported bid price was $0.14. Except under certain circumstances, the selling
stockholders will sell the shares from time to time through independent
brokerage firms in the over-the-counter market at market prices prevailing at
the time of sale.
Investing
in our common stock involves substantial risks. See "Risk Factors" beginning on
page 6.
Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is
truthful or complete. Any representation to the contrary is a criminal
offense.
The date of this Prospectus is July 30, 2009
TABLE OF CONTENTS
Page
Prospectus
      Summary
3
Risk
      Factors
6
Forward-Looking
      Statements
16
Use
      of Proceeds
17
Market
      Price of Our Common Stock and Related Stockholder Matters
17
Selling
      Security Holders
19
Plan
      of Distribution
21
Description
      of Securities
23
Legal
      Matters
23
Experts
23
Management's
      Discussion and Analysis of Financial condition and Results of Operations
24
Our
      Business
40
Legal
      Proceedings
51
Directors
      and Executive Officers
51
Executive
      Compensation
54
Security
      Ownership of Certain Beneficial Owners and Management
60
Certain
      Relationships and Related Party Transactions; Director Independence
62
Interests
      of Named Experts and Counsel
62
Where
      You Can Find Additional Information
63
Index
      to Financial Statements
64
You
may only rely on the information contained in this prospectus or that we have
referred you to. No dealer, salesperson or other person is authorized to give
any information or to represent anything not contained in this prospectus. You
must not rely on any unauthorized information or representations. This
prospectus is an offer to sell only the shares offered hereby, but only under
circumstances and in jurisdictions where it is lawful to do so. The information
contained in this prospectus is current only as of its date. Neither the
delivery of this prospectus nor any sale made in connection with this prospectus
shall, under any circumstances, create an implication that there has been no
change in our affairs since the date of this prospectus or that the information
contained by reference to this prospectus is correct as of any time after its
date.
2
PROSPECTUS SUMMARY
This summary highlights information contained elsewhere in
this prospectus and is qualified in its entirety by the more detailed
information and consolidated financial statements included elsewhere in this
prospectus. This summary is not complete and may not contain all of the
information that may be important to you. You should read carefully this entire
prospectus, including the information under "Risk Factors" and our consolidated
financial statements and the related notes included elsewhere in this
prospectus, before making an investment decision.
Our Business
On September 29, 2006, ICP Solar Technologies Inc., formerly FC
Financial Services Inc. ("ICP Solar"), a Nevada corporation, directly and
indirectly through its Canadian wholly owned subsidiary, completed the
acquisition of 100% of the issued and outstanding shares of ICP Solar
Technologies Inc., a Canadian corporation ("ICP"). ICP, organized in 1988, has
continued its operations as a subsidiary of ICP Solar. In this prospectus,
unless otherwise indicated or the context requires, the "Company", "we", "us"
and "our" refer to ICP Solar and its subsidiaries including ICP and ICP Global
Technologies Inc. (Canada), our operating company and a wholly-owned subsidiary
of ICP.
We are headquartered in Montreal, Canada and we operate in the
solar energy industry. We market and sell solar panel based products to the
consumer goods, Original Equipment Manufacturers ("OEM") and integrated building
materials markets through our distribution channels in over 50 countries. Our
products include:
Sunsei
TM
12V solar chargers
(from 135mAmps to 8Amp sizes, Charge Controllers, Mounting and Expansion Kits,
Coleman solar chargers from 100mAmps to 3.6Amps, 4A Charge Controller),
OEM
Modules
(from 54mm to 600mm in size VW Solar Charger, Winnebago Solar
Charger for RV Roof), and
Solar Tiles (BIPV)
(in development). We operate
our business through a wholly owned subsidiary of ICP, ICP Global Technologies
Inc. (Canada).
We were incorporated in the State of Nevada on November 19,
2003 as "FC Financial Services Inc." Prior to completing the acquisition of ICP,
we were in the business of providing indirect financing of installment contracts
for automobile purchases and leases. Our business model involved automobile
dealers making arrangements with us to finance the purchase or lease of a
vehicle. In order to focus our resources on developing ICP's technology and
business, we no longer are proceeding with automobile financing business
activities.
Our Strategy
Our business strategy is to expand our client base with large
retail chains and specialty retailers in addition to further penetrating our
existing client base. Our strategy is to gain market share by working with
partners for a variety of applications. At the present time, the Company has
identified potential marketing partners. The Company also intends to continue to
market its existing products to the rural areas of developing countries. We plan
to continue to reduce our costs by improving efficiency and innovating new
technologies. As part of our overall sales growth strategy, we intend to
continue to work closely with our sales agents, as well as utilize the Internet
for our marketing and sales of our products.
Our Competitive Strengths
We believe that our key competitive strengths include:
Our intellectual property;
The depth and breadth of our management team's expertise and experience in
  the solar energy industry;
Market recognition of our brand names; and
Our reputation for quality products.
3
The Offering
Shares offered by selling stockholders
The selling stockholders will offer and sell up to an aggregate
of 36,144,911 shares of our common stock, as follows: (i) 6,666,666 shares
issuable upon the exercise of Series A warrants held by selling stockholders,
(ii) 19,999,998 shares issuable upon the exercise of Series B warrants held by
selling stockholders, (iii) 6,666,666 shares issuable upon the exercise of
Series C warrants held by selling stockholders, (iv) 2,000,000 shares issuable
to certain selling stockholders upon the conversion of Class A Exchangeable
Shares of 1260491 Alberta Inc., our wholly owned subsidiary on a one-for-one
basis (see "Management's Discussion and Analysis of Financial condition and
Results of Operations - Reorganization of the Corporation"); and (v) 811,581
shares issued by us as consideration for consulting services rendered to us by
certain selling stockholders. For a list of the selling stockholders and the
amount of shares of common stock that each of them may sell, see "Selling
Security Holders." The total amount of the shares of common stock being
registered for sale by the selling stockholders is equal to approximately 88 %
of our currently outstanding common stock.
The offering is being made by the selling stockholders for
their benefit. We will not receive any of the proceeds of their sales of common
stock. We expect to use any cash proceeds received from exercise of the Warrants
by selling stockholders for general working capital purposes.
Our common stock
As of July 29, 2009, there were 41,262,497 shares of our common
stock outstanding. Shares of our common stock are quoted on the Over-The-Counter
Bulletin Board (the "OTC Bulletin Board") under the symbol "ICPR". See
"
Market Price of Our Common Stock and Related Stockholder Matters."
Plan of distribution
We expect that the selling stockholders will sell the shares
primarily through sales into the over-the-counter market made from time to time
at prices that they consider appropriate. See "Plan of Distribution."
Background of the offering
On June 13, 2008, we completed a private placement (the
"Private Placement") of securities in reliance upon the exemption from
registration provided by Regulation D promulgated under the Securities Act of
1933, as amended (the "Securities Act") for net proceeds of US $3,000,000. In
connection with this private placement, we issued to the participating investors
("Buyers"): (i) 11% senior secured convertible debentures, due June 13, 2010, in
the Company issued at a 10% discount with an aggregate face value of
$3,333,333,convertible into shares of common stock of the Company at an initial
conversion price of US $0.50 (subject to adjustment) (the "Debentures"); (ii)
6,666,666 six-year Series A purchase warrants each exercisable to purchase one
share of common stock of the Company, at an initial exercise price of US $0.50
per share (subject to adjustment); (iii) 6,666,666 six-year Series B purchase
warrants, each exercisable to purchase one share of common stock of the Company
at an initial exercise price of US $1.00 per share (subject to adjustment); and
(iv) 6,666,666 six-year Series C purchase warrants, each exercisable to purchase
one share of common stock of the Company at an initial exercise price of US
$1.00 per share warrants (subject to adjustment) (the securities described in
(ii) through (iv), collectively, the "Warrants"). No Series C warrants may be
exercised until such time as all Series B warrants have been exercised.
The Debentures are convertible at any time by the holders
thereof at a fixed initial conversion price of $0.50, subject to adjustment
pursuant to the terms of the Debentures in the event that we issue shares of
common stock (or securities convertible into or exercisable for shares of common
stock) at a price below the then current conversion price. The principal amount
under the Debentures is repayable to the holders in 18 equal monthly
installments of $185,185, beginning November 1, 2008. Interest on the Debentures
is payable monthly and began on June 13, 2008. We may make payments of interest
or principal under the Debentures in the form of shares of common stock;
provided, generally, that we are not in default under the Debentures at such
time and we have met certain equity conditions described in the Debentures. If
we make payments of interest in the form of shares of common stock, such shares
must be registered and free-trading. If the Company elects to make principal
payments in shares of common stock, the conversion rate will be the lesser of
(a) the Conversion Price (as defined below), or (b) 85% of the average of the
three (3) lowest closing bid prices of the common shares over the twenty (20)
trading day period ending on the trading day ending immediately preceding the
applicable monthly redemption date.
4
A portion of the proceeds from the private placement were used
to redeem all of the outstanding principal and accrued interest on the Company's
credit facility with Royal Bank of Canada.
On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the "Amendment") to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows:
The principal balance of the Debentures issued in the Private Placement, as
  amended, now constitutes 115% of the sum of (i) principal amount of the
  Debentures outstanding immediately prior to the date of the Amendment, plus
  (ii) all accrued and unpaid interest through December 31, 2008, for a total
  outstanding principal amount of: $2,953,688.37. The principal amount and the
  interest are to be paid out to the Buyers according to the terms set out in
  the Amendment and above.
The Company had agreed to remit to the holders 10% of its weekly
  collections commencing on February 1, 2009 until May 31, 2009 and any and all
  monthly receipts on the loan receivable from EPOD Solar Inc. (as
  described in "Management's Discussion and Analysis of Financial condition and
  Results of Operations - Sale of 100% of Shares of ICP UK"), until the Senior
  Secured Convertible Debentures have been repaid in full. The Company also
  assigned to the holders of the Debentures a $1,000 CDN face value 12%
  convertible debenture, due August 8, 2011, issued by EPOD Solar Inc. to the
  Company in connection with the sale of ICP UK. See "Management's Discussion
  and Analysis of Financial condition and Results of Operations - Sale of 100%
  of Shares of ICP UK". Beginning on June 1,
  2009 the Company was to begin making thirteen equal monthly repayments of
  approximately $180,000. The Company has not commenced capital repayments, and
  the holders of the Debentures have agreed to allow the Company to repay the
  principal remaining with approximately 11 equal payments of approximately
  $166,000 and a final payment of $322,000.
The exercise price of the Series A purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  6,666,666 additional Series A warrants (hereinafter referred to as the "Series
  A Adjustment Warrants"); the exercise price of the Series B purchase warrants
  issued in the Private Placement was reduced from $0.50 to $0.25, resulting in
  the issuance of 19,999,998 additional Series B warrants (hereinafter referred
  to as the "Series B Adjustment Warrants"): the exercise price of the Series C
  purchase warrants issued in the Private Placement was reduced from $1.00 to
  $0.50, resulting in the issuance of 6,666,666 additional Series C warrants
  (hereinafter referred to as the "Series C Adjustment Warrants") (the Series A
  Adjustment Warrants, Series B Adjustment Warrants and Series C Adjustment
  Warrants are collectively referred to herein as the "Adjustment Warrants").
The Company has agreed to register the shares of common stock
issuable upon exercise of the Adjustment Warrants and is doing so pursuant to
the registration statement on Form S-1 of which this prospectus is a part. The
Company may be subject to various penalties for failure to meet certain
deadlines for the filing of and effectiveness of the registration statement.
Holders of the Debentures may require the Company to redeem the
Debentures upon the occurrence of any one or more of events of default specified
in the Debentures. The shares of common stock issuable upon conversion of the
Debentures, as amended pursuant to the Amendment, are not required to be
registered under the transaction documents.
The conversion price for the Debentures, as amended, and the
exercise price for the Adjustment Warrants, the Additional Adjustment Warrants
(as described below) and the warrants issued in the Private Placement are
subject to adjustment at a floating rate tied to our achieving certain
milestones tied to trailing revenues and earnings before interest, taxes,
depreciation and amortization ("EBITDA"). In the event that we fail to achieve
these milestones, the conversion price for the Debentures and the exercise price
for the warrants will be reduced (but not increased) to equal the lesser of (a)
the conversion price then in effect, (b) the "market price" (equal to the volume
weighted average price of our common stock during the immediately preceding five
(5) consecutive trading days) for shares of our common stock, as determined on
the applicable milestone date, or (c) the market price, as determined on the
date that is five (5) trading days after the date that Company files its next
periodic report with the Securities and Exchange Commission following the end of
the applicable milestone period.
For our fiscal quarter ended April 30, 2009 (a milestone
date), the Company was required under the Debentures to achieve revenues no less
than $1.5 million and to maintain its accounts payable at less than $1.75
million. The Company failed to achieve these targets and, as a result, was in
default under the Debentures.
The Company has obtained a waiver from the holders of the
Debentures for such default; however, pursuant to the terms of the Debentures,
as a result of the Company's failure to achieve these targets the conversion
price of the outstanding Debentures and the exercise price for the Adjustment
Warrants and the warrants issued in the Private Placement was reduced to $0.14,
the volume weighted average price of our common stock during the five (5)
consecutive trading days immediately preceding April 30, 2009. The weighted
average market price in the five days following the filing of the 10Q was not
less than $0.14, so that a further reduction in price was not required nor made.
The reduction in the exercise price of the Adjustment Warrants and the warrants
issued in the Private Placement resulted in the issuance of the following
warrants effective June 21, 2009: (i)10,476,197 additional Series A Warrants
("Series A Additional Adjustment Warrants"), (ii) 20,952,386 additional Series B
warrants ("Series B Additional Adjustment Warrants"), and (iii) 34,285,722
additional Series C warrants ("Series C Additional Adjustment Warrants"),
(Series A Additional Adjustment Warrants, Series B Additional Adjustment
Warrants and Series C Additional Adjustment Warrants collectively referred to
herein as the "Additional Adjustment Warrants").
The Company will not be required to register any of the shares of common
stock issuable upon exercise of any such Additional Adjustment Warrants.
This registration includes (i) 6,666,666 shares of common stock
issuable upon the exercise of Series A Adjustment Warrants issued, (ii)
19,999,998 shares of common stock issuable upon the exercise of Series B
Adjustment Warrants issued , and (iii) 6,666,666 shares of common stock issuable
upon the exercise of Series C Adjustment Warrants issue.
We are also registering for resale by certain selling
stockholders (i) 2,000,000 shares issuable to certain selling stockholders upon
the conversion of Class A Exchangeable Shares of 1260491 Alberta Inc., our
wholly owned subsidiary on a one-for-one basis (see "Management's Discussion and
Analysis of Financial condition and Results of Operations - Reorganization of
the Corporation"); and (ii) 811,581 shares issued by us as consideration for
consulting services rendered to us by certain of the selling stockholders. See
"Selling Security Holders".
Additional Information
Our executive offices are located at 7075 Place Robert-Joncas,
Montréal, Québec, Canada, H4M 2Z2. Our web site address is
http://www.icpsolar.com. Information contained on our web site is not to be
considered a part of this prospectus.
5
RISK FACTORS
YOU SHOULD CAREFULLY CONSIDER THE RISKS AND UNCERTAINTIES
DESCRIBED BELOW AND THE OTHER INFORMATION CONTAINED OR INCORPORATED BY REFERENCE
IN THIS PROSPECTUS BEFORE DECIDING WHETHER TO INVEST IN OUR COMMON STOCK.
ADDITIONAL RISKS AND UNCERTAINTIES NOT PRESENTLY KNOWN TO US OR THAT WE
CURRENTLY DEEM IMMATERIAL MAY ALSO IMPAIR OUR BUSINESS OPERATIONS.
IF ANY OF THE FOLLOWING RISKS ACTUALLY OCCUR, OUR BUSINESS,
FINANCIAL CONDITION OR OPERATING RESULTS COULD BE MATERIALLY ADVERSELY AFFECTED.
IN SUCH CASE, THE TRADING PRICE OR OUR COMMON STOCK COULD DECLINE AND YOU MAY
LOSE PART OR ALL OF YOUR INVESTMENT.
THIS PROSPECTUS ALSO CONTAINS FORWARD-LOOKING STATEMENTS
THAT INVOLVE RISKS AND UNCERTAINTIES. PLEASE SEE "FORWARD-LOOKING STATEMENTS" ON
PAGE 16.
Risks Related to Our Business, Products and the Solar Power
Industry
We may need to raise significant additional capital in order
to fund our operations and to continue to grow our business, which subjects us
to the risk that we may be unable to maintain or grow our business as planned
and that our stockholders may be subject to substantial additional dilution.
Although we believe that we have the financial resources to
complete our plan of operation for the next twelve months, we anticipate that we
may require additional funding to further enhance our operating infrastructure,
to secure our supply of solar panels and to advance our research and development
programs that are key to refining our products.
We may also require additional capital to respond to
competitive pressures and acquire complementary businesses or necessary
technologies. We do not know whether or not we will be able to raise additional
financing at all or on terms favorable to us. If adequate funds are not
available or are not available on acceptable terms, our ability to fund our
operations, to develop and expand our solar panel supplier network and
distribution network, to maintain our research and development efforts or to
otherwise respond to competitive pressures would be significantly impaired. If
financing is not available or obtainable, our ability to meet our financial
obligations and pursue our plan of operation will be substantially limited and
investors may lose a substantial portion or all of their investment. Moreover,
any additional funds raised through the issuance by us of shares of our capital
stock, or through securities exchangeable or convertible into shares of our
capital stock, would result in a reduction in the percentage ownership of our
existing stockholders. In addition, any such newly issued securities may contain
rights, privileges or preferences senior to those held by our existing
stockholders.
We have a history of losses, expect to incur substantial
further losses and may not achieve or maintain profitability in the future,
which may decrease the market value of our stock.
ICP was founded in 1988. Headquartered in Montreal, Canada, ICP
operates in the solar energy industry. ICP markets, and sells solar panel based
products to the consumer goods, Original Equipment Manufacturers ("OEM") and
integrated building materials markets through its distribution channels in over
50 countries. Since inception, we have incurred significant net losses,
including a net loss of $ 5,982,660 for the quarter ended April 30, 2009. As a
result of ongoing operating losses, we had an accumulated deficit of $
24,912,588 as of April 30, 2009. We expect to continue to incur substantial
losses for the foreseeable future, and we may never become profitable. Even if
we do achieve profitability, we may be unable to sustain or increase our
profitability in the future, which could materially decrease the market value of
our common stock.
We do not know whether our revenues will grow at all and even
if we do achieve profitability, we may be unable to sustain or increase our
profitability in the future, which could materially decrease the market value of
our common stock. We expect to continue to make significant capital expenditures
and anticipate that our expenses will increase substantially in the foreseeable
future as we seek to:
6
expand our supplier network, whether domestically or internationally;
develop our distribution network;
continue to perform research and development to improve existing products
  and develop new products;
implement internal systems and infrastructure in conjunction with our
  growth; and
hire additional personnel.
We do not know whether our revenues will grow at all or grow
rapidly enough to absorb these expenses, and our limited operating history makes
it difficult to assess the extent of these expenses or their impact on our
operating results.
Potential investors should also be aware of the difficulties
normally encountered by a new enterprise and the high rate of failure of such
enterprises. The potential for future success must be considered in light of the
problems, expenses, difficulties complications and delays encountered in
connection with the development of a business in the area in which we intend to
operate and in connection with the formation and commencement of operations of a
new business in general. These include, but are not limited to, unanticipated
problems relating to research and development programs, marketing, approvals by
government agencies, competition and additional costs and expenses that may
exceed current estimates. The Company has no substantial history upon which to
base any assumption as to the likelihood that our business will prove to be
successful, and there can be no assurance that we will generate any operating
revenues or ever achieve profitable operations.
Our dependence on a limited number of third party
manufacturers for solar panels, key components for our solar power products,
could prevent us from delivering our products to our customers within required
timeframes, which could result in order cancellations and loss of market share.
We obtain all of our solar power products using third party
manufacturers and assemblers and using materials and components procured from a
limited number of third-party suppliers. If we fail to develop or maintain our
relationships with these or our other manufacturers and/or suppliers, we may be
unable to manufacture our products or our products may be available only at a
higher cost or after a long delay, which could prevent us from delivering our
products to our customers within required time frames and which may, in turn,
result in order cancellations and loss of market share. We currently do not have
contracts with many of our suppliers and may not be able to procure sufficient
quantities of the materials and components necessary to manufacture our products
on acceptable commercial terms or at all. To the extent that the processes that
our suppliers use to manufacture materials and components are proprietary, we
may be unable to obtain comparable materials and components from alternative
suppliers on favorable terms, or at all. The failure of a supplier to supply
materials and components in a timely manner, or to supply materials and
components that meet our quality, quantity and cost requirements could impair
our ability to manufacture our products or increase their component costs,
particularly if we are unable to obtain substitute sources of these materials
and components on a timely basis or on terms acceptable to us.
We may fail to successfully bring to market our new solar
power products under development, which may prevent us from achieving increased
sales and market share.
Although ICP has been selling its solar power products since
1988, we expect to derive a substantial portion of our revenues from sales of
our new solar power products that are under development and not yet commercially
available. If we fail to successfully develop our new solar power products or
technologies, we will likely be unable to recover losses incurred to date in the
development of these products and technologies, and we may be unable to increase
our sales sufficiently to allow us to become profitable.
Our solar power products may not gain market acceptance,
which would prevent us from achieving increased sales and market share.
The development of a successful market for our solar power
products may be adversely affected by a number of factors, many of which are
beyond our control, including:
our failure to produce solar power products that compete favorably against
  other solar power products on the basis of cost, quality and performance;
our failure to produce solar power products that compete favorably against
  conventional energy sources and alternatively distributed generation
  technologies, such as wind and biomass, on the basis of cost, quality and
  performance;
whether or not customers will accept our new module designs under
  development and the techniques we are developing mount them; and
our failure to develop and maintain successful relationships with
  distributors, systems integrators and other resellers, as well as strategic
  partners.
7
If our solar power products fail to gain market acceptance, we
may be unable to increase our sales and market share and to achieve and sustain
profitability.
Technological changes in the solar power industry could
render our solar power products uncompetitive or obsolete, which could reduce
our market share and cause our sales to decline.
Our failure to further refine our technology and to develop and
introduce new solar power products could cause our products to become
uncompetitive or obsolete, which could reduce our market share and cause our
sales to decline. The solar power industry is rapidly evolving and competitive.
We will need to invest significant financial resources in research and
development to keep pace with technological advances in the solar power industry
and to effectively compete in the future. We believe that a variety of competing
solar power technologies are under development by other companies that could
result in lower manufacturing costs or higher product performance than those
expected for our solar power products. Our development efforts may be rendered
obsolete by the technological advances of others and other technologies may
prove more advantageous for the commercialization of solar power products.
Our ability to increase market share and sales depends on
our ability to successfully maintain our existing distribution relationships and
expand our existing distribution channels.
We currently sell our solar power products primarily to
distributors, system integrators and other value-added resellers within and
outside of North America, which typically resell our products to end-users
globally. If we are unable to successfully refine our existing distribution
relationships and expand our existing distribution channels, our revenues and
future prospects may be materially harmed. As we seek to grow our sales by
entering new markets in which we have little experience selling our solar power
products, our ability to increase market share and sales will depend
substantially on our ability to expand our distribution channels by identifying,
developing and maintaining relationships with resellers both within and outside
of North America. We may be unable to enter into relationships with resellers in
the markets we target or on terms and conditions favorable to us, which could
prevent us from entering these markets at all or in accordance with our current
plans. Our ability to enter into and maintain relationships with resellers will
be influenced by factors beyond our control, including the relationships between
these resellers and our competitors, market acceptance of our products and our
low brand recognition as a new entrant.
Our dependence on a small number of resellers may cause
significant fluctuations or declines in our product revenues.
Historically, all of our sales to resellers have been made
through purchase orders without long-term commitments, including under
arrangements that may be cancelled without cause and on short notice and that
generally do not require minimum purchases. Consequently, our resellers are
generally permitted to obtain products from other providers of solar power
products without further obligation to us. The concentration of our product
sales also exposes us to credit risks associated with the financial viability of
these resellers. We anticipate that sales of our solar power products to a
limited number of key resellers will continue to account for a significant
portion of our total product revenues for the foreseeable future. Consequently,
any one of the following events may cause material fluctuations or declines in
our product revenues and negatively impact our operating results:
reduction, delay or cancellation of orders from one or more of our
  significant resellers;
selection by one or more of our significant resellers of products
  competitive with ours;
loss of one or more of our significant resellers and our failure to
  recruit additional or replacement resellers; and
failure of any of our significant resellers to make timely payment of our
  invoices.
8
Problems with product quality or product performance may
cause us to incur warranty expenses and may damage our market reputation and
prevent us from achieving increased sales and market share.
As is consistent with standard practice in our industry, the
duration of our product warranties is lengthy, and has recently been increasing
relative to expected product life. Our current standard product warranty
includes a two-year warranty period for defects in material and workmanship and
a ten-year warranty period for declines in power performance. We believe our
warranty periods are consistent with industry practice. Due to the long warranty
periods, we bear the risk of extensive warranty claims long after we have
shipped product and recognized revenues. The possibility of future product
failures could cause us to incur substantial expense to repair or replace
defective products. Furthermore, widespread product failures may damage our
market reputation and reduce our market share and cause sales to decline.
Our success in the future may depend on our ability to
establish and maintain strategic alliances, and any failure on our part to
establish and maintain such relationships would adversely affect our market
penetration and revenue growth.
We intend to continue to establish strategic relationships with
third parties in the solar power industry, particularly in international
markets. Our ability to establish strategic relationships will depend on a
number of factors, many of which are outside our control, such as the
competitive position of our technology and our products relative to those of our
competitors. We can provide no assurance that we will be able to establish new
strategic relationships in the future.
In addition, any new strategic alliances that we establish may
subject us to a number of risks, including risks associated with sharing
proprietary information, loss of control of operations that are material to our
business and profit-sharing arrangements. Moreover, strategic alliances may be
expensive to implement and subject us to the risk that the third party will not
perform its obligations under the relationship, which may subject us to losses
over which we have no control or to expensive termination arrangements. As a
result, even if our strategic alliances with third parties are successful, our
business may be adversely affected by a number of factors that are outside of
our control which may, in turn, cause the market price of our common stock to
decline.
Existing regulations and changes to such regulations may
present technical, regulatory and economic barriers to the purchase and use of
solar power products, which may significantly reduce demand for our
products.
The market for electricity generation products is heavily
influenced by foreign, federal, state and local government regulations and
policies concerning the electric utility industry, as well as internal policies
and regulations promulgated by electric utilities. These regulations and
policies often relate to electricity pricing and technical interconnection of
customer-owned electricity generation. In the United States and a number of
other countries, these regulations and policies are being modified and may
continue to be modified. Customer purchases of, or further investment in the
research and development of, alternative energy sources, including solar power
technology, could be deterred by these regulations and policies, which could, in
turn, result in a significant reduction in the potential demand for solar power
products in general. For example, utility companies commonly charge fees to
larger, industrial customers for disconnecting from the electric grid or for
having the capacity to use power from the electric grid only for back-up
purposes. These fees could increase the cost to our customers of using our solar
power products and make them less desirable, thereby harming our business,
prospects, results of operations and financial condition. We anticipate that our
solar power products and their installation will be subject to oversight and
regulation in accordance with national and local ordinances relating to building
codes, safety, environmental protection, utility interconnection and metering
and related matters, all of which may change over time. There is also a burden
in having to track the requirements of individual states and design equipment to
comply with the varying standards. Any new government regulations or utility
policies pertaining to our solar power products may result in significant
additional expenses to us and our resellers and their customers and, as a
result, could cause a significant reduction in demand for our solar power
products.
Compliance with environmental regulations can be expensive,
and noncompliance with these regulations may result in adverse publicity and
potentially significant monetary damages and fines.
We are required to comply with all applicable foreign, federal,
state and local regulations regarding protection of the environment. If more
stringent regulations are adopted in the future, the costs of compliance with
these new regulations could be substantial. We believe that we have all
necessary permits to conduct our business as it is presently conducted. If we
fail to comply with any applicable present or future environmental regulations,
however, we may be required to pay substantial fines, suspend production or
cease operations. We use, generate and discharge toxic, volatile and otherwise
hazardous chemicals and wastes in our research and development and manufacturing
activities. Any failure by us to control the use of, or to restrict adequately
the discharge of, hazardous substances could subject us to, among other things,
potentially significant monetary damages and fines, criminal proceedings and
penalties, third party property damage or personal injury claims or suspensions
in our business operations. In addition, under some foreign, federal and state
statutes and regulations, a governmental agency may seek recovery and response
costs from operators of property where releases of hazardous substances have
occurred or are ongoing, even if the operator was not responsible for such
release or otherwise at fault.
9
We face intense competition from other companies producing
solar power and other energy generation products. If we fail to compete
effectively, we may be unable to increase our market share and sales.
The solar power market is intensely competitive and rapidly
evolving. Our competitors have established a market position more prominent than
ours, and if we fail to attract and retain customers and establish a successful
distribution network for our solar power products, we may be unable to increase
our sales and market share. There are a large number of companies in the world
that produce solar power products, including BP Solar, Kyocera Corporation,
Sharp Corporation, Mitsubishi, Solar World AG and Sanyo Corporation. We also
expect that future competition will include new entrants to the solar power
market offering new technological solutions. Further, many of our competitors
are developing and are currently producing products based on new solar power
technologies. Most of our competitors are substantially larger than we are, have
longer operating histories and have substantially greater financial, technical,
manufacturing and other resources than we do. Our competitors' greater size in
some cases provides them with a competitive advantage with respect to
manufacturing costs due to their ability to allocate fixed costs across a
greater volume of production and purchase raw materials at lower prices. Many
also have greater name recognition, a more established distribution network and
a larger installed base of customers. In addition, many of our competitors have
well-established relationships with our current and potential resellers and
their customers and have extensive knowledge of our target markets. As a result,
our competitors may be able to devote greater resources to the research,
development, promotion and sale of their products and respond more quickly to
evolving industry standards and changing customer requirements than we can.
The success of our business depends on the continuing
contributions of our key personnel and our ability to attract and retain new
qualified employees in a competitive labor market.
We have attracted a highly skilled management team. If we were
to lose the services of our executive officers and key employees, our business
could be materially and adversely impacted. We do not carry key person life
insurance on any of our senior management or other key personnel.
Our success will largely depend on the performance of our
management and on the management of ICP. We are currently dependent upon a
limited number of employees and consultants. As such, our success will also
depend on our ability to attract and retain highly skilled technical, research,
management, regulatory compliance, sales and marketing personnel. Competition
for such personnel is intense. The loss of the services of such personnel or the
inability to attract and retain other key personnel could impair the development
of our business, operating results and financial condition.
Our management team may not be able to successfully
implement our business strategies.
If our management team is unable to execute our business
strategies, then our product development, the expansion of our distribution
network and our sales and marketing activities may be materially and adversely
affected. In addition, we may encounter difficulties in effectively managing the
budgeting, forecasting and other process control issues presented by this rapid
growth. We may seek to augment or replace members of our management team or we
may lose key members of our management team, and we may not be able to attract
new management talent with sufficient skills and experience.
10
If solar power technology is not suitable for widespread
adoption or sufficient demand for solar power products does not develop or takes
longer to develop than we anticipate, our sales will not significantly increase
and we may be unable to achieve or sustain profitability.
The market for solar power products is emerging and rapidly
evolving, and its future success is uncertain. If solar power technology proves
unsuitable for widespread commercial deployment or if demand for solar power
products fails to develop sufficiently, we will be unable to generate enough
revenue to achieve and sustain profitability. In addition, demand for solar
power products in the markets and geographic regions we target may not develop
or may develop more slowly than we anticipate. Many factors will influence the
widespread adoption of solar power technology and demand for solar power
products, including:
cost-effectiveness of solar power technologies as compared with
  conventional and non-solar alternative energy technologies;
performance and reliability of solar power products as compared with
  conventional and non-solar alternative energy products;
success of alternative distributed generation technologies such as fuel
  cells, wind power and micro turbines;
fluctuations in economic and market conditions that impact the viability
  of conventional and non-solar alternative;
energy sources, such as increases or decreases in the prices of oil and
  other fossil fuels;
capital expenditures by customers that tend to decrease when the United
  States or global economy slows;
continued deregulation of the electric power industry and broader energy
  industry; and
availability of government subsidies and incentives.
Product liability claims against us could result in adverse
publicity and potentially significant monetary damages.
Like other retailers and distributors of products that are used
by consumers, we face an inherent risk of exposure to product liability claims
in the event that the use of the solar power products we sell results in injury.
Since our products are electricity producing devices, it is possible that
consumers could be injured or killed by our products, whether by product
malfunctions, defects, improper installation or other causes. In addition, since
sales of our existing products have been modest and the products we are
developing incorporate new technologies and use new installation methods, we
cannot predict whether product liability claims will be brought against us in
the future or the effect of any resulting adverse publicity on our business.
Moreover, we may not have adequate resources in the event of a successful claim
against us. We have evaluated the potential risks we face and believe that we
have appropriate levels of insurance for product liability claims. We rely on
our general liability insurance to cover product liability claims and have not
obtained separate product liability insurance. The successful assertion of
product liability claims against us could result in potentially significant
monetary damages and, if our insurance protection is inadequate to cover these
claims, could require us to make significant payments.
Our business, and therefore our results of operations and
financial condition, may be adversely affected by the current disruption in the
global credit markets and instability of financial systems.
The recent disruption in the global credit markets, the
re-pricing of credit risk and the deterioration of the financial and real estate
markets generally, particularly in the U.S. and Europe, have all contributed to
a reduction in consumer spending and a decline in the overall U.S. economy.
Although the recent disruptions were initially in the housing, financial and
insurance sectors, this deterioration has further expanded to the general
economy and other sectors, including the solar energy sector. Tight credit,
increased unemployment and reduced consumer confidence have had negative effects
on demand for alternative sources of energy and consequently for our product and
service offerings. In addition, some economists are predicting that the U.S.
economy, and possibly the global economy, has entered into a prolonged recession
or even a depression as a result of the foregoing factors. Such a prolonged
downturn in the U.S. or global economy could have a material adverse effect on
our business in a number of ways, including lower sales and renewal cycles if
there is a reduction in demand for solar energy products and could have a
material adverse effect on our liquidity, results of operations and financial
condition.
In addition, if these conditions continue or worsen, they may
result in reduced worldwide demand for energy and additional difficulties in
obtaining financing, which may adversely affect our business. Risks we might
face could include: potential declines in revenues in our business segments due
to reduced orders or other factors caused by economic challenges faced by our
customers and prospective customers, potential adverse impacts on our ability to
access credit and other financing sources beyond the approved credit lines we
currently have, and increased costs associated with accessing further credit and
financing sources. Further, if these conditions continue or worsen, our ability
to finance future acquisitions or significant capital expenditures relating to
new projects and lines of business may be adversely affected.
Risks Related to Our Supply Chain
We will continue to be dependent on a limited number of
third-party suppliers for certain raw materials and components for our products,
which could prevent us from delivering our products to our customers within
required timeframes, which could result in sales and installation delays,
cancellations, liquidated damages and loss of market share.
We rely on a limited number of third-party suppliers for
certain raw materials and components for our products. If we fail to develop or
maintain our relationships with our limited suppliers, we may be unable to
manufacture our products or our products may be available only at a higher cost
or after a long delay, which could prevent us from delivering our products to
our customers within required timeframes and we may experience order
cancellation and loss of market share. To the extent the processes that our
suppliers use to manufacture components are proprietary, we may be unable to
obtain comparable components from alternative suppliers. In addition, the
current economic environment and credit markets could limit our suppliers'
ability to raise capital if required to expand their production or satisfy their
operating capital requirements. As a result, they could be unable to supply
necessary raw materials, inventory and capital equipment to us which we would
require to support our planned sales operations which would in turn negatively
impact our sales volumes and cash flows. The failure of a supplier to supply raw
materials or components in a timely manner, or to supply raw materials or
components that meet our quality, quantity and cost requirements, could impair
our ability to manufacture our products or increase their costs. If we cannot
obtain substitute materials or components on a timely basis or on acceptable
terms, we could be prevented from delivering our products to our customers
within required timeframes, which could result in sales and installation delays,
cancellations, liquidated damages and loss of market share, any of which could
have a material adverse effect on our business and results of operations.
11
Risks Related to Our Intellectual Property
If we are unable to protect our intellectual property
adequately, we could lose our competitive advantage in the solar power
market.
Our ability to compete effectively against competing solar
power technologies will depend, in part, on our ability to protect our current
and future proprietary technology and product designs through a combination of
patent, copyright, trademark, trade secret and unfair competition laws. We may
not be able to adequately protect our intellectual property and may need to
defend our products and services against infringement claims, either of which
could result in the loss of our competitive advantage in the solar power market
and materially harm our business and profitability. We face the following risks
in protecting our intellectual property and in developing, marketing and selling
our products and services:
we cannot be certain that our pending United States and foreign patent
  applications will result in issued patents or that the claims allowed are or
  will be sufficiently broad to protect our technology or processes;
given the costs of obtaining patent protection, we may choose not to
  protect certain innovations that later turn out to be important;
third parties may design around our patented technologies or seek to
  challenge or invalidate our intellectual property rights and there is no
  assurance that our intellectual property rights will deter infringement or
  misappropriation of our intellectual property;
we may incur significant costs and diversion of management resources in
  prosecuting or defending intellectual property infringement suits;
we may not be successful in prosecuting or defending intellectual property
  infringement suits and, as a result, may need to seek to obtain a license of
  the third party's intellectual property rights, which may not be available to
  us, whether on reasonable terms or at all; and
the contractual provisions we rely on to protect our trade secrets and
  proprietary information, such as our confidentiality and non-disclosure
  agreements with our employees, consultants and other third parties, may be
  breached and our trade secrets and proprietary information may be disclosed to
  competitors, strategic partners and the public.
We own 17 registered patents and 5 patents pending, and 41
registered trademarks and 3 trademarks pending.
If we are subject to litigation and infringement claims,
they could be costly and disrupt our business.
In recent years, there has been significant litigation
involving patents and other intellectual property rights in many
technology-related industries. There may be patents or patent applications in
the United States or other countries that are pertinent to our business of which
we are not aware. The technology that we incorporate into and use to develop our
current and future solar power products may be subject to claims that they
infringe the patents or other proprietary rights of others. The success of our
technology efforts will also depend on our ability to develop new technologies
without infringing or misappropriating the proprietary rights of others. We may
receive notices from third parties alleging patent, trademark or copyright
infringement claims, claims regarding trade secrets or contract claims. Receipt
of these notices could result in significant costs as a result of the diversion
of the attention of management from our technology efforts. No third party has a
current filed intellectual property lawsuit, arbitration or other proceeding
against us. We may, however, be involved in future lawsuits, arbitrations or
other legal proceedings alleging patent infringement or other intellectual
property rights violations. If a successful claim were brought against us, we
would have to attempt to license the intellectual property right from the
claimant or to spend time and money to design around or avoid the intellectual
property. Any such license may not be available at reasonable terms, or at all.
In addition, litigation, arbitration or other legal proceedings may be necessary
to:
assert claims of infringement or misappropriation of or otherwise enforce
  our intellectual property rights;
protect our trade secrets or know-how; or
determine the enforceability, scope and validity of our intellectual
  property rights or those of others.
We may be unsuccessful in defending or pursuing these lawsuits
or claims. Regardless of the outcome, litigation can be very costly and can
divert management's efforts. An adverse determination may subject us to
significant liabilities or require us to seek licenses to other parties'
intellectual property rights. We may also be restricted or prevented from
developing, marketing or selling a solar power product or service that we
develop. Further, we may not be able to obtain any necessary licenses on
acceptable terms, if at all.
12
In addition, we may have to participate in proceedings before
the United States Patent and Trademark office, or before foreign patent and
trademark offices, with respect to our patents, patent applications, trademarks
or trademark applications or those of others. These actions may result in
substantial costs to us as well as a diversion of management attention.
Furthermore, these actions could place our patents, trademarks and other
intellectual property rights at risk and could result in the loss of patent,
trademark or other intellectual property rights protection for the products and
services on which our business strategy depends.
We may be unable to adequately protect or enforce our
proprietary information, which may result in its unauthorized use or reduced
sales or otherwise reduce our ability to compete.
Our business and competitive position depend upon our ability
to protect our proprietary technology, including any solar power products that
we develop. Despite our efforts to protect this information, unauthorized
parties may attempt to obtain and use information that we regard as proprietary.
Any patents issued in connection with our efforts to develop new technology for
solar power products may not be broad enough to protect all of the potential
uses of the technology.
In addition, when we do not control the prosecution,
maintenance and enforcement of certain important intellectual property, such as
a technology in-licensed to us, the protection of the intellectual property
rights may be out of our control. If the entity that controls the intellectual
property rights does not adequately protect those rights, our rights may be
impaired, which may impact our ability to develop, market and commercialize the
related solar power products.
Our means of protecting our proprietary rights may not be
adequate, and our competitors may:
independently develop substantially equivalent proprietary information,
  products and techniques;
otherwise gain access to our proprietary information; or
design around our patents or other intellectual property.
We pursue a policy of having our employees, consultants and
advisors execute proprietary information and invention agreements when they
begin working for us. However, these agreements may not provide meaningful
protection for our trade secrets or other proprietary information in the event
of unauthorized use or disclosure. If we fail to maintain trade secret and
patent protection, our potential, future revenues may be decreased.
If the effective term of our patents is decreased due to
changes in patent laws or if we need to re-file some of our patent applications,
the value of our patent portfolio and the revenues we derive from it may be
decreased.
The value of our patents depends in part on their duration. A
shorter period of patent protection could lessen the value of our rights under
any patents that we obtain and may decrease the revenues we derive from our
patents. For example, the United States patent laws were amended in 1995 to
change the term of patent protection from 17 years after the date of a patent's
issuance to 20 years after the earliest effective filing date of the application
for a patent, unless the application was pending on June 8, 1995, in which case
the term of a patent's protection expires either 17 years after its issuance or
20 years after its filing, whichever is later. Because the average time from
filing of patent application to issuance of a patent is usually at least one
year and, depending on the subject matter, may be more than three years, a
20-year patent term from the filing date may result in substantially shorter
patent protection. Also, we may need to re-file some of our patent applications
to disclose additional subject matter and, in these situations, the patent term
will be measured from the date of the earliest priority application to which
benefit is claimed in such a patent application. This would shorten our period
of patent exclusivity and may decrease the revenues that we might obtain from
the patents.
International intellectual property protection is particularly
uncertain and costly, and we have not obtained or sought patent or trademark
protection in many foreign countries where our solar power products and services
may be developed, marketed or sold by us or by others. Intellectual property law
outside the United States is even more uncertain and costly than in the United
States and is currently undergoing review and revision in many countries.
Further, the laws of some foreign countries may not protect our intellectual
property rights to the same extent as United States laws.
13
Risks Related to Our Securities
We may conduct further offerings in the future, in which
case your shareholdings will be diluted.
Since our inception, we have relied on equity sales of our
common stock and issuances of convertible debt and warrants convertible or
exercisable into shares of our common stock to fund our operations. We may
conduct further equity and/or convertible debt offerings in the future to
finance our current projects or to finance subsequent projects that we decide to
undertake. If common stock is issued in return for additional funds, or upon
conversion or exercise of outstanding convertible debentures or warrants, the
price per share could be lower than that paid by our current stockholders. We
anticipate continuing to rely on equity sales of our common stock and issuances
of convertible debt and/or warrants in order to fund our business operations. If
we issue additional stock, your percentage interest in us will be lower. This
condition is often referred to as "dilution." The result of this could reduce
the value of your stock.
Because our common stock is considered a "penny stock",
stockholders will be more limited in their ability to sell their shares.
Our common stock is considered to be a "penny stock" since it
does not qualify for one of the exemptions from the definition of "penny stock"
under Section 3a51-1 of the Securities Exchange Act of 1934 (the "Exchange
Act"). Our common stock is a "penny stock" because it meets one or more of the
following conditions (i) the stock trades at a price less than $5.00 per share;
(ii) it is not traded on a "recognized" national exchange; (iii) it is not
quoted on the NASDAQ Stock Market, or even if so, has a price less than $5.00
per share; or (iv) is issued by a company that has been in business less than
three years with net tangible assets less than $5 million.
The principal result or effect of being designated a "penny
stock" is that securities broker-dealers participating in sales of our common
stock will be subject to the "penny stock" regulations set forth in Rule 3a51-1
and Rules 15-2 through 15g-9 promulgated under the Exchange Act. For example,
Rule 15g-2 requires broker-dealers dealing in penny stocks to provide potential
investors with a document disclosing the risks of penny stocks and to obtain a
manually signed and dated written receipt of the document at least two business
days before effecting any transaction in a penny stock for the investor's
account. Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve
the account of any investor for transactions in such stocks before selling any
penny stock to that investor. This procedure requires the broker-dealer to (i)
obtain from the investor information concerning his or her financial situation,
investment experience and investment objectives; (ii) reasonably determine,
based on that information, that transactions in penny stocks are suitable for
the investor and that the investor has sufficient knowledge and experience as to
be reasonably capable of evaluating the risks of penny stock transactions; (iii)
provide the investor with a written statement setting forth the basis on which
the broker-dealer made the determination in (ii) above; and (iv) receive a
signed and dated copy of such statement from the investor, confirming that it
accurately reflects the investor's financial situation, investment experience
and investment objectives. Compliance with these requirements may make it more
difficult and time consuming for holders of our common stock to resell their
shares to third parties or to otherwise dispose of them in the market or
otherwise.
Because the Board of Directors may designate and authorize
issuance of preferred shares, the rights of the holders of Common Stock may be
adversely affected.
The Board of Directors may designate and authorize issuance of
preferred shares which could have rights, preferences or privileges in priority
to our common stockholders and which may further dilute our common stockholders.
The authorized capital of the Company includes 1,000,000 shares of ''blank
check'' preferred stock, of which no shares have been issued. The Board of
Directors has the authority to issue shares of preferred stock and to determine
the price, designation, rights, preferences, privileges, restrictions and
conditions, including voting rights and dividend rights, of these shares of
preferred stock without any vote or action by the stockholders. The rights of
the holders of shares of our common stock will be subject to, and may be
adversely affected by, the rights of holders of any preferred stock that we may
issue in the future. The issuance of preferred stock, while providing desirable
flexibility in connection with possible acquisitions and other corporate
purposes, could make it more difficult for a third party to acquire a majority
of the outstanding voting stock of the Company. At this time, the Company has no
present plans of issuing any preferred stock.
Because we do not intend to pay dividends, stockholders will
benefit from an investment in our common stock only if it appreciates in value.
We have never declared or paid any cash dividends on our common
stock. We anticipate that we will retain our earnings to support operations and
to finance the growth and development of our business and do not expect to pay
cash dividends in the foreseeable future. As a result, the success of an
investment in our common stock will depend upon any future appreciation in its
value. There is no guarantee that our common stock will appreciate in value or
even maintain the price at which stockholders have purchased their shares.
14
The conversion of outstanding convertible debentures and the
exercise of outstanding warrants could result in a substantial number of
additional shares of our common stock being issued in the event that we fail to
achieve certain milestones.
On June 13, 2008, we closed a private placement (the "Private
Placement") involving the issuance of (i) 11% senior secured convertible
debentures in the Company issued at a 10% discount with an aggregate face value
of $3,333,333, convertible into shares of common stock of the Company at an
initial conversion price of US $0.50 (subject to adjustment) (the "Debentures");
(ii) 6,666,666 Series A purchase warrants each exercisable to purchase one share
of common stock of the Company, at an initial exercise price of US $0.50 per
share (subject to adjustment); (iii) 6,666,666 Series B purchase warrants, each
exercisable to purchase one share of common stock of the Company at an initial
exercise price of US $1.00 per share (subject to adjustment) and (iv) 6,666,666
Series C purchase warrants, each exercisable to purchase one share of common
stock of the Company at an initial exercise price of US $1.00 per share warrants
(subject to adjustment).
On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the "Amendment") to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows:
The principal balance of the Debentures, as amended, now constitutes 115%
  of the sum of (i) principal amount of the Debentures outstanding immediately
  prior to the date of the Amendment, plus (ii) all accrued and unpaid interest
  through December 31, 2008, for a total outstanding principal amount of:
  $2,953,688.37. The principal amount and the interest are to be paid out to the
  Buyers according to the terms set out in the Amendment.
The exercise price of the Series A purchase warrants was reduced from
  $0.50 to $0.25, resulting in the issuance of 6,666,666 additional Series A
  warrants (the "Series A Adjustment Warrants"); the exercise price of the
  Series B purchase warrants was reduced from $0.50 to $0.25, resulting in the
  issuance of 19,999,998 additional Series B warrants (the "Series B Adjustment
  Warrants"); and the exercise price of the Series C purchase warrants was
  reduced from $1.00 to $0.50, resulting in the issuance of 6,666,666 additional
  Series C warrants (the "Series C Adjustment Warrants") (the Series A
  Adjustment Warrants, Series B Adjustment Warrants and Series C Adjustment
  Warrants are collectively referred to as the "Adjustment Warrants")
The conversion price for the Debentures, as amended, and the
exercise price for the Adjustment Warrants, the Additional Adjustment Warrants
(as described below) and the warrants issued in the
Private Placement are subject to adjustment at a floating rate tied to our
achieving certain milestones tied to trailing revenues and earnings before
interest, taxes, depreciation and amortization ("EBITDA"). In the event that we
fail to achieve these milestones, the conversion price for the Debentures and
the exercise for the warrants will be reduced (but not increased) to equal the
lesser of (a) the conversion price then in effect, (b) the "market price" (equal
to the volume weighted average price of our common stock during the immediately
preceding five (5) consecutive trading days) for shares of our common stock, as
determined on the applicable milestone date, or (c) the market price, as
determined on the date that is five (5) trading days after the date that Company
files its next periodic report with the Securities and Exchange Commission
following the end of the applicable milestone period.
For our fiscal quarter ended April 30, 2009 (a milestone date), the Company
was required under the Debentures to achieve revenues no less than $1.5 million
and to maintain its accounts payable at less than $1.75 million. The Company
failed to achieve these targets and, as a result, was in default under the
Debentures.
The Company has obtained a waiver from the holders of the
Debentures for such default; however, pursuant to the terms of the Debentures,
as a result of the Company's failure to achieve these targets the conversion
price of the outstanding Debentures and the exercise price for the Adjustment
Warrants and the warrants issued in the Private Placement was reduced to $0.14,
the volume weighted average price of our common stock during the five (5)
consecutive trading days immediately preceding April 30, 2009. The weighted
average market price in the five days following the filing of the 10Q was not
less than $0.14, so that a further reduction in price was not required nor made.
The reduction in the exercise price of the Adjustment Warrants and the warrants
issued in the Private Placement resulted in the issuance of the following
warrants effective June 21, 2009: (i)10,476,197 additional Series A Warrants
("Series A Additional Adjustment Warrants"), (ii) 20,952,386 additional Series B
warrants ("Series B Additional Adjustment Warrants"), and (iii) 34,285,722
additional Series C warrants ("Series C Additional Adjustment Warrants"),
(Series A Additional Adjustment Warrants, Series B Additional Adjustment
Warrants and Series C Additional Adjustment Warrants collectively referred to
herein as the "Additional Adjustment Warrants").
Holders of Debentures, the warrants issued in the Private
Placement, Adjustment Warrants and Additional Adjustment Warrants may
convert such Debentures or exercise such warrants immediately. In addition, we
may make payments of interest or principal under the Debentures in the form of
shares of common stock; provided, generally, that we are not in default under
the Debentures at such time and we have met certain equity conditions described
in the Debentures. If we make payments of interest in the form of shares of
common stock, such shares must be registered and free-trading. If the Company
elects to make principal payments in shares of common stock, the conversion rate
will be the lesser of (a) the conversion price then in effect, or (b) 85% of the
average of the three (3) lowest closing bid prices of the common shares over the
twenty (20) trading day period ending on the trading day ending immediately
preceding the applicable monthly redemption date. If we fail to achieve the
milestones described above, or if we elect to make payments of principal on the
Debentures in the form of shares of our common stock, the outstanding
Debentures, the warrants issued in the Private Placement, the Adjustment
Warrants and the Additional Adjustment Warrants will be exercisable for a greater
number of shares. This could decrease the price of our common stock and
encourage short selling which, in turn, could produce additional downward
pressure on the market price of our common stock. Any resulting lower market
prices could result in further downward adjustment to the prevailing conversion
and/or exercise prices described herein, meaning that we could be required to
issue an increasingly greater number of shares of our common stock to holders of
Debentures, the warrants issued in the Private Placement, the Adjustment
Placement and the Additional Adjustment Warrants upon conversion or exercise
thereof, further depressing the market price for our common stock.
15
The conversion of the outstanding Debentures and the exercise
of outstanding warrants issued in the Private Placement, Adjustment Warrants,
Additional Adjustment Warrants and any interest or principal
payments on the Debentures made by us in the form of shares of common stock, may
result in substantial dilution to the interests of other holders of our common
stock. Even though no selling stockholder may convert its Debentures if upon
such conversion the selling stockholder, together with its affiliates, would
acquire a number of shares of common stock exceeding 4.99% of our then
outstanding common stock, excluding for purposes of such determination shares of
common stock issuable upon conversion of any portion of the Debentures which
have not been converted and upon exercise of warrants issued in the Private
Placement, the Adjustment Warrants and/or the Additional Adjustment Warrants
which have not been exercised, this restriction does not prevent a selling
stockholder from selling a substantial number of shares in the market or from
unilaterally choosing to raise the 4.99% limit. By periodically selling shares
into the market, an individual selling stockholder could eventually sell more
than 4.99% of our outstanding common stock while never holding more than 4.99%
at any specific time. In the event we receive a tender offer or an offer to
merge with another entity in a transaction in which we are not the surviving
entity, or in the event we are in default under the Debentures, this percentage
is automatically increased to 9.99% .
FORWARD-LOOKING STATEMENTS
This prospectus includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). All statements, other than statements of
historical fact, contained in this prospectus constitute forward-looking
statements. In some cases you can identify forward-looking statements by terms
such as "may," "intend," "might," "will," "should," "could," "would," "expect,"
"believe," "estimate," "anticipate," "predict," "project," "potential," or the
negative of these terms and similar expressions intended to identify
forward-looking statements.
Forward-looking statements are based on assumptions and
estimates and are subject to risks and uncertainties. We have identified in this
prospectus some of the factors that may cause actual results to differ
materially from those expressed or assumed in any of our forward-looking
statements. There may be other factors not so identified. You should not place
undue reliance on our forward-looking statements. As you read this prospectus,
you should understand that these statements are not guarantees of performance or
results. Further, any forward-looking statement speaks only as of the date on
which it is made and, except as required by law, we undertake no obligation to
update any forward-looking statement to reflect events or circumstances after
the date on which it is made or to reflect the occurrence of anticipated or
unanticipated events or circumstances. New factors emerge from time to time that
may cause our business not to develop as we expect and it is not possible for us
to predict all of them. Factors that may cause actual results to differ
materially from those expressed or implied by our forward-looking statements
include, but are not limited to, those described under the heading "Risk
Factors" beginning on page 6, as well as the following:
Our ability to generate enough positive cash flow to
  pay our creditors;
Our dependence on key personnel;
Our need to attract and retain technical and managerial
  personnel;
Our ability to execute our business strategy;
Competition with established leaders in the solar energy
  industry;
Our ability to protect our intellectual property and
  proprietary technologies;
Costs associated with potential intellectual infringement
  claims asserted by a third party;
Our exposure to product liability claims resulting from
  the use of our products;
The current disruption in the global credit markets,
  re-pricing of credit risk and the deterioration of the financial and real estate
  markets generally;
16
General economic and capital market conditions, including
  political and economic uncertainty in various areas of the world where we do
  business;
Our exposure to unanticipated and uncontrollable business
  interruptions;
Pricing and product actions taken by our competitors;
Financial conditions of our customers;
Customers' perception of our financial condition
  relative to that of our competitors;
Reliance upon suppliers and risks of production disruptions
  and supply and capacity constraints;
Our dependence on our marketing partners;
Costs of raw materials and energy;
Unforeseen liabilities arising from litigation;
Our ability to successfully complete the integration
  of any future acquisitions;
Our exposure to undisclosed liabilities of the public
  shell corporation;
Our ability to project the market for our products based
  upon estimates and assumptions; and
Our ability to obtain approvals needed to market our
  products.
USE OF PROCEEDS
We are not selling any of the shares of common stock in this
offering and, therefore, will not receive any proceeds therefrom.
Upon exercise for cash of all warrants at their current
exercise price for which shares of common stock issuable upon exercise thereof
are being registered hereunder, we expect to receive aggregate proceeds of
approximately $16,666,665. We expect to use any such cash proceeds from the
exercise of these warrants for general working capital purposes. In the event
that the warrants are exercised other than for cash, we will receive no proceeds
from such exercise.
MARKET PRICE OF OUR COMMON STOCK AND RELATED STOCKHOLDER
MATTERS
Our common stock is quoted on the Over-The-Counter Bulletin
Board (the "OTC Bulletin Board") under the symbol "ICPR". Our shares were first
traded on the OTC Bulletin Board in June, 2005. The following table indicates
the high and low bid prices of our common stock obtained during the periods
indicated:
For the period ended April 30, 2009
For the period ended April 30, 2008
High
Low
High
Low
Second Quarter
(May to July)
$0.82
$0.42
$3.35
$2.17
Third Quarter
(Aug. to Oct.)
$0.53
$0.20
$3.14
$1.80
Fourth Quarter
(Nov. to Jan.)
$0.45
$0.13
$2.99
$0.36
First Quarter
(Feb. to Apr.)
$0.21
$0.10
$1.07
$0.25
17
The range of high and low price quotes of our common stock as
set out in the table above is as quoted on the OTC Bulletin Board. The market
quotations provided reflect inter-dealer prices, without retail markup,
mark-down or commission and may not represent actual transactions.
The number of holders of record of our shares of our common
stock, as of July 29, 2009, was 59.
Penny Stock Rules
The United States Securities and Exchange Commission ("SEC")
has adopted rules that regulate broker-dealer practices in connection with
transactions in penny stocks. Penny stocks are generally equity securities with
a price of less than $5.00, other than securities registered on certain national
securities exchanges; provided, that current price and volume information with
respect to transactions in such securities is provided by the exchange or
system. The penny stock rules require a broker-dealer, prior to a transaction in
a penny stock not otherwise exempt from those rules, to deliver a standardized
risk disclosure document prepared by the SEC, which: (a) contains a description
of the nature and level of risk in the market for penny stocks in both public
offerings and secondary trading; (b) contains a description of the broker's or
dealer's duties to the customer and of the rights and remedies available to the
customer with respect to a violation of such duties or other requirements of
securities laws; (c) contains a brief, clear, narrative description of a dealer
market, including bid and ask prices for penny stocks and significance of the
spread between the bid and ask price; (d) contains a toll-free telephone number
for inquiries on disciplinary actions; (e) defines significant terms in the
disclosure document or in the conduct of trading in penny stocks; and (f)
contains such other information and in such form as the SEC shall require by
rule or regulation. The broker-dealer also must, prior to effecting any
transaction in a penny stock, provide the customer with: (a) bid and offer
quotations for the penny stock; (b) the compensation of the broker-dealer and
its salesperson in the transaction; (c) the number of shares to which such bid
and ask prices apply, or other comparable information relating to the depth and
liquidity of the market for such stock; and (d) monthly account statements
showing the market value of each penny stock held in the customer's account. In
addition, the penny stock rules require that, prior to a transaction in a penny
stock that is not otherwise exempt from those rules, the broker-dealer must: (a)
make a special written determination that the penny stock is a suitable
investment for the purchaser; and (b) receive from the purchaser his or her
written acknowledgement of receipt of the determination and a written agreement
to the transaction.
These disclosure requirements may have the effect of reducing
the trading activity in the secondary market for our common stock and therefore
stockholders may have difficulty selling those securities.
Securities Authorized for Issuance Under Equity Compensation
Plans
On November 1, 2006, the Board of Directors approved our 2006
Stock Incentive Plan (the "Plan"). On November 7, 2006, majority shareholder
approval for the Plan was received. Under the Plan, up to 2,000,000 shares of
common stock may be issued upon the exercise of options granted to directors,
management, employees and consultants. As of April 30, 2009 , options to
purchase a total of 1,790,000 shares of our common stock had been granted under
the Plan to certain of the Company's employees and directors. See "Executive
Compensation".
Equity Compensation Plan Information
Number of Securities
Weighted-
Number of Securities
to be issued upon
Average
remaining available for
exercise of
Exercise Price of
future issuance under
outstanding options
(1)
outstanding
equity compensation
options
plan
Equity Compensation Plans Approved by Security Holders
1,790,000
$
0.44
210,000
Equity Compensation Plans Not Approved by Security Holders
None
None
N/A
Total
1,790,000
$
0.44
210,000
(1) Amount shown reflects the forfeiture of options to purchase
877,500 shares of our common stock by former employees. Pursuant to the terms of
the Plan, these shares will be available for re-issuance in connection with
future option grants.
18
Dividend Policy
We have never declared or paid any cash dividends on our common
stock. We currently intend to retain future earnings, if any, to finance the
expansion of our business. As a result, we do not anticipate paying any cash
dividends in the foreseeable future.
SELLING SECURITY HOLDERS
Background
On June 13, 2008, we completed a private placement (the
"Private Placement") of securities in reliance upon the exemption from
registration provided by Regulation D promulgated under the Securities Act for
net proceeds of US $3,000,000. In connection with this private placement, we
issued to the participating investors: (i) 11% senior secured convertible
debentures in the Company issued at a 10% discount with an aggregate face value
of $3,333,333,convertible into shares of common stock of the Company at an
initial conversion price of US $0.50 (subject to adjustment) (the "Debentures");
(ii) 6,666,666 Series A purchase warrants each exercisable to purchase one share
of common stock of the Company, at an initial exercise price of US $0.50 per
share (subject to adjustment); (iii) 6,666,666 Series B purchase warrants, each
exercisable to purchase one share of common stock of the Company at an initial
exercise price of US $1.00 per share (subject to adjustment); and (iv) 6,666,666
Series C purchase warrants, each exercisable to purchase one share of common
stock of the Company at an initial exercise price of US $1.00 per share (subject
to adjustment). No Series C warrants may be exercised until such time as all
Series B warrants have been exercised.
On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the "Amendment") to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows:
The principal balance of the Debentures issued in the Private Placement,
  as amended, now constitutes 115% of the sum of (i) principal amount of the
  Debentures outstanding immediately prior to the date of the Amendment, plus
  (ii) all accrued and unpaid interest through December 31, 2008, for a total
  outstanding principal amount on December 31, 2008 of $2,953,688.37. The
  principal amount and the interest shall be paid out to the Buyers according to
  the terms set out in the Amendment.
The exercise price of the Series A purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  6,666,666 additional Series A warrants (the "Series A Adjustment Warrants");
  the exercise price of the Series B purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  19,999,998 additional Series B warrants (the "Series B Adjustment Warrants");
  the exercise price of the Series C purchase warrants issued in the Private
  Placement was reduced from $1.00 to $0.50, resulting in the issuance of
  6,666,666 additional Series C warrants (the "Series C Adjustment Warrants")
  (the Series A Adjustment Warrants, Series B Adjustment Warrants and Series C
  Adjustment Warrants, are collectively referred to herein as the "Adjustment
  Warrants")
Holders of Debentures may require the Company to redeem the
Debentures upon the occurrence of any one or more events of default specified in
the Debentures.
The conversion price for the Debentures, as amended, and the
exercise price for the Adjustment Warrants, the warrants issued in the Private
Placement and the Additional Adjustment Warrants (as described below) are
subject to adjustment at a floating rate tied to our achieving certain
milestones tied to trailing revenues and earnings before interest, taxes,
depreciation and amortization ("EBITDA"). In the event that we fail to achieve
these milestones, the conversion price for the Debentures and the exercise price
for the warrants will be reduced (but not increased) to equal the lesser of (a)
the conversion price then in effect, (b) the "market price" (equal to the volume
weighted average price of our common stock during the immediately preceding five
(5) consecutive trading days) for shares of our common stock, as determined on
the applicable milestone date, or (c) the market price, as determined on the
date that is five (5) trading days after the date that Company files its next
periodic report with the Securities and Exchange Commission following the end of
the applicable milestone period.
For our fiscal quarter ended April 30, 2009, the Company
failed to achieve certain milestones (as defined in the Debentures), as a result
of which the conversion price of the outstanding Debentures and the exercise
price for the Adjustment Warrants and the warrants issued in the Private
Placement was reduced to $0.14, the volume weighted average price of our common
stock during the five (5) consecutive trading days immediately preceding April
30, 2009. The reduction in the exercise price of the Adjustment Warrants and the
warrants issued in the Private Placement resulted in the issuance of the
following warrants effective June 21, 2009: (i) 10,476,197 additional Series A
Warrants ("Series A Additional Adjustment Warrants"), (ii) 20,952,386 additional
Series B warrants ("Series B Additional Adjustment Warrants") and (iii)
34,285,722 additional Series C warrants ("Series C Additional Adjustment
Warrants"), (Series A Additional Adjustment Warrants, Series B Additional
Adjustment Warrants and Series C Additional Adjustment Warrants collectively
referred to herein as the "Additional Adjustment Warrants"). See "Prospectus
Summary – The Offering – Background of the Offering".
This registration includes (i) 6,666,666 shares of common stock
issuable upon the exercise of Series A Adjustment Warrants issued, (ii)
19,999,998 shares of common stock issuable upon the exercise of Series B
Adjustment Warrants issued , and (iii) 6,666,666 shares of common stock issuable
upon the exercise of Series C Adjustment Warrants issued.
We are also registering for resale by certain selling
stockholders (i) 2,000,000 shares of our common stock issuable to certain
selling stockholders upon the conversion of Class A Exchangeable Shares of
1260491 Alberta Inc., our wholly owned subsidiary on a one-for-one basis (see
"Management's Discussion and Analysis of Financial condition and Results of
Operations - Reorganization of the Corporation"), and (v) 811,581 shares of
common stock held by certain selling stockholders.
Selling Stockholder Table
The following table provides information regarding the
beneficial ownership of the outstanding shares of our common stock by the
selling stockholders. In computing the number of shares beneficially owned by a
selling stockholder and the percentage ownership of that selling stockholder, we
have included the number of shares of our common stock issuable upon conversion
of or otherwise pursuant to the Debentures and upon exercise of all warrants
issued in the Private Placement, the Adjustment Warrants issued pursuant to
the Amendment and the Additional Adjustment Warrants (see "Selling Security Holders
- Background"), in each case as held
by such selling stockholder. The number of shares beneficially owned by any
selling stockholder does not give effect to the 4.99% limitation on the number
of shares that may be held by any one selling stockholder, together with its
affiliates (which limitation may be waived upon 61 days' prior written notice to
us by the selling stockholder) and a further, non-waivable, 9.99% limitation, in
each case as described in the Debentures, as amended. Those shares, however, are
not deemed outstanding for the purpose of computing the percentage ownership of
any other person. Each selling stockholder's percentage ownership in the
following table is based on 41,262,497 shares of our common stock outstanding as
of July 29, 2009.
19
The selling stockholders may offer the shares for sale from
time to time in whole or in part. Except where otherwise noted, each of the
selling stockholders named in the following table has, to our knowledge, sole
voting and investment power with respect to the shares beneficially owned by
such person.
Name
Number of
Number of
Number of
Percentage of
Shares Owned
Shares
Shares Owned
Class
Prior to the
Being
after the
After the
Offering
Registered
Offering
Offering
BridgePointe Master Fund Ltd.
69,429,949
(1)
16,666,673
(8)
52,763,276
27.08%
Joel Cohen
(2)
1,477,581
(3)
811,581
(9)
666,000
*
Gemini Master Fund, Ltd.
22,894,098
(4)
5,555,547
(10)
17,338,551
8.90%
Sass Peress
(5)
18,435,800
(6)
2,000,000
(11)
16,435,800
8.43%
Platinum Long Term Growth VI,
      LLC
41,368,085
(7)
11,111,110
(12)
30,256,975
15.53%
Total
153,605,513
35,744,911
117,460,602
60.28%
* Less than 1%
(1) Represents (a) 9,345,503 shares of common stock issuable
upon conversion of convertible debentures, (b) 11,904,761 shares of common stock
issuable upon the exercise of Series A warrants at the exercise price of $0.14
per share, (c) 23,809,521 shares of common stock issuable upon the exercise of
Series B warrants at the exercise price of $0.14 per share, (d) 23,809,521
shares of common stock issuable upon the exercise of Series C warrants at the
exercise price of $0.14 per share, (e) a total of 590,643 shares of common stock
which may be issued in the event the Company elects to make payments of interest
on the convertible debentures in the form of shares of common stock.
(2) Mr. Cohen serves as a director and as the Secretary and
Treasurer, of the Company and previously served as Chief Financial Officer of
the Company (and its predecessor FC Financial Services, Inc.) from October 30,
2006 through January 1, 2007.
(3) Includes 100,000 shares of common stock issuable upon the
exercise of options and 240,000 shares of common stock issuable upon the
exercise of warrants.
(4) Represents (a) 2,880,252 shares of common stock issuable
upon conversion of convertible debentures, (b) 3,968,254 shares of common stock
issuable upon the exercise of Series A warrants at the exercise price of $0.14
per share, (c) 7,936,507 shares of common stock issuable upon the exercise of
Series B warrants at the exercise price of $0.14 per share, (d) ) 7,936,507
shares of common stock issuable upon the exercise of Series C warrants at the
exercise price of $0..14 per share, and (e) a total of 172,578 shares of common
stock which may be issued in the event the Company elects to make payments of
interest on the convertible debentures in the form of shares of common stock.
(5) Mr. Peress serves as the Company's Chairman of the Board,
President and Chief Executive Officer.
(6) Includes 850,000 shares of common stock issuable upon the
exercise of options.
20
(7) Represents (a) 1,590,265 shares of common stock issuable
upon conversion of convertible debentures, (b) 7,936,507 shares of common stock
issuable upon the exercise of Series A warrants at the exercise price of $0.14
per share, (c) 15,873,014 shares of common stock issuable upon the exercise of
Series B warrants at the exercise price of $0.14 per share, (d) 15,873,014
shares of common stock issuable upon the exercise of Series C warrants at the
exercise price of $0.14 per share, and (e) a total of 95,285 shares of common
stock which may be issued in the event the Company elects to make payments of
interest on the convertible debentures in the form of shares of common stock.
(8) Represents (a) 3,333,335 shares of common stock issuable
upon the exercise of Series A warrants at the exercise price of $0.25 per share
, (b) 10,000,003 shares of common stock issuable upon the exercise of Series B
warrants at the exercise price of $0.25 per share, (c) 3,333,335 shares of
common stock issuable upon the exercise of Series C warrants at the exercise
price of $0.50 per share.
(9) Represents 348,000 shares of common stock issued to Mr.
Cohen as a finder's fee in connection with a financing based on the Company's
receivables secured for the Company (see Note 22 to the accompanying financial
statements for the fiscal year ended January 31, 2009 for additional
information) and 463,581 shares of common stock issued by the Company to Mr.
Joel Cohen in lieu of payment for consulting fees owed to Mr. Cohen for
consulting services rendered to the Company.
(10) Represents (a) 1,111,109 shares of common stock issuable
upon the exercise of Series A warrants at the exercise price of $0.25 per share,
(b) 3,333,329 shares of common stock issuable upon the exercise of Series B
warrants at the exercise price of $0.25 per share, (c) 1,111,109 shares of
common stock issuable upon the exercise of Series C warrants at the exercise
price of $0.50 per share.
(11) Represents 2,000,000 shares of common stock issuable to
Mr. Peress upon the conversion of Class A Exchangeable Shares of 1260491 Alberta
Inc., our wholly owned subsidiary, held by him on a one-for-one basis (see
"Management's Discussion and Analysis of Financial condition and Results of
Operations - Reorganization of the Corporation")
(12) Represents (a) 2,222,222 shares of common stock issuable
upon the exercise of Series A warrants at the exercise price of $0.25 per share,
(b) 6,666,666 shares of common stock issuable upon the exercise of Series B
warrants at the exercise price of $0.25 per share, (c) 2,222,222 shares of
common stock issuable upon the exercise of Series C warrants at the exercise
price of $0.50 per share.
PLAN OF DISTRIBUTION
Each selling stockholder of the common stock 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 OTC Bulletin Board 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;
an exchange distribution in accordance with the rules of the applicable exchange;
privately negotiated transactions;
settlement of short sales entered into after the effective date of the registration
  statement of which this prospectus is a part;
broker-dealers may agree with the selling stockholders to sell a specified number
  of such shares at a stipulated price per share;
through the writing or settlement of options or other hedging transactions,
  whether through an options exchange or otherwise;
a combination of any such methods of sale; or
any other method permitted pursuant
  to applicable law.
21
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 broker-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, but, except as set forth in a supplement to this prospectus, in the
case of an agency transaction not in excess of a customary brokerage commission
in compliance with NASDR Rule 2440; and in the case of a principal transaction a
markup or markdown in compliance with NASDR IM-2440.
In connection with the sale of the 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 of the 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 such
broker-dealer or other financial institution of shares offered by this
prospectus, which shares such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such
transaction).
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 such sales. In such event, any
commissions received by such 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 the Company that it does not have any written or oral 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%).
The Company is required to pay certain fees and expenses
incurred by the Company incident to the registration of the shares. The Company
has agreed to indemnify the selling stockholders against certain losses, claims,
damages and liabilities, including liabilities 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 including Rule 172 thereunder. 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 resale shares by the selling
stockholders.
We agreed to keep this prospectus effective until the earlier
of (i) the date on which the shares may be resold by the selling stockholders
without registration and without regard to any volume limitations by reason of
Rule 144 under the Securities Act or any other rule of similar effect or (ii)
all of the shares have been sold pursuant to this prospectus or Rule 144 under
the Securities Act or any other rule of similar effect. The resale shares will
be sold only through registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states, the resale
shares may not be sold unless they have been registered or qualified for sale in
the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.
Under applicable rules and regulations under the Exchange Act,
any person engaged in the distribution of the resale shares may not
simultaneously engage in market making activities with respect to the common
stock for the applicable restricted period, as defined in Regulation M, 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 the 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 (including
by compliance with Rule 172 under the Securities Act).
22
DESCRIPTION OF SECURITIES
General
Our authorized capital consists of 200,000,000 shares of common
stock, with a par value of $0.00001 per share and 100,000,000 shares of
preferred stock with a par value of $0.0001 per share. As of July 29, 2009,
there were 41,262,497 shares of our common stock issued and outstanding and no
issued and outstanding shares of preferred stock.
Common Stock
The following is a summary of the material rights and
restrictions associated with our capital stock. This description does not
purport to be a complete description of all of the rights of our stockholders
and is subject to, and qualified in its entirety by the provisions of our most
current Articles of Incorporation and bylaws.
The holders of our common stock have the right to cast one vote
for each share held of record on all matters submitted to a vote of the holders
of our common stock, including the election of directors. Holders of our common
stock do not have cumulative voting rights in the election of directors.
Pursuant to the provisions of Section 78.320 of the Nevada Revised Statutes (the
"NRS") and our bylaws, a majority of the outstanding shares of stock entitled to
vote must be present, in person or by proxy, at any meeting of the stockholders
of the Company in order to constitute a valid quorum for the transaction of
business. Actions taken by stockholders at a meeting in which a valid quorum is
present are approved if the number of votes cast at the meeting in favor of the
action exceeds the number of votes cast in opposition to the action. Certain
fundamental corporate changes such as the liquidation of substantially all of
our assets, mergers or amendments to our Articles of Incorporation require the
approval of holders of a majority of the outstanding shares entitled to vote.
Holders of our common stock do not have any preemptive rights to purchase shares
in any future issuances of our common stock or any other securities. There are
no redemption or sinking fund provisions applicable to our common stock. All
outstanding shares of our common stock are fully paid and non-assessable.
The holders of our common stock are entitled to receive
dividends pro rata based on the number of shares held, when and if declared by
our Board of Directors, from funds legally available for that purpose. In the
event of the liquidation, dissolution or winding up of the affairs of the
Company, all our assets and funds remaining after the payment of all debts and
other liabilities are to be distributed, pro rata, among the holders of our
common stock.
There are no dividend
restrictions that limit our ability to pay dividends on our common stock in our
Articles of Incorporation or bylaws. Section 78.288 of Chapter 78 of the NRS
prohibits us from declaring dividends where, after giving effect to the
distribution of the dividend: (a) we would not be able to pay our debts as they
become due in the usual course of business; or (b) except as may be allowed by
our Articles of Incorporation, our total assets would be less than the sum of
our total liabilities plus the amount that would be needed, if we were to be
dissolved at the time of the distribution, to satisfy the preferential rights
upon dissolution of stockholders who may have preferential rights and whose
preferential rights are superior to those receiving the distribution. The
Holder, as the holder of the Debenture, shall be entitled to receive such
dividends paid and distributions made to the holders of Common Stock to the same
extent as if the Holder had completely converted the Debenture into Common Stock
(without regard to any limitations on Conversion herein or elsewhere and without
regard to whether or not a sufficient number of shares are authorized and
reserved to effect any such exercise and issuance) and had held such shares of
Common Stock on the record date for such dividends and distributions. Payments
under the preceding sentence shall be made concurrently with the dividend or
distribution to the holders of Common Stock.
Preferred Stock
The Board of Directors has the authority to issue shares of
preferred stock and to determine the price, designation, rights, preferences,
privileges, restrictions and conditions, including voting rights and dividend
rights, of these shares of preferred stock without any further vote or action by
the stockholders. No preferred shares have been issued and the board has not
designated any series of preferred stock.
LEGAL MATTERS
Burns & Levinson LLP, 125 Summer Street, Boston, MA 02110
will opine on the validity of the common stock offered in this prospectus.
EXPERTS
ICP Solar's financial statements for the years ended January
31, 2009 and 2008 included in this registration statement have been audited by
RSM Richter, LLP, Montreal, Quebec, an independent registered public accounting
firm, as stated in their report, and have been so included in reliance upon the
report of said firm and their authority as experts in accounting and auditing.
This report expresses an unqualified opinion and includes an explanatory
paragraph relating to the Company's ability to continue as a going concern.
23
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This Management's Discussion and Analysis of Financial
condition and Results of Operations ("MD&A") is designed to assist investors
in understanding the nature and the importance of the changes and trends, as
well as the risks and uncertainties associated with the Company's operations and
financial position. Some sections of this MD&A contain forward-looking
statements that, because of their nature, necessarily involve a number of known
and unknown risks and uncertainties, including statements regarding our capital
needs, business strategy and expectations. Any statements contained herein that
are not statements of historical facts may be deemed to be forward-looking
statements. In some cases, forward-looking statements can be identified by
terminology such as "may," "will," "should," "expect," "plan," "intend,"
"anticipate," "believe," "estimate," "predict," "potential" or "continue," the
negative of such terms or other comparable terminology. The Company's actual and
future results could therefore differ materially from those indicated or
underlying these forward-looking statements. In evaluating these statements, you
should consider various factors, including the risks discussed below, and, from
time to time, in other reports filed by the Company with the SEC. See "Risk
Factors" and "Forward-Looking Statements".
Although the Company deems the expectations reflected in these
forward-looking statements to be reasonable, the Company cannot provide any
guarantee as to the materialization of the expectations reflected in these
forward-looking statements.
Basis of Presentation
This MD&A on the Company's operating results and cash flows
for the fiscal years ended January 31, 2009 and January 31, 2008 as well as its
financial position at January 31, 2009, should be read in conjunction with the
consolidated financial statements and accompanying notes contained in this
report and also with the unaudited consolidated financial statements for the
three month period ended April 30, 2009 and 2008 and the notes thereto.
Company Overview
Headquartered in Montreal, Canada, ICP operates in the solar
energy industry. ICP manufactures, markets, and sells solar panel based products
to the consumer goods, Original Equipment Manufacturers ("OEM") and integrated
building materials markets through its distribution channels in over 50
countries. We operate our business through a wholly owned subsidiary of ICP, ICP
Global Technologies Inc. (Canada).
We develop, and market solar power products that provide
reliable and environmentally clean electric power throughout the world. Solar
power products use interconnected photovoltaic cells to generate electricity
from sunlight. Solar power products can provide a cost-competitive, reliable
alternative for powering highway call boxes, microwave stations, portable
highway road signs, remote street or billboard lights, vacation homes, rural
homes in developed and developing countries, water pumps and battery chargers
for recreational vehicles and other consumer applications. Furthermore, solar
power products can provide on-grid customers with a clean, renewable source of
alternative or supplemental electricity.
Our plan of operation for the next twelve months is to engage
in our R&D, marketing and sales efforts. We plan to expand our current
distribution depth within the markets of North America, Europe and Japan for our
consumer goods segment through the marketing of our internal brand Sunsei
TM
, as well as licensed brand Coleman®.
Our immediate goal is to market our ISUN® solar charger for
electronics and our Sunsei Greenmeter® . We can provide no assurances that
commercialization of these products will be successfully achieved.
Although there can be no assurances, we plan to deliver on a
sustainable growth strategy across each of our main targets. We also intend to
increase our addressable markets, further sales and solidify our brand through
strategic partnerships with best practice distribution partners worldwide.
Strategic partnerships for both distribution channel and technology are expected
to be key drivers of our expansion plans.
Off-Balance Sheet Arrangements
During our fiscal year ended January 31, 2009, the Company had
no off-balance sheet arrangements.
24
Reorganization of the Corporation
On September 29, 2006, ICP Solar Technologies Inc. ("ICP")
entered into a share exchange agreement with ICP Solar Technologies Inc.
(formerly FC Financial Services Inc.) ("ICP Solar"), an inactive public shell
company, for the acquisition by ICP Solar of all the issued and outstanding
shares of ICP.
Under accounting principles generally accepted in the United
States, the share exchange was considered to be a capital transaction in
substance, rather than a business combination. That is, the share exchange was
equivalent to the issuance of stock by ICP for the net monetary assets of ICP
Solar accompanied by a recapitalization, and was accounted for as a change in
capital structure. Accordingly, the accounting for the share exchange was
identical to that resulting from a reverse acquisition, except that no goodwill
was recorded. Under reverse takeover accounting, the post reverse acquisition
comparative historical financial statements of the legal acquirer, ICP Solar,
became those of the legal acquiree, ICP, which was also considered to be the
accounting acquirer.
We structured the acquisition of ICP to enable ICP stockholders
to receive tax-rollover treatment in Canada. Under Canadian law, when a
stockholder disposes of shares, the disposal is considered to be a deemed
disposition of the shares and therefore is a taxable event unless the shares are
exchanged for the shares of an equal value in another Canadian company.
All of the ICP shares, through a series of transactions, were
exchanged for Class A exchangeable shares (the "Exchangeable Shares") of ICP
Solar's wholly-owned subsidiary, 1260491 Alberta Inc. The Exchangeable Shares
are exchangeable for an equivalent number of shares of our common stock. Until
such time as the holders of the Exchangeable Shares wish to exchange their
shares for shares of our common stock, such shares are held in trust by a
trustee on behalf of the exchangeable shareholders. See "Security Ownership of
Certain Beneficial Owners and Management". The trustee shall be entitled to the
voting rights in ICP Solar as stated in the terms of an exchange and voting
agreement and shall exercise these voting rights according to the instructions
of the holders of the Exchangeable Shares on a basis of one vote for every
Exchangeable Share held. Upon conversion of Exchangeable Shares by the holders
thereof into shares of our common stock, the Exchangeable Shares will be
cancelled on a one for one basis.
Sale of 100% of Shares of ICP UK
On May 9, 2007, the Company signed a Share Purchase Agreement
(the "Agreement") with ISE LLC ("ISE"). Under the terms of the Agreement, the
Company sold 85% of the shares of ICP UK (name changed to EPOD Solar (Wales)
Ltd. ("EPOD") on June 26, 2007) for an aggregate amount of $3,000,000. On May
10, 2007, the Company and ISE signed an Amendment to the Agreement, revising the
modalities of payment. These modalities were subsequently changed on April 18,
2008, when the Company and ISE signed a second Amendment to the Agreement
("Second Amendment"). According to the terms of the Second Amendment, the rights
and obligations under the Agreement, Amendment and Second Amendment were
assigned to EPOD Solar Inc., and the remaining 15% interest held by the Company
in EPOD was transferred to EPOD Solar Inc. Based on the Second Amendment, EPOD
Solar Inc. is to pay the Company an amount equivalent to $3,000,000 as follows:
a)
$150,000 was paid upon signing of the original Agreement
      and $350,000 in kind in the form of solar panels;
b)
An additional $150,000 upon signing the Second Amendment
      and $19,827 in kind in the form of solar panels;
c)
The outstanding balance of the loan is forgiven by
      $88,973;
The remaining amount due to ICP Solar Technologies Inc. of
$2,241,200 has the following terms:
i)
A loan receivable in the principal amount of $1,060,600,
      non-interest bearing, shall be paid in cash on a monthly basis of $40,000
      per month commencing on the Second Amendment date until the balance is
      fully paid. This loan has been discounted to a fair value of $927,162
      based on an effective interest rate of 12%. As at January 31, 2009,
      $78,947 of the discount has been amortized. The loan has been written down
      to $Nil because no repayments have been made, either in cash or in-kind,
      since May 2008 and collectability was not assured.
25
ii)
The Company participated in EPOD Solar Inc.'s convertible
      debenture financing round and, on August 8, 2008, received 1,180 units in
      lieu of the remaining $1,180,000 CDN owing. Each unit consisted of a $1,000
      CDN face value 12% convertible debenture due August 8, 2011.
The investment in the convertible debenture value of $967,600
has been written down to $1.00 due to the uncertainty in the initial public
filing referred to below. A fair value has not been allocated to the warrants as
it has been determined that their value is nominal. The determination of the
fair value of the warrants used insignificant unobservable inputs and therefore
would be categorized as a level 2 hierarchy item in note 4.
Both the convertible debenture and the loan receivable have
been assigned to the investors in the Private Placement (see Note 12 to the
accompanying financial statements). In the event of a "Qualifying Transaction"
(as defined in the debenture) the debenture will be convertible, at the
Company's option, into
shares of common stock of EPOD Solar Inc. which can be liquidated to pay off the
investors. Until such time as EPOD Solar Inc. goes public, the shares are
restricted securities, as such term is defined pursuant to Rule 144 under the
Securities Act.
Going Concern
The accompanying financial statements have been prepared
assuming the Company will continue as a going concern. The Company has reported
an accumulated deficit of $ 24,912,588 as at April 30, 2009 (January 31, 2009 -
$18,125,706).
To date, these losses have been financed principally through
the issuance of capital stock and long-term debt, and through debt from related
parties. Additional capital and/or borrowings will be necessary in order for the
Company to continue in existence and attain profitable operations.
Management has continued to develop a strategic plan to develop
a management team, maintain reporting compliance and establish contracts with
clients. Management anticipates generating revenue through manufacturing and
commercializing its products during the next year. Should the Company be unable
to continue as a going concern, it may be unable to realize the carrying value
of its assets and to meet its liabilities as they become due.
Compliance with Generally Accepted Accounting
Principles
Unless otherwise indicated, the financial information presented
in this MD&A, including tabular amounts, is expressed in US dollars and
prepared in accordance with accounting principles generally accepted in the
United States ("GAAP").
Use of Estimates
The preparation of financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Significant estimates in
these financial statements include the allowance for doubtful accounts, recovery
of future income taxes, impairment of long-lived assets, stock-based
compensation costs, determination of the fair value of the warrants issued and
the resulting impact on the allocation of the proceeds between the shares and
warrants. Actual results could differ from those estimates.
The financial statements include estimates based on currently
available information and management's judgment as to the outcome of future
conditions and circumstances.
Changes in the status of certain facts or circumstances could
result in material changes to the estimates used in the preparation of the
financial statements and actual results could differ from the estimates and
assumptions.
Significant Accounting Policies
Critical accounting policies are described below and all
significant accounting policies are described in note 3 accompanying the
financial statements contained in this prospectus.
Revenue Recognition
The Company recognizes revenue from product sales at the time
of passage of title and risk of loss to the customer either at FOB Shipping
Point or FOB Destination, based upon terms established with the customer where
persuasive evidence of an arrangement exists and where collectability is
reasonably assured. The Company's selling price to its customers is a fixed
amount that is not subject to refund or adjustment and is not contingent upon
additional rebates. There are no further obligations on the part of the Company
subsequent to revenue recognition except for product warranty and returns from
the Company's customers. The Company does accept returns of products, if
properly requested, authorized, and approved by the Company. The Company records
an estimate of returns and records the provision for the estimated amount of
such future returns based on historical experience and any notification the
Company receives of pending returns.
26
Share-Based Payments
The Company accounts for share based payments in accordance
with the provisions of FAS 123R "Share based payments (Revised)" and accordingly
recognizes in its financial statements share based payments at their fair value.
In addition, it recognizes in the financial statements an expense based on the
grant date fair value of stock options granted to employees. This expense is
recognized on a straight line basis over the vesting period and the offsetting
credit is recorded in additional paid-in capital. Upon exercise of options, the
consideration paid, together with the amount previously recorded as additional
paid-in capital, is recognized as equity. The Company estimates its forfeiture
rate in order to determine its compensation expense arising from stock-based
awards. The Company uses the Black-Scholes-Merton option pricing model to
determine the fair value of the options.
The Company accounts for stock-based compensation expense for
non-employees using the fair value method prescribed by EITF 96-18 "Accounting
for Equity Investments That Are Issued to Other Than Employees for Acquiring or
in Conjunction with Selling, Goods or Services", and the Black-Scholes-Merton
option principal method, and records the fair value of non-employee stock
options as an expense over the vesting term of option.
If an equity award is modified after the grant date, an
incremental compensation cost will be recognized in an amount equal to the
excess of the fair value of the modified award, if any, over the fair value of
the original award on the modification date.
The Company uses the Black-Scholes-Merton option pricing model
which requires the input of highly subjective assumptions. These assumptions,
including estimating the length of time option holders will retain their stock
options before exercising them ("the expected term"), the expected volatility of
our common stock price over the expected term and the number of options that
will ultimately not complete their vesting requirements ("forfeitures"). The
amount of stock-based compensation recognized in the consolidated statement of
operations could be materially different under different assumptions.
Impairment of Long-Lived Assets
Long-lived assets, comprising property and equipment, that are
held and used by the Company are reviewed for possible impairment whenever
events or changes in circumstances indicate the carrying amount of an asset may
not be recoverable. Recoverability of assets to be held and used is measured by
a comparison of the carrying amount of the assets to the estimated undiscounted
cash flows expected to be generated by the asset. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by
which the carrying amount of the asset exceeds the fair value thereof.
Income Taxes
The Company accounts for income taxes in accordance with SFAS
No. 109, "Accounting for Income Taxes". Deferred taxes are provided on the
liability method whereby deferred tax assets are recognized for deductible
temporary differences, and deferred tax liabilities are recognized for taxable
temporary differences. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax bases. Deferred tax
assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets
will not be realized. Deferred tax assets and liabilities are adjusted for the
effects of changes in tax laws and rates on the date of enactment.
On February 1, 2007, the Company adopted Financial Accounting
Standards Board (FASB) Interpretation (FIN) No. 48, "Accounting for Uncertainty
in Income Taxes - an Interpretation of FASB Statement No. 109" ("FIN 48"), which
clarifies the accounting for uncertainty in tax positions. This Interpretation
requires that the Company recognize in its financial statements the impact of a
tax position, if the position is more likely than not for being sustained on
audit, based on the technical merits of the position. The adoption of FIN 48 did
not have a material impact on our consolidated financial statements. The Company
is currently subject to a four year statute of limitations by major tax
jurisdictions. The Company and its subsidiaries file income tax returns in
Canada and the United States.
27
Foreign Currency Translation
It is management's view that the United States dollar best
portrays the economic results of the worldwide operations and thereby best
achieves the objectives of foreign currency translation. The method used to
translate the results and financial position for items and transactions
denominated in non-US currencies are as follows:
Monetary items – at exchange rates in
effect at the balance sheet date;
Non-monetary items – at exchange rates in
effect on the dates of the transactions;
Revenue and expenses – at average
exchange rates prevailing during the period, except for inventories and
amortization which are translated at rates prevailing when the related assets
were acquired.
Gains and losses arising from foreign currency translation are
included in income.
Recently Issued Accounting Pronouncements
In March 2008, the Financial Accounting Standards Board issued
SFAS Statement No. 161, "Disclosures about Derivative Instruments and Hedging
Activities" ("FAS 161"). This standard is intended to improve financial
reporting about derivative instruments and hedging activities by requiring
enhanced disclosures to enable investors to better understand their effects on
an entity's financial position, financial performance, and cash flows. It is
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008, with early application encouraged. The
Company is currently evaluating the impact, if any, that this statement will
have on its disclosures related to derivative instruments and hedging
activities.
The FASB issued FSP 133-1 and FIN 45-4, 'Disclosures about
Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No.
133 and FASB Interpretation No. 45; and Clarification of the Effective Date of
FASB Statement No. 161". This FSP is intended to improve disclosures about
credit derivatives by requiring more information about the potential adverse
effects of changes in credit risk on the financial position, financial
performance, and cash flows of the sellers of credit derivatives. In addition,
it requires an additional disclosure about the current status of the
payment/performance risk of a guarantee. It also clarifies the effective date in
FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging
Activities. This FSP is effective for reporting periods (annual or interim)
ending after November 15, 2008. The Company is currently evaluating the impact
of this statement on its consolidated financial statements.
In October 2008, the FASB issued FSP No. FAS 157-3,
"Determining the Fair Value of a Financial Asset When the Market for That Asset
Is Not Active" ("FSP FAS 157-3"), which clarifies the application of FAS 157 and
provides an example to illustrate key considerations in determining the fair
value of a financial asset when the market for that financial asset is not
active. FSP FAS 157-3 applies to financial assets within the scope of accounting
pronouncements that require or permit fair value measurements in accordance with
FAS 157. FSP FAS 157-3 was effective for the Company upon issuance on October
10, 2008 and the adoption did not have a material impact on the Company's
Consolidated Financial Statements.
The FASB issued SFAS 162, "The Hierarchy of Generally Accepted
Accounting Principles". The new standard is intended to improve financial
reporting by identifying a consistent framework, or hierarchy, for selecting
accounting principles to be used in preparing financial statements that are
presented in conformity with U.S. generally accepted accounting principles
(GAAP) for nongovernmental entities. Statement 162 is effective 60 days
following the Securities and Exchanges Commission's approval of the Public
Company Accounting Oversight Board Auditing amendments to AU Section 411, The
Meaning of Present Fairly in Conformity with Generally Accepted Accounting
Principles. The Company is currently evaluating the impact of this Statement on
its consolidated financial statements.
The FASB issued FSP APB-14-1,
Accounting for Convertible
Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial
Cash Settlement)
. FSP APB 14-1 clarifies that convertible debt instruments
that may be settled in cash upon conversion (including partial cash settlement)
are not addressed by paragraph 12 of APB Opinion No. 14,
Accounting for
Convertible Debt and Debt Issued with Stock Purchase Warrants
. Additionally,
this FSP specifies that issuers of such instruments should separately account
for the liability and equity components in a manner that will reflect the
entity's nonconvertible debt borrowing rate when interest cost is recognized in
subsequent periods. This FSP is effective for financial statements issued for
fiscal years beginning after December 15, 2008, and interim periods within those
fiscal years. Early adoption is not permitted. The Company is currently
evaluating the impact of this Statement on its consolidated financial
statements.
28
The FASB issued SFAS 163, Accounting for Financial Guarantee
Insurance Contracts. Statement 163 clarifies how FASB Statement No. 60,
Accounting and Reporting by Insurance Enterprises, applies to financial
guarantee insurance contracts issued by insurance enterprises, including the
recognition and measurement of premium revenue and claim liabilities. It also
requires expanded disclosures about financial guarantee insurance contracts.
Statement 163 is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and all interim periods within those fiscal
years, except for disclosures about the insurance enterprise's risk-management
activities, which are effective the first period beginning after May 23, 2008.
The Company is currently evaluating the impact of this Statement on its
consolidated financial statements.
The FASB issued FSP FAS 142-3, Determination of the Useful Life
of Intangible Assets. This FSP amends the factors that should be considered in
developing renewal or extension assumptions used to determine the useful life of
a recognized intangible asset under FASB Statement No. 142, Goodwill and Other
Intangible Assets. This FSP is effective for financial statements issued for
fiscal years beginning after December 15, 2008, and interim periods within those
fiscal years. The Company is currently evaluating the impact of this Statement
on its consolidated financial statements.
The FASB issued FSP SOP 90-7-a, An Amendment of AICPA Statement
of Position 90-7 Financial Reporting by Entities in Reorganization under the
Bankruptcy Code. This FSP states that an entity emerging from bankruptcy that
uses fresh-start reporting would only follow the accounting standards in effect
at the date of emergence as opposed to within the 12 months following the
adoption of fresh-start reporting. This FSP is effective for financial
statements issued subsequent to April 24, 2008. The Company is currently
evaluating the impact of this Statement on its consolidated financial
statements.
The FASB issued FSP EITF 03-6-1, Determining Whether
Instruments Granted in Share-Based Payment Transactions Are Participating
Securities. This FSP states that unvested share-based payment awards that
contain nonforfeitable rights to dividends or dividend equivalents (whether paid
or unpaid) are participating securities and shall be included in the computation
of earnings per share pursuant to the two-class method. The FSP is effective for
financial statements issued for fiscal years beginning after December 15, 2008,
and interim periods within those years. The Company is currently evaluating the
impact of this Statement on its consolidated financial statements.
EITF 07-5, Determining Whether an Instrument (or Embedded
Feature) Is Indexed to an Entity's Own Stock was ratified by the FASB. This EITF
addresses the determination of whether an instrument (or an embedded feature) is
indexed to an entity's own stock. This EITF is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and
interim periods within those fiscal years. The Company is currently evaluating
the impact of this Statement on its consolidated financial statements.
EITF 08-3, Accounting by Lessees for Nonrefundable Maintenance
Deposits was ratified by the FASB. This EITF prescribes the accounting for all
nonrefundable maintenance deposits. This EITF is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and
interim periods within those fiscal years. The Company is currently evaluating
the impact of this Statement on its consolidated financial statements.
EIT 08-4, Transition Guidance for Conforming Changes to Issue
No. 98-5, 'Accounting for Convertible Securities with Beneficial Conversion
Features or Contingently Adjustable Conversion Ratios' was ratified by the FASB.
This EITF Integrates the requirements of EITF 00-21 into EITF 98-5. This EITF is
effective for financial statements issued for fiscal years ending after December
15, 2008. The Company is currently evaluating the impact of this Statement on
its consolidated financial statements.
29
The FASB issued FSP FAS 132(R)-1, "Employers' Disclosures about
Postretirement Benefit Plan Assets". This FSP provides guidance on an employer's
disclosures about plan assets of a defined benefit pension or other
postretirement plan. This FSP also includes a technical amendment to Statement
132R that requires a nonpublic entity to disclose net periodic benefit cost for
each annual period for which a statement of income is presented. This FSP is
effective for fiscal years ending after December 15, 2008. The Company is
currently evaluating the impact of this Statement on its consolidated financial
statements.
The EITF issued EITF 08-6, "Equity Method Investment Accounting
Considerations". This EITF considers whether all of the provisions of Statement
141(R) and Statement 160 should be applied when accounting for an equity method
investment. This EITF is effective on a prospective basis in fiscal years
beginning on or after December 15, 2008 and interim periods within those fiscal
years. The Company is currently evaluating the impact of this Statement on its
consolidated financial statements.
The EITF issued EITF 08-7, "Accounting for Defensive Intangible
Assets". This issue discusses how defensive intangible assets should be
accounted for subsequent to their acquisition, including the estimated useful
life that should be assigned to such assets. This EITF is effective
prospectively for intangible assets acquired on or after the beginning of the
first annual reporting period beginning on or after December 15, 2008. The
Company is currently evaluating the impact of this Statement on its consolidated
financial statements.
The EITF issued EITF 08-8, "Accounting for an Instrument (or an
Embedded Feature) with a Settlement Amount That Is Based on the Stock of an
Entity's Consolidated Subsidiary". This Issue addresses the determination of
whether a financial instrument for which the payoff to the counterparty is
based, in whole or in part, on the stock of an entity's consolidated subsidiary,
is indexed to the reporting entity's own stock and therefore should not be
precluded from qualifying for the first part of the scope exception in paragraph
11(a) of Statement 133 or being within the scope of Issue 00-19. This EITF is
effective for fiscal years beginning on or after December 15, 2008, and interim
periods within those fiscal years. The Company is currently evaluating the
impact of this Statement on its consolidated financial statements
30
Selected Consolidated Annual Information
(in thousands of $, except per-share amounts)
Fiscal Years Ended January 31,
2009
2008
Revenues
5,903
6,541
Gross margin
1,334
2,166
Expenses
6,421
7,722
Operating Loss
(5,087
)
(5,556
)
Net earnings (loss)
(9,285
)
(4,222
)
Earnings (loss) per Class A share
(basic and diluted)
(0.28
)
(0.14
)
Weighted average number of
Class A shares outstanding (in thousands)
34,091
30,149
Cash dividends paid
      on Class A shares
-
-
Balance Sheet
      Data
(as at January 31)
2009
2008
Total assets
2,531
6,199
Shareholders' equity
(2,973
)
3,467
Total interest-bearing debt
(1)
190
1,812
Cash and
      short-term investments
194
526
(1) Including long-term debt and its current portion, bank
advances and loans, interest bearing portion of director's loan payable,
government grants, capital lease obligations and their current portion as well
as convertible notes.
Seasonality
ICP's business is subject to certain seasonal cycles,
especially during the summer period corresponding to the part of the second
quarter and part of the third quarter, traditionally the slowest of the
Company's fiscal year, and the month of December as a result of the end-of-year
holidays.
Operating Results for the Fiscal Year Ended January 31,
2009
Net Sales
During the fiscal year ended January 31, 2009, ICP's
consolidated
net sales
decreased by 10% or $638 thousand to $5.9
million, down from $6.5 million for the year ended January 31, 2008. As sales
programs are established with customers up to a year in advance, the lack of
funding from sales programs in fiscal 2008 resulted in reduced inventory supply
available for fiscal 2009. Consequently, the related production and delivery
delays resulted in a loss of orders in the first three quarters of the year.
Sales to one customer amounted to approximately 12% (13% in
2008) of total sales. Outstanding accounts receivable for this customer as at
January 31, 2009 accounted for approximately 18% (5% in 2008) of total accounts
receivable.
By geographic location, sales in North America accounted for
approximately 71% (60% in 2008) of total sales, Europe 24% (27% in 2008), Asia
5% (9% in 2008) and Africa nil (4% in 2008).
Gross Margin
The gross margin decreased by 38% or $832 thousand to $1.3
million. The gross profit margin as a percentage of sales was to 23%, compared
to 33% the previous year. This decrease reflects lower sales as explained above,
increased purchase cost of materials due to an increase in foreign exchange
rates relative to the US dollar, as well as material and labour cost, coupled
with the inability to increase sales prices proportionately due to previous
sales commitments.
31
Operating expenses
Selling and general and administrative expenses
decreased by $1.8 million to $5.7 million during the fiscal year ended
January 31, 2009, from $7.5 million for fiscal 2008. Total stock-based
compensation paid to employees, directors and consultants decreased from $2.7
million in fiscal 2008 to $1.8 million in fiscal 2009, a decrease of $931
thousand. Excluding the effects of issued options and warrants expense and the
expense related to the modification of the exercise price of outstanding options
and warrants (see Note 16 to the accompanying financial statements), selling,
general and administrative expenses decreased by a further $839 thousand.
This decrease reflects a decrease in selling expenses of $202
thousand, a decrease in administrative expenses of $253 thousand, a decrease in
professional fees of $236 thousand, and a decrease in operating expenses of
approximately $148 thousand. The company expects further overhead reductions
during the fiscal year ending January 31, 2010 although not as much as was
achieved in fiscal 2009.
Research and development expenses were $643 thousand for the
year compared to $88 thousand in the corresponding period a year earlier as the
Company increased R&D efforts relating to metering, monitoring, and
hand-held portable solar charger development.
Including depreciation of $82 thousand and the gain on foreign
exchange of $77 thousand,
operating losses
amounted to $5.09 million
compared to losses of $5.56 million for the corresponding period a year
earlier.
Net
Interest expense
amounted to $274 thousand
during the fiscal year ended January 31, 2009, compared to $277 thousand for
fiscal 2008. The decrease of $3 thousand results from the conversion during the
year of $850 thousand of convertible notes to shares of common stock and the
issuance of net $3.0 million in senior secured convertible debentures detailed
further in Note 12 of the accompanying financial statements.
The issuance of the senior secured convertible debentures
(detailed in Note 12 of the accompanying financial statements) resulted in
financing costs of $383 thousand, a discount of $1.61 million, and $600 thousand
interest expense on common stock purchase warrants in addition to the interest
expense on the debentures disclosed in the preceding paragraph. The modification
of the debenture agreement on December 31, 2008 (see Note 12 of the accompanying
financial statements) resulted in a gain of $603 thousand. The renegotiation of
the payment terms on the sale of 100% of ICP UK (see Note 9 of the accompanying
financial statements) resulted in a forgiveness of loan of $89 thousand, an
accretion of loan discounts(income)of $89 thousand and a write down of $1.92
million. There was also a discount on convertible notes of $166 thousand charged
during the fiscal year ended January 31, 2009.
After giving effect to these items the net loss for the fiscal
year ended January 31, 2009 amounted to $9.3 million, compared to a net loss of
$4.2 million for the fiscal year ended January 31, 2008.
The loss per Class A exchangeable share of share of 1260491
Alberta Inc. (basic and diluted) amounted to $0.28 on a weighted average of
34,090,717 outstanding shares for the fiscal year ended January 31, 2009,
compared with a loss per share of $0.14 on 30,148,509 shares for the fiscal year
ended January 31, 2008. The increased weighted average number of outstanding
shares is due to the Class A exchangeable shares issued in connection with the
exercise of warrants, as consideration for the acquisition of Wes Power
Technology Inc. (Note 8 of the accompanying financial statements), conversion of
convertible notes, conversion of senior secured convertible notes and payment of
consulting fees to a supplier and director as explained in further detail in
Note 15 of the accompanying financial statements.
32
Income Taxes
There were no income taxes for the year ended January 31, 2009
(see Note 17 in the accompanying financial statements).
Principal Cash Flows for the Fiscal Year Ended January
31, 2009
Operating activities
before net change in non-cash
working capital items
used cash flows of $3.92 million for the fiscal year
ended January 31, 2009, compared to $2.83 million during fiscal 2008. Net change
in non-cash working capital items related to operations generated cash flows of
$2.14 million for the fiscal year ended January 31, 2009, compared to $1.45
million used in fiscal 2008. After net change in non-cash working capital
balances, and foreign exchange loss of $207 thousand, operating activities used
net cash flows of $1.99 million for the fiscal year ended January 31, 2009,
compared with $1.38 million in fiscal 2008. This increase in use of cash relates
primarily to the net loss incurred during fiscal 2009 after adjusting for
non-cash items.
Financing activities
provided cash flows of $1.28
million in the fiscal year ended January 31, 2009, primarily as a result of
receipt of funds for the issuance of approximately net $3.1 million convertible
debentures. In addition, the Company repaid bank indebtedness of $1.1 million,
$943 thousand of convertible debentures and government grants of $50 thousand,
while issuing shares of common stock for $277 thousand. Financing activities
provided cash flows of $1.03 million in fiscal 2008.
Investing activities
generated cash flows of $891
thousand in the fiscal year ended January 31, 2009, primarily from the receipts
of $500 thousand term deposit and $436 thousand loan receivable related to the
sale of ICP UK (see Note 9 of the accompanying financial statements), offset by
additions to property and equipment of $15 thousand, the acquisition of Wes
Power Technology Inc. for $25 thousand (see Note 8 of the accompanying financial
statements) and repayments of employee loans of $12 thousand. In fiscal 2008,
investing activities generated cash flows of $132 thousand.
After also deducting the $8 thousand exchange loss on cash
denominated in foreign currency, aggregate cash inflows and outflows for fiscal
2008 provided net cash flows of $173 thousand. ICP ended fiscal 2009 with
cash
of $193,517, an increase from $20,967 for the fiscal year ended
January 31, 2008.
Financial Position as at January 31, 2009
Total assets
amounted to $2.5 million for the fiscal
year ended January 31, 2009, a decrease of $3.7 million compared to $6.2 million
for the fiscal year ended January 31, 2008. Reflected in this $3.7 million
decrease are a decrease in loan receivable related to the sale of the ICP UK in
2008 (see Note 9 in the accompanying financial statements), shown as loan
receivable of $2.2 million. The balance of the decrease is explained by the
decrease in term deposit of $505 thousand, decrease in trade accounts receivable
of $251 thousand, decrease in inventory of $934 thousand, a decrease of $74
thousand in prepaid expenses, which was offset by increases in cash of $172
thousand, a decrease in fixed assets of $3 thousand and a decrease in intangible
property of $121 thousand.
Working capital
totaled $417 thousand as at January 31,
2009 for a current ratio of 1.2:1 compared with working capital of $1.9 million
as at January 31, 2008 for a current ratio of 1.9:1.
The company had cash on hand at January 31, 2009 of $194
thousand. Due to the seasonal nature of the business, management believes that
this represents a low point in the Company's sale cycle, and an increase in
sales and the Company's improved gross margin should result in a cash increase
over the Company's next two fiscal quarters, which are historically higher. The
Company expects increased revenues in fiscal 2010 due to new product releases
and new licensing deals. This should help to generate cash from operating
activities.
The liability component of convertible notes amounted to nil as
at January 31, 2009, compared with $683 thousand during fiscal 2008, this $683
thousand decrease reflects the conversion during fiscal 2009 of all the
remaining face value of the notes totaling $850 thousand. During the fiscal year
ended January 31, 2009, the Company issued senior secured convertible debentures
with a face value of $3.33 million (see Note 12 to the accompanying financial
statements) in connection with a private placement. At January 31, 2009, these
debentures were being carried at $172 thousand (including an unamortized
discount of $2.7 million). In addition, $53 million worth of common stock
purchase warrants that were issued to the convertible debenture holders in
connection with the private placement, having a face value of $3.6 million at
January 31,2009 (see Note 12 to the accompanying as at January 31, 2009
financial statements), these warrants were being carried at $3.6 million.
Interest-bearing debt (consisting of senior secured convertible debentures,
convertible notes, and bank indebtedness) amounted to approximately $172
thousand as at January 31, 2009, down from $1.8 million as at January 31, 2008.
The outstanding principal and interest at December 31, 2008 of $2,568,425 was
revised to 115% or $2,953,688 resulting in recognition of a discount of
$385,263. As a result of this December 31, 2008 amendment, the Company has
recorded a gain of $602,726 in accordance with EITF 96-19 whereby the old
convertible debenture balance was written off and replaced by the new
convertible debenture balance because its discounted fair value was greater by
10% of the discounted fair value under the old terms. The $2,708,934 discount
against the new convertible debenture balance of $2,880,450 recorded will be
amortized over the remaining 17 months of the debenture.
33
In accordance with its senior secured convertible debenture
agreement, the Company was required to comply with revenues greater than $1.5
million for the fiscal quarter ended April 30, 2009 and revenues greater than $2
million and EBITDA greater than ($125) thousand for the fiscal quarter ending
July 31,2009. In addition, accounts payable must remain less than $1.75 million
from now until the maturity date of June 13, 2010. As of January 31, 2009, the Company was in compliance with these covenants; however,
as of April 30, 2009, the Company was in default of the revenues and accounts
payable covenants and has obtained a waiver from senior secured convertible
debenture holders for all defaults. See "Prospectus Summary - The Offering -
Background of the Offering".
Shareholders' (deficiency) equity
amounted to ($3.04)
million as at January 31, 2009, compared to $3.5 million as at January 31, 2008.
The decrease is attributable to the net loss for the period of $9.3 million,
foreign currency translation adjustment of ($207) thousand, the conversion of
notes of $850 thousand, the issuance of common stock of $323 thousand, and the
increase in paid-in capital of $1.9 million related to issuance of stock options
and warrants.
Other Contractual Commitments
Minimum lease payments, exclusive of occupancy and escalation
charges, under an operating lease expiring in 2012, are approximately as
follows:
2010
$
23,000
2011
23,000
2012
2,000
During the fiscal year ended January 31, 2009, the Company
incurred rental expenses amounting to approximately $26,000 (2008 – $25,000).
In accordance with a royalty agreement terminating in 2012, the
Company is committed to annual minimum advertising expenditures and royalty
fees, totaling as follows:
2010
$
128,000
2011
128,000
2012
128,000
Operating Results for the Three Month Period Ended April
30, 2009
Net Sales
During the first quarter ended April 30, 2009, ICP's
consolidated net sales
posted a decrease of 24% or $445 thousand to $1.45
million, down from $1.89 million for the three month period ended April 30,
2008. This difference can be explained by the loss of approximately $213
thousand in OEM business from Asia, $165 thousand from Europe and the remaining
$67 thousand from North America. The lost business was due to the global
economic crisis. Retailers chose to take a conservative position and rather than
buy inventory for the summer season chose to sell existing stock or wait until
volumes increased. The Company was also left with low inventory on a few high
demand products and had a lack of resources to renew those depleted inventories
to fulfill orders.
By geographic location, sales in North America accounted for
approximately 75% (2008-64%) of total sales, Europe 23 %(2008-23%) ,and Asia
2%(2008-13%).
34
Gross Margin
The gross margin decreased by 41% or $287 thousand to $413
thousand during the current quarter ended April 30, 2009, compared with $699
thousand for the three months ended April 30, 2008. Of this decrease $164
thousand was a result of lower sales. The remaining $123 thousand was because
the gross profit margin as a percentage of sales worked out to 28.5% for the
three month period ended April 30, 2009, compared to 37.0 % for the
corresponding three month period during the previous year.
Operating expenses
Selling and general and administrative expenses
during
the current quarter ended April 30, 2009
decreased to $ 1 million from
$1.58 million a year earlier .for the corresponding three month period during
the previous year. This decrease of 36% or $575thousand is explained by a $375
thousand reduction in stock based compensation, (a non-cash charge), from
approximately $683 thousand for the three month period ended April 30, 2008 to
$308 thousand for the current quarter ended April 30, 2009. General and
administrative costs decreased by $70 thousand , $33 thousand in salary and
benefits, $ 23 thousand in professional fees, and the remaining $44 thousand
made up of overhead, offset by an increase of $30 thousand in warehousing due to
a 30% increase in US warehouse sales. Selling costs decreased by $129 thousand
including $56 thousand reduction in salaries, $30 thousand in travel and the
remaining $43 thousand in selling and marketing costs due to lower sales.
Research and development costs increased by $4 thousand as the
Company had three months of R&D costs compared to only two months the prior
year.
Including depreciation of $21 thousand and the foreign exchange
loss of $37 thousand,
operating losses
amounted to $694 thousand compared
to a loss of $935 thousand for the prior year's three month period ended April
30, 2008.
Including interest expense of $78 thousand, the accretion of
discount on senior secured convertible debentures of $847 thousand, the change
in fair value of derivative liability-embedded conversion option of $221
thousand and the interest expense on put warrants of $4.1 million the net loss
amounted to $6.0 million compared to $910 thousand the prior year. Please refer
to Note 6 on the April 30, 2009 financial statements for an explanation of the
non-cash charges relating to the conversion option and put warrants..
The loss per common share (basic and diluted) amounted to $0.17
on a weighted average of 34,367,817 outstanding shares during the current
quarter ended April 30, 2009, compared with loss per share of $0.03 on
32,861,695 shares during the corresponding three month period during the
previous year.
Principal Cash Flows for the Three Month Period Ended
April 30, 2009
Operating activities
before net change in non-cash
working capital items used cash flows of $408 thousand during the period,
compared to used cash flows of $272 thousand during the corresponding three
month period during the previous year. Net change in non-cash working capital
items related to operations generated cash flows of $295 thousand for the three
months ended April 30, 2009, compared to $247 thousand for the first quarter
ended April 30, 2008. Operating activities used net cash flows of $114 thousand
during the current quarter ended April 30, 2009, compared with a use of cash of
$25 thousand for the corresponding period the previous year.
Financing activities
from continuing operations used
cash flows of $31 thousand, primarily as a result of senior secured convertible
debenture repayments, for the three month period ended April 30, 2009. The prior
year's financing activities provided cash flows of $54 thousand, primarily as a
result of shares of common stock issued.
Investing activities
used cash of $30 thousand in the
prior year as a result of the assets acquired through Wes Power. The current
year's quarter
reported no
cash flows from investing activities.
The aggregate cash inflows and outflows for the three month
period ended April 30, 2009 used net cash flows of $145 thousand compared to
$nil for the same period last year. ICP ended the three month period ended April
30, 2009 with
cash
of $48 thousand, up by $27 thousand from $21 thousand
as at April 30, 2008.
35
Financial Position as at April 30, 2009
Total assets amounted to $2.4 million as at April 30, 2009,
compared to $2.5 million as at January 31, 2009. This decrease primarily
reflects the reduction in inventory offset by increases in accounts receivable
and prepaids.
Working capital
was $1.5 million as at April 30, 2009,
compared to $418 thousand as at January 31, 2009. The working capital deficit is
due to increases in accounts payable and senior secured convertible debentures.
The current ratio as at April 30, 2009 was at 0.59:1 and at 1.22:1 at January
31, 2009.
Considering the accumulated losses to date and the increase in
total debt, the Company is not in compliance with certain ratios contained in
the covenants related to its senior secured convertible debenture agreements and
could be required to repay on demand all amounts due ($2.5 million as of April
30, 2009) under these agreements. The Company has not received any default
notice from its lenders thus far. The Company has obtained the necessary waivers
to these credit agreements from its lenders.
Shareholders' deficit
amounted to $9.1 million at April
30,2009, compared to $2.9 million as at January 31, 2009, as a result of a $6
million loss .offset by increases in APIC (See Consolidated Interim Statement of
Shareholder's Deficiency)
Acquisition of WES Power Technology Inc. ("WES")
On March 5, 2008, the Company executed a Share Purchase Agreement
  ("Agreement") with the majority shareholders of WES Power Technology Inc. ("WES
  Majority Shareholders"), pursuant to which the Company purchased from the WES
  majority shareholders all of the issued and outstanding shares of WES. This
  Agreement supersedes and annuls the share purchase agreement signed between
  the parties on August 27, 2007.
Under the terms of the Agreement, the Company acquired 100% of
all of the shares of WES for the following consideration:
(a)
A cash consideration of $1;
(b)
Issuance by the Company of 104,050 shares of its common
      shares;
(c)
Issuance by the Company of 250,000 warrants to purchase
      common shares of the Company. The warrants will expire on March 5, 2013
      and have an exercise price of $0.50;
(d)
Execution of employment agreements by the Company with
      each of the WES Majority Shareholders.
The total consideration to acquire the net assets of WES, was
$134,831 including transaction costs. The excess consideration paid over the
purchase price of $174,114 is accounted for as part of the intellectual
property.
The assigned values of the assets and liabilities purchased
based on our preliminary allocation are as follows:
Assets Acquired:
Current assets
$
92,100
Property and equipment
16,855
Intellectual property
174,114
Total Assets
$
283,069
Liabilities Assumed:
Current liabilities
$
96,794
Long-term debt
51,444
Total Liabilities
148,238
Net Assets at Fair
      Value
$
134,831
Consideration:
Cash
$
1
Issuance of 104,050 common shares
45,980
Issuance of 250,000 warrants
63,850
Transaction costs
25,000
Total Consideration
$
134,831
36
The common shares were attributed a fair value of $0.44 per
share which represents the average of the closing price two days before and two
days after the date of acquisition.
The warrants were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following
assumptions:
Expected volatility
75%
Expected life
5 years
Risk-free interest rate
2.59%
Dividend yield
Nil
Weighted average fair value of warrants at grant date
$
0.2554
Following is a table which represents the pro-forma
consolidated statement of operations as if the acquisition of WES Power
Technology Inc. had taken place on February 1, 2007.
Pro-forma Consolidated Statement of Operations
Wes
Technology Acquisition as of February 1, 2007
Year Ended
January 31,
2009
ICP Solar
Wes Power
Technologies
Technology
Total
Inc.
Inc.
Sales
$
5,903,196
$
-
$
5,903,196
Expenses
15,158,804
29,859
15,188,663
Net Loss
$
(9,255,608
)
$
(29,859
)
$
(9,285,467
)
Year Ended
January 31, 2008
ICP Solar
Wes Power
Technologies
Technology
Total
Inc.
Inc.
Sales
$
6,541,232
$
132,372
$
6,673,604
Expenses
10,763,970
119,156
10,883,126
Net Loss
$
(4,222,738
)
$
13,216
$
(4,209,522
)
Stock Options
Modification of Exercise Price
On February 14, 2008, the Board of Directors of the Company
authorized the modification of the exercise price of the options then issued and
outstanding pursuant to the Company's 2006 Stock Incentive Plan from $2.25 -
$2.35 to $0.50. This modification of the options to purchase common stock of the
Company was applied to a total of 1,415,000 options issued to employees and
Directors on May 18, 2007.
This modification was accounted for by recording, over the
vesting period, the difference between the fair value of the options immediately
prior to the modification and the fair value of the options determined at the
date of modification. The incremental compensation expense related to this
modification amounted to $217,832 of which $119,056 was expensed in the first
quarter of fiscal 2009 and $98,776 will be expensed over the remaining vesting
period. The fair value was determined by the Black-Scholes-Merton valuation
model using the following weighted average assumptions:
37
Expected volatility
76%
Expected life
5.38 years
Risk-free interest rate
2.71 %
Dividend yield
$
Nil
Weighted average fair value of options at modification date
$
0. 30
b) New Issues
Grants
On February 14, 2008, the Company granted options to purchase a
total of 45,000 shares of common stock to current employees and granted options
to purchase a total of 190,000 shares of common stock to current directors.
Options granted to current employees and 90,000 of the options granted to
current directors vest over a two year period at the rate of 25% every six
months, while 100,000 of the options granted to current directors vest on August
14, 2008. The Company will recognize a compensation expense of $57,553 over the
vesting period, based on an exercise price of $0.50 per share.
These options were accounted for at their fair value as
determined by the Black-Scholes-Merton valuation model, using the following
weighted average assumptions:
Expected volatility
76%
Expected life
5.65 years
Risk-free interest rate
2.81%
Dividend yield
$
Nil
Weighted average fair value of options at grant date
$
0.306
On May 6, 2008, the Company issued a total of 75,000 stock
purchase options to the CFO, vesting over a two year period, 25% every six
months. The options have an exercise price of $0.50 and expire on May 6, 2013.
The Company recorded a compensation expense of $ 8,453 for the year ended
January 31, 2009, and will recognize the remaining expense of $14,089 over the
vesting period.
These options were accounted for at their fair value as
determined by the Black-Scholes-Merton valuation model, using the following
assumptions:
Expected volatility
76%
Expected life
3.25 years
Risk-free interest rate
4.58%
Dividend yield
Nil
Fair value of
      options at grant date
$
0.376
Warrants - Modification of Exercise Price
On February 14, 2008, the Board of Directors of the Company
authorized the modification of the exercise price from $2.25 to $0.50 of common
stock purchase warrants, issued on May 18, 2007 as consulting fees to a member
of the immediate family of the President and CEO of the Company (100,000
warrants) and to a director and former CFO of the Company (525,000
warrants).
This modification will be accounted for by recording the
difference between the fair value of the warrants immediately prior to the
modification and the fair value of the warrants determined at the date of
modification. The incremental compensation expense related to this modification
amounted to $110,000 which was expensed in the first quarter of fiscal 2009 as
determined by the Black-Scholes-Merton valuation model using the following
assumptions:
Expected volatility
76%
Expected life
2.63 years
Risk-free interest rate
2. 01 %
Dividend yield
$
Nil
Weighted average fair value of warrants at modification date
$
0.2161
38
On March 25, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price from $1.00 to $0.50 on common
stock purchase warrants issued in 2006. This modification applied to 3,000,000
common stock purchase warrants.
This modification was accounted for by recording the difference
between the fair value immediately prior to the modification and the fair value
determined at the date of modification. The incremental compensation expense
related to this modification amounted to $50,700 which was expensed in the first
quarter of fiscal 2009 as determined by the Black-Scholes-Merton valuation model
using the following assumptions:
Expected volatility
104%
Expected life
4 months
Risk-free interest rate
1.24 %
Dividend yield
$
Nil
Weighted average fair value of warrants at modification date
$
0. 196
Financial Instruments
The Company estimates the fair value of its financial
instruments based on current interest rates, market value and pricing of
financial instruments with comparable terms. Unless otherwise indicated, the
carrying value of these financial instruments approximates their fair market
value. The fair value of advances from a director is impossible to determine
with sufficient reliability due to the lack of repayment terms, their related
party nature and the absence of a market for such instrument
Conversion of Convertible Notes
Subsequent to April 30, 2008, 850,000 common shares were issued
as a result of the conversion of $850,000 of convertible notes.
Issuance of Senior Secured Convertible Debentures and
Warrants
On June 13, 2008, the Company issued Original Issue Discount
11% Senior Secured Convertible Debentures (the "Debentures"), due June 13, 2010,
having a principal face amount of $3,333,334 and generating net proceeds of
$3,000,000.
The principal amount under the Debentures is repayable to the
holders in 18 equal monthly installments of $185,185, beginning November 1,
2008. Interest on the Debentures is payable monthly and began on June 13, 2008.
The Company may elect to make principal and interest payments in the form of
shares of its common stock; provided, generally, that the Company is not in
default under the Debentures at such time and has met certain equity conditions
described in the Debentures. If the Company elects to make principal payments in
shares of common stock, the conversion rate will be the lesser of (a) the
Conversion Price (as defined below), or (b) 85% of the average of the three (3)
lowest closing bid prices of the common shares over the twenty (20) trading day
period ending on the trading day ending immediately preceding the applicable
monthly redemption date.
At any time, holders may convert the Debentures into shares of
common stock at a fixed conversion price of $0.50, subject to adjustment in the
event the Company issues shares of common stock (or securities convertible into
or exercisable for shares of common stock) at a price below the conversion price
then in effect (the "Conversion Price").
The Debentures rank senior to all current and future
indebtedness and are secured by substantially all of the assets of the
Company.
Also on June 13, 2008, the Company issued to the investors
Series A six-year warrants to purchase an aggregate amount of up to 6,666,666
shares of common stock at an exercise price of $0.50 per share (subject to
adjustment), Series B six-year warrants to purchase an aggregate amount of up to
6,666,666 shares of common stock at an exercise price of $1.00 per share
(subject to adjustment), and Series C six-year warrants to purchase an aggregate
amount of up to 6,666,666 shares of common stock at an exercise price of $1.00
per share (subject to adjustment) (collectively, the "Warrants"). The Series C
warrants cannot be exercised until such time as all of the Series B warrants
have been exercised.
39
On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the "Amendment") to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement. As a result of these amendments, among
other things, the exercise price of the Series A purchase warrants issued in the
Private Placement was reduced from $0.50 to $0.25, resulting in the issuance of
6,666,666 additional Series A warrants; the exercise price of the Series B
purchase warrants issued in the Private Placement was reduced from $0.50 to
$0.25, resulting in the issuance of 19,999,998 additional Series B warrants; the
exercise price of the Series C purchase warrants issued in the Private Placement
was reduced from $1.00 to $0.50, resulting in the issuance of 6,666,666
additional Series C warrants.
For our fiscal quarter ended April 30, 2009, the Company was
required under the Debentures to achieve revenues no less than $1.5 million and
to maintain its accounts payable at less than $1.75 million. The Company failed
to achieve these targets and, as a result, was in default under the Debentures.
The Company has obtained a waiver from the holders of the Debentures for such
default; however, pursuant to the terms of the Debentures, as a result of the
Company's failure to achieve these targets the conversion price of the
outstanding Debentures and the exercise price for the Adjustment Warrants and
the warrants issued in the Private Placement was reduced to $0.14, the volume
weighted average price of our common stock during the five (5) consecutive
trading days immediately preceding April 30, 2009. The weighted average market
price in the five days following the filing of the 10Q was not less than $0.14,
so that a further reduction in price was not required nor made. The reduction in
the exercise price of the Adjustment Warrants and the warrants issued in the
Private Placement resulted in the issuance of the following warrants effective
June 21, 2009: (i) 10,476,197 additional Series A Warrants ("Series A Additional
Adjustment Warrants"), (ii) 20,952,386 additional Series B warrants ("Series B
Additional Adjustment Warrants")and (iii) 34,285,722 additional Series C
warrants ("Series C Additional Adjustment Warrants"), (Series A Additional
Adjustment Warrants, Series B Additional Adjustment Warrants and Series C
Additional Adjustment Warrants collectively referred to herein as the
"Additional Adjustment Warrants").
OUR BUSINESS
On September 29, 2006, ICP Solar Technologies Inc, formerly FC
Financial Services Inc. ("ICP Solar"), a Nevada corporation, directly and
indirectly through its Canadian wholly owned subsidiary, completed the
acquisition of 100% of the issued and outstanding shares of ICP Solar
Technologies Inc., a Canadian corporation ("ICP"). ICP, organized in 1988, has
continued its operations as a subsidiary of ICP Solar (the "ICP Acquisition").
We operate our business through our wholly owned subsidiary of ICP, ICP Global
Technologies Inc. (Canada).
We are headquartered in Montreal, Canada and we operate in the
solar energy industry. We market, and sell solar panel based products to the
consumer goods, Original Equipment Manufacturers ("OEM") and integrated building
materials markets through our distribution channels in over 50 countries. Our
products include:
Sunsei
TM
12V solar chargers
(from 135mAmps to 8Amp sizes, Charge Controllers, Mounting and Expansion Kits,
Coleman solar chargers from 100mAmps to 3.6Amps, 4A Charge Controller),
OEM
Modules
(from 54mm to 600mm in size VW Solar Charger, Winnebago Solar
Charger for RV Roof), and
Solar Tiles (BIPV)
(in development).
We were incorporated in the State of Nevada on November 19,
2003 under the name "FC Financial Services Inc.". Prior to completing the
acquisition of ICP, we were in the business of providing indirect financing of
installment contracts for automobile purchases and leases. Our business model
involved automobile dealers making arrangements with us to finance the purchase
or lease of a vehicle. On September 29, 2006 we acquired through our wholly
owned subsidiary all of the issued and outstanding shares of ICP. In order to
focus our resources on developing ICP's technology and business, we no longer
are proceeding with automobile financing business activities.
MARKET AND PRODUCTS
ICP operates in the following three main market verticals:
1. Consumer Goods,
2. Original Equipment Manufacturers
("OEM"),
3. Integrated Building Material Market, and
4. Monitoring
equipment
The following is a list of ICP's current products on the market
or in development:
Sunsei
TM
12V solar chargers
(from
  135mAmps to 8Amp sizes, Charge Controllers, Mounting and Expansion Kits,
  Coleman solar chargers from 100mAmps to 3.6Amps, 4A Charge Controller)
OEM Modules
(from 54mm to 600mm in size VW Solar Charger, Winnebago
  Solar Charger for RV Roof)
Hybrid (solar and wind) communications monitors and controllers.
(in development)
Consumer Goods
The consumer goods market makes up approximately 10% of the
solar panel industry. The consumer goods market is comprised of larger retail
chain stores and specialty stores. ICP sells its integrated solar energy systems
and other solar products under two main brands: Sunsei
TM
its
proprietary brand and Coleman®, (for which it is the holder of a license), to
the consumer goods market. Sunsei
TM
is positioned as our premium
brand and Coleman® is ICP's value brand line.
40
ICP's products under the Coleman® brand are distributed to
large retail chains such as Costco, Wal-Mart, Target, Sam's Club, and LeRoy
Merlin. ICP believes that consumers in the large retail chain space are cost
conscious purchasers who also look for quality products. ICP plans to continue
to develop this segment through additional retail chains, but there can be no
assurances that ICP will be able to sign on additional retail chains.
ICP sells its Sunsei
TM
brand to specialty retailers
in the marine market or battery market such as West Marine and Battery Alliance.
ICP's current product line is composed of turn key portable panel systems used
for camping, yachting, battery recharging and other portable use.
ICP's online market is composed of its own online shopping
website at
www.solarchargers.com
,
www.sunsei.com
and other third party online shopping websites. The third
party online shopping websites include Amazon.com, Samsclub.com, Costco.com,
Westmarine.com and HomeDepot.com.
OEM Market
In 2003, ICP entered into the OEM market, and is presently
focusing on the automotive sector with a product that is used to allow a car
battery to retain its electric charge when the car engine is not turned on for
extended periods of time. The product consists of a proprietary small portable
charger that is affixed onto the inside of the windshield of a car and plugged
into the cigarette lighter or OBD (on-board diagnostic). ICP also supplies
Winnebago, the leading worldwide RV manufacturer, with outdoor roof-mounted
solar panels.
Integrated Building Material Market
The Integrated Building Material market is the largest segment
of the solar panel industry. ICP has a patented roof-tile technology that we
hope to finalize development of over the next six to nine months and
subsequently enter the building materials market.
Our new patented technology for a thin film amorphous solar
cell can be seamlessly integrated into roofing lines for homes, buildings and
other structures. Unlike standard poly-crystalline solar cell based panels that
can interfere with the esthetics of a roof line, the thin film integrated tiles
seamlessly integrates into roofing lines. Although the required panel area per
kilowatt of electricity generated for amorphous panels is twice that of
poly-silicon panels, the overall costs of power generation for amorphous based
systems is less than that of poly-silicon based systems. Amorphous solar cells
can generate more power on a watt for watt basis than traditional solar cells
and utilize only 5% of the raw material used to make traditional poly-silicon
cells. We believe that these panels can be sold to both the grid connected and
off grid sectors of the market.
Our amorphous solar tiles are expected to be available within
the next nine to twelve months, pending final development and certification.
However, there can be no assurances that the final development will be
successful or that we will be able to commercialize the amorphous solar tiles at
a profit, if at all.
Business Strategy
We plan to expand our client base with large retail chains and
specialty retailers in addition to further penetrating our existing clients. We
intend to work closely with our sales agents as part of our overall sales growth
strategy. We also plan to utilize the Internet for marketing and sales of our
products.
Our strategy is to gain market share by positioning the final
product through the OEM channel with global installer partners for a variety of
applications. At the present time, we have identified potential marketing
partners for the thin film roof tile technology and, although there can be no
assurances, we expect strong demand upon commercialization. We intend to
continue to market our existing products to the rural areas of developing
countries. ICP has a history of installing panels in such countries as Kenya and
we expect to expand our presence in the rural sectors in South America, Africa
and Asia. We plan to continue to reduce our costs with respect to our products
by improving efficiency and innovating new technologies.
41
Solar Energy Industry
The electric power industry is one of the world's largest
industries. With the recent deregulation, the advent of economic, environmental
and national security issues, and technological advances, new opportunities
exist for new entrants into the electric power industry. As electric power has
become vital component of the world's economy as a result of the increasing
dependence on electricity-reliant technology, reliable electricity has become
critical to economic growth.
Traditionally, sources of fuel for generating electricity
include coal, natural gas, oil, nuclear power, and renewable resources. However,
the following factors have made increasing reliance on these traditional sources
unattractive:
(a)
Environmental regulations.
Recent environmental
      regulations seek to limit emissions by fossil fuel including international
      treaties and national and regional air pollution regulations to restrict
      the release of greenhouse gasses;
(b)
Infrastructure reliability.
Investment in
      electricity transmission and distribution infrastructure has not kept pace
      with increased demand. Expanding the aging infrastructure will be capital
      intensive and time consuming, and may be restricted by environmental
      concerns; and
(c)
Fossil fuel supply constraints and cost pressures
.
      The supply of fossil fuels is finite. Depletion of fossil fuels may impact
      prices and infrastructure requirements over this century. Political
      instability, labor unrest, war and the threat of terrorism in oil
      producing regions have disrupted oil production, increased the volatility
      of fuel prices and raised concerns over foreign
  dependency.
As a result of these challenges, we believe that future demand
for electricity will not be met through traditional fossil fuel-based
technologies alone. The solar panel industry is a growing market and the use of
solar energy has been around for more than 100 years, but only in the past few
decades, increased efficiency as a result of new technologies is making solar
energy a more viable alternative to nonrenewable energy sources. Solar energy
provides the following advantages over the traditional solutions:
Modularity and scalability
. Solar power products can be deployed in
  various sizes and configurations and can be installed almost anywhere;
Reliability
. With no need for moving parts and fuel supply, solar
  power systems reliably provide power to many demanding applications;
Dual use
. Solar modules are able to serve as both a power generator
  and the skin of the building; and
Environment friendly
. Solar power systems consume no fuel and
  produce no air, water or noise emissions.
Solar energy works by using
  photovoltaic solar cells made up of silicon compounds such as poly-silicon,
  which produces a current when exposed to sunlight. Many interconnected cells
  are packaged into solar modules, which protect the cells and collect the
  electricity generated. In general, the solar industry is generally broken down
  into three main categories:
1.
On-grid, which is solar derived electricity that is
      connected into the main electrical grids, which occupies 56% of the total
      solar energy consumption;
2.
Off-grid, which is mostly made up of solar derived power
      in rural areas where access to conventional electric power is not
      economical or physically feasible and OEM equipment such as automotive,
      garden lights, telecom and remote site power, which occupies 34% of the
      total solar energy consumption; and
3.
Consumer products, such as small portable solar powered
      equipment for use in recreational vehicles, yachting and camping, battery
      recharging and so on, which occupies 10% of the total solar energy
      consumption.
Governments around the world have
launched incentive programs to reward solar power users. For instance, the
Japanese government has spent hundreds of millions of dollars in subsidies to
encourage citizens to install solar energy systems in their homes. Germany has
implemented a program whereby it purchases a solar energy derived kilowatt hour
for up to $0.55 daily. Italy and Spain have set up a similar program. In the US,
last year's energy bill included subsidies for the use of solar energy, and many
states have started to implement subsidy programs such as California which has
recently rolled out an aggressive $2.9 billion subsidy plan over the next 10
years.
42
Competition
The solar power market is intensely competitive and rapidly
evolving. Our competitors have established a market position more prominent than
ours, and if we fail to secure our supply chain, attract and retain customers,
and establish a successful distribution network for our solar power products, we
may be unable to increase our sales and market share. The solar cell
manufacturing arena includes some 100 manufacturers worldwide. The ten largest
manufacturers comprise more than three quarters of the market. At present
suppliers are having difficulty keeping up with increasing market demands,
largely due to technological developments that decrease solar energy costs and
government incentives, which translates into a lower competitive environment for
the sector at the moment. Although there are no assurances, the market is
expected to continue to undergo strong growth over the next ten years which will
be conducive to sustaining existing suppliers and allowing for new market
entrants to capture market share as well.
We believe that we are well positioned within the solar market.
ICP is a well diversified innovative company that provides solar energy products
to diversified market segments. Over the years, ICP has built a reputation for
quality and reliability as well as a brand name and distribution network, while
acquiring its own solar cell supply chain. Over the years, ICP has built a
presence in various global niche markets as well. ICP has also developed new
technology in the area of amorphous solar cells which management believes will
allow it to enter into the large on-grid and off-grid solar electrical markets.
The entire solar industry also faces competition from other
power generation sources, both conventional sources as well as other emerging
technologies. Solar power has certain advantages and disadvantages when compared
to other power generating technologies. The advantages include the ability to
deploy products in many sizes and configurations, to install products almost
anywhere in the world, to provide reliable power for many applications, to serve
as both a power generator and the skin of a building and to eliminate air, water
and noise emissions. Whereas solar generally is cost effective for off-grid
applications, the high up-front cost of solar relative to most other solutions
is the primary market barrier for on-grid applications. Furthermore, unlike most
conventional power generators, which can produce power on demand, solar power
cannot generate power where sunlight is not available, although it is often
matched with battery storage to provide highly reliable power solutions.
Order Book
The amount of orders on hand at April 30, 2009 was
approximately $710,259.00.
Intellectual Property and Patent Protection
We plan to aggressively continue to protect our intellectual
property and technology by applying for patent protection in the United States
and in the most relevant foreign markets in anticipation of future
commercialization opportunities. The cost of patents and trademarks are expensed
when incurred.
We also rely on trade secrets, common law trademark rights and
trademark registrations and intend to protect our intellectual property through
non-disclosure agreements, license agreements and appropriate restrictions and
controls on the distribution of information.
43
At present
,
ICP has the following patents, registered
trademarks and designs:
Country
Type
App. No. or
Registration
      No.
Trademark
ICP Status Note
CA
TM
TMA669,469
ISUN
Registered
CA
TM
TMA622,453
ICP GLOBAL TECHNOLOGIES Design
Registered
CA
TM
TMA628,201
Let our power give you freedom
Registered
CA
TM
TMA675,977
ATF
Registered
European Community (OHIM)
TM
App. No. 005441373
SUNSEI
Registered
Australia
TM
App. No. 1,142,137
SUNSEI
Registered
CA
TM
TMA674,928
SUNSEI
Registered
USA
TM
Reg'n No. 3,262,491
SUNSEI
Registered
44
Country
Type
App. No. or
Registration No.
Trademark
ICP Status Note
CA
TM
App. No. 1,333,273
GREENMETER
Registered
US
TM
App. No. 76/690,996
GREENMETER
Pending
European Community (OHIM)
TM
App. No. 006 931 141
GREENMETER
Abandoned
US
TM
App. No. 77/510,653
ISUN
Pending
CA
TM
App. No. 1,393,896
PLUG N' PLAY
Approved for Advertisement
European Community (OHIM)
TM
App. No. 006 931 109
ISUN
Allowed – Regn Fee paid
US
TM
App. No. 77/510,527
RENEWABLE ENERGY POWER TILE
Pending
US
TM
76/467,624
ICP GLOBAL TECHNOLOGIES & DESIGN
Registered
US
TM
App. No. 78/346,960
ICP SOLAR TECHNOLOGIES & DESIGN
Registered
US
TM
App. No. 78?377,570
SUNSAVER
Registered
US
TM
App. No. 60/519,555
SOLARVENT
Registered
US
TM
App. No. 78/346,476
BATTERY SAVER SE
Registered
US
TM
App. No. 78/331,020
AUTOVENT
Registered
US
TM
App. No. 78/359,160
BATTERY SAVER PLUS
Registered
US
TM
App. No. 76/448,811
TRACTORSAVER
Registered
US
TM
App. No. 78/109,085 (Now 2,839,191)
BATPACK
Registered
US
TM
App. No. 76/039,122 (Now 2,709,752)
SolarPRO
plug'n'play (stylized)
Registered
US
TM
App. No. 76/140,194
iSUN (Stylized)
Registered
US
TM
App. No. 76/140,193 (Now 2,575,542)
LET OUR POWER
GIVE YOU
FREEDOM
(Stylized)
Registered
US
TM
App. No. 76/255,870 (Now 2,626,915)
POCKETPV
Registered
45
Country
Type
App. No. or
Registration No.
Trademark
ICP Status Note
US
TM
App. No. 78/147,527 (Now 2,835,615)
THE MOST VERSATILE BATTERY CHARGER IN THE UNIVERSE
Registered
US
TM
App. No. 76/255,869
SOLAR BOOSTER
Registered
CA
TM
App. No. 1,081,632 (Now 2,634,557)
LET OUR POWER
GIVE YOUR
FREEDOM
Registered
CA
TM
App. No. 537,063/ TMA315,973
FIRST CHOICE –
PREMIERE CHOIX
Registered
CA
TM
App. No. 1,076,749/ TMA569,033
Isun & Design
Registered
CA
TM
App. No. 1,147,986/ TMA601,092
THE MOST VERSATILE BATTERY CHARGER IN THE
      UNIVERSE
Registered
`CA
TM
App. No. 716,424/ TMA435,293
NEVERMISS
Registered
CA
TM
App. No. 712,850/ TMA427,521
SHIATSU
Registered
CA
TM
App. No. 1,136,102 TMA590,567
SOLAR BOOSTER
Registered
CA
TM
App. No. 1,081,631/ TMA589,526
SolarPRO
Plug'n'play
Registered
CA
TM
App. No. 1,121,392 TMA591,037
SOLARPAQ
Registered
CA
TM
App. No. 1,131,151/ TMA573,818
BATTPAK
Registered
CA
TM
App. No. TMA602,574
3P
Registered
US
TM
App. No. 2,839,171
BATTPAK
Registered
US
TM
App. No. 2,137,576
NEVERMISS
Registered
UK
TM
App. No. 2,313,930
iSUN & Design
Registered
UK
TM
App. No. 1,271,719
SOLARVENT
Registered
46
Country
Type
App. No. or
Registration No.
Patent
Status
US
P
10 / 710,077 Patent No. 7442077
Modular Cable System for Solar Power Sources
Issued
CDN
P
2,472,548
Solar Panel Having Visual Indicator
Issued
US
P
10/895,956 (Now Pat No. 7,224,286)
Modular Cable System for Solar Powered Sources
Issued.
CDN
P
2,480,366
Photovoltaic Building Elements
Pending.
US
P
11/ 298,663 Patent No. 7501789
Solar Powered Battery Charger with Voltage Regulation Circuit
      Apparatus
Issued
UK
P
218104.8 Patent No. 2391704
PHOTOVOLT AIC BUILDING ELEMENTS
Issued
EP
P
04761581.0
Solar Panel Having Visual Indicator
Pending
US
P
10/932196
Photovoltaic Building Structure
Pending
CA
P
2,409,465
MODULAR SOLAR BATTERY CHARGER
Issued.
US
P
09/987,93 6 (Now6,650,085)
MODULAR SOLAR BATTERY CHARGER
Issued.
PCT
P
PCT/CA2008/00019
Hybrid Renewable Power Monitor and Data Logger
Filed
P
516437.1
PHOTOVOLT AIC BUILDING ELEMENTS
Issued.
PCT
P
PCT/CA2008/001794
Integrated Photovoltaic Roof Tile
Pending
PCT
P
PCT/CA2008/001796
Autonomous Hybrid Renewable Energy Controller
Pending
US
P
29/165,690 (NOW D476,950)
Hand portable Battery Pack
Issued
CA
P
101002
Briefcase Solar Power Generator
Issued
US
D
29/165,689 (now D479,191)
Briefcase Solar Power Generator
Issued
US
D
29/165,688 (now D487,884)
Detachable Solar Panel
Issued
US
P
29/062,623 (now D395,279)
Solar Powered Battery Trickle Charger
Issued
US
P
29/176,029
Packaging for a solar panel
Issued
US
D
29/127402
Floating Solar- Powered Fountain
Issued
US
P
07/202,351 (now 4,899,645)
Solar Powered Ventilator
Issued
US
P
60/489,084
Solar Panel Having Visual Indicator
Issued
47
Government Regulation
The Company uses, generates and discharges toxic, volatile or
otherwise hazardous chemicals and waste in its research and development
activities. We are subject to a variety of foreign, federal, state and local
governmental regulations related to the storage, use and disposal of hazardous
materials.
We believe that we have all environmental permits necessary to
conduct our business. We believe that we have properly handled our hazardous
materials and wastes and have not contributed to any contamination at any of our
past or current premises. We are not aware of any environmental investigation,
proceeding or action by foreign, federal or state agencies involving our past or
current facilities. If we fail to comply with present or future environmental
regulations, we could be subject to fines, suspension of production or a
cessation of operations. Any failure by us to control the use of or to restrict
adequately the discharge of hazardous substances could subject us to substantial
financial liabilities, operational interruptions and adverse publicity, any of
which could materially and adversely affect our business, results of operations
and financial condition. In addition, under some foreign, federal and state
statutes and regulations, a governmental agency may seek recovery and response
costs from operators of property where releases of hazardous substances have
occurred or are ongoing, even if the operator was not responsible for the
release or otherwise was not at fault.
Research and Development
Our immediate goal is to complete the development of our ISUN®
solar charger for electronics, our Sunsei Greenmeter®, and our thin film
amorphous solar cell which can be seamlessly integrated into roofing lines for
homes, buildings and other structures.
During fiscal 2009, research and development expenses were
$643,629, as compared with$87,812 in fiscal 2008.
Environmental Regulatory Compliance
We believe that we are fully compliant with environmental
regulations of our facility located in Montreal, Quebec.
Employees
As of April 30, 2009, other than our executive officers and
directors, we had 11 full time employees.
48
Description of Property
We do not own any real property or any rights to acquire any
real property. Our head office is located at 7075 Place Robert-Joncas, Unit 131
Montreal, Quebec, Canada H4M 2Z2. ICP's material property commitments include
our lease commitment in Montreal, Quebec, described in the table below.
Location
Term
Square Feet
Monthly Commitment
Montreal, Quebec
March 1, 2006 to Feb 28, 2011
3,878
$2,342.96
1
$2,504.54
2
1
Representing the lease commitment from February 1,
2009-February 28, 2009 in Canadian dollars (approx $2,130 USD, based upon the
exchange rate of $1.10 at July 22, 2009.
2
Representing the lease commitment from March 1,
2009- February 28, 2011 in Canadian dollars (approx $2,277 USD, based upon the
exchange rate of $1.10 at July 22, 2009.
Recent Developments
Private Placement
On June 9, 2008 the Company's Board of Directors approved a
private placement offering (the "Private Placement") in reliance upon the
exemption from securities registration afforded by Rule 506 under Regulation D
promulgated under the Securities Act. In connection with the Private Placement,
the Company issued to the participating investors 11% secured convertible
debentures, Series A warrants, Series B warrants and Series C warrants. On June
13, 2008 (the "Closing Date"), the Company completed the private placement
offering for net proceeds of US $3,000,000.
A portion of the proceeds from the Private Placement were used
to redeem all of the outstanding principal and accrued interest on the Company's
credit facility with Royal Bank of Canada dated December 7, 2006.
The Private Placement consisted of (i) 11% senior secured
convertible debentures in the Company (the "Debentures"), issued at a 10%
discount with an aggregate face value of $3,333,333 and a maturity date of June
13, 2010, with interest payable monthly, convertible into shares of common stock
of the Company at a fixed initial conversion price (subject to adjustment) of US
$0.50; (ii) 6,666,666 Series A purchase warrants each exercisable to purchase
one share of common stock of the Company, at an initial exercise price of US
$0.50 per share (subject to adjustment) for a period of 6 years from the date of
the Closing; (iii) 6,666,666 Series B purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date; and (iv) 6,666,666 Series C purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date. The Series C warrants may not be exercised until such time as all
of the Series B warrants have been exercised.
The Company registered the shares of common stock issuable upon
exercise of the warrants issued in the Private Placement, as well as shares of
common stock which may be issued to the selling stockholders in the event we
elect to make interest payments on their Debentures in the form of shares of
common stock (see below), pursuant to a registration statement on Form S-1 filed
with the SEC on July 15, 2008.
On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the "Amendment") to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement, including as follows:
The principal balance of the Debentures issued in the Private Placement,
  as amended, now constitutes 115% of the sum of (i) principal amount of the
  Debentures outstanding immediately prior to the date of the Amendment, plus
  (ii) all accrued and unpaid interest through December 31, 2008, for a total
  outstanding principal amount of: $2,953,688.37. The principal amount and the
  interest shall be paid out to the Buyers according to the terms set out in the
  Amendment.
The exercise price of the Series A purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  6,666,666 additional Series A warrants (the "Series A Adjustment Warrants");
  the exercise price of the Series B purchase warrants issued in the Private
  Placement was reduced from $0.50 to $0.25, resulting in the issuance of
  19,999,998 additional Series B warrants (the "Series B Adjustment Warrants");
  the exercise price of the Series C purchase warrants issued in the Private
  Placement was reduced from $1.00 to $0.50, resulting in the issuance of
  6,666,666 additional Series C warrants (the "Series C Adjustment Warrants")
  (the Series A Adjustment Warrants, Series B Adjustment Warrants and Series C
  Adjustment Warrants, collectively referred to herein as the "Adjustment
  Warrants").
49
The Company has agreed to register the shares of common stock
issuable upon exercise of the Adjustment Warrants and is doing so pursuant to
the registration statement on Form S-1 of which this prospectus is a part. The
Company may be subject to various penalties for failure to meet certain
deadlines for the filing of and effectiveness of the registration statement.
The Debentures are secured by a first lien on all of the
assets of the Company. The Company's obligations under the Debentures are
guaranteed by the following subsidiaries: 1260491 Alberta, Inc., ICP Solar
Technologies, ICP Global Technologies, Inc., and WES Power Technology, Inc. The
following subsidiaries are not guarantors: ICP Asia Ltd. and ICP Global Tech PTY
Ltd.
We may make payments of interest or principal under the
Debentures in the form of shares of common stock; provided, generally, that we
are not in default under the Debentures at such time and we have met certain
equity conditions described in the Debentures. If we make payments of interest
in the form of shares of common stock, such shares must be registered and
free-trading. If the Company elects to make principal payments in shares of
common stock, the conversion rate will be the lesser of (a) the Conversion Price
(as defined below), or (b) 85% of the average of the three (3) lowest closing
bid prices of the common shares over the twenty (20) trading day period ending
on the trading day ending immediately preceding the applicable monthly
redemption date.
Holders of Debentures may require the Company to redeem their
Debentures upon the occurrence of any one or more of events of default, as
specified therein, including: failure to make any payments due and owing under
the Debentures; unavailability of a registration statement relating to the
shares of common stock issuable upon exercise of the warrants issued in the
Private Placement, the Adjustment Warrants and the Additional Adjustment
Warrants; failure to deliver shares of our common stock upon conversion of the
Debentures or upon exercise of the warrants issued in the Private Placement, the
Adjustment Warrants and the Additional Adjustment Warrants; and failure to file
any periodic report with the SEC within five (5) days of the due date thereof or
upon any extended due date therefor.
The conversion price for the Debentures, and the exercise
price for the warrants issued in the Private Placement, the Adjustment Warrants
and the Additional Adjustment Warrants, are subject to adjustment at a floating
rate tied to our achieving certain milestones tied to trailing revenues and
earnings before interest, taxes, depreciation and amortization ("EBITDA"). In
the event that we fail to achieve these milestones, the conversion price for the
Debentures and the exercise for all warrants will be reduced (but not increased)
to equal the lesser of (a) the conversion price then in effect, (b) the "market
price" (equal to the volume weighted average price of our common stock during
the immediately preceding five (5) consecutive trading days) for shares of our
common stock, as determined on the applicable milestone date, or (c) the market
price, as determined on the date that is five (5) trading days after the date
that Company files its next periodic report with the SEC following the end of
the applicable milestone period.
For our fiscal quarter ended April 30, 2009 (a milestone
date), the Company was required under the Debentures to achieve revenues no less
than $1.5 million and to maintain its accounts payable at less than $1.75
million. The Company failed to achieve these targets and, as a result, was in
default under the Debentures.
The Company has obtained a waiver from the holders of the
Debentures for such default; however, pursuant to the terms of the Debentures,
as a result of the Company's failure to achieve these targets the conversion
price of the outstanding Debentures and the exercise price for the Adjustment
Warrants and the warrants issued in the Private Placement was reduced to $0.14,
the volume weighted average price of our common stock during the five (5)
consecutive trading days immediately preceding April 30, 2009. The weighted
average market price in the five days following the filing of the 10Q was not
less than $0.14, so that a further reduction in price was not required nor made.
The reduction in the exercise price of the Adjustment Warrants and the warrants
issued in the Private Placement resulted in the issuance of the following
warrants effective June 21, 2009: (i)10,476,197 additional Series A Warrants
("Series A Additional Adjustment Warrants"), (ii) 20,952,386 additional Series B
warrants ("Series B Additional Adjustment Warrants"), and (iii) 34,285,722
additional Series C warrants ("Series C Additional Adjustment Warrants"),
(Series A Additional Adjustment Warrants, Series B Additional Adjustment
Warrants and Series C Additional Adjustment Warrants collectively referred to
herein as the "Additional Adjustment Warrants").
The Company will not be required to register any of the
shares of common stock issuable upon exercise of any such Additional Adjustment
Warrants.
The conversion price for the Debentures, and the exercise
price for the warrants issued in the Private Placement, the Adjustment Warrants
and the Additional Adjustment Warrants, is also subject to adjustment in the
event we issue shares of our common stock (or securities convertible into or
exercisable for shares of common stock) at a price below the conversion price
for the Debentures then in effect.
In connection with the Private Placement, the officers and
directors of the Company agreed to a lockup of sales of Company securities owned
by them for certain time periods as specified in a Lockup Agreement. The
President and CEO of the Company agreed to vote, or to cause to be voted, all
Company shares owned or controlled by him in favor of any amendment to the
Company's Certificate of Incorporation or other governing documents necessary to
ensure the Company's compliance with its obligation to maintain a sufficient
number of authorized shares of our common stock for issuance upon conversion of
the Debentures and/or exercise of the warrants issued in the Private Placement,
the Adjustment Warrants and the Additional Adjustment Warrants.
50
The conversion of the outstanding Debentures, and the
exercise of outstanding warrants issued in the Private Placement  the
Adjustment Warrants and /or Additional Adjustment Warrants and any interest or
principal payments on the Debentures made by us in the form of shares of common
stock, may result in substantial dilution to the interests of other holders of
our common stock. Even though no selling stockholder may convert its Debentures
if upon such conversion the selling stockholder, together with its affiliates,
would acquire a number of shares of common stock exceeding 4.99% of our then
outstanding common stock, excluding for purposes of such determination shares of
common stock issuable upon conversion of any portion of the Debentures which
have not been converted, and upon exercise of warrants, the Adjustment Warrants
and /or Additional Adjustment Warrants which have not been exercised, this
restriction does not prevent a selling stockholder from selling a substantial
number of shares in the market or from unilaterally choosing to raise the 4.99%
limit. By periodically selling shares into the market, an individual selling
stockholder could eventually sell more than 4.99% of our outstanding common
stock while never holding more than 4.99% at any specific time. In the event we
receive a tender offer or an offer to merge with another entity in a transaction
in which we are not the surviving entity, or in the event we are in default
under the Debentures, this percentage is automatically increased to 9.99% .
Legal Proceedings
The Company is a defendant in a claim filed in the Quebec
Superior Court on June 11, 2008 by Leon Assayag, our former Chief Financial
Officer, seeking severance payments totaling $150,462. Management believes the
claim is without merit and no provision for the claim has been made in the
accounts.
The Company has been issued a claim for approximately $28,000
for product liability which will be covered through the Company's product
liability insurance. Accordingly, no provision for the claim has been made in
the accounts.
A supplier has instituted a claim against the Company for approximately $510,000
including $453,000 for research and development work and $57,000 for interest.
The Company has previously recorded the $453,000 as research and development
expenses. No provision has been made in the Company's accounts for interest.
DIRECTORS AND EXECUTIVE OFFICERS
The following sets forth certain biographical information
concerning our current directors and executive officers:
Name
Age
Position(s)
Sass Peress
48
Chairman of the Board, President, Chief Executive Officer, Chief
      Financial Officer
Joel Cohen
37
Director, Secretary, Treasurer
David Dangoor
59
Director
Paul Maycock
73
Director
David McDowell
65
Director
All directors hold office until the next annual meeting of
stockholders and until their successors have been duly elected and qualified.
There are no agreements with respect to the election of directors. There is no
family relationship between any of our directors or executive officers. As at
April 30, 2009, there was no known litigation pending or active against any of
our directors or executive officers. None of our directors or executive officers
has served as a general partner or executive officer of any company that has
filed, or has had filed against it, any petition for bankruptcy, either at the
time such filing was made or during the preceding two years. Set forth below is
a summary description of the principal occupation and business experience of
each of our directors and executive officers for at least the last five years.
Sass Peress, Chairman, President, CEO, CFO
Prior to founding ICP, Mr. Peress was the VP of Sales for a
market-leading automotive accessory distributor. In 1985, he founded and headed
an automotive aftermarket manufacturing company that went on to capture more
than 70% of market share within two years. He then founded ICP in 1988 and, as
President and CEO, has reshaped the company into its current market-leading
state within the solar energy industry. With his scientific background and
manufacturing experience, he has co-authored much of ICP's intellectual
property. Mr. Peress' educational background includes studies in health
sciences, organic chemistry and finance. He graduated with honors from Concordia
University's MBA International Business Program in Montreal, Canada.
Mr. Peress was recently nominated for the Ernst & Young
Canadian Entrepreneur of the Year award and is an active member of the Canadian
Solar Energy Society and the American Solar Energy Society.
51
Joel Cohen, Director, Secretary and Treasurer
Mr. Cohen was Chief Financial Officer of ICP Solar Technologies
Inc., formerly FC Financial Services Inc., from October 30, 2006 to January 9,
2007. Mr. Cohen has extensive experience in biotechnology and high tech
financings and in financial analysis. From 2002 until present, Mr. Cohen has
been consulting CFO for Osta Biotechnologies, a publicly traded company on the
TSX venture. From 1999 to 2002, Mr. Cohen was an investment banker at Canaccord
Capital Corporation, where he specialized in biotechnology financings. He has
worked on numerous IPOs and private and public financings worth over $100
million for various companies including Neurochem, Adherex, Bioniche,
Diagnocure, Qbiogene and Aeterna. Mr. Cohen holds a Bachelor of Commerce degree
in Finance from Concordia University and is a Chartered Financial Analyst.
David Dangoor, Director
Mr. Dangoor is President of
Innoventive Partners LLC
and
a managing partner of
Cato Dangoor & Associates
in London, England,
both primarily specializing in Marketing and Public Relations. He is a member of
the Board of Directors of
BioGaia AB
, a public Swedish bio-tech company,
where he was one of the original founding investors. Mr. Dangoor is also a
member of the Advisory Board of the Denihan Hospitality Group, He was until
recently when the company was sold, a director of, and subsequently chaired the
Special Committee of,
Provide-Commerce Inc
. in San Diego, a public
company that operates an e-commerce marketplace for perishable goods.
Mr. Dangoor retired from
Philip Morris International
,
Lausanne, Switzerland in 2002 where he over 27 years held senior executive
positions in several countries including Head of Marketing
PM Germany
residing in Munich, Managing Director
Seven Up Northern Europe
in London,
England, President
Philip Morris (B & H) Canada
in Montreal, and
Senior VP Marketing
Philip Morris USA
in New York. In 1992 he was
appointed Executive VP
Philip Morris
International
based in New
York before the company moved to Lausanne in 2002.
Mr. Dangoor was a member of the board of directors of
Rothman's, Benson & Hedges Inc
., Toronto, Canada 1987-2002,
Philip Morris GMBH
, Munich 2001-02 and of
AMER Sports
International
, Montreal 1984-87 (a subsidiary of AMER Group, Helsinki,
Finland). He is currently a member of the Board of Directors of the
New York
City Ballet Company
, the
Swedish-American Chamber of Commerce
,
where he was chairman 1997-2001, and a member of the Board of Trustees of the
American Scandinavian Foundation
(ASF).
Paul Maycock, Director
Mr. Maycock is the president of Photovoltaic Energy Systems,
the leading PV market research firm. Mr. Maycock edits the monthly newsletter,
"PV News," which goes to readers in 58 countries. His annual estimates and
projections of PV sales, based on confidential interviews of every key player in
the industry, are used worldwide for planning and analysis purposes. Before
starting PV Energy in 1981, Mr. Maycock was director of the PV Energy Systems
division of the US Department of Energy. He also spent 11 years at Texas
Instruments in a variety of strategic planning positions. He concurrently serves
as the chairman of the board of the Solar Electric Light Fund, a non-profit
organization that has installed over 5,000 PV systems in the developing world.
52
David McDowell, Director
Mr. McDowell has an extensive background in worldwide sales and
business development which includes over 10 years of senior telecommunications
management and more than 20 years of high technology sales and marketing
management expertise. Mr. McDowell joined QUALCOMM in 1996 as vice president of
sales for QUALCOMM's Consumer Products Division. In August 1997 he was promoted
to senior vice president. Prior to joining QUALCOMM, McDowell served as chief
operating officer of Japan Radio Company, Inc. (JRC), where he successfully led
the company to expand into the consumer analog cellular, GPS module and cellular
fixed station markets. Previous to that, Mr. McDowell served as president and
COO of NovAtel and vice president of subscriber products for Hughes Network
Systems, where he was responsible for Hughes' entry into the digital cellular
market. McDowell also served as managing director for ComputerLand, Europe and
began his career at IBM Canada and IBM World Trade Corporation.
Key Personnel and Consultants
Tom Clark, VP Sales- North American Markets
Mr. Clark has several years experience as VP Sales into the
North American automotive accessory aftermarket, big box hardware chains and
specialty stores. He recently completed a one-year mandate at West Marine as a
merchandising manager. His experience includes positions held as VP Sales and
Marketing at Shrin Corporation Coverking, Automotive Division, VP Sales at
PlastiColor Inc. and National Sales Manager at Eagle One Industries (Automotive
Aftermarket). Mr. Clark has a Bachelor of Science in English.
Pascal Petit, Vice-President Sales- EMEA PAC Consumer and
OEM applications
Mr. Petit joined ICP Solar 3 years ago as Sales Manager -
France and Spain. He is now Vice President Sales for the EMEA-PAC region
(Europe, Middle East, Africa, Asia and Pacific). His careers spans over 20 years
of high tech and innovative product sales such as GPS and Satellite
Communication Systems in Europe and Africa. Pascal is an expert in setting up
and supporting distribution networks. He brought to ICP Solar a very large
experience in the retail and consumer markets in Europe and Africa. Pascal
graduated in Business Administration in Poitiers (France) and Oxford (UK).
Committees of the Board of Directors
On April 23, 2007, we formed our Audit Committee and
Compensation Committee.
Audit Committee
Our audit committee assists our board of directors in
fulfilling its responsibilities for oversight and supervision of financial and
accounting matters. The chairman of the audit committee is Dave McDowell and the
members are Joel Cohen and David Dangoor. Joel Cohen serves as our audit
committee financial expert.
Our audit committee's responsibilities include, among others
(i) recommending to the board of directors the engagement of the external
auditor and the terms of the external auditor's engagement; (ii) overseeing the
work of the external auditor, including dispute resolution between management
and the external auditor, if required; (iii) pre-approving all non-audit service
to be provided to us by our external auditor; (iv) reviewing our financial
statements, management's discussion and analysis and annual and interim earnings
press releases before this information is publicly disclosed; (v) assessing the
adequacy of procedures for our public disclosure of financial information; (vi)
establishing procedures to deal with complaints received by us relating to our
accounting and auditing matters; and (vii) reviewing our hiring policies
regarding employees of our external auditor or former auditor. The Board of
Directors has adopted a written charter of the audit committee setting out the
mandate and responsibilities of the audit committee which provides that the
audit committee convene no less than four times per year.
Compensation Committee
Our compensation committee reviews and makes recommendations to
our Board of Directors concerning the compensation of our executive officers and
key employees, which include the review of our executive compensation and other
human resource policies, the review and administration of any bonuses and stock
options and major changes to our benefit plans and the review of and
recommendations regarding the performance of the Chief Executive Officer of the
Company. The Chairman of the compensation committee is Joel Cohen and its
members are Dave McDowell and Paul Maycock.
53
Code of Ethics
In December, 2006, we adopted a Code of Ethics and Corporate
Governance applicable to our Chief Executive Officer, principal financial and
accounting officers and persons performing similar functions. A Code of Ethics
and Corporate Governance is a written standard designed to deter wrongdoing and
to promote:
Honest and ethical conduct,
Full, fair, accurate, timely and understandable disclosure in regulatory
  filings and public statements, compliance with applicable laws, rules and
  regulations,
The prompt reporting violation of the code, and
Accountability for adherence to the Code. A copy of our Code of
Ethics can be found on our website at
www.icpsolar.com
.
Nominating Committee
We do not have a Nominating Committee or Nominating Committee
Charter. We have elected not to have a Nominating Committee in that we are a
development stage company with limited operations and resources.
We do not have a policy regarding the consideration of any
director candidates which may be recommended by our stockholders, including the
minimum qualifications for director candidates, nor has our Board of Directors
established a process for identifying and evaluating such director nominees.
While there have been no nominees for recommended to date by our stockholders,
in the event such a proposal is made, all members of our Board of Directors will
participate in the consideration of such nominee(s).
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table provides a summary of the compensation paid
to date during the last two completed fiscal years to our President and Chief
Executive Officer, Chief Financial Officer, the next two highest paid executive
officers whose salary and bonus exceeds $100,000 (referred to collectively in
this prospectus as our "Named Executive Officers") and certain non-executive
officers, each as of the end of our most recently completed fiscal year.
Name
and
Salary
Bonus
principal
Year
($)
($)
Stock
Option
Non-Equity
Nonqualified
All Other
position
Ended
Awards
Awards(1)
Incentive
Deferred
Compensation
January
($)
($)
Plan
Compensation
($)
31
Compensation
Earnings ($)
($)
Sass
Peress
President
CEO &
CFO ,
Director
2009
2008
$279,910
$250,232
Nil
Nil
Nil
Nil
$559,162
$577,125
Nil
Nil
Nil
Nil
Nil
Nil
Leon
Assayag
former
CFO
2009(2)
2008
$51,024
$141,435
Nil
Nil
Nil
Nil
$91,135
$96,188
Nil
Nil
Nil
Nil
Nil
Nil
Joel
Cohen,
Former
CFO
Director
2009
2008(3)
Nil
Nil
Nil
Nil
Nil
Nil
$209,064
$864,308
Nil
Nil
Nil
Nil
$181,830(4)
$96,000(4)
54
Tom
Clark,
Vice-
President,
Sales,
Americas
2009
2008(5)
$113,836
$59,116
Nil
Nil
Nil
Nil
$54,669
$57,513
Nil
Nil
Nil
Nil
$1,500(6)
$2,357(6)
Sheldon
Reinhart,
former
CFO
      and
COO
2009 (7)
$65,144
Nil
Nil
$37,500
Nil
Nil
Nil
(1) ) Amount expensed for the year ended January 31, 2009 is
based upon the aggregate grant date fair value calculated in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 123R, Share Based
Payments. The Company's policy and assumptions made in the valuation of share
based payments are contained in Note 14 to the Company's January 31, 2008
financial statements. Stock options awarded vest over a two-year period from the
date of grant, 25% every six months.
(2) Mr. Leon Assayag resigned as Chief Financial Officer of the
Company on May 2, 2008 and is included in the Summary Compensation Table solely
pursuant to Item 402(m)(2)(ii) of Regulation S-K promulgated under the
Securities Act. Mr. Assayag had been granted 125,000 stock options in May 2007
which have since been forfeited.
(3) Mr. Joel Cohen was acting CFO from March 1, 2006 to January
9, 2007.
(4) This amount was paid as consulting fees to CCI Financial
Group Inc., of which Mr. Cohen is a shareholder.
(5) Mr. Tom Clark has been with the Company since June 13,
2007.
(6) This amount represents an allowance for automobile
expenses.
(7) Mr. Sheldon Reinhart resigned as Chief Financial Officer
and Chief Operating Officer of the Company effective November 17, 2008 and is
included in the Summary Compensation Table solely pursuant to Item 402(m)(2)(ii)
of Regulation S-K promulgated under the Securities Act. Mr. Reinhart was granted
75,000 stock options in May 2008.
Executive Employment Agreements
Employment Agreement with Sass Peress
. On April 23,
2007, the Company entered into an employment agreement with Sass Peress, our
President and Chief Executive Officer, for an indefinite term. As compensation
for his services, Mr. Peress receives an annual base salary of $300,000 and is
entitled to an annual bonus in an amount established by the Board of Directors,
based upon the achievement by Mr. Peress of pre-determined performance targets
set by our Board of Directors. The Company also agreed to pay Mr. Peress a car
allowance in the amount of $1,000 per month and to reimburse him for out of
pocket expenses on a monthly basis. Mr. Peress is also entitled to participate
in any benefit plans and policies as we may make available. Pursuant to the
terms of his agreement, Mr. Peress has agreed that during and for two (2) years
following termination of his employment with the Company, he will not (a)
provide support or assistance to, or be employed by, any business anywhere in
North America engaged in the manufacture, license, marketing or distribution of
products competitive with those of the Company, or (b) solicit any existing
customer of the Company or attempt to induce any existing executive or employee
of the Company.
Pursuant to his employment agreement, Mr. Peress was also
granted an option to purchase up to 650,000 shares of common stock of the
Company in accordance with the Plan. See "Executive Compensation — Outstanding
Equity Awards at 2009 Fiscal Year End" for a description of vesting and other
terms applicable to his option awards.
55
Employment Agreement with Tom Clark
. On June 13, 2007,
the Company entered into an employment agreement with Tom Clark, our
Vice-President Sales, North American Consumer Markets, for an indefinite term.
As compensation for his services, Mr. Clark receives an annual base salary of
US$100,000 and is entitled to an annual bonus up to a maximum amount of
US$35,000, based upon the achievement by Mr. Clark of performance targets
mutually agreed upon by Mr. Clark and the Company. The Company also agreed to
pay Mr. Clark a car allowance in the amount of US$500 per month and to reimburse
him for out of pocket expenses on a monthly basis. Pursuant to the terms of his
agreement, Mr. Clark has agreed that during and for one year following
termination of his employment with the Company, he will not (a) provide support
or assistance to, or be employed by, any business anywhere in North America
engaged in the manufacture, license, marketing or distribution of products
competitive with those of the Company, or (b) solicit any existing customer of
the Company or attempt to induce any existing executive or employee of the
Company.
Pursuant to his employment agreement, Mr. Clark was also
granted an option to purchase up to 75,000 shares of common stock of the Company
in accordance with the Plan. See "Executive Compensation — Outstanding Equity
Awards at 2009 Fiscal Year End" for a description of vesting and other terms
applicable to his option awards.
Payments Upon Termination
Each of the employment agreements entered into between the
Company and Messrs. Peress and Clark contain provisions which entitle each of
them to payments following termination of their employment in certain
circumstances, as described below.
Termination by the Company or by the Employee or Consultant
Without Cause
. Each of the agreements between us and Messrs. Peress and
Clark provide that, in the event their employment or other relationship with us
is terminated by the Company, other than for "cause" (as defined below), they
are entitled to receive the following severance benefits:
Pursuant to the employment agreement with Mr. Peress, he may
terminate his employment upon six (6) months' prior written notice to the
Company and the Company may terminate his employment at any time. Following
termination by the Company, Mr. Peress is entitled to receive an amount equal to
twenty-four (24) months of his base salary then in effect and benefits.
Pursuant to the employment agreement with Mr. Clark, either he
or the Company may terminate his employment upon three (3) months' prior written
notice to the other. Following termination by the Company, we may, in lieu of
providing him with notice, pay Mr. Clark an amount equal to three (3) months of
his base salary then in effect and benefits.
"Cause", as defined under the employment agreement with Mr.
Peress includes, but is not limited to, the taking of any of the following
actions by him:
(a)
His inability to provide the services required pursuant to his
agreement.
(b)
Dishonesty, theft, conviction for a felony or crime of moral
turpitude.
(c)
Material breach of his
agreement.
(d)
His failure to perform the services required pursuant to his agreement and to
correct this breach within thirty (30) days of receipt of notice of such failure
from the Company.
"Cause", as defined under the employment agreements with Mr.
Clark, includes, but is not limited to, the taking of any of the following
actions by him:
(a)
His inability to provide the services required pursuant to his employment
agreement.
(b)
Fraud, dishonesty, theft, conviction for a felony or crime of moral
turpitude.
(c)
Material breach of his employment
agreement.
(d)
His failure to perform the services required pursuant to his employment
agreements and to correct this breach within thirty (30) days of receipt of
notice of such failure from the Company.
See "Management's Discussion and Analysis of Financial
condition and Results of Operations – Stock Options – Modification of Exercise
Price" for a discussion of recent changes to the exercise price of outstanding
options, including those held by our Named Executive Officers.
56
See "Management's Discussion and Analysis of Financial
condition and Results of Operations – Warrants – Modification of Exercise Price"
for a discussion of recent changes to the exercise price of outstanding
warrants.
Outstanding Equity Awards at 2009 Fiscal Year-End Table
The table below sets forth information concerning grants of
stock options and restricted stock unit awards to our Named Executive Officers
as of January 31, 2009.
Stock Awards
Name
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
Option
Exercise
Price
($)
Option Expiration
Date
Sass Peress
562,500
12,500
187,500
37,500
$0.50
$0.50
May 18, 2017
Feb 14, 2018
Joel Cohen
12,500
37,500
$0.50
Feb 14, 2018
Tom Clark
56,250
18,750
$0.50
June 22, 2017
On January 31, 2009, the Company granted options for the
purchase of up to a total of 1,340,000 shares of common stock pursuant to our
2006 Stock Incentive Plan (the "Plan"). On February 2, 2009, the Company granted
options to purchase up to an aggregate amount of 300,000 shares of common stock
under the Plan to certain of our employees and directors, as follows: (a) Sass
Peress was granted an option to purchase up to 50,000 shares of common stock at
an exercise price of $0.25, vesting semi-annually over a two-year period; (b)
Joel Cohen was granted an option to purchase up to 50,000 shares of common stock
at an exercise price of $0.25, vesting semi-annually over a two-year period; (c)
David McDowell was granted an option to purchase up to 50,000 shares of common
stock at an exercise price of $0.25, vesting semi-annually over a two-year
period; (d) Paul Maycock was granted an option to purchase up to 50,000 shares
of common stock at an exercise price of $0.25, vesting semi-annually over a
two-year period ; (e) David Dangoor was granted an option to purchase up to
50,000 shares of common stock at an exercise price of $0.25, vesting
semi-annually over a two-year period; and (f) Steve Carkner was granted an
option to purchase up to 50,000 shares of common stock at an exercise price of
$0.25, vesting semi-annually over a two-year period.
57
Long-Term Incentive Plans
On November 1, 2006, the Company's Board of Directors
established the 2006 Stock Incentive Plan expiring on November 1, 2016. See
"Executive Compensation; Stock Option Plans" for a discussion of the terms of
this plan.
Stock Option Plans
Our Board of Directors adopted the 2006 Stock Incentive Plan
(the "Plan") on November 1, 2006. Grants of either "incentive stock options", as
defined in Section 422 of the Internal Revenue Code, as amended (the "Code"), or
stock options that are non-qualified for United States Federal income tax
purposes, may be made under the Plan to eligible officers, employees, directors
and consultants of the Company and any parent or subsidiary of the Company. A
total of 2,000,000 shares of our common stock have been reserved for issuance
under the Plan, subject to certain adjustments reflecting changes in the
Company's capitalization. Shares of common stock subject to options which are
not exercised prior to their termination shall again be available for grant
under the Plan, to the fullest extent permitted by law. All options granted
under the Plan are subject to the terms and conditions of an option agreement
entered into by the Company and each participant at the time of grant. Options
will become exercisable only after they vest in accordance with such option
agreement.
The Board of Directors, as the "administrator" of the Plan, has
full and final discretion to determine, subject to applicable laws, (i) the
types of options to be granted under the Plan and the total number of shares of
our common stock subject to such grants, (ii) the directors, officers, employees
and consultants of the Company or its subsidiaries or parent companies who are
eligible to receive options under the Plan ("Participants"), (iii) the time when
and the price at which such stock options will be granted (subject to the
restrictions described below), (iv) the time when and the price at which such
stock options may be exercised, and (v) the conditions and restrictions on the
exercise of such options.
Pursuant to the terms of the Plan, no option may be granted (i)
with respect to any option granted that it an incentive stock option, at an
exercise price per share equal to less than 100% of the fair market value of our
common stock on the date of grant, or (ii) with respect to any option granted
that is a non-qualified stock option or to a Participant serving as a consultant
to the Company, at an exercise price per share equal to less than 75% of the
fair market value of our common stock on the date of grant. No option granted
pursuant to the Plan may be exercised more than 10 years from the date of grant.
Grants of incentive stock options made to any Participant who
owns shares of our common stock representing more than 10% of the voting rights
attributable to all classes of capital stock of the Company (as determined in
accordance with Section 422 of the Code), the exercise price per share of any
incentive stock option may not be less than 110% of the fair market value of
such shares on the date of grant. Incentive stock options may be granted under
the Plan only to employees who are employees of the Company at the time of
grant, and not a consultant, advisor, service provider or independent
contractor. To the extent that the aggregate fair market value of the shares of
common stock (determined at the time of grant) exceeds $100,000 with respect to
the number of incentive stock options exercisable for the first time by a
Participant during any calendar year, any excess over such amount shall be
considered a non-qualified option. In the event that a Participant has been
granted 2 or more such incentive stock options that become exercisable for the
first time in the same calendar year, this limitation shall be applied according
to the order in which such incentive stock options were granted.
Pursuant to the terms of the Plan (which can, in this instance,
be modified by the terms and conditions of the applicable option agreement
evidencing the option grant), if a Participant ceases to be an employee,
officer, director of, or consultant to, the Company, or its subsidiaries or
parent companies, as a result of termination for "cause" (as defined below), all
unexercised options will immediately terminate. If a Participant ceases to be an
employee, officer, director of, or consultant to, the Company, or its
subsidiaries or parent companies, for any reason other than termination for
cause, or as a result of such Participant's "disability" (as defined below),
retirement or death, options granted under the Plan may be exercised not later
than the earliest to occur of (a) (i) in the case of termination following
retirement of the Participant, up to 30 days from the date of retirement, or
(ii) in the case of termination following disability or death of the
Participant, up to 6 months from the date of such disability or death, and (b)
the expiry date of the option. In the event that facts which would have
constituted grounds for termination of a Participant for cause are discovered
following the termination of such Participant's employment or other relationship
with the Company for other reasons, any options then held by such Participant
may be immediately terminated.
58
The Plan provides that, in the event of a "corporate
transaction" (as defined below) involving the Company, all outstanding options
shall either (a) be assumed, or substituted for an equivalent right or option,
by the surviving or successor corporation or its parent, as applicable, or (b)
if not so assumed or substituted, shall become fully vested and exercisable by
Participants for a specific period of time, upon giving Participants written
notice to that effect, following which time all options shall terminate upon
completion of the corporate transaction.
Options granted under the Plan may not be transferred, assigned
or pledged other than on the death of a Participant. No Participant shall have
any rights whatsoever as an shareholder with respect to unexercised options.
As of April 30, 2009, options to purchase a total of 1,790,000
shares of our common stock had been granted under the Plan to certain of the
Company's employees and directors.
Certain terms used above are defined in the Plan as
follows:
"Cause", except as otherwise defined in any option agreement,
employment or services agreement between the Participant and the Company or any
subsidiary or parent of the Company, means as a material breach of the
employment or services agreement between a Participant and the Company,
dishonesty, fraud, misconduct, unauthorized use or disclosure of confidential
information or trade secrets, or conviction or confession of a crime punishable
by law (except minor violations), in each case as determined by the Board of
Directors, as administrator of the Plan, whose determination is conclusive. See
"Executive Employment Agreements" for a description of the definitions of
"cause" in certain employment agreements between the Company and certain of its
named executive officers.
"Disability", except as otherwise defined with respect to any
grant by the Board of Directors, as administrator of the Plan, means a mental or
physical impairment of the Participant that is expected to result in death or
that has lasted or is expected to last for a continuous period of 12 months or
more and that causes the Participant to be unable, in the Company's opinion, to
perform his or her duties for the Company or any subsidiary or parent of the
Company, and to be engaged in any substantial gainful activity.
"Corporate Transaction", except as otherwise defined in any
option agreement, employment or services agreement between the Participant the
Company or any subsidiary or parent of the Company, means the completion of (a)
a merger or consolidation of the Company with or into any other corporation,
entity or person (except for reincorporation mergers or any merger or
consolidation in which the holders of shares of our common stock immediately
prior to such transaction hold at least a majority of the shares of common stock
in the successor entity immediately following such transaction), or (b) a sale,
lease, exchange or other transfer, in one transaction or series of related
transactions, of all or substantially all of the Company's outstanding
securities or assets, except for any such sale of assets to a wholly-owned
subsidiary of the Company. Transactions entered into for the sole purpose of
creating a holding company which will be owned in substantially the same
proportion by the persons who held securities of the Company immediately prior
to such transaction shall not constitute a corporate transaction for purposes of
the Plan.
59
Compensation of Directors
We have not compensated our directors for service on the Board
of Directors or any committee thereof, but directors are entitled to be
reimbursed for expenses incurred for attendance at meetings of the Board of
Directors or any committee of the Board of Directors. Our directors received no
compensation in their capacity as directors during our fiscal years ended
January 31, 2009 and January 31, 2008. A description of grants to certain
directors of options to purchase shares of our common stock during the fiscal
year ended January 31, 2009 is set forth in the table below:
Compensation of Directors at 2009 Fiscal Year End
Table
Name
(a)
Fees
Earned
or
Paid in
Cash
($)
(b)
Stock
Awards
($)
(c)
Option
Awards
($)
(d)
Non-Equity
Incentive Plan
Compensation
($)
(e)
Nonqualified
Deferred
Compensation
Earnings
($)
(f)
All Other
Compensation
($)
(g)
Total
($)
(h)
David Dangoor
Nil
Nil
$ 13,240
Nil
Nil
Nil
$ 13,240
Dave McDowell
Nil
Nil
$
      13,240
Nil
Nil
Nil
$
      13,240
Paul Maycock
Nil
Nil
$ 13,240
Nil
Nil
Nil
$ 13,240
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The following table sets forth certain information as of July
29, 2009 with respect to the beneficial ownership of our common stock, by (a)
each stockholder known to be the beneficial owner of more than 5% of our common
stock, (b) by each of our directors and executive officers, and (c) all of our
directors and executive officers as a group. The address of each person listed
below, unless otherwise indicated, is c/o ICP Solar Technologies Inc., 7075
Place Robert-Joncas, Unit 131, Montreal Quebec, H4M 2Z2. Unless otherwise
indicated in the table footnotes, shares will be owned of record and
beneficially by the named person. For purposes of the following table, a person
is deemed to be the beneficial owner of any shares of common stock (a) over
which the person has or shares, directly or indirectly, voting or investment
power, or (b) of which the person has a right to acquire beneficial ownership at
any time within 60 days after the effective time of the acquisition of ICP.
"Voting power" is the power to vote or direct the voting of shares and
"investment power" includes the power to dispose or direct the disposition of
shares.
Title of Class
Name and Address
of Beneficial Owner
Amount and Nature
of Beneficial
Ownership
(1)
Percentage of Class
(1)
Common Stock
Equity Transfer &
      Trust
Company
120 Adelaide St. W., Ste
420 Toronto, Ont. M5H
      4C3
(1)
17,640,311
(2)
Direct
42.8%
Common Stock
Sass Peress
(1)
17,640,311
(2)
Indirect
413,992
Direct
42.8%
1%
Sub-total
18,054,303
43.8%
Common Stock
Joel Cohen
(1)
1,137,581
Direct
2.8%
Common Stock
David Dangoor
None
0%
Common Stock
Paul
      Maycock
None
0%
60
Common Stock
David McDowell
None
0%
Common Stock
Tom Clark
None
0%
Common Stock
All directors and executive
officers as a
      group
(6 persons)
19,171,884
46.5%
Notes
(1) As at September 29, 2007, Equity Transfer & Trust
Company held 20,000,000 shares of our common stock (the "Trust Shares") as
"Trustee" pursuant to the terms of the Exchange and Voting Trust Agreement dated
September 29, 2006 (the "Voting Trust Agreement") among the Company, 1260491
Alberta Inc., our wholly owned subsidiary ("Exchangeco"), Sass Peress, the
Peress Family Trust, the Sass Peress Family Trust, Eastern Liquidity Partners
Ltd., Arlene Ades, and Joel Cohen (collectively, the "Beneficiaries"), Taras
Chebountchak and Orit Stolyar. Under the terms of the Exchange and Voting Trust
Agreement the Trust Shares are to be cancelled as each Exchangeable Shares is
exchanged by the Beneficiaries for shares of ICP Solar and the Voting Rights to
the Trust Shares are beneficially held by the Trustee for the Beneficiaries are
as follows: (i) 301,497 Trust Shares, Eastern Liquidity Partners Ltd.,
beneficially owned by Sass Peress, (ii) 440,529 Trust Shares, The Sass Peress
Family Trust, beneficially owned by Sass Peress, (iii) 6,626,787 Trust Shares,
The Peress Family Trust, beneficially owned by Sass Peress, (iv) 11,222,995
Trust Shares, Sass Peress, (v) 879,706 Trust Shares, Arlene Ades, and (vi)
528,486 Trust Shares, Joel Cohen.
The Trustee, as the holder of record of the deposited shares,
shall be entitled to all of the Voting Rights, including the right to vote in
person or by proxy the 20,000,000 shares of ICP Solar common stock deposited by
Taras Chebountchak and Orit Stolyar (the "Deposited Shares") on any matters,
questions, proposals or propositions whatsoever that the Beneficiaries are
entitled to vote on at a Company meeting at which holders of capital stock of
the Company are entitled to vote or in connection with a written consent sought
by the Company. The Voting Rights shall be and remain vested in and exercised by
the Trustee. As further particularized in the Voting Trust Agreement, the
Trustee shall exercise the Voting Rights only on the basis of instructions
received from the Beneficiaries entitled to instruct the Trustee as to voting
thereof at the time at which the Company stockholders meeting is held or the
Company's stockholders' consent is sought.
(2) As at April 30, 2009, the following beneficiaries had
exchanged their Exchangeable Shares into shares of common stock of the Company:
(i) On January 29, 2008, Joel Cohen exchanged 528,486 Exchangeable Shares,
representing all of the Exchangeable Shares held by him, into an equal number of
shares of common stock of the Company, and 528,486 Trust Shares were cancelled;
(ii) On January 29, 2008, Eastern Liquidity Partners Ltd. exchanged 301,497
Exchangeable Shares, representing all of the Exchangeable Shares held by it,
into an equal number of shares of common stock of the Company, and 301,497 Trust
Shares were cancelled; (iii) On January 29, 2008, Arlene Ades exchanged 879,706
Exchangeable Shares, representing all of the Exchangeable Shares held by her,
into an equal number of shares of common stock of the Company, and 879,706 Trust
Shares were cancelled; and (iv) On January 29, 2008, Sass Peress exchanged
250,000 Exchangeable Shares, representing 2.2% of the Exchangeable Shares held
by him, into an equal number of shares of common stock of the Company, and
250,000 Trust Shares were cancelled. On May 27, 2009, Mr. Peress exchanged
400,000 Exchangeable Shares, representing 2.2% of the Exchangeable Shares held
by him, into an equal number of shares of common stock of the Company, and
400,000 Trust Shares were cancelled. See "Management's Discussion and Analysis
of Financial condition and Results of Operations – Reorganization of the
Corporation."
61
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS;
DIRECTOR INDEPENDENCE
Except as described below, none of the following parties has
had, since the beginning of our last fiscal year, any material interest, direct
or indirect, in any transaction with us or in any presently proposed transaction
that has or will materially affect us in which the amount involved exceeded
$120,000:
Any of our directors or executive officers;
Any person who beneficially owns, directly or indirectly, shares carrying
  more than 5% of the voting rights attached to our outstanding shares of common
  stock;
Any of our promoters; and
Any member of the immediate family (including spouse, parents, children,
  siblings and in-laws) of any of the foregoing persons.
On June 20, 2008, Mr. Joel Cohen, a director of the Company,
received the following as a finder's fee in connection with the private
placement which closed June 13, 2008: (i) payment of $120,000; and (ii) warrants
to purchase up to 240,000 shares of common stock at an exercise price of $0.50
per share. The warrants expire on June 20, 2010. The total exercise price of the
warrants is $120,000.
DIRECTOR INDEPENDENCE
Because our common stock is traded on the Over the Counter
Bulletin Board, we are not subject to the independence requirements of any
securities exchange of the NASDAQ regarding members of our Board of Directors.
Nevertheless, we have determined that David Dangoor, David McDowell and Paul
Maycock meet the definition of "independent" as defined pursuant to Rule
4200(a)(15) of the Marketplace Rules of the NASDAQ Stock Market, Inc. (the
"Marketplace Rules"). Under the Marketplace Rules, an "independent director" is,
generally, one who is not an executive officer or employee of the Company or any
other individual who has a relationship which, in the opinion of our Board of
Directors, would interfere with the exercise of his or her independent judgment
in carrying out his or her responsibilities as a director. Examples of directors
who may not be considered independent under the Marketplace Rules are:
(a) a director who is, or at any time during the past three
years was, employed by the Company;
(b) a director who accepted, or who has a spouse, parent, child
or sibling, or anyone residing in such person's home (each, a "Family Member")
who accepted, any compensation from the Company in excess of $120,000 during any
period of twelve consecutive months within the three years preceding the
determination of independence, other than (i) compensation for board service;
(ii) compensation paid to a Family Member who is an employee (other than an
executive officer) of the Company; or (iii) benefits under a tax-qualified
retirement plan or non-discretionary compensation;
(c) a director who is a Family Member of an individual who is,
or at any time during the past three years was, employed by the Company as an
executive officer;
(d) a director who is, or has a Family Member who is, a partner
in, or a controlling shareholder or an executive officer of, any organization to
which the company made, or from which the Company received, payments for
property or services in the current or any of the past three fiscal years that
exceed 5% of the recipient's consolidated gross revenues for that year, or
$200,000, whichever is more, other than (i) payments arising solely from
investments in the company's securities; or (ii) payments under
non-discretionary charitable contribution matching programs;
(e) a director of the Company who is, or has a Family Member
who is, employed as an executive officer of another entity where at any time
during the past three years any of the executive officers of the Company serve
on the compensation committee of such other entity; or
(f) a director who is, or has a Family Member who is, a current
partner of the Company's outside auditor, or was a partner or employee of the
Company's outside auditor who worked on the Company's audit at any time during
any of the past three years.
INTERESTS OF NAMED EXPERTS AND COUNSEL
No expert or counsel named in this prospectus as having
prepared or certified any part of this prospectus or having given an opinion
upon the validity of the securities being registered or upon other legal matters
in connection with the registration or offering of the shares of common stock
was employed on a contingency basis or had, or is to receive, in connection with
the offering, a substantial interest, directly or indirectly, in the registrant
nor was any such person connected with the registrant as a promoter, managing or
principal underwriter, voting trustee, director, officer or employee.
62
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We file reports, proxy statements and other information with
the Securities and Exchange Commission, or SEC. You may read and copy the
registration statement and these reports, proxy statements and other information
at the SEC's Public Reference Room at 100 F Street, N.E. Washington DC 20549.
Please call the SEC at 1-800-SEC-0330 for further information on the Public
Reference Room. The SEC maintains an internet site at http://www.sec.gov that
contains reports, proxy and information statements and other information
regarding issuers that file electronically with the SEC, including our company.
This prospectus does not contain all of the information set
forth in the registration statement and the exhibits and schedules thereto. For
further information with respect to us and the shares of common stock offered
under this prospectus, reference is made to the registration statement,
including the exhibits and schedules thereto. Statements contained in this
prospectus as to the contents of any contract or other document are not
necessarily complete and, where any such contract or document is an exhibit to
the registration statement, each statement with respect to the contract or
document is qualified in all respects by the provisions of the relevant exhibit,
which is hereby incorporated by reference.
We make available free of charge on or through our internet
website copies of our Code of Ethics, annual report on Form 10-K and quarterly
reports on Form 10-Q (and any successor forms), current reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable
after we electronically file this material with, or furnish it to, the SEC. Our
internet website address is
http://www.icpsolar.com
. The information
contained on our website is not incorporated by reference in this prospectus and
should not be considered a part of the prospectus.
63
ICP Solar Technologies Inc.
Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
Contents
Report of Independent Registered Public
      Accounting Firm
F-1
Balance Sheets
F-2 – F-3
Statements of Shareholder's Equity (deficiency
    )
F-4
Statements of Operations and Comprehensive Loss
F-5
Statements of Cash Flows
F-6 – F-7
Notes to Financial Statements
F-8 – F-36
Consolidated
    Financial Statements
April 30, 2009
(Expressed in U.S.
    Funds)
Balance Sheets
F-37
Statements of
    Shareholder's Equity
F-38
Statements of Operations and Comprehensive Loss
F-39
Statements of Cash
    Flows
F-40
Notes to Financial Statements
F-41 – F-53
64
RSM Richter S.E.N.C.R.L./LLP
Comptables agréés
Chartered Accountants
2, Place Alexis Nihon
Montréal, (Québec) H3Z 3C2
Téléphone / Telephone : (514) 934-3400
Télécopieur / Facsimile : (514) 934-3408
www.rsmrichter.com
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of
ICP Solar Technologies Inc.
We have audited the accompanying consolidated balance sheets
of ICP Solar Technologies Inc. as at January 31, 2009 and 2008 and the related
consolidated statements of operations and comprehensive loss, shareholders'
equity and cash flows for the years 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 audits.
We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. 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
audits provide a reasonable basis for our opinion.
In our opinion, these consolidated financial statements
present fairly in all material respects, the financial position of the Company
as at January 31, 2009 and 2008 and the results of its operations and its cash
flows for the years then ended in accordance with accounting principles
generally accepted in the United States. We were not engaged to examine
management's assertion about the effectiveness of the Company's internal control
over financial reporting at January 31, 2009 included in Item 9A (T) of the 10-K
filing and, accordingly, we do not express an opinion thereon.
The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. As described in note
2 to the financial statements, the Company has experienced operating losses and
requires significant capital to finance operations and repay existing
indebtedness. This raises substantial doubt about its ability to continue as a
going concern. Management's plans in regard to these matters are also described
in note 2. The financial statements do not include any adjustments that may
result from the outcome of this uncertainty.
[signed] RSM Richter LLP
1
Chartered Accountants
Montreal, Quebec
April 30, 2009
1CA auditor permit n
o
15522
F-1
ICP Solar Technologies Inc.
Consolidated Balance Sheets
As at January 31, 2009
(Expressed in U.S. Funds)
January 31,
January 31,
2009
2008
Assets
Current
Cash
$
193,517
$
20,967
Term deposit
-
505,301
Accounts receivable (note 5)
622,981
873,976
Inventories (note
      6)
1,492,808
2,426,177
Prepaid expenses
12,941
86,898
2,322,247
3,913,319
Property and Equipment
(note 7)
88,030
85,478
Intangible
, net of accumulated amortization of
      $53,200 (2008 - $Nil) (note 8)
120,914
-
Investment in EPOD Solar (Wales) Ltd.
(note 9)
-
1
Loan Receivable,
net of $ 952,729 write- down (2008
      - $Nil) (note 9)
-
2,200,158
Investment in Convertible Debenture
,
      net of $967,599 write-down (2008 - $Nil) (note 9)
1
-
$
2,531,192
$
6,198,956
See accompanying notes
Approved on Behalf of the Board
___________________________
___________________________
F-2
January 31,
January 31,
2009
2008
Liabilities
Current
Bank indebtedness (note 10)
$
-
$
1,102,311
Accounts payable
      and accrued liabilities
1,648,019
920,396
Put option liability (note 11)
67,555
-
Government grants
      payable
17,533
27,036
Senior
      secured convertible debentures, less unamortized discount of $2,708,934
      (2008 - $Nil) (note 12)
171,517
-
1,904,624
2,049,743
Convertible Notes,
less
      unamortized discount of $Nil (2008 - $167,492)
-
682,508
Put Warrants
(note 12)
3,600,000
-
Commitments
(note 13)
Contingencies
(note 14)
Shareholders' Deficiency
Capital Stock
(note 15)
351
328
Additional Paid-In Capital
(note 16)
16,157,548
13,105,085
Accumulated Other Comprehensive Loss
(1,005,625
)
(798,469
)
Accumulated Deficit
(18,125,706
)
(8,840,239
)
(2,973,432
)
3,466,705
$
2,531,192
$
6,198,956
See accompanying notes
F-3
ICP Solar Technologies Inc.
Consolidated Statements of Shareholders' Equity (Deficiency)
For the Years Ended January 31,
(Expressed in U.S. Funds)
Accumulated
Additional
Other
Total
Capital Stock
Paid-In
Comprehensive
Accumulated
Shareholders'
Shares
Amounts
Capital
Loss
Deficit
Deficiency
Balance - January 31, 2007
29,000,000
$
290
$
6,482,923
$
(800,719
)
$
(4,617,501
)
$
1,064,993
Common stock issued
3,719,445
38
3,849,961
-
-
3,849,999
Stock-based compensation
-
-
1,088,828
-
-
1,088,828
Warrants issued
-
-
1,400,173
-
-
1,400,173
Modification of warrants
-
-
283,200
-
-
283,200
Foreign currency translation
-
-
-
2,250
-
2,250
Net loss
-
-
-
-
(4,222,738
)
(4,222,738
)
Balance - January 31, 2008
32,719,445
$
328
$
13,105,085
$
(798,469
)
$
(8,840,239
)
$
3,466,705
Common stock issued
1,492,550
15
322,965
-
-
322,980
Stock-based compensation
-
-
1,262,057
-
-
1,262,057
Warrants issued
-
-
266,217
-
-
266,217
Modification of warrants
-
-
160,700
-
-
160,700
Modification of stock
options
-
-
190,532
-
-
190,532
Conversion of debentures
850,000
8
849,992
-
-
850,000
Foreign currency
translation
-
-
-
(207,156
)
-
(207,156
)
Net loss
-
-
-
-
(9,285,467
)
(9,285,467
)
Balance -
      January 31, 2009
35,061,995
$
351
$
16,157,548
$
(1,005,625
)
$
(18,125,706
)
$
( 2,973,432
)
See accompanying notes
F-4
ICP Solar Technologies Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the Years Ended January 31,
(Expressed in U.S. Funds)
2009
2008
Net Sales
$
5,903,196
$
6,541,232
Cost of
      Sales
4,569,435
4,375,063
Gross Margin
1,333,761
2,166,169
Expenses
Selling, general and
      administrative
5,772,124
7,513,739
Depreciation and amortization
82,034
109,661
Research and
      development
643,629
87,812
Foreign exchange loss (gain)
(76,832
)
10,484
6,420,955
7,721,696
Operating Loss
(5,087,194
)
(5,555,527
)
Interest expense
(287,420
)
(299,352
)
Interest income
13,008
22,077
Forgiveness of loan receivable
(88,973
)
-
Write-down of loan receivable and convertible debenture
(1,920,328
)
(229,128
)
Accretion of discount on convertible notes
(167,495
)
(586,163
)
Discount on loan receivable
166,404
(644,619
)
Discount on convertible debentures
(1,612,390
)
Gain on modification of convertible debenture (note 12)
602,726
-
Financing costs
(382,761
)
Accretion of discount on loan receivable
78,947
344,767
Interest expense on put warrant
(600,000
)
-
Gain on
      disposition of subsidiary
9
2,818,207
(4,198,273
)
1,425,789
Net Loss Before Income Taxes
$
(9,285,467
)
$
(4,129,738
)
Income Taxes
(note 17)
-
93,000
Net Loss
$
(9,285,467
)
$
(4,222,738
)
Other Comprehensive Loss
Foreign currency
      translation adjustment
(207,156
)
2,250
Comprehensive Loss
$
(9,492,623
)
$
(4,220,488
)
Basic Weighted
      Average Number of Shares Outstanding
34,090,717
30,148,509
Basic and
      Diluted Loss Per Share
(note 19)
(0.28
)
(0.14
)
See accompanying notes
F-5
ICP Solar Technologies Inc.
Consolidated Statements of Cash Flows
For the Years Ended
January 31,
(Expressed in U.S. Funds)
2009
2008
Funds Provided (Used)
Operating Activities
Net loss
$
(9,285,467
)
$
(4,222,738
)
Depreciation and amortization
82,034
109,661
Interest expense on
      convertible notes
-
200,000
Write-down of property and equipment
-
4,346
Foreign exchange (gain)
      loss
(76,832
)
10,484
Gain on disposal of subsidiary
(9
)
(2,818,207
)
Interest expense on put
      warrant
600,000
-
Forgiveness of loan receivable
88,973
-
Write-down of loan
      receivable and convertible debenture
1,920,328
229,128
Stock-based compensation
1,262,057
1,088,828
Warrants issued
202,367
1,400,173
Modification of warrants
160,700
283,200
Modification of stock
      options
190,532
-
Discount on loan receivable
(166,404
)
644,619
Accretion of discount
      on loan receivable
(78,947
)
(344,767
)
Accretion of discount on convertible
      debenture
1,612,390
-
Gain on modification of
      convertible debenture
(602,726
)
-
Accretion of discount on convertible notes
167,495
586,163
(3,923,509
)
(2,829,110
)
Changes in non-cash operating elements of working capital
      (note 18)
2,139,550
1,448,311
Foreign exchange
(207,156
)
2,250
(1,991,115
)
(1,378,549
)
Financing Activities
Bank indebtedness
(1,109,112
)
(57,378
)
Issuance of convertible
      debentures
3,824,134
-
Discount of convertible debentures
(718,598
)
-
Repayment of
      convertible debentures
(942,851
)
-
Long-term debt
-
(190,204
)
Loan payable, director
-
(577,036
)
Obligation under capital lease
-
(49,752
)
Government grants
      payable
(49,581
)
(96,887
)
Common shares issued
277,000
2,000,000
1,280,992
1,028,743
F-6
ICP Solar Technologies Inc.
Consolidated Statements of Cash Flows
For the Years Ended
January 31,
(Expressed in U.S. Funds)
2009
2008
Investing Activities
Additions to property
      and equipment
$
(14,527
)
$
(17,737
)
Loan receivable
436,207
150,000
Proceeds from
      disposition of subsidiary
10
1
Loan receivable from employees
(11,367
)
-
Acquisition of WES
      Power Technology Inc.
(25,001
)
-
Term deposit
505,300
-
890,622
132,264
Effect of
      Foreign Exchange on Cash Balances
(7,949
)
-
Increase (Decrease) in Cash
172,550
(217,542
)
Cash - Beginning of Year
20,967
238,509
Cash - End of Year
$
193,517
$
20,967
See accompanying notes
F-7
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
1. Basis of Presentation
The Company, ICP Solar Technologies Inc., is a Nevada corporation and is engaged in the business of assembling and distributing renewable solar energy products worldwide.
The consolidated financial statements include the accounts of the Company and its subsidiary companies. On consolidation, all material inter-entity transactions and balances have been eliminated.
The financial statements are expressed in U.S. funds.
2. Going Concern
These consolidated financial statements for the fiscal year ended January 31, 2009, were prepared under the assumption that the Company will continue operations as a going concern.
The Company has reported a net loss of $9,285,467, $4,222,738, $2,626,565 and $1,396,672 and negative cash flows from operating activities of $1,991,115, $1,380,799, $3,828,787, and $978,067 for the fiscal years ended
January 31, 2009, 2008, 2007 and 2006 respectively. As of January 31, 2009, the Company had an accumulated deficit of $18,125,706, working capital of $589,136 and cash and cash equivalents of $193,517. Until and unless the Company's
operations generate significant revenues and cash flow, we will attempt to continue to fund operations from cash on hand and through the sources of capital described below. The Company's long-term liquidity is contingent upon achieving sales
and positive cash flows from operating activities, and/or obtaining additional financing. The most likely sources of financing include private placements of the Company's equity or debt securities or bridge loans to the Company from third-party
lenders. Subsequent to year end, the Company entered into an agreement to factor its accounts receivable to a financial institution for up to $720,000 (note 22). The Company can give no assurances that any additional capital that it is able to
obtain will be sufficient to meet its needs, or on terms favourable to it. During the fourth quarter of 2009, the Company significantly reduced overhead expenditures, reduced product costs and is continually expanding its customer pipeline.
Management believes these factors will contribute toward achieving profitability. Despite these initiatives however, the Company still requires capital to sustain its existing operations. The Company may, however, choose to raise additional capital
before January 31, 2010 to fund future development activities or to take advantage of other strategic opportunities. This could include the securing of funds through new strategic partnerships and/or the sale of common stock or other securities.
There can be no assurance that such capital will be available to the Company on favourable terms, or at all. There are a number of risks and uncertainties related to the Company's attempt to complete a financing or strategic partnering
arrangement that are outside its control. The Company may not be able to obtain additional financing on terms acceptable to it, or at all. If the Company is unsuccessful at obtaining additional financing as needed, it may be required to
significantly curtail or cease operations. The Company will need additional financing thereafter until it achieves profitability, if ever.
Should the Company be unable to continue as a going concern it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. These financial statements do not include any adjustments that may result from
the outcome of this uncertainty.
F-8
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
3. Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in accordance with United States Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include the allowance for doubtful accounts,
inventory provision, recovery of deferred income taxes, recoverability of loan receivable and investment in convertible debenture, impairment of long-lived assets, stock-based compensation costs, determination of the fair value of the warrants
issued and the resulting impact on the allocation of the proceeds between the shares and warrants. Actual results could differ from those estimates.
Revenue Recognition
The Company recognizes revenue from product sales at the time of passage of title and risk of loss to the customer either at FOB shipping point or FOB destination, based upon terms established with the customer where persuasive evidence of an
arrangement exists and where collectability is reasonably assured. The Company's selling price to its customers is a fixed amount that is not subject to refund or adjustment and is not contingent upon additional rebates. There are no further
obligations on the part of the Company subsequent to revenue recognition except for product warranty and returns from the Company's customers. The Company records an estimate of returns and records the provision for the estimated amount of such
future returns, based on historical experience and any notification the Company receives of pending returns.
Product Warranty
The Company's current product warranty includes a ten year, up to a lifetime warranty period for defects in materials, workmanship and power performance. Accruals for product warranties are recorded at the time of shipment of products to customers.
The Company accrues a provision for estimated future warranty costs based upon the historical relationship of warranty claims to sales. The Company periodically reviews the adequacy of its products warranties and adjusts, if necessary, the warranty
percentage and accrued warranty reserve for actual historical experience. As at January 31, 2009, the total provision for warranties amounted to approximately $51,000 (2008 - $63,000).
Valuation of Inventories
Raw materials are valued at the lower of cost and replacement cost. Finished goods are valued at the lower of cost and net realizable value. Cost is determined on an average cost base.
Financial Instruments
The Company estimates the fair value of its financial instruments based on current interest rates, market value and pricing of financial instruments with comparable terms. Unless otherwise indicated, the carrying value of these financial instruments
approximates their fair market value.
Sales Taxes
The Company presents taxes collected from customers and remitted to government authorities on a net basis in the consolidated statements of operations.
F-9
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
3. Summary of Significant Accounting Policies (Cont'd)
Share-Based Payments
The Company accounts for share based payments in accordance with the provisions of FAS 123R "Share based payments (Revised)" and accordingly recognizes in its financial statements share based payments at their fair value.  In addition, it recognizes
in the financial statements an expense based on the grant date fair value of stock options granted to employees. The expense are recognized on a straight line basis over the vesting period and the offsetting credit is recorded in additional paid in
capital. Upon exercise of options, the consideration paid together with the amount previously recorded as additional paid in capital is recognized as capital stock. The Company estimates its forfeiture rate in order to determine its compensation
expense arising from stock-based awards. The Company uses the Black Scholes option pricing model to determine the fair value of the options.
The Company accounts for stock-based compensation expense for non-employees using the fair value method prescribed by EITF 96-18 "Accounting for Equity Investments that are issued to Other Than Employees for acquired or in conjunction with selling,
Goods or Services, and the Black Scholes option principal method, and recorded, the fair value of non-employee stock options as an expense over the vesting term of option.
If an equity award is modified after the grant date, an incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the modified award, if any, over the fair value of the original award on the modification
date.
The Company uses the Black Scholes option pricing model which requires the input of subjective assumptions. These assumptions, including estimating the length of time option holders will retain their stock options before exercising them ("the
expected term"), the expected volatility of the Company's common stock price over the expected term and the number of options that will ultimately not complete their vesting requirements ("forfeitures"). The amount of stock-based
compensation recognized in the consolidated statements of operations could be materially different under different assumptions.
Accounts Receivable
The majority of the Company's accounts receivable are due from companies in the retail, mass merchant and OEM industries. The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a
review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current
economic conditions. The Company writes off trade receivables when they are deemed uncollectible. The Company records recoveries of trade receivables previously written-off when they receive them. The Company does not believe that it is exposed to
an unusual level of customer credit risk (note 5). Management considers an allowance for doubtful accounts is not required to cover any exposure to loss in its January 31, 2009 and January 31, 2008 accounts receivable.
Investment Tax Credits
Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and
assumptions in determining the expenditures eligible for investment tax credits claimed.
F-10
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
3. Summary of Significant Accounting Policies (Cont'd)
Property and Equipment
Property and equipment are recorded at cost. Provisions for
depreciation are based on their estimated useful lives using the declining
balance method as follows:
Machinery and equipment
20%
Furniture and fixtures
20%
Computer equipment
30%
Upon retirement or disposal, the cost of the asset disposed of
and the related accumulated depreciation are removed from the accounts and any
gain or loss is reflected in income. Expenditures for repairs and maintenance
are expensed as incurred.
Intangible
The intangible is comprised of intellectual property which is
amortized on a straight-line basis over 36 months.
Impairment of Long-Lived Assets
Long-lived assets, comprising property and equipment and
intangible, that are held and used by the Company are reviewed for possible
impairment whenever events or changes in circumstances indicate the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held
and used is measured by a comparison of the carrying amount of the assets to the
estimated undiscounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognized is
measured by the amount by which the carrying amount of the asset exceeds the
fair value thereof.
Income Taxes
The Company accounts for income taxes in accordance with SFAS
109, "Accounting for Income Taxes". Deferred taxes are provided on the liability
method whereby deferred tax assets are recognized for deductible temporary
differences, and deferred tax liabilities are recognized for taxable temporary
differences. Temporary differences are the differences between the reported
amounts of assets and liabilities and their tax bases. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more
likely than not that some portion or all of the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of
changes in tax laws and rates on the date of enactment.
The Company is currently subject to a four year statute of
limitations by major tax jurisdictions. The Company and its subsidiaries file
income tax returns in Canada and the United States.
F-11
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
3. Summary of Significant Accounting Policies (Cont'd)
Valuation of the Put Warrant Liability
The valuation of the warrant is determined by the Black-Scholes option pricing model. A warrant liability is determined in accordance with FAS 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and
Equity" ("FAS 150"). Based on FAS 150, warrants which are determined to be classified as liabilities are marked-to-market at each reporting period, with a corresponding non-cash gain or loss charged to the current period.
Foreign Currency
It is management's view that the United States dollar best portrays the economic results of the worldwide operations and thereby best achieves the objectives of foreign currency translation. the method used to translate the results and
financial position for items and transactions denominated in non-US currencies are as follows:
Monetary items – at exchange rates in effect at the balance sheet date;
Non-monetary items – at exchange rates in effect on the dates
of the transactions;
Revenue and expenses – at average exchange rates prevailing during the period, except for inventories and  amortization which are translated at rates prevailing when the related assets were acquired.
Gains and losses arising from foreign currency translation are included in income.
Recently Issued Accounting Pronouncements
In March 2008, the Financial Accounting Standards Board issued SFAS Statement No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161"). This standard is intended to improve financial reporting about derivative
instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position, financial performance, and cash flows. It is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company is currently evaluating the impact, if any, that this statement will have on its disclosures related to derivative instruments and
hedging activities.
The FASB issued FSP 133-1 and FIN 45-4, 'Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No.
161". This FSP is intended to improve disclosures about credit derivatives by requiring more information about the potential adverse effects of changes in credit risk on the financial position, financial performance, and cash flows of the
sellers of credit derivatives. In addition, it requires an additional disclosure about the current status of the payment/performance risk of a guarantee. It also clarifies the effective date in FASB Statement No. 161, Disclosures about Derivative
Instruments and Hedging Activities. This FSP is effective for reporting periods (annual or interim) ending after November 15, 2008. The Company is currently evaluating the impact of this statement on its consolidated financial statements.
F-12
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
3. Summary of Significant Accounting Policies (Cont'd)
Recently Issued Accounting Pronouncements
In October 2008, the FASB issued FSP No. FAS 157-3, "Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active" ("FSP FAS 157-3"), which clarifies the application of FAS 157 and provides an
example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. FSP FAS 157-3 applies to financial assets within the scope of accounting pronouncements that require
or permit fair value measurements in accordance with FAS 157. FSP FAS 157-3 was effective for the Company upon issuance on October 10, 2008 and the adoption did not have a material impact on the Company's consolidated financial statements.
The FASB issued SFAS 162, "The Hierarchy of Generally Accepted Accounting Principles". The new standard is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to
be used in preparing financial statements that are presented in conformity with U.S. generally accepted accounting principles (GAAP) for nongovernmental entities. Statement 162 is effective 60 days following the Securities and Exchanges Commission's
approval of the Public Company Accounting Oversight Board Auditing amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles. The Company is currently evaluating the impact of this
Statement on its consolidated financial statements.
The FASB issued FSP APB-14-1,
Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)
. FSP APB 14-1 clarifies that convertible debt instruments that may be settled in cash
upon conversion (including partial cash settlement) are not addressed by paragraph 12 of APB Opinion No. 14,
Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants
. Additionally, this FSP specifies that issuers of such
instruments should separately account for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. This FSP is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. Early adoption is not permitted. The Company is currently evaluating the impact of this Statement on its consolidated financial
statements.
The FASB issued SFAS 163, Accounting for Financial Guarantee Insurance Contracts. Statement 163 clarifies how FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises, applies to financial guarantee insurance contracts issued by
insurance enterprises, including the recognition and measurement of premium revenue and claim liabilities. It also requires expanded disclosures about financial guarantee insurance contracts. Statement 163 is effective for financial statements
issued for fiscal years beginning after December 15, 2008, and all interim periods within those fiscal years, except for disclosures about the insurance enterprise's risk-management activities, which are effective the first period beginning after
May 23, 2008. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
The FASB issued FSP FAS 142-3, Determination of the Useful Life of Intangible Assets. This FSP amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible
asset under FASB Statement No. 142, Goodwill and Other Intangible Assets. This FSP is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The Company is
currently evaluating the impact of this Statement on its consolidated financial statements.
F-13
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
3. Summary of Significant Accounting Policies (Cont'd)
Recently Issued Accounting Pronouncements
The FASB issued FSP SOP 90-7-a, An Amendment of AICPA Statement of Position 90-7 Financial Reporting by Entities in Reorganization under the Bankruptcy Code. This FSP states that an entity emerging from bankruptcy that uses fresh-start reporting
would only follow the accounting standards in effect at the date of emergence as opposed to within the 12 months following the adoption of fresh-start reporting. This FSP is effective for financial statements issued subsequent to April 24, 2008. The
Company is currently evaluating the impact of this Statement on its consolidated financial statements.
The FASB issued FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities. This FSP states that unvested share-based payment awards that contain nonforfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The FSP is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and interim periods within those years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. EITF 07-5, Determining Whether an Instrument (or Embedded Feature)
Is Indexed to an Entity's Own Stock was ratified by the FASB. This EITF addresses the determination of whether an instrument (or an embedded feature) is indexed to an entity's own stock. This EITF is effective for financial statements issued for
fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
EITF 08-3, Accounting by Lessees for Nonrefundable Maintenance Deposits was ratified by the FASB. This EITF prescribes the accounting for all nonrefundable maintenance deposits. This EITF is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
EIT 08-4, Transition Guidance for Conforming Changes to Issue No. 98-5, 'Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios' was ratified by the FASB. This EITF Integrates the
requirements of EITF 00-21 into EITF 98-5. This EITF is effective for financial statements issued for fiscal years ending after December 15, 2008. The Company is currently evaluating the impact of this Statement on its consolidated financial
statements.
The FASB issued FSP FAS 132(R)-1, "Employers' Disclosures about Postretirement Benefit Plan Assets". This FSP provides guidance on an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan.
This FSP also includes a technical amendment to Statement 132R that requires a nonpublic entity to disclose net periodic benefit cost for each annual period for which a statement of income is presented. This FSP is effective for fiscal years ending
after December 15, 2008. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
The EITF issued EITF 08-6, "Equity Method Investment Accounting Considerations". This EITF considers whether all of the provisions of Statement 141(R) and Statement 160 should be applied when accounting for an equity method investment.
This EITF is effective on a prospective basis in fiscal years beginning on or after December 15, 2008 and interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial
statements.
F-14
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
3. Summary of Significant Accounting Policies (Cont'd)
Recently Issued Accounting Pronouncements
The EITF issued EITF 08-7, "Accounting for Defensive Intangible Assets". This issue discusses how defensive intangible assets should be accounted for subsequent to their acquisition, including the estimated useful life that should be
assigned to such assets. This EITF is effective prospectively for intangible assets acquired on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company is currently evaluating the impact of
this Statement on its consolidated financial statements.
The EITF issued EITF 08-8, "Accounting for an Instrument (or an Embedded Feature) with a Settlement Amount That Is Based on the Stock of an Entity's Consolidated Subsidiary". This Issue addresses the determination of whether a financial
instrument for which the payoff to the counterparty is based, in whole or in part, on the stock of an entity's consolidated subsidiary, is indexed to the reporting entity's own stock and therefore should not be precluded from qualifying for the
first part of the scope exception in paragraph 11(a) of Statement 133 or being within the scope of Issue 00-19. This EITF is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years. The
Company is currently evaluating the impact of this Statement on its consolidated financial statements.
In December 2007, FASB issued SFAS No. 141 (Revised 2007), "Business Combinations" ("SFAS 141R"). SFAS 141R will significantly change the accounting for business combinations. Under SFAS 141R, an acquiring entity will be required
to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. SFAS 141R will change the accounting treatment for certain specific acquisition related items including: (1)
expensing acquisition related costs as incurred; (2) valuing non-controlling interests at fair value at the acquisition date; and (3) expensing restructuring costs associated with an acquired business. SFAS 141R also includes a substantial number of
new disclosure requirements. SFAS 141R is to be applied prospectively to business combinations for which the acquisition date is on or after January 1, 2009. We expect SFAS 141R will have an impact on our accounting for future business combinations
once adopted but the effect is dependent upon the acquisitions that are made in the future.
In December 2007, the FASB issued SFAS No. 160, "Non-controlling Interests in Consolidated Financial Statements" ("SFAS 160"). SFAS 160 establishes new accounting and reporting standards for the non-controlling interest in a
subsidiary and for the deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary (minority interest) is an ownership interest in the consolidated entity that should be reported as equity in the Consolidated
Financial Statements and separate from the parent company's equity. Among other requirements, this statement requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the
non-controlling interest. It also requires disclosure, on the face of the Consolidated Statement of Operations, of the amounts of consolidated net income attributable to the parent and to the non-controlling interest. The guidance will become
effective for the fiscal year beginning after December 15, 2008. We expect SFAS No. 160 will have an impact on our accounting for future business combinations once adopted but the effect is dependent upon the acquisitions that are made in the
future.
F-15
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
4. Adoption of New Accounting
Standards
Fair Value Measurements
FAS 157 is effective for financial assets and liabilities in
fiscal years beginning after November 15, 2007, and for non-financial assets and
liabilities in fiscal years beginning after November 15, 2008. The Company
adopted FAS 157 for financial assets and liabilities in the first quarter of
fiscal 2009 with no material impact to the consolidated financial statements.
The Company is currently evaluating the potential impact of the application of
FAS 157 on the non-financial assets and liabilities found on its consolidated
financial statements.
FAS 157 applies to all assets and liabilities that are being
measured and reported on a fair value basis. FAS No. 157 requires new disclosure
that establishes a framework for measuring fair value in GAAP, and expands
disclosure about fair value measurements. This statement enables the reader of
the financial statements to assess the inputs used to develop those measurements
by establishing a hierarchy for ranking the quality and reliability of the
information used to determine fair values. The statement requires that assets
and liabilities carried at fair value be classified and disclosed in one of the
following three categories:
Level 1:
Quoted market prices in active
      markets for identical assets or liabilities.
Level 2:
Observable market based inputs or unobservable
      inputs that are corroborated by market data.
Level 3:
Unobservable inputs that are
      not corroborated by market data.
In determining the appropriate levels, the Company performs a
detailed analysis of the assets and liabilities that are subject to FAS 157. At
each reporting period, all assets and liabilities for which the fair value
measurement is based on significant unobservable inputs are classified as Level
3.
The following summarizes the changes in the fair value of the
convertible notes for the year ended January 31, 2009:
Opening Balance - January 31, 2008
$
682,508
Interest accretion
167,492
Conversion of notes to 850,000 common shares on May 22,
      2008
(850,000
)
Ending Balance – January 31, 2009
$
Nil
The loan receivable uses significant unobservable inputs and
thus are shown as Level 3 hierarchy items. The fair value of the loan receivable
is calculated by discounting the stream of future receipts of interest and
principal at the prevailing market rate for a similar receivable. Results of
discounted cash flow calculations may be adjusted, as appropriate, to reflect
other market conditions or the perceived changes in the credit risk of the
lender. The loan receivable is recorded at fair value on a non recurring
basis.
F-16
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
4. Adoption of New Accounting Standards (Cont'd)
The following summarizes the changes in the fair value of the
loan receivable for the year ending January 31, 2009:
Opening Balance - January 31, 2008
$
2,200,158
Modification of balance due to Second Amendment
(1,192,978
)
Discount net of interest accretion
(54,491
)
Write-down of
      balance
(952,689
)
Ending Balance – January 31, 2009
$
Nil
Fair Value of Financial Instruments
Following are the assets and liabilities recognized on the
balance sheet on a recurring basis. The table below presents the carrying value
and fair value of Company's financial instruments. The disclosure excludes
leases.
January 31, 2009
January 31, 2008
Carrying
Estimated
Carrying
Estimated
Value
Fair Value
Value
Fair
      Value
Financial assets
Cash
$
193,517
$
193,517
$
20,967
$
20,967
Term deposit
-
-
505,301
505,301
Loan receivable
-
-
2,200,158
2,200,158
Financial liabilities
Bank indebtedness
-
-
1,102,311
1,102,311
Accounts payable and
      accrued liabilities
1,648,023
1,648,023
920,396
920,396
Government grants payable
17,533
17,533
27,036
27,036
Convertible notes
-
-
682,508
682,508
Senior secured convertible debentures
171,527
2,880,450
-
-
Put warrants
3,600,000
3,600,000
-
-
Put option liability
67,555
67,555
F-17
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
4. Adoption of New Accounting Standards (Cont'd)
Fair Value Measurement at January 31, 2009 Using
Quoted Prices in
Active Markets
Significant Other
Significant
For Identical
Observable
Unobservable
Assets
Inputs
Inputs
Description
(Level 1)
(Level 2)
(Level 3)
Convertible notes
$
$
-
$
-
Put warrants
3,600,000
Put option liability
67,555
The fair value represents management's best estimates based on
a range of methodologies and assumptions. The carrying value of receivables and
payables arising in the ordinary course of business, the term deposit and the
government grants payables approximate fair value because of the relatively
short period of time between their origination and expected realization.
The convertible notes use significant unobservable inputs and
thus are shown as Level 3 hierarchy items. The fair value of the convertible
notes is calculated by discounting the stream of future payments of interest and
principal at the prevailing market rate for a similar liability that does not
have an associated equity component. Results of discounted cash flow
calculations may be adjusted, as appropriate, to reflect other market conditions
or the perceived changes in credit risk of the borrower. The convertible notes
were recorded as accretion of discount on the consolidated statement of
operations.
Put warrants were valued using the binomial method.
Put option liability was recorded as the value of the exercise
price multiplied by the number of put options.
5. Accounts Receivable
The Company has entered into an agreement with a Canadian
government agency to guarantee certain accounts receivable as to credit risk. As
at January 31, 2009, approximately $416,000 (2008 - $854,000) of accounts
receivable are guaranteed.
6. Inventories
2009
2008
Raw materials
$
198,684
$
701,222
Finished goods
1,294,124
1,724,955
$
1,492,808
$
2,426,177
Total goods in transit included in raw materials and finished
goods is approximately $nil (2008 - $114,000) and $130,000 (2008 - $76,000)
respectively. A provision for inventory has been recorded as at January 31, 2009
of approximately $192,000 (2008 - $20,000).
F-18
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
7. Property and Equipment
January 31,
January 31,
2009
2008
Accumulated
Net Carrying
Net Carrying
Cost
Amortization
Amount
Amount
Machinery and equipment
$
582,322
$
542,091
$
40,231
$
39,659
Furniture and fixtures
142,530
122,470
20,060
18,965
Computer equipment
205,262
177,523
27,739
26,854
$
930,114
$
842,084
$
88,030
$
85,478
8. Acquisition of WES Power Technology Inc. ("WES")
On March 5, 2008, the Company executed a Share Purchase
Agreement ("Agreement") with the majority shareholders of WES Power Technology
Inc. ("WES Majority Shareholders"), pursuant to which the Company purchased from
the WES majority shareholders all of the issued and outstanding shares of WES.
This Agreement supersedes and annuls the share purchase agreement signed between
the parties on August 27, 2007.
Under the terms of the Agreement, the Company acquired 100% of
all of the shares of WES for the following consideration:
(a)
A cash consideration of $1;
(b)
Issuance by the Company of 104,050 shares of its common
      shares;
(c)
Issuance by the Company of 250,000 warrants to purchase
      common shares of the Company. The warrants will expire on March 5, 2013
      and have an exercise price of $0.50;
(d)
Execution of employment agreements by the Company with
      each of the WES Majority Shareholders.
The total consideration to acquire the net assets of WES, was
$134,831 including transaction costs. The excess consideration paid over the
purchase price of $174,114 is accounted for as part of the intellectual
property.
F-19
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
8. Acquisition of WES Power Technology Inc. ("WES") (Cont'd)
The assigned values of the assets and liabilities purchased
based on our preliminary allocation are as follows:
Assets Acquired:
Current assets
$
92,100
Property and equipment
16,855
Intellectual property
174,114
Total Assets
$
283,069
Liabilities Assumed:
Current liabilities
$
96,794
Long-term debt
51,444
Total Liabilities
148,238
Net Assets at Fair
      Value
$
134,831
Consideration:
Cash
$
1
Issuance of 104,050 common shares
45,980
Issuance of 250,000 warrants
63,850
Transaction costs
25,000
Total Consideration
$
134,831
The common shares were attributed a fair value of $0.44 per
share which represents the average of the closing price two days before and two
days after the date of acquisition.
The warrants were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following
assumptions:
Expected volatility
75%
Expected life
5 years
Risk-free interest rate
2.59%
Dividend yield
Nil
Weighted average fair value of warrants at grant date
$
0.2554
F-20
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
8. Acquisition of WES Power Technology Inc. ("WES") (Cont'd)
Following is a table which represents the pro-forma
consolidated statement of operations as if the acquisition of WES Power
Technology Inc. had taken place on February 1, 2007.
Pro-forma Consolidated Statement of Operations
Wes Technology Acquisition as of February 1, 2007
Year Ended
January 31, 2009
ICP Solar
Wes Power
Technologies Inc.
Technology Inc.
Total
Sales
$
5,903,196
$
-
$
5,903,196
Expenses
15,158,804
29,859
15,188,663
Net Loss
$
(9,255,608
)
$
(29,859
)
$
(9,285,467
)
Year Ended
January 31, 2008
ICP Solar
Wes Power
Technologies Inc.
Technology Inc.
Total
Sales
$
6,541,232
$
132,372
$
6,673,604
Expenses
10,763,970
119,156
10,883,126
Net Loss
$
(4,222,738
)
$
13,216
$
(4,209,522
)
F-21
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
9. Sale of 100% of Shares of ICP UK
On May 9, 2007, the Company signed a Share Purchase Agreement
(the "Agreement") with ISE LLC ("ISE"). Under the terms of the Agreement, the
Company sold 85% of the shares of ICP UK (name changed to Epod Solar (Wales)
Ltd. ("EPOD") on June 26, 2007) for an aggregate amount of $3,000,000. On May
10, 2007, the Company and ISE signed an Amendment to the Agreement, revising the
modalities of payment. These modalities were subsequently changed on April 18,
2008, when the Company and ISE signed a second Amendment to the Agreement
("Second Amendment"), and the remaining 15% interest of the Company in EPOD was
transferred to ISE for $10 on July 30, 2008. Based on the Second Amendment, ISE
is to pay the Company an amount equivalent to $3,000,000 as follows:
a)
$150,000 was paid upon signing of the original Agreement
      and $350,000 in kind in the form of solar panels;
b)
An additional $150,000 upon signing the Second Amendment
      and $19,827 in kind in the form of solar panels and;
c)
The outstanding balance of the loan is forgiven by
      $88,973;
The remaining amount due to ICP Solar Technologies Inc. of
$2,241,200 has the following terms:
i)
A loan receivable in the principal amount of $1,060,600, non-interest bearing, shall be paid in cash
      on a monthly basis of $40,000 per month commencing on the Second Amendment
      date until the balance is fully paid. This loan has been discounted to a
      fair value of $927,162 based on an effective interest rate of 12%. As at
      January 31, 2009, $78,947 of the discount has been amortized. The loan has
      been written down to $Nil because no repayments have been made neither in
      cash or in-kind since May 2008 and collectability was not
  assured.
ii)
The Company  participated in EPOD's convertible
      debenture financing round on August 8, 2008 and received 1,180 units in lieu of the remaining
      $1,180,000 CDN owing. Each unit consisted of a $1,000 CDN face value 12%
      convertible debenture due August 8, 2011.
The 667 warrants are convertible into 667 common shares of EPOD
at an exercise price of $3 per share. The warrants expire in one year after EPOD
files for an initial public offering on the TSX or TSX Venture Exchange ("IPO").
The convertible debenture will automatically convert into
common shares of EPOD at a rate of $1.50 per share, one year after EPOD files an
IPO. The Company has the option to convert after EPOD files its IPO but prior to
the one year automatic conversion date at a conversion price of the lesser of
$1.20 per share and an amount calculated based on a formula. The convertible
debenture matures on February 12, 2011.
The investment in the convertible debenture value of $967,600
has been written down to $1.00 due to the uncertainty in the initial public
filing referred to above. A fair value has not been allocated to the warrants as
it has been determine that their value is nominal.
Both the convertible debenture and the loan receivable have
been assigned to the Senior Secured Convertible Debenture holders (note 12).
F-22
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
10. Bank Indebtedness
The Company paid off its bank indebtedness on June 19, 2008. At
that time all security held by the bank was released.
11. Put Option Liability
On January 20, 2009, as payment for consulting fees to a
director the Company issued 326,000 put options in relation to 326,000 shares
issued for $47,000 (note 15). The option entitles the holder of the option to
sell all or any portion of the 326,000 shares back to the Company for a price of
$0.144 Canadian per share during the period June 22, 2009 to June 22, 2010. The
value of these put options was calculated based on the option price multiplied
by the number of options acquired and are $ 37,555.
On January 22, 2009, as payment for consulting fees to
suppliers, the Company issued 200,000 put options in relation to 200,000 shares
issued for $30,000 (note 15). The option entitles the holder the option to sell
all or any portion of the 200,000 back to the Company for a price of $0.15 per
share during the period June 22, 2009 to June 22, 2010. The value of these put
options was calculated based on the option price multiplied by the number of
options acquired and are $ 30,000.
12. Senior Secured Convertible Debentures
On June 13, 2008 the Company entered into convertible debenture
agreements with investors for amounts totaling gross $3,333,333. The debentures were
issued with a 10% discount. The terms of the debenture require capital
repayments to commence November 1, 2008 and will be repaid in 18 equal monthly
installments. The convertible debentures bear interest at the rate of 11% per
annum and are repayable on June 13, 2010. Interest is payable monthly. The
Company may, at its option, elect to pay the interest by the issuance of shares
of common stock provided certain conditions are met on each of the twenty
business days immediately preceding the date of payment. The number of shares is
to be determined by dividing the amount of the interest payment by the interest
share conversion price which will be the lower of the share price on the
interest payment date or the share delivery date. The full face value of the
debentures is convertible into common stock of the Company, at the option of the
holders, at a rate of $0.50 per share.
The Company also issued to the holders:
Series A stock purchase warrants to purchase 6,666,666 shares at an
  exercise price of $0.50 per share
Series B stock purchase warrants to purchase 6,666,666 shares at an
  exercise price of $1.00 per share
Series C stock purchase warrants to purchase 6,666,666 shares at an
  exercise price of $1.00 per share
The Series A and B warrants are exercisable immediately;
however, the Series C warrants are only exercisable once the Series A and B
warrants have been fully exercised.
The Company paid approximately $383,000 in cash consideration
for transaction costs. In addition, transaction costs were incurred through the
issuance of warrants . These transaction costs were expensed.
On November 5, 2008 the Company repaid $842,851 of the
debentures including $36,211 in interest.
F-23
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
12. Senior Secured Convertible Debentures (Cont'd)
On December 31, 2008 the Company revised the terms and amended
the convertible debenture agreements:
The outstanding principal and interest at December 31, 2008 of
$2,568,425 was revised to 115% or $2,953,688 resulting in recognition of a
discount of $385,263.
The conversion price was reduced from $0.50 to $0.25.
The repayment terms were amended whereby the outstanding
principal and interest at May 31, 2009 shall be repaid in 13 equal monthly
installments commencing on June 1, 2009.
The total number of warrants issued of 53,333,328 and their
exercise price were revised as follows:
Series A stock purchase warrants to purchase 13,333,332 shares at an
  exercise price of $0.25 per share from an initial exercise price of $0.50 per
  share;
Series B stock purchase warrants to purchase 26,666,664 shares at an
  exercise price of $0.25 per share from an initial exercise price of $0.50 per
  share; and
Series C stock purchase warrants to purchase 13,333,332 shares
at an exercise price of $0.50 per share from an initial exercise price of $1.00
  per share;
As a result of this December 31, 2008 amendment, the Company
has recorded a gain of $602,726 in accordance with EITF 96-19 whereby the old
convertible debenture balance was written off and replaced by the new
convertible debenture balance because its discounted fair value was greater by
10% of the discounted fair value under the old terms. The $2,708,934 discount
against the new convertible debenture balance of $2,880,450 recorded will be
amortized over the remaining 17 months of the debenture.
The Company has agreed to remit to the holders commencing on
February 1, 2009 10% of its weekly collections and any and all monthly receipts
on the EPOD loan receivable until the Senior Secured Convertible Debentures have
been repaid in full.
It shall constitute an event of default if the Company's
revenues for the fiscal quarter ended April 30, 2009 are less than $1,500,000 or
the Company's revenues for the fiscal quarter ended July 31, 2009 are less than
$2,000,000 or the Company's EBITDA for the fiscal quarter ended July 31,2009 is
less than $(125,000) or if the Company's accounts payable balance shall have
exceeded $1,750,000 at any time until maturity or if the Company breaches any
term or condition of the Amendment Agreement of December 31, 2008.
The warrants contain a put feature which enables the holder to
require the Company to redeem the warrants for cash. The Company accounted for
the warrants issued to the investors as a liability under the provisions of FAS
150, "Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity" ("FAS 150"). The fair value of the warrants of
$3,600,000 exceeded the notional amount of the convertible debentures net of the
10% discount, as such the excess amount of, approximately $600,000 was expensed
as interest.
F-24
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
12. Senior Secured Convertible Debentures (Cont'd)
The Binomial Valuation Model was used to calculate the fair
value of the warrants. The underlying assumptions included in the Binomial
Valuation Model to value the warrants at January 31, 2009 were as follows:
Series A and
      B Warrants:
Exercise Price
$
0.25
Expected volatility
90.22%
Early exercise Factor
1.84 years
Contractual life
5.5 years
Risk-free interest rate
1.85 %
Dividend yield
Nil
Fair value
      of warrants
$
0.07
Series C Warrants:
Exercise Price
$
0.50
Expected volatility
90.22%
Early exercise Factor
1.84 years
Contractual life
5.5 years
Risk-free interest rate
1.85 %
Dividend yield
Nil
Fair value
      of warrants
$
0.06
In January 2009, 400,000 common shares were issued on
conversion of $100,000 of convertible debenture (note 15).
Substantially all of the assets of the Company have been
pledged as security of the convertible notes. As at January 31, 2009,
approximately $215,000 of interest has been paid, and $1,998,000 of the discount
on the debt has been accreted.
Registration Rights
In connection with the issuance of the Convertible Debentures,
the Company is required to file a Registration Statement to register the shares
issuable upon exercise of the additional warrants. The Company will be obligated
to pay the holders of the Debentures certain liquidation damages in the event
the shares are not registered by June 1, 2009. Liquidation damages would amount
to 2% of the aggregate purchase price paid by the debenture holders.
F-25
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
13. Commitments
Minimum lease payments, exclusive of occupancy and escalation
charges, under an operating lease, expiring in 2012, are approximately as
follows:
2010
$
23,000
2011
23,000
2012
2,000
During the year, the Company incurred rental expenses amounting
to approximately $28,000 (2008 - $25,000).
In accordance with a royalty agreement terminating in 2012, the
Company is committed to annual minimum advertising expenditures and royalty
fees, totaling approximately as follows:
2010
$
128,000
2011
128,000
2012
128,000
14. Contingencies
Litigation
The Company is involved in litigation and claims which arise
from time to time in the normal course of business amounting to approximately
$178,000. In the opinion of management, any liability that may arise from such
contingencies would not have a significant adverse effect on the financial
statements of the Company.
15. Capital Stock
January 31,
January 31,
2009
2008
Authorized without limit as to number -
100,000,000 common shares authorized, $0.00001 par value
100,000,000 preferred shares authorized, $0.00001 par value
Issued -
35,061,995 (2008 –
      32,719,445) common shares
$
351
$
328
F-26
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
15. Capital Stock (Cont'd)
On September 5, 2007, convertible notes in the amount of
$250,000 were converted into 250,000 common shares.
On September 7, 2007, the Company issued 550,000 common shares
from treasury as a result of the exercise of 550,000 warrants on July 26, 2007
for cash consideration of $550,000.
On September 19, 2007, the Company issued 69,445 common shares
from treasury as payment of the interest of $200,000 as per the terms of the
convertible notes.
On October 7, 2007, convertible notes in the amount of
$1,400,000 were converted into 1,400,000 common shares.
On November 7, 2007, the Company issued 450,000 common shares
from treasury as a result of the exercise of 450,000 warrants for cash
consideration of $450,000.
On November 8, 2007, the Company issued 1,000,000 common shares
from treasury as a result of the exercise of 1,000,000 warrants for cash
consideration of $1,000,000.
On March 5, 2008, the Company issued 104,050 common shares as
part of the consideration to acquire all of the issued and outstanding shares of
WES Power Technology Inc. (note 8).
On April 15, 2008, the Company issued 200,000 common shares
from treasury as a result of the exercise of 200,000 warrants on April 15, 2008
for cash consideration of $100,000.
On April 15, 2008, the Company issued 262,500 common shares
from treasury as a result of the cashless exercise of 525,000 warrants with an
exercise price of $0.50 and a fair value of $1.00. These warrants were initially
granted and the resulting expense was recognized as consulting fees to a
director and former Chief Financial Officer of the Company on May 18, 2007.
On May 22, 2008 850,000 common shares were issued on conversion
of $850,000 of convertible notes.
On January 9, 2009 200,000 common shares were issued on
conversion of $50,000 of Senior Secured Convertible Debentures.
On January 20, 2009 326,000 common shares were issued for
$47,000 as payment to a director for consulting fees. On January 22, 2009
200,000 common shares were issued for $30,000 as payment to suppliers for
consulting fees. On January 22, 2009 200,000 common shares were issued on
conversion of $50,000 of Senior Secured Convertible Debentures.
F-27
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
16. Additional Paid-In Capital
Stock Options
In November 2006, the Company adopted the 2006 Stock Incentive
Plan ("Plan") for the purpose of issuing both Incentive Options and Nonqualified
Options to officers, employees, directors and eligible consultants of the
Company. A total of 2,000,000 shares of common stock are reserved for issuance
under this plan. Options may be granted under the Plan on terms and at prices as
determined by the Board of Directors or by the plan administrators appointed by
the Board of Directors, except that the options cannot be granted with an
exercise price of less than 75% of the fair market value of the common stock on
the date of the grant. Each option will be exercisable after the period or
periods specified in the option agreement, but no option may be exercised after
the expiration of 10 years from the date of grant.
During the second quarter of fiscal 2008, for the first time,
the Company granted 1,907,500 options to certain of its employees and directors
to purchase common shares. The stock options are exercisable at a range of $2.25
to $2.35 per share and have a vesting period of 24 months with 25% of the
options granted becoming exercisable every six months commencing from the date
of grant. On February 14, 2008 (see a) below) the Company revised the exercise
price to $0.50 per share.
The following summarizes the Plan position for the year:
Weighted
Average
Options
Exercise Price
Balance - January 31, 2007
-
$
-
Granted
1,907,500
2.25
Forfeited
(492,500
)
2.25
Balance - January 31, 2008 (see 16 a) below)
1,415,000
0.50
Granted
310,000
0.50
Exercised
Expired
Forfeited
(385,000
)
0.50
Balance - January 31, 2009
1,340,000
0.50
Options that can be exercised at January 31, 2008
381,250
2.26
Options that can be exercised at January 31, 2009
895,000
$
0.50
F-28
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
16. Additional Paid-In Capital (Cont'd)
Outstanding options
Exercisable options
Weighted average
outstanding
Weighted
Range of
Number of
maturity period
Number of
Average
Exercise Prices
options
period (years)
options
Exercise Price
$
0.50
1,045,000
8.30
783,750
$ 0.50
0.50
75,000
8.40
56,250
0.50
0.50
220,000
9.05
55,000
0.50
1,340,000
895,000
During the year ended January 31, 2009, the Company recognized
$1,201,829 in stock-based compensation for stock options in 2009 (2008 -
$1,088,828). As at January 31, 2009, the Company has $319,875 (2008 –
$1,521,705) of unrecognized stock-based compensation on these options.
The stock options were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following weighted
average assumptions:
Expected volatility
57%
Expected life
5.75 years
Risk-free interest rate
4.75 %
Dividend yield
Nil
Weighted average
      fair value of options at grant date
$
2.06
a) Modification of Exercise Price
On February 14, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price of the options issued and
outstanding pursuant to the Company's 2006 Stock Incentive Plan from $2.25 -
$2.35 to $0.50. This modification of the options to purchase common stock of the
Company was applied to a total of 1,415,000 options issued to employees and
Directors between May 18, 2007 and February 13, 2008.
F-29
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
16. Additional Paid-In Capital (Cont'd)
This modification will be accounted for by recording, over the
vesting period, the difference between the fair value immediately prior to the
modification and the fair value determined at the date of modification. As a
result of this modification, the Company recorded an incremental compensation
expense of $190,532 for the year ended January 31, 2009 and $27,300 will be
expensed over the remaining vesting period. The fair value was determined by the
Black Scholes valuation model using the following weighted average assumptions:
Expected volatility
76%
Expected life
5.38 years
Risk-free interest rate
2.71 %
Dividend yield
Nil
Weighted average
      fair value of options at modification date
$
0.30
b) Grant
On February 14, 2008, the Company issued a total of 45,000
stock purchase options to current employees and 190,000 options to current
Directors, vesting over a two year period, 25% every six months and vesting on
August 14, 2008, respectively. These options have an exercise price of $0.50,
and expire on February 14, 2018 with the exception of 100,000 options which
expire on August 14, 2018. As a result of the grant, the Company recorded a
compensation expense of $51,774 for the year ended January 31, 2009, and $5,759
will be expensed over the remaining vesting period.
The options were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following weighted
average assumptions:
Expected volatility
76%
Expected life
5.65 years
Risk-free interest rate
2.81%
Dividend yield
Nil
Weighted average
      fair value of options at grant date
$
0.306
On May 6, 2008, the Company issued a total of 75,000 stock
purchase options to the Company's Chief Financial Officer, vesting over a two
year period, 25% every six months. The options have an exercise price of $0.50
and expire on May 6, 2013. The Company recorded a compensation expense of $
8,453 for the year ended January 31, 2009, and will recognize the remaining
expense of $14,089 over the vesting period.
F-30
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
16. Additional Paid-In Capital (Cont'd)
The options were accounted for at their fair value as
determined by the Black Scholes valuation model, using the following
assumptions:
Expected volatility
76%
Expected life
3.25 years
Risk-free interest rate
4.58%
Dividend yield
Nil
Weighted average
      fair value of options at grant date
$
0.376
Warrants
a) Modifications of Exercise Price
On February 14, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price from $2.25 to $0.50 of the
common stock purchase warrants issued on May 18, 2007, as consulting fees, to a
member of the immediate family of the President and Chief Executive Officer of
the Company (100,000 warrants) and to a Director and the former Chief Financial
Officer of the Company (525,000 warrants).
This modification was accounted for by recording the difference
between the fair value immediately prior to the modification and the fair value
determined at the date of modification. As a result of this modification, the
Company recorded an incremental compensation expense of $110,000 for the year
ended January 31, 2009 as determined by the Black-Scholes-Merton valuation model
using the following assumptions:
Expected volatility
76%
Expected life
2.63 years
Risk-free interest rate
2.01 %
Dividend yield
Nil
Weighted average
      fair value of warrants at modification date
$
0.2161
On March 25, 2008, the Board of Directors of the Company,
authorized the modification of the exercise price from $1.00 to $0.50 of the
remaining 3,000,000 common share purchase warrants issued in 2006.
F-31
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
16. Additional Paid-In Capital (Cont'd)
This modification was accounted for by recording the difference
between the fair value immediately prior to the modification and the fair value
determined at the date of modification. As a result of this modification, the
Company recorded an incremental compensation expense of $50,700 for the year
ended January 31, 2009 as determined by the Black Scholes valuation model using
the following assumptions:
Expected volatility
104%
Expected life
4 months
Risk-free interest rate
1.24 %
Dividend yield
Nil
Weighted average
      fair value of warrants at modification date
$
0.0196
b) Grant and Exercise
On February 27, 2008, the Company granted as consulting fees a
total of 335,000 common share purchase warrants at $0.50 per share, vesting over
a four year period, 20% annually and 20% vesting immediately. The warrants
expire on February 27, 2013. As a result of the grant of warrants, the Company
recorded a consulting fee expense of $28,894 for the year ended January 31,
2009.
The warrants accounted for at their fair value as determined by
the Black Scholes valuation model, using the following assumptions:
Expected volatility
75%
Expected life
3.6 years
Risk-free interest rate
2.25 %
Dividend yield
Nil
Fair value of
      warrants at grant date
$
0.225
On March 5, 2008 the Company granted 250,000 common share
purchase warrants at $0.50 per share as part of the acquisition cost of Wes
Power Technology Inc. (note 8).
On April 15, 2008, the Company received $100,000 for the
exercise of 200,000 warrants granted on July 11, 2006. These shares were issued
from treasury on April 15, 2008.
On April 15, 2008, the Company received $Nil for the exercise
of 525,000 warrants granted on May 18, 2007. 262,500 shares were subsequently
issued on May 8, 2008 (note 15). An amount of $3 was credited to capital stock
from additional paid-in capital.
F-32
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
16. Additional Paid-In Capital (Cont'd)
On June 20, 2008, the Company granted as fees in the placement
of the Senior Secured Convertible Debentures, 240,000 common share purchase
warrants to a director of the Company, and 240,000 common share purchase
warrants to a debenture holder, both at $0.50 per share, vesting immediately.
The warrants expire on June 20, 2010. As a result of the grant of warrants, the
Company recorded a consulting fee expense of $173,472 for the year ended January
31, 2009.
The warrants accounted for at their fair value as determined by
the Black Scholes valuation model, using the following assumptions:
Expected volatility
99.5%
Expected life
2.0 years
Risk-free interest rate
2.88 %
Dividend yield
Nil
Fair value of
      warrants at grant date
$
0.0225
A summary of the activity in the Company's warrants during the
period is presented below:
Weighted
Number of
Average
Warrants
Exercise Price
Balance - January 31, 2007
5,150,000
$
1.00
Issued -
1,075,000
1.91
Exercised
(2,000,000
)
1.00
Forfeited
(150,000
)
1.00
Outstanding, as at January 31, 2008
4,075,000
0.60
Transactions during the period:
Issued
54,398,328
0.32
Exercised
(725,000
)
0.50
Expired
(2,800,000
)
0.50
Outstanding, as
      at January 31, 2009
54,948,328
$
0.33
F-33
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
16. Additional Paid-In Capital (Cont'd)
The following table provides additional information with
respect to outstanding warrants at January 31, 2009:
Weighted
Number of
Average
Grant Date
Expiry
      Date
Warrants
Exercise Price
May 18, 2007
May 2012
100,000
$
0.50
August 21, 2007
August 2009
250,000
1.80
October 25, 2007
October 2009
200,000
1.00
February 27, 2008
February 2013
335,000
0.50
March 5, 2008
March 2013
250,000
0.50
June 13, 2008 (note 12)
June 2014
53,333,328
0.31
June 20, 2008
June 2010
480,000
0.50
Balance –
      January 31, 2009
54,948,328
$
0.33
The aggregate intrinsic value of the outstanding and
exercisable warrants as at January 31, 2009 amounted to $Nil.
The intrinsic value of the warrants exercised as at January 31,
2009 amounted to $0.42 per warrant.
17. Income Taxes
Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for financial
statement purposes and the amounts used for income tax purposes. Significant
components of the Company's deferred tax liabilities and assets as of January
31, 2009 and 2008 are as follows:
2009
2008
Deferred tax assets:
Net operating losses carryforwards
$
2,076,000
$
1,649,000
Property
      and equipment, and intangible
41,000
24,000
Loan receivable and convertible debentures
539,000
96,000
Other
41,000
44,000
2,697,000
1,813,000
Valuation allowance
(2,697,000
)
(1,813,000
)
Net Deferred Tax Assets
$
-
$
-
F-34
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
17. Income Taxes (Cont'd)
There were Canadian, Provincial and U.S. net operating losses
of approximately $6,831,000 (2008 - $5,246,000), $6,526,000 (2007 - $4,941,000)
and $Nil (2008 – $Nil), respectively that may be applied against earnings of
future years. Utilization of the net operating losses is subject to significant
limitations imposed by the change in control provisions. A portion of the net
operating losses may expire before they can be utilized.
The reconciliation of the effective income tax rate, to the
statutory rate for the years ended January 31, 2009 and 2008 is as follows:
2009
2008
Statutory income tax rate
(31
)
%
(32
)
%
Non-deductible expenses
12
8
Non-deductible stock based compensation
      expense
5
19
Not taxable gain on disposition of a subsidiary
-
(22
)
Losses for which no deferred income tax has been recorded
14
29
Effective income
      tax rate
0
%
2
%
The Company does not expect its unrecognized tax benefits to
change significantly over the next twelve months.
Classification of Interest and Penalties
The Company's policy is to include interest and penalties
related to unrecognized tax benefits within the provision for income taxes.
The interest and penalties as of January 31, 2009 and for the
years ended January 31, 2008, 2007, 2006 and 2005 were $8,000.
Tax Years and Examination
The Company files tax returns in each jurisdiction in which it
is registered to do business. For each jurisdiction a statute of limitations
period exists. After a statute of limitations period expires, the respective tax
authorities may no longer assess additional income tax for the expired period.
Similarly, the Company is no longer eligible to file claims for refund for any
tax that it may have overpaid. The following table summarizes the Company's
major tax jurisdictions and the tax years that remain subject to examination by
these jurisdictions as of January 31, 2008:
Tax Jurisdictions
Tax
      Years
Federal - Canada
2003 and onward
Quebec - Canada
2003 and onward
F-35
ICP Solar Technologies Inc.
Notes to Consolidated Financial Statements
January 31, 2009
(Expressed in U.S. Funds)
18. Statement of Cash-Flows Information
2009
2008
Accounts receivable
$
407,702
$
711,750
Income taxes recoverable
-
654,147
Inventories
953,544
273,399
Prepaid expenses
73,957
133,806
Accounts payable and accrued liabilities
704,347
(324,791
)
Changes in non-cash operating element of working capital
$
2,139,550
$
1,448,311
Additional Cash Flow Information:
Interest paid
$
287,420
$
145,491
Income taxes recovered
-
(436,169
)
19. Loss Per Share
Basic loss per share is calculated based on the weighted
average number of shares outstanding during the year. The warrants, share-based
compensation and convertible notes have been excluded from the calculation of
diluted loss per share since they are anti-dilutive.
20. Major Customer
Sales to one customer amounted to approximately 12% (2008 –
13%) of total sales. Outstanding accounts receivable for this customer as at
January 31, 2009 accounted for approximately 14% (2008 – 5%) of total accounts
receivable.
21. Related Party Transactions
Included in selling, general and administrative expenses are
$761,458 (2008 - $1,490,233) for options granted to the Chief Executive Officer,
Chief Financial Officer and directors under the 2006 Stock Option Plan.
22. Subsequent Event
Effective April 29, 2009 the Company entered into an agreement with a
financial institution, Brome Financial Corporation, to factor up to
approximately $720,000 of its accounts receivable.
23. Comparative Figures
Certain reclassifications of 2008 amounts have been made to
facilitate comparison with the current year.
F-36
Consolidated Interim Balance Sheet
As At April 30, 2009
(Unaudited)
Expressed in U.S. Funds
April 30,
January 31,
2009
2009
Assets
Current
Cash
$
48,541
$
193,517
Accounts receivable
852,832
622,981
Inventories
1,194,763
1,492,808
Prepaid expenses
94,430
12,941
2,190,566
2,322,247
Property and Equipment
82,021
88,030
Intangible
(net of accumulated
      amortization of $ 67,710 (2009-$53,200)(note 5)
106,414
120,914
Loan Receivable,
net
      of $953,729 provision
-
-
Investment in Convertible Debt,
net of $967,600
      provision
1
1
$
2,379,002
$
2,531,192
Liabilities
Current
Accounts payable and accrued liabilities
1,993,057
1,648,019
Put option liability
67,555
67,555
Current portion of government grants payable
14,670
17,533
Senior Secured Convertible Debentures, less
unamortized
      discount of $1,864,464 (2009-$2,708,934)(note 6)
612,505
171,517
2,687,787
1,904,624
Put Warrant
( note 6)
7,741,000
3,600.000
Commitment s
(note 7)
Contingency
(note 8)
Shareholders' Equity
Capital Stock
(note 9)
366
351
Additional Paid-In Capital
(note 10)
16,840,664
16,157,548
Accumulated Other Comprehensive Loss
(1,005,625
)
(1,005,625
)
Accumulated Deficit
(23,885,190
)
(18,125,706
)
(8,049,785
)
(2,973,432
)
$
2,379,002
$
2,531,192
See accompanying notes
Approved on Behalf of the Board
____________________________
____________________________
F-37
ICP Solar Technologies Inc.
Consolidated Interim Statement of Shareholders' Equity
For the Three-Month Period Ended April
30, 2009
(Unaudited)
Expressed in U.S. Funds
Additional
Accumulated Other
Total
Capital
        Stock
Paid-In
Comprehensive
Accumulated
Shareholders'
Number
Amount
Capital
Loss
Deficit
Equity
Balance - January 31, 2009
35,061,995
$
351
$
16,157,548
$
(1,005,625
)
$
(18,125,706
)
$
(2,973,432
)
Conversion of debentures (note 9)
1,510,325
15
377,581
377,566
Stock-based compensation (note 10)
-
-
-
-
278,383
278,383
Warrants issued (note 10)
-
-
3,768
-
-
3,768
Modification of stock options (note 10)
-
-
-
-
23,399
23,399
Net loss
-
-
-
-
(5,759,484
)
(5,759,484
)
Balance - April 30, 2009
36,572,320
$
366
$
16,840,664
$
(1,005,625
)
$
(23,885,190
)
$
(8,049,785
)
See accompanying notes
F-38
ICP Solar Technologies Inc.
Consolidated Interim Statement of Operations and
Comprehensive Loss
(Unaudited)
Expressed in U.S. Funds
For the Three-Month
Period
      Ended April 30,
2009
2008
Net Sales
$
1,446,959
$
1,891,654
Cost of Sales
1,033,581
1,191,733
Gross Profit
413,378
699,921
Expenses
Selling,
      general and administrative
1,007,334
1,584,234
Depreciation
20,509
6,396
Research
      and development
41,899
38,248
Foreign exchange loss
37,186
5,986
1,106,928
1,634,864
Operating Loss
(693,550
)
(934,943
)
Interest expense
(78,016
)
(36,747
)
Interest expense on put warrants
(4,141,000
)
-
Interest income
-
4,763
Forgiveness of loan receivable
-
(88,973
)
Discount on senior secured convertible debentures
(846,918
)
-
Accretion of discount on convertible notes
-
(29,922
)
Discount on loan receivable
-
166,404
Accretion of discount on loan receivable
-
9,272
(5,065,934
)
24,797
Net Loss and Comprehensive Loss
$
(5,759,484
)
$
(910,146
)
Basic Weighted Average Number of Shares Outstanding
34,367,817
32,861,695
Basic and Diluted Loss Per Share (note 11)
$
(0.17
)
$
(0.03
)
See accompanying notes
F-39
ICP Solar Technologies Inc.
Consolidated Interim Statement of Cash Flows
(Unaudited)
Expressed in U.S. Funds
For the Three-Month
Period
      Ended April 30,
2009
2008
Funds Provided (Used) -
Operating
      Activities
Net loss
$
(5,759,484
)
$
(910,146
)
Depreciation
20,509
6,396
Foreign exchange loss
37,186
5,986
Interest expense on put warrants
4,141,000
-
Forgiveness of loan receivable
-
88,973
Accretion of discount on senior secured convertible
      debentures
846,918
-
Stock-based compensation
278,383
384,789
Warrants issued
3,768
17,588
Modification of warrants
-
160,700
Modification of stock options
23,399
119,056
Discount on loan receivable
-
(166,404
)
Accretion of discount on loan receivable
-
(9,272
)
Accretion of discount on convertible notes
-
29,922
Accretion
      of discount on convertible notes
-
29,922
(408,321
)
(272,412
)
Changes in non-cash operating elements of working
      capital
294,557
247,162
(113,764
)
(25,250
)
Financing Activities
Bank indebtedness
-
(44,407
)
Senior secured convertible debentures
75,398
-
Repayment of senior secured convertible
      debentures
(103,747
)
-
Common shares issued
-
100,000
Government grants payable
(2,863
)
(760
)
(31,212
)
54,833
For the Three-Month
Period
      Ended April 30,
2008
2007
Investing
      Activities
Term deposit
-
$
(4,624
)
Acquisition
      of Wes Power Technology Inc.
-
(25,001
)
Net cash provided from investing activities from
      continuing operations
-
(29,625
)
Decrease in Cash
(144,976
)
(42
)
Cash
Beginning of Period
193,517
20,967
End of Period
$
48,541
$
20,925
See accompanying notes
F-40
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
1.
Basis of Presentation
The accompanying unaudited financial statements have been
      prepared in accordance with U.S. generally accepted accounting principles
      for interim financial information and Rule 8-03 of Regulation S-X and are
      prepared using the same accounting policies as outlined in note 3 of ICP
      Solar Technologies Inc. ("ICP Solar") financial statements for the years
      ended January 31, 2009 and 2008. Accordingly, they do not include all of
      the information and footnotes required by generally accepted accounting
      principles for complete financial statements. In the opinion of
      management, all adjustments (consisting of normal recurring accruals)
      considered necessary for a fair presentation have been included. Operating
      results for the three months ended April 30, 2009 are not necessarily
      indicative of the results that may be expected for the year ended January
      31, 2010. The unaudited financial statements should be read in conjunction
      with the financial statements and notes thereto included in the ICP Solar
      audited financial statements for the years ended January 31, 2009 and
      2008.
2.
Going Concern
These consolidated financial statements
for the quarter ended April 30, 2009, were prepared under the assumption that
the Company will continue operations as a going concern.
The Company has reported a net loss of
$5,759,484 and negative cash flows from operating activities of $113,764 for the
quarter ended April 30, 2009 as well as net losses of $9,285,467, $4,222,738,
$2,626,565 and $1,396,672 and negative cash flows from operating activities of
$1,991,115, $1,380,799, $3,828,787, and $978,067 for the fiscal years ended
January 31, 2009, 2008, 2007 and 2006 respectively. As of April 30, 2009, the
Company had an accumulated deficit of $23,885,190, negative working capital of
$497,221 and cash and cash equivalents of $48,541. Until and unless the
Company's operations generate significant revenues and cash flow, we will
attempt to continue to fund operations from cash on hand and through the sources
of capital described below. The Company's long-term liquidity is contingent upon
achieving sales and positive cash flows from operating activities, and/or
obtaining additional financing. The most likely sources of financing include
private placements of the Company's equity or debt securities or bridge loans to
the Company from third-party lenders. Effective April 29, 2009 the Company entered into
an agreement with a financial institution to provide up to $720,000 in financing
based on its accounts receivable. The Company can give no assurances that any
additional capital that it is able to obtain will be sufficient to meet its
needs, or on terms favourable to it. During the fourth quarter of 2009, the
Company significantly reduced overhead expenditures, reduced product costs and
is continually expanding its customer pipeline. Management believes these
factors will contribute toward achieving profitability. Despite these
initiatives however, the Company still requires capital to sustain its existing
operations. The Company may, however, choose to raise additional capital before
January 31, 2010 to fund future development activities or to take advantage of
other strategic opportunities. This could include the securing of funds through
new strategic partnerships and/or the sale of common stock or other securities.
There can be no assurance that such capital will be available to the Company on
favourable terms, or at all. There are a number of risks and uncertainties
related to the Company's attempt to complete a financing or strategic partnering
arrangement that are outside its control. The Company may not be able to obtain
additional
F-41
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
2.
Going Concern (cont'd)
financing on terms acceptable to it, or at all. If the
      Company is unsuccessful at obtaining additional financing as needed, it
      may be required to significantly curtail or cease operations. The Company
      will need additional financing thereafter until it achieves profitability,
      if ever.
Should the Company be unable to continue as a going
      concern it may be unable to realize the carrying value of its assets and
      to meet its liabilities as they become due. These financial statements do
      not include any adjustments that may result from the outcome of this
      uncertainty.
3.
Summary of Significant Accounting Policies
Recently Issued Accounting Pronouncements
In April 2009, the FASB issued FSP No. FAS 107-1 and APB
      28-1, "Interim Disclosures about Fair Value of Financial Instruments"
      ("FSP FAS 107-1 and APB 28-1"). FSP FAS 107-1 and APB 28-1, amends FASB
      Statement No. 107, "Disclosures about Fair Value of Financial
      Instruments", to require disclosures about the fair value of financial
      instruments in interim as well as in annual financial statements. This FSP
      also amends APB Opinion No. 28, "Interim Financial Reporting", to require
      those disclosures in summarized financial information at interim reporting
      periods. These standards are effective for periods ending after June 15,
      2009 with early adoption permitted for periods ending after March 15,
      2009. The Company is currently evaluating the impact of this Statement on
      its (consolidated) financial statements.
In April 2009, the FASB issued FSP No. FAS 141 (R)-1,
      "Accounting for Assets Acquired and Liabilities Assumed in a Business
      Combination That Arise from Contingencies" ("FSP FAS 141 (R)-1"). FSP FAS
      141 (R)-1 amends and clarifies FASB No. 141 (revised 2007), "Business
      Combinations", to address application issues raised by preparers,
      auditors, and members of the legal profession on initial recognition and
      measurement, subsequent measurement and accounting, and disclosure of
      assets and liabilities arising from contingencies in a business
      combination. The adoption of FSP No. FAS 141 (R)-1 is not expected to have
      a material effect on the Company's financial position or results of
      operations.
In April 2009, the FASB issued FSP No. FAS 115-2,
      "Recognition and Presentation of Other-Than-Temporary Impairments" ("FSP
      115-2"), which provides additional guidance for determining whether an
      impairment is other- than-temporary to debt securities in the financial
      statements and requires disclosure of the total other-than- temporary
      impairment in the statement of earnings with an offset for the amount
      recognized in other comprehensive income. FSP 115-2 is effective for
      interim periods ending after June 15, 2009.The adoption of issued FSP No.
      FAS 115-2 is not expected to have a material effect on the Company's
      financial position or results of operations.
F-42
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
3.
Summary of Significant
      Accounting Policies (cont'd)
In April 2009, the Securities and Exchange Commission's
      ("SEC") Office of the Chief Accountant and Division of Corporation Finance
      issued SEC Staff Accounting Bulletin 111 ("SAB 111"). SAB 111 amends and
      replaces SAB Topic 5M, "Miscellaneous Accounting—Other Than Temporary
      Impairment of Certain Investments in Equity Securities" to reflect FSP FAS
      115-2 and FAS 124-2. This FSP provides guidance for assessing whether an
      impairment of a debt security is other than temporary, as well as how such
      impairments are presented and disclosed in the financial statements. The
      amended SAB Topic 5M maintains the prior staff views related to equity
      securities but has been amended to exclude debt securities from its scope.
      SAB 111 is effective upon the adoption of FSP FAS 115-2 and FAS 124-2.The
      adoption of issued SAB 111 is not expected to have a material effect on
      the Company's financial position or results of operations.
4.
Adoption of New Accounting Standards
Fair Value Measurements
SFAS 157 is effective for financial assets and
      liabilities in fiscal years beginning after November 15, 2007, and for
      non-financial assets and liabilities in fiscal years beginning after
      November 15, 2008. The Company adopted SFAS 157 for financial assets and
      liabilities in the first quarter of fiscal 2009 with no material impact to
      the consolidated financial statements. The Company adopted SFAS for
      non-financial assets and liabilities in the first quarter of fiscal 2010
      with no material impact on the consolidated financial statements.
SFAS No. 157 applies to all assets and liabilities that
      are being measured and reported on a fair value basis. SFAS No. 157
      requires new disclosure that establishes a framework for measuring fair
      value in GAAP, and expands disclosure about fair value measurements. This
      statement enables the reader of the financial statements to assess the
      inputs used to develop those measurements by establishing a hierarchy for
      ranking the quality and reliability of the information used to determine
      fair values. The statement requires that assets and liabilities carried at
      fair value be classified and disclosed in one of the following three
      categories:
Level 1:     
Quoted market prices in active markets for identical assets or liabilities.
Level 2:     
Observable market based inputs or unobservable inputs that are corroborated by
market data.
Level 3:     
Unobservable inputs that are not corroborated by market data.
In determining the appropriate levels,
the Company performs a detailed analysis of the assets and liabilities that are
subject to SFAS No. 157. At each reporting period, all assets and liabilities
for which the fair value measurement is based on significant unobservable inputs
are classified as Level 3.
F-43
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
4.
Adoption of New Accounting
      Standards (cont'd)
Fair Value of Financial
      Instruments
The table below presents the carrying value and fair
      value of Company's financial instruments. The disclosure excludes leases.
The fair value represents management's best estimates
      based on a range of methodologies and assumptions. The carrying value of
      receivables and payables arising in the ordinary course of business, the
      term deposit, and the government grants payables approximate fair value
      because of the relatively short period of time between their origination
      and expected realization.
April 30,
2009
January
      31, 2009
Carrying
Estimated
Carrying
Estimated
Value
Fair Value
Value
Fair
      Value
Financial assets
Cash
$
48,541
$
48,541
$
193,517
$
193,517
Financial liabilities
Accounts payable and accrued
      liabilities
1,993,057
1,993,057
1,648,023
1,648,023
Government grants payable
14,670
14,670
17,533
17,533
Convertible debentures
2,470,970
2,470,970
2,880,450
2,880,450
Put warrants
7,741,000
7,741,000
3,600,000
3,600,000
Put option liability
67,555
67,555
67,555
67,555
F-44
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
4.
Adoption of New Accounting Standards
    (Cont'd)
Fair
      Value Measurement at April 30, 2009 Using
Quoted Prices in
Active Markets
Significant Other
Significant
For Identical
Observable
Unobservable
Assets
Inputs
Inputs
Description
(Level 1)
(Level 2)
(Level 3)
Put warrants
$
7,741,000
Put option liability
67,555
The fair value represents management's
best estimates based on a range of methodologies and assumptions. The carrying
value of receivables and payables arising in the ordinary course of business,
the term deposit and the government grants payables approximate fair value
because of the relatively short period of time between their origination and
expected realization.
The convertible debentures use
significant unobservable inputs and thus are shown as Level 3 hierarchy items.
The fair value of the convertible debenture is calculated by discounting the
stream of future payments of interest and principal at the prevailing market
rate for a similar liability that does not have an associated equity component.
Results of discounted cash flow calculations may be adjusted, as appropriate, to
reflect other market conditions or the perceived changes in credit risk of the
borrower. Put warrants were valued using the binomial method.
Put option liability was recorded as
the value of the exercise price multiplied by the number of put options.
F-45
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
5.
Acquisition of WES Power Technology Inc.
      ("WES")
On March 5, 2008, the Company acquired all the issued and
      outstanding shares of WES.
The excess consideration of $174,114 paid over the
      purchase price is accounted for as an intangible asset and is being
      amortized over a 3 year period.
Following is a table which represents the pro-forma
      consolidated statement of operations as if the acquisition of WES Power
      Technology Inc. had taken place on February 1,
2008.
Pro-forma Consolidated Statement of Operations
Wes
Technology Acquisition
Three –month Period Ended
April 30, 2009
ICP Solar
Wes Power
Technology
Technologies Inc.
Inc.
Total
Sales
$
1,446,959
$
-
$
1,446,959
Expenses
7,195,548
10,895
7,206,443
Net Loss
$
(5,748,589
)
$
(10,895
)
$
(5,759,484
)
Three month Period Year Ended
April
30, 2008
ICP Solar
Wes Power
Technologies Inc.
Technology Inc.
Total
Sales
$
1,891,654
$
17,054
$
1,908,708
Expenses
2,798,647
78,241
2,876,888
Net
      Loss
$
(906,993
)
$
( 61,187
)
$
(968,180
)
F-46
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
6.
Senior Secured Convertible Debentures
During the first quarter of 2010 1,510,325 common shares (see note 9) were issued on conversion of approximately $378,000 of senior secured convertible debenture ("SSCD") and accrued interest.
For the quarter ended April 30, 2009, approximately $75,000 of interest has been accrued, and $847,000 of the discount on the debt has been accreted.
The Company had agreed to remit to the holders 10% of its weekly collections commencing on February 1, 2009 until May 31, 2009 and any and all monthly receipts on the Loan Receivable (from Epod) until the SSCD have been repaid in
full. Beginning on June 1, 2009 the Company will make thirteen equal monthly repayments of approximately $180,000. At June 1, 2009 the Company had not commenced capital repayments.
It shall constitute an event of default if the Company's revenues for the fiscal quarter ended April 30, 2009 are less than $1,500,000 or the Company's revenues for the fiscal quarter ended July 31, 2009 are less
than $2,000,000 or the Company's EBITDA for the fiscal quarter ended July 31, 2009 is less than $(125,000) or if the Company's accounts payable balance shall have exceeded $1,750,000 at any time until maturity or if the Company
breaches any term or condition of the Amendment Agreement of December 31, 2008 The Company is in default of the revenues for the first quarter ended April 30,2009, the accounts payable balance as well as the capital repayment requirement above and
has obtained a waiver from the senior secured convertible debenture holders for all defaults.
Substantially all of the assets of the Company have been pledged as security. .
Registration Rights
In connection with the issuance of the SSCD, the Company is required to file a Registration Statement to register the shares issuable upon exercise of the additional warrants. The Company will be obligated to pay the holders of
the SSCD certain liquidation damages in the event the shares are not registered by July
31, 2009. Liquidated damages would amount to 2% of the aggregate purchase price paid by the debenture holders.
Put Warrant
During the first quarter of 2009, the Company has recognized $4,141,000 (2009-nil) as interest on put warrants and at April 30, 2009 a liability of $7,741,000 has been recorded. This liability exists due to a requirement
for the Company, in the event of a major transaction, to repurchase the $53,333,328 warrants held by the SSCD holders at April 30, 2009. The Company estimates that it is unlikely that any such major transaction will be occurring now or in the
foreseeable future. If no such transaction occurs before the expiry of the warrants on June 13, 2014 the liability shown at that time will be written off and recognized into income. The binomial method has been used to value these put warrants.
F-47
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
7.
Commitments
The Company leases its premises at $5,750 per quarter
      exclusive of occupancy and escalation charges, under an operating lease,
      expiring in 2012.
In accordance with a royalty agreement terminating in
      2012, the Company is committed to quarterly minimum advertising
      expenditures and royalty fees of $32,000.
8.
Contingency
The Company is involved in litigations and claims which
      arise from time to time in the normal course of business amounting to
      approximately $178,000. In the opinion of management, any liability that
      may arise from such contingencies would not have a significant adverse
      effect on the financial statements of the Company.
9.
Capital Stock
April 30,
January 31,
2009
2009
Authorized without limit as to number -
100,000,000 common shares authorized,
      $0.00001 par value
100,000,000 preferred shares authorized, $0.00001 par value
Issued -
36,572,320 (2009 -
      35,061,995) common shares
$
366
$
351
On March 4, 2009, the Company issued
200,000 shares of common stock upon conversion of $50,000 of Senior Secured Convertible
Debenture.
F-48
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
9.
Capital Stock (cont'd)
On April 8, 2009, the Company issued 100,000 shares of common
stock k upon conversion of $25,000 of accrued interest on a Senior Secured
Convertible Debenture.
On April 20, 2009, the Company issued 800,000 shares of common stock on conversion of $200,000 of

Senior Secured Convertible Debenture.
On April 24, 2009, the Company issued 410,325 shares of common stock
upon conversion of approximately $102,600 of  Senior Secured Convertible Debenture.
10.
Additional Paid-In Capital
Stock Options
During the first quarter of 2010, the Company recognized the following stock based compensation expense:
-$274,179 (2009 - $364,276) for stock options granted in fiscal 2008. As at April 30, 2009, the Company has $45,697 (2009 - $837,553) of unrecognized stock-based compensation.
-$23,400 (2009 -$119,056) for the February 14, 2008 modification of exercise price to $0.50 and $ 3,900 (2009- $98,776) will be expensed over the remaining vesting period.
-$1,387 (2009-$20,513) for February 14, 2008 grants, and $4,392 (2009-$37,040), will be expensed over the remaining vesting period.
-$2,818 (2009-$nil) for May 6, 2008 grants, and $11,271 (2009-nil), will be expensed over the remaining vesting period.
F-49
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
10.
Additional Paid-In Capital (Cont'd)
The following summarizes the Plan position for the
      quarter:
Weighted
Average
Options
Exercise Price
Balance - January 31, 2009
1,340,000
$
0.50
Granted
450,000
0.25
Balance - April
      30, 2009
1,790,000
0.44
Options that can
      be exercised at April 30, 2009
895,000
$
0.50
Warrants
During the first quarter of 2010, the
Company recognized the following consulting expense:
-$ nil (2009-$110,000) for the February
14, 2008 modification of exercise price for warrants granted to related parties.
-$3,769 (2009- $17,588) for the
February 27, 2008 grant, $38,944 (2009 $57,787) will be expensed over the
remaining vesting period.
During the first quarter the Company
recognized as stock based compensation expense:
-$ nil (2009-$50,700) for the February
14, 2008 modification of exercise price for the 3,000,000 remaining outstanding
warrants.
F-50
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
10.
Additional Paid-In Capital (Cont'd)
A summary of the activity in the Company's warrants
      during the period is presented below:
Weighted
Average
Exercise Price
Outstanding, as at January 31, 2009
54,948,328
$
0.33
Transactions during the period:
Issued
-
-
Exercised
-
-
Expired
-
-
Outstanding, as at
      April 30, 2009
54,948,328
$
0.33
The following table provides additional
information with respect to outstanding warrants at April 30, 2009:
Weighted
Number of
Average
Grant Date
Expiry Date
Warrants
Exercise Price
May 18, 2007
May 2012
100,000
$
0.50
August 21, 2007
August 2009
250,000
1.80
October 25, 2007
October 2009
200,000
1.00
February 27, 2008
February 2013
335,000
0.50
March 5, 2008
March 2013
250,000
0.50
June 13, 2008 (note 12)
June 2014
53,333,328
0.31
June 20, 2008
June 2010
480,000
0.50
Balance – April
      30, 2009
54,948,328
$
0.33
The aggregate intrinsic value of the
outstanding and exercisable warrants as at April 30, 2009 amounted to $Nil.
F-51
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
11.
Loss per Share
Basic loss per share is calculated based on the weighted
      average number of shares outstanding during the year. The warrants,
      share-based compensation and Senior Secured Convertible Debentures have
      been excluded from the calculation of diluted loss per share since they
      are anti-dilutive.
12.
Related Party Transactions
Included in selling, general and administrative expenses
      are $173,000 (2009 - $368,000) for the first quarter for options granted
      to the CEO, CFO, and directors under the 2006 Stock Option Plan.
During the quarter the Company incurred consulting fees
      of $ 12,000 (2009- $12,000) to a company in which the director is a
      shareholder.
The above related party transactions have been measured
      at the exchange amount which is the amount of the consideration
      established and agreed to by the related parties.
13.
Subsequent Events
Pursuant to the Company's agreements with Senior Secured
      Convertible Debenture Holders, in the case where the Company does not
      reach certain thresholds in sales and EBITDA for the quarter ended April
      30, 2009, the conversion price on the $2,476,969 in outstanding debentures
      of $ 0.25 per share , and the exercise price on the 13,333,332 Series A
      and 26,6666,666 Series B Warrants of .$0.25 per share and 13,333,332
      Series C warrants of $0.50/share will change to a lower of:
1) a weighted average of the previous five days market
      price at April 30,2009 and
2) a weighted average of the previous five days market
      price five trading days after filing of the Company's fiscal 2010 first
      quarter 10Q report with the SEC.
At April 30, 2009 the Company did not meet the threshold
      mentioned above therefore the conversion price and exercise price would
      have been changed to $0.19 per share however the Company had agreed that
      the Senior Secured Convertible Debenture Holders may convert recent
      conversions at $0.14 per share. In the case where the weight average price
      after the 10Q filing is less than the converted price of $0.14 per share
      then all conversions subsequent to April 30, 2009 will be adjusted to the
      new exercise price and additional shares, if necessary will be issued.
13.
Subsequent Events (cont'd)
On May 11, 2009 the company issued 368,000 common shares
      at a value of approximately $49,000 to a director as consideration for
      obtaining a factoring agreement with a financial institution. This $49,000
      has been accrued as professional fees at April 30, 2009.
F-52
ICP Solar Technologies Inc.
Notes to Consolidated Interim Financial Statements
April 30, 2009
(Unaudited)
Expressed in U.S. Funds
On May 12, 2009 a Senior Secured
Convertible Debenture Holder converted approximately $78,000 at a conversion
price of $0.14 for 552,576 common shares.
On May 13, 2009 the Company issued
463,581 common shares to a director for approximately $60,000 as payment for
consulting services previously provided for and owed to a company in which the
director is a shareholder. In relation to these common shares a put option was
also granted at a value of approximately 60,000 whereby the holder has an option
to have the company repurchase any or all of the common shares at a price of
$0.13/share during the period June 22, 2009 to June 22, 2010.
On May 22, 2009 a Senior Secured
Convertible Debenture Holder converted $25,000 at a conversion price of $0.14
for 178,571 common shares.
On June 8, 2009 Senior Secured
Convertible Debenture Holder converted a total of approximately $128,000 at a
conversion price of $0.14 for 916,781 common shares.
F-53
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the various expenses incurred in
connection with the sale and distribution of the securities described in this
registration statement, all of which will be borne by ICP Solar (not including
any underwriting discounts and commissions and expenses incurred by the selling
stockholders for brokerage, accounting, tax, or legal services or any other
expenses incurred by the selling stockholders in disposing of the shares). All
amounts shown are estimates, except the Securities and Exchange Commission
registration fee.
Securities and Exchange registration fee
$
477.96
Legal fees and expenses
$
15,000
Accounting fees and expenses
$
5,000.
Total
$
20,477.96
ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Our officers and directors may be indemnified as provided by
the Nevada Revised Statutes ("NRS"), our Articles of Incorporation and our
bylaws.
Chapter 78 of the NRS, pertaining to private corporations,
provides that we are required to indemnify our officers and directors to the
extent that they are successful in defending any actions or claims brought
against them as a result of serving in that position, including criminal, civil,
administrative or investigative actions and actions brought by or on our behalf.
Chapter 78 of the NRS further provides that we are permitted to
indemnify our officers and directors for criminal, civil, administrative or
investigative actions brought against them by third parties and for actions
brought by or on our behalf, even if they are unsuccessful in defending that
action, if the officer or director:
is not found liable for a breach of his or her fiduciary
duties as an officer or director or to have engaged in intentional misconduct,
fraud or a knowing violation of the law; or
acted in good faith and in a manner which he reasonably
believed to be in or not opposed to the our best interests, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful;
provided, however, that with respect to actions brought by or
on our behalf against our officers or directors, we are not permitted to
indemnify our officers or directors where they are adjudged by a court, after
the exhaustion of all appeals, to be liable to us or for amounts paid in
settlement to us, unless, and only to the extent that, a court determines that
the officers or directors are entitled to be indemnified. Our Articles of
Incorporation and our bylaws provide that we are required to indemnify our
officers and directors to the full extent permitted by the laws of Nevada. Our
Articles of Incorporation and our bylaws further provide that we are required to
pay the costs of defending against any litigation brought against out officers
and directors as they are incurred and in advance of a final disposition on the
matter, so long as such officer or director provides us with an undertaking to
repay those amounts should a court of competent jurisdiction determine that he
or she is not entitled to be indemnified by us.
The NRS and our Articles of Incorporation and our bylaws
further provide that we are permitted, but not required, to purchase and
maintain insurance on behalf of our officers or directors, regardless of whether
we have the authority to indemnify them against such liabilities or expenses.
II-1
ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES
We completed the following sales of securities that were not
registered pursuant to the Securities Act:
In May 2006, our Board of Directors approved an offering of up
to 5,000,000 units at $1.00 per unit for gross proceeds of up to $5,000,000.
Each unit consisted of one share and one share purchase warrant entitling the
holder to purchase one share of our common stock at a price of $1.00 per share
during the period ending eighteen months from the date of issuance in reliance
on the exemption from the registration requirements of the Securities Act
provided under Regulation S promulgated thereunder ("Regulation S"). On July 11,
2006 we issued 2,500,000 units to 5 subscribers for gross proceeds of
$2,500,000. Each purchaser represented to us that they were not a "US person" as
defined in Regulation S. We did not engage in a distribution of this offering in
the United States. The purchaser represented their intention to acquire the
securities for investment only and not with a view toward distribution.
Appropriate legends were affixed to the stock certificate issued to each
purchaser in accordance with Regulation S. No finder's fees were paid in
connection with the distribution. On January 11, 2008, our board of directors
approved the extension of the term of the warrants issued on July 11, 2006 by
six months.
In June 2006, our Board of Directors approved an offering to
investors (the "Note Offering") of up to 3,000 Units (each a "Unit") at a price
of $1,000 US per Unit for gross proceeds of up to $3,000,000, with each Unit
consisting of one 8% Convertible Note in the principal amount of $1,000 US, and
one thousand share purchase warrants (the "Warrants"), with each Warrant
entitling the holder thereof to purchase one additional share of our common
stock for a period of 18 months following the closing of the Note Offering. On
July 11, 2006, we completed the issuance of 2,500 Units for gross proceeds of
$2,500,000 to three subscribers in reliance on the exemption from the
registration requirements of the Securities Act provided under Regulation S.
Each purchaser represented to us that they were not a "US person" as defined in
Regulation S. We did not engage in a distribution of this offering in the United
States. The purchaser represented their intention to acquire the securities for
investment only and not with a view toward distribution. Appropriate legends
were affixed to the stock certificate and convertible notes issued to each
purchaser in accordance with Regulation S. No finder's fees were paid in
connection with the distribution. On January 11, 2008, our Board of Directors
approved the extension of the term of the warrants issued on July 11, 2006 by
six months.
On October 6, 2006, the Company granted an aggregate of 150,000
warrants to purchase shares of our common stock, as follows: (i) 50,000 warrants
to Craig Leon, (ii) 50,000 warrants to Chris Maverick, and (iii) 50,000 warrants
to Anne Ewe. The warrants were granted at an exercise price of $1.00 per share,
in reliance on the exemption from the registration requirements of the
Securities Act provided under Regulation S. These warrants were due to expire on
October 3, 2008 and were issued in payment of consulting fees. Each of Mr. Leon,
Mr. Maverick and Ms. Ewe, represented to us that he or she was not a "US person"
as defined in Regulation S. We did not engage in a distribution of this offering
in the United States. Each of Mr. Leon, Mr. Maverick and Ms. Ewe represented his
or her intention to acquire the warrants for investment only and not with a view
toward distribution. Appropriate legends were affixed to the forms of warrant in
accordance with Regulation S. No finder's fees were paid in connection with the
issuance. The Company and each of Mr. Leon, Mr. Maverick and Ms. Ewe agreed to
cancel these warrants as of October 25, 2007, following which the Company issued
each of Mr. Leon, Mr. Maverick and Ms. Ewe, replacement warrants, as described
in the following paragraph.
On May 18, 2007, the Company granted 100,000 warrants at an
exercise price of $2.25, as consulting fees, to Mr. Philippe Peress, a brother
of Mr. Sass Peress, president and CEO of the Company. The warrants vested on
October 3, 2007. The total exercise price of the warrants is $225,000. On May
18, 2007 the Company granted 525,000 warrants at an exercise price of $2.25, as
consulting fees, to Mr. Joel Cohen a director and former CFO of the Company. The
warrants vested on October 3, 2007. The total exercise price of the warrants is
$1,181,250. On October 25, 2007, the Company issued warrants to purchase shares
of our common stock, at an exercise price of $1.00 with an expiry date on
October 25, 2009, as consulting fees to the following persons,: (i) Anne Ewe was
granted 100,000 warrants: (ii) Craig Leon was granted 25,000 warrants: and (iii)
Chris Maverick was granted 75,000 warrants. Each of the warrants described in
this paragraph were issued in reliance on the exemption from the registration
requirements of the Securities Act provided under Regulation S. Each holder
represented to us that they were not a "US person" as defined in Regulation S.
We did not engage in a distribution of this offering in the United States. The
holders represented their intention to acquire the warrants for investment only
and not with a view toward distribution. Appropriate legends were affixed to the
form of warrant and the warrant shares underlying the warrants issued to each
holder in accordance with Regulation S. No finder's fees were paid in connection
with the issuance.
II-2
On June 9, 2008 the Company's Board of Directors approved a
private placement offering in reliance upon the exemption from securities
registration afforded by Rule 506 under Regulation D promulgated under the
Securities Act of 1933, as amended (the "Securities Act") to investors resulting
in up to $3,000,00 in net proceeds to the Company. In connection with the
private placement, the Company issued to the participating investors 11% secured
convertible debentures, Series A warrants, Series B warrants and Series C
warrants. On June 13, 2008 (the "Closing Date"), the Company completed the
private placement offering for net proceeds of US $3,000,000 (the "Private
Placement"). The Private Placement consisted of (i) 11% senior secured
convertible debentures in the Company (the "Debentures"), issued at a 10%
discount with an aggregate face value of $3,333,333 and a maturity date of June
13, 2010, with interest payable monthly, convertible into shares of common stock
of the Company at an initial conversion price (subject to adjustment) of US
$0.50; (ii) 6,666,666 Series A purchase warrants each exercisable to purchase
one share of common stock of the Company, at an initial exercise price of US
$0.50 per share (subject to adjustment) for a period of 6 years from the date of
the Closing; (iii) 6,666,666 Series B purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date; and (iv) 6,666,666 Series C purchase warrants, each exercisable to
purchase one share of common stock of the Company at an initial exercise price
of US $1.00 per share (subject to adjustment) for a period of 6 years from the
Closing Date (the securities described in (ii) through (iv), collectively, the
"Warrants"). The Series C warrants may not be exercised until such time as all
of the Series B warrants have been exercised. See "Prospectus Summary – The
Offering – Background of the Offering" in the accompanying prospectus.
On December 31, 2008, the Company and the Buyers entered into
an Amendment Agreement (the "Amendment") to amend certain terms and conditions
of certain of the agreements entered into among the Company and the Buyers in
connection with the Private Placement. As a result of these amendments, among
other things, the exercise price of the Series A purchase warrants issued in the
Private Placement was reduced from $0.50 to $0.25, resulting in the issuance of
6,666,666 additional Series A warrants; the exercise price of the Series B
purchase warrants issued in the Private Placement was reduced from $0.50 to
$0.25, resulting in the issuance of 19,999,998 additional Series B warrants; the
exercise price of the Series C purchase warrants issued in the Private Placement
was reduced from $1.00 to $0.50, resulting in the issuance of 6,666,666
additional Series C warrants. See "Prospectus Summary – The Offering –
Background of the Offering" in the accompanying prospectus. We issued these
warrants under the exemption from registration provided by Section 4(2) of the
Securities Act and/or Rule 506 of Regulation D promulgated thereunder.
For our fiscal quarter ended April 30, 2009, the Company
failed to achieve certain milestones (as defined in the Debentures), as a result
of which the conversion price of the outstanding Debentures and the exercise
price for the Adjustment Warrants and the warrants issued in the Private
Placement was reduced to $0.14, the volume weighted average price of our common
stock during the five (5) consecutive trading days immediately preceding April
30, 2009. The reduction in the exercise price of the Adjustment Warrants and the
warrants issued in the Private Placement resulted in the issuance of the
following warrants effective June 21, 2009: (i) 10,476,197 additional Series A
Warrants ("Series A Additional Adjustment Warrants"), (ii) 20,952,386 additional
Series B warrants ("Series B Additional Adjustment Warrants") and (iii)
34,285,722 additional Series C warrants ("Series C Additional Adjustment
Warrants"). See "Prospectus Summary – The Offering – Background of the Offering"
in the accompanying prospectus. We issued these warrants under the exemption
from registration provided by Section 4(2) of the Securities Act and/or Rule 506
of Regulation D promulgated thereunder.
On June 20, 2008, finders' fees were issued to certain
finders that arranged for purchasers in connection with the private placement
which closed June 13, 2008, as follows: (i) the Company paid an amount of
$120,000 and issued warrants to purchase up to 240,000 shares of common stock at
an exercise price of $0.50 per share, expiring on June 20, 2010, to Joel Cohen,
a director of the Company. See "Certain Relationships and Related Party
Transactions" in the accompanying prospectus; and (ii) the Company paid an
amount of $120,000 and issued warrants to purchase up to 240,000 shares of
common stock at an exercise price of $0.50 per share, expiring on June 20, 2010,
to Bennu Capital Advisors Inc. We issued the warrants under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On January 9, 2009, the Company issued 200,000 shares of
common stock on conversion of $50,000 of the outstanding principal amount of the
Debentures. We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On January 20, 2009 as payment for services rendered by CCI
Financial Group Inc. the company issued 326,000 shares of common stock to Mr.
Joel Cohen, a director of the Company and a principal of CCI Financial Group
Inc., for a value of $47,000. In addition, the Company granted to Mr. Cohen put
options requiring the Company to repurchase all or some of these shares for a
purchase price of $0.1152 cents per share during the period June 20, 2009 to
June 20, 2010.
On January 22, 2009, the Company issued, 200,000 shares of
common stock as payment to suppliers for consulting fees. We issued these shares
of common stock under the exemption from registration provided by Section 4(2)
of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder
On January 22, 2009, the Company issued 200,000 shares of
common stock on conversion of $50,000 of the outstanding principal amount of the
Debentures. We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On March 4, 2009, the Company issued 200,000 shares of common
stock upon conversion of $50,000 of the outstanding principal amount of the
Debentures. We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On April 8, 2009, the Company issued 100,000 shares of common
stock as payment of $25,000 of accrued interest on the Debentures. We issued
these shares of common stock under the exemption from registration provided by
Section 4(2) of the Securities Act and/or Rule 506 of Regulation D promulgated
thereunder.
On April 20, 2009, the Company issued 800,000 shares of
common stock on conversion of $200,000 of the outstanding principal amount of
the Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On April 24, 2009, the Company issued 410,325 shares of
common stock upon conversion of approximately $102,600 of the outstanding
principal amount of Debentures. We issued these shares of common stock under the
exemption from registration provided by Section 4(2) of the Securities Act
and/or Rule 506 of Regulation D promulgated thereunder.
On May 13, 2009, as payment for services rendered by CCI
Financial Group Inc., the Company issued 463,581 shares of common stock to Joel
Cohen, a director of the Company and a principal of CCI Financial Group Inc. In
addition, the Company granted to Mr. Cohen put options requiring the Company to
repurchase all or some of these shares at a purchase price of $0.155 cents per
share during the period June 22, 2009 to June 22, 2010. We issued these shares
of common stock and put options under the exemption from registration provided
by Section 4(2) of the Securities Act and/or Rule 506 of Regulation D
promulgated thereunder
On May 13, 2009, the Company issued to Joel Cohen, a director
of the Company, 348,000 shares of common stock as a finder's fee in connection
services rendered by Mr. Cohen in connection with a financing based on the
Company's receivables(as described in note 22 to the Financial Statements for
the year ended January 31, 2009 in the accompanying prospectus). We issued these
shares of common stock under the exemption from registration provided by Section
4(2) of the Securities Act and/or Rule 506 of Regulation D promulgated
thereunder.
On May 22, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On June 8, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On June 13, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On June 16, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On July 2, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
On July 21, 2009, the Company issued 178,571 shares of common
stock upon conversion of $25,000 of the outstanding principal amount of
Debentures We issued these shares of common stock under the exemption from
registration provided by Section 4(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder.
II-3
ITEM 16. EXHIBITS
EXHIBIT INDEX
Exhibit
Number
Description of Exhibits
2.1
Share Exchange Agreement dated
      September 29, 2006. (8)
3.1
Amended Articles of Incorporation. (2)
3.2
Bylaws, as amended. (7)
4.1
Form of Share Certificate. (1)
4.2
Form of Common Stock Warrant
      Certificate dated July 11, 2006. (9)
4.3
Form of Warrant dated October 6, 2006. (9)
4.4
Warrants dated May 18, 2007
      issued to Philippe Peress. (14)
4.5
Warrants dated May 18, 2007 issued to Joel
      Cohen. (14)
4.6
Form of Warrant dated October
      25, 2007, issued to each of Chris Maverick, Anne Ewe, and Craig Leon. (16)
4.7
Notice of Extension of Warrants issued January
      11, 2008. (19)
4.8
Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (20)
5.1
Opinion of counsel as to legality of securities
      being registered. *
10.1
Term Sheet between FC Financial
      Services Inc. ("FC") and the stockholders of ICP Solar Technologies Inc.
      (4)
10.2
Loan Agreement between FC and ICP Solar
      Technologies Inc. (4)
10.3
Share Pledge Agreement dated
      May 16, 2006 among FC, Sass Peress, Peress Family Trust, Arlene Ades and
      Joel Cohen. (4)
10.4
Limited Recourse Guarantee dated May 16, 2006
      between Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in
      favor of FC. (4)
II-4
10.5
Promissory Note dated May 16, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (4)
10.6
Amendment 1 to Loan Agreement between FC and ICP Solar
      Technologies Inc dated July 4, 2006. (5)
10.7
Limited Recourse Guarantee dated July 4, 2006 between
      Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in favor of
      FC. (5)
10.8
Promissory Note dated July 4, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (5)
10.9
Form of 8% Convertible Note. (6)
10.10
Share Purchase Agreement dated September 29, 2006 among
      FC Financial Services Inc., ICP Solar Technologies Inc., Sass Peress, the
      Peress Family Trust, Arlene Ades, Joel Cohen, the Sass Peress Family
      Trust, Eastern Liquidity Partners Ltd., Taras Chebountchak, Orit Stolyar,
      and 1260491 Alberta Inc. (8)
10.11
Exchangeable Share Support Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer & Trust Company, Sass Peress, the Peress Family Trust, Arlene
      Ades, Joel Cohen, the Sass Peress Family Trust, and Eastern Liquidity
      Partners. (8)
10.12
Exchange and Trust Voting Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer & Trust Company, Sass Peress, Joel Cohen, Arlene Ades, the
      Sass Peress Family Trust, the Peress Family Trust, Eastern Liquidity
      Partners Ltd., Taras Chebountchak, and Orit Stolyar. (8)
10.13
Lease Agreement dated March 22, 2006 between 2631-1746
      Quebec Inc. and ICP Global Technologies Inc.(17)
10.14
Lease Agreement dated October 10, 2003 among Mardan
      (Norwich) Limited, ICP Solar Technologies UK Limited and ICP Global
      Technologies Inc. (17)
10.15
Employment Agreement dated November 6, 2005 between ICP
      Global Technologies Inc. and Arlene Ades.(17)
10.16
Consulting Agreement dated November 24, 2004 between ICP
      Solar Technologies Inc. and Michael Di Domenico.(17)
10.17
Consulting Agreement dated March 1, 2006 between ICP
      Solar Technologies Inc. and 6100864 Canada Inc. (17)
10.18
Management Agreement dated May 23, 2006 between ICP Solar
      Technologies Inc. and Les Enterprises Guy Lever Inc and Management
      Agreement Addendum dated August 23, 2006 between ICP Solar Technologies
      Inc. and Les Enterprises Guy Lever Inc. (9)
10.19
Fixed Rate Asset Loan dated July 28, 2006 between ICP
      Solar Technologies Inc. and HSBC Equipment Finance (UK)
  Limited.(17)
10.20
Line of Credit between ICP Global Technologies Inc. and
      Royal Bank of Canada dated May 6, 2005.(17)
10.21
Binding letter of intent between ICP Global Technologies
      Inc. and Tejas Solares. (10)
II-5
10.22
Binding letter of intent between ICP Solar Technologies
      Inc. and Discover Power Inc. (11)
10.23
ICP Solar Technologies Inc. 2006 Stock Incentive Plan,
      established November 1, 2006. (18)
10.24
Share Purchase Agreement between ICP Solar Technologies
      Inc. and ISE Solar LLC. dated May 9, 2007. (12)
10.25
Amendment to Share Purchase Agreement between ICP Solar
      Technologies Inc. and ISE Solar LLC dated May 10, 2007. (13)
10.26
Consultancy Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Gary Jones. (14)
10.27
Employment Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Tom Clark. (14)
10.28
Employment Agreement dated May 1, 2007 between ICP Solar
      Technologies Inc. and Laurent Lafite. (14)
10.29
Share Purchase Agreement between ICP Solar Technologies
      Inc. and WES Power Technology Inc. dated August 27, 2007. (15)
10.30
Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)
10.31
Subsidiary Guarantee, dated June 13, 2008, by ICP Solar
      Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies, ICP
      Global Technologies, Inc., and WES Power Technology, Inc. (20)
10.32
Form of Series A Warrant to Purchase Common Stock.
      (20)
10.33
Form of Series B Warrant to Purchase Common Stock.
      (20)
10.34
Form of Series C Warrant to Purchase Common Stock.
      (20)
10.35
Registration Rights Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)
10.36
Security Agreement, dated June 13, 2008, between ICP
      Solar Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies,
      ICP Global Technologies, Inc., WES Power Technology, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (20)
II-6
10.37
Form of Intellectual Property Security Agreement, dated
      June 13, 2008. (20)
10.38
Escrow Agreement, dated June 13, 2008, between ICP Solar
      Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master Fund,
      Ltd., Platinum Long Term Growth VI, LLC, and Burns & Levinson,
      LLP.(20)
10.39
Voting Agreement Letter, dated June 13, 2008, issued by
      Sass Peress to BridgePointe Master Fund Ltd., Gemini Master Fund, Ltd.,
      and Platinum Long Term Growth VI, LLC. (20)
10.40
Form of Lockup Agreement, dated June 13, 2008. (20)
10.41
Employment Agreement dated November 6, 2006 between ICP
      Solar Technologies Inc. and Leon Assayag. (21).
10.42
Employment Agreement dated April 23, 2007 between ICP
      Solar Technologies Inc. and Sass Peress (21)
10.43
Employment Agreement dated May 6, 2008 between ICP Solar
      Technologies Inc. and Sheldon Reinhart.(21)
10.44
Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC. (20)
10.45
Amended and Restated Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (22)
10.46
Amendment Agreement dated December 31, 2008, between ICP
      Solar Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master
      Fund, Ltd., and Platinum Long Term Growth VI, LLC. (22)
10.47
Amended and Restated Registration Rights Agreement, dated
      December 31, 2008, between ICP Solar Technologies, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (22)
10.48
Amended and Restated Security Agreement dated December
      31, 2008, between ICP Solar Technologies Inc., and each of its
      subsidiaries on the one hand and , BridgePointe Master Fund Ltd., Gemini
      Master Fund, Ltd., and Platinum Long Term Growth VI, LLC, on the other
      hand. (22)
10.49
Amended and Restated Form of Series A Warrant to Purchase
      Common Stock. (22)
10.50
Amended and Restated Form of Series B Warrant to Purchase
      Common Stock. (22)
10.51
Amended and Restated Form of Series C Warrant to Purchase
      Common Stock. (22)
16.1
Letter on change in certifying accountant. (9)
21.1
Subsidiaries of the Company. (9)
23.1
Consent of RSM Richter.*
II-7
23.2
Consent of Burns & Levinson LLP (included with
      Exhibit 5.1) *
99.1
Audit Committee Charter. (3)
99.2
Disclosure Committee Charter. (3)
* Filed herewith.
Notes
(1)
Filed with the SEC as an exhibit to our Registration
      Statement on Form SB-2 originally filed on March 11, 2004, as
    amended.
(2)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 1, 2005.
(3)
Filed with the SEC as an exhibit to our Current Report on
      Form 10-KSB filed on February 7, 2006.
(4)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on May 22, 2006.
(5)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on July 11, 2006.
(6)
Filed with the SEC as an exhibit to our Quarterly Report
      on Form 10-QSB filed on July 17, 2006.
(7)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on September 5, 2006.
(8)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on October 5, 2006.
(9)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 originally filed on November 14,
      2006.
(10)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 20, 2006.
(11)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on January 18, 2007.
(12)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on May 10, 2007.
(13)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K Amendment no.1 filed on May 16, 2007.
(14)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 Amendment No. 4, filed July 5,
      2007.
(15)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on August 28, 2007.
(16)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 filed January 30, 2008.
(17)
Previously filed with the SEC as an exhibit to our
      Quarterly Report on Form 10-QSB filed on October 23, 2006.
(18)
Previously filed with the SEC as an exhibit to our DEF
      14C filed on November 14, 2006.
(19)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 11, 2008.
(20)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on June 17, 2008.
(21)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form S-1 filed July 15, 2008.
(22)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 7,
2009.
II-8
Item 17. Undertakings
(a) 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 this registration statement. Notwithstanding 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; and
(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 purposes 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.
(c) 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 of 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.
II-9
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant has duly caused this Registration Statement on Form S-1 on its behalf
by the undersigned, thereunto duly authorized, on this 30
th
day of
July, 2009.
ICP SOLAR TECHNOLOGIES INC.
BY:
/s/
Sass Peress
Sass Peress, President, Chief Executive
Officer, Director
(Principal Executive Officer)
(Principal Accounting Officer)
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes
and appoints Sass Peress his true and lawful attorney-in-fact and agent, 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 each of said attorney-in-fact and agent
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 said attorney-in-fact and agent, or his 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 was signed by the following persons in the
capacities and on the dates indicated.
Signature
Title
Date
President, Chief Executive Officer,
July 30, 2009
/s/
Sass
      Peress
Chief Financial Officer, Director
Sass Peress
(Principal Executive Officer)
(Principal Accounting Officer)
/s/ Joel
      Cohen
Director
July 30, 2009
Joel Cohen
/s/ Paul
      Maycock
Director
July 30, 2009
Paul Maycock
II-10
EXHIBIT INDEX
Exhibit
Number
Description of Exhibits
2.1
Share Exchange Agreement dated
      September 29, 2006. (8)
3.1
Amended Articles of Incorporation. (2)
3.2
Bylaws, as amended. (7)
4.1
Form of Share Certificate. (1)
4.2
Form of Common Stock Warrant
      Certificate dated July 11, 2006. (9)
4.3
Form of Warrant dated October 6, 2006. (9)
4.4
Warrants dated May 18, 2007
      issued to Philippe Peress. (14)
4.5
Warrants dated May 18, 2007 issued to Joel
      Cohen. (14)
4.6
Form of Warrant dated October
      25, 2007, issued to each of Chris Maverick, Anne Ewe, and Craig Leon. (16)
4.7
Notice of Extension of Warrants issued January
      11, 2008. (19)
4.8
Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (20)
5.1
Opinion of counsel as to legality of securities
      being registered. *
10.1
Term Sheet between FC Financial
      Services Inc. ("FC") and the stockholders of ICP Solar Technologies Inc.
      (4)
10.2
Loan Agreement between FC and ICP Solar
      Technologies Inc. (4)
10.3
Share Pledge Agreement dated
      May 16, 2006 among FC, Sass Peress, Peress Family Trust, Arlene Ades and
      Joel Cohen. (4)
II-11
10.4
Limited Recourse Guarantee dated May 16, 2006 between
      Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in favor of
      FC. (4)
10.5
Promissory Note dated May 16, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (4)
10.6
Amendment 1 to Loan Agreement between FC and ICP Solar
      Technologies Inc dated July 4, 2006. (5)
10.7
Limited Recourse Guarantee dated July 4, 2006 between
      Sass Peress, Arlene Ades, Joel Cohen and Peress Family Trust in favor of
      FC. (5)
10.8
Promissory Note dated July 4, 2006 of ICP Solar
      Technologies Inc. in favor of FC. (5)
10.9
Form of 8% Convertible Note. (6)
10.10
Share Purchase Agreement dated September 29, 2006 among
      FC Financial Services Inc., ICP Solar Technologies Inc., Sass Peress, the
      Peress Family Trust, Arlene Ades, Joel Cohen, the Sass Peress Family
      Trust, Eastern Liquidity Partners Ltd., Taras Chebountchak, Orit Stolyar,
      and 1260491 Alberta Inc. (8)
10.11
Exchangeable Share Support Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer & Trust Company, Sass Peress, the Peress Family Trust, Arlene
      Ades, Joel Cohen, the Sass Peress Family Trust, and Eastern Liquidity
      Partners. (8)
10.12
Exchange and Trust Voting Agreement dated September 29,
      2006 among FC Financial Services Inc., 1260491 Alberta Inc., Equity
      Transfer & Trust Company, Sass Peress, Joel Cohen, Arlene Ades, the
      Sass Peress Family Trust, the Peress Family Trust, Eastern Liquidity
      Partners Ltd., Taras Chebountchak, and Orit Stolyar. (8)
10.13
Lease Agreement dated March 22, 2006 between 2631-1746
      Quebec Inc. and ICP Global Technologies Inc.(17)
10.14
Lease Agreement dated October 10, 2003 among Mardan
      (Norwich) Limited, ICP Solar Technologies UK Limited and ICP Global
      Technologies Inc. (17)
10.15
Employment Agreement dated November 6, 2005 between ICP
      Global Technologies Inc. and Arlene Ades.(17)
10.16
Consulting Agreement dated November 24, 2004 between ICP
      Solar Technologies Inc. and Michael Di Domenico.(17)
10.17
Consulting Agreement dated March 1, 2006 between ICP
      Solar Technologies Inc. and 6100864 Canada Inc. (17)
10.18
Management Agreement dated May 23, 2006 between ICP Solar
      Technologies Inc. and Les Enterprises Guy Lever Inc and Management
      Agreement Addendum dated August 23, 2006 between ICP Solar Technologies
      Inc. and Les Enterprises Guy Lever Inc. (9)
10.19
Fixed Rate Asset Loan dated July 28, 2006 between ICP
      Solar Technologies Inc. and HSBC Equipment Finance (UK)
  Limited.(17)
10.20
Line of Credit between ICP Global Technologies Inc. and
      Royal Bank of Canada dated May 6, 2008 (17)
II-12
10.21
Binding letter of intent between ICP Global Technologies
      Inc. and Tejas Solares. (10)
10.22
Binding letter of intent between ICP Solar Technologies
      Inc. and Discover Power Inc. (11)
10.23
ICP Solar Technologies Inc. 2006 Stock Incentive Plan,
      established November 1, 2006. (18)
10.24
Share Purchase Agreement between ICP Solar Technologies
      Inc. and ISE Solar LLC. dated May 9, 2007. (12)
10.25
Amendment to Share Purchase Agreement between ICP Solar
      Technologies Inc. and ISE Solar LLC dated May 10, 2007. (13)
10.26
Consultancy Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Gary Jones. (14)
10.27
Employment Agreement dated June 13, 2007 between ICP
      Solar Technologies Inc. and Tom Clark. (14)
10.28
Employment Agreement dated May 1, 2007 between ICP Solar
      Technologies Inc. and Laurent Lafite. (14)
10.29
Share Purchase Agreement between ICP Solar Technologies
      Inc. and WES Power Technology Inc. dated August 27, 2007. (15)
10.30
Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)
10.31
Subsidiary Guarantee, dated June 13, 2008, by ICP Solar
      Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies, ICP
      Global Technologies, Inc., and WES Power Technology, Inc. (20)
10.32
Form of Series A Warrant to Purchase Common Stock.
      (20)
10.33
Form of Series B Warrant to Purchase Common Stock.
      (20)
10.34
Form of Series C Warrant to Purchase Common Stock.
      (20)
10.35
Registration Rights Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC.
    (20)
10.36
Security Agreement, dated June 13, 2008, between ICP
      Solar Technologies, Inc., 1260491 Alberta, Inc., ICP Solar Technologies,
      ICP Global Technologies, Inc., WES Power Technology, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (20)
II-13
10.37
Form of Intellectual Property Security Agreement, dated
      June 13, 2008. (20)
10.38
Escrow Agreement, dated June 13, 2008, between ICP Solar
      Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master Fund,
      Ltd., Platinum Long Term Growth VI, LLC, and Burns & Levinson,
      LLP.(20)
10.39
Voting Agreement Letter, dated June 13, 2008, issued by
      Sass Peress to BridgePointe Master Fund Ltd., Gemini Master Fund, Ltd.,
      and Platinum Long Term Growth VI, LLC. (20)
10.40
Form of Lockup Agreement, dated June 13, 2008. (20)
10.41
Employment Agreement dated November 6, 2006 between ICP
      Solar Technologies Inc. and Leon Assayag. (21).
10.42
Employment Agreement dated April 23, 2007 between ICP
      Solar Technologies Inc. and Sass Peress (21)
10.43
Employment Agreement dated May 6, 2008 between ICP Solar
      Technologies Inc. and Sheldon Reinhart.(21)
10.44
Securities Purchase Agreement, dated June 13, 2008,
      between ICP Solar Technologies, Inc., BridgePointe Master Fund Ltd.,
      Gemini Master Fund, Ltd., and Platinum Long Term Growth VI, LLC. (20)
10.45
Amended and Restated Form of 11% Senior Secured
      Convertible Debenture Due June 13, 2010. (22)
10.46
Amendment Agreement dated December 31, 2008, between ICP
      Solar Technologies, Inc., BridgePointe Master Fund Ltd., Gemini Master
      Fund, Ltd., and Platinum Long Term Growth VI, LLC. (22)
10.47
Amended and Restated Registration Rights Agreement, dated
      December 31, 2008, between ICP Solar Technologies, Inc., BridgePointe
      Master Fund Ltd., Gemini Master Fund, Ltd., and Platinum Long Term Growth
      VI, LLC. (22)
10.48
Amended and Restated Security Agreement dated December
      31, 2008, between ICP Solar Technologies Inc., and each of its
      subsidiaries on the one hand and , BridgePointe Master Fund Ltd., Gemini
      Master Fund, Ltd., and Platinum Long Term Growth VI, LLC, on the other
      hand. (22)
10.49
Amended and Restated Form of Series A Warrant to Purchase
      Common Stock. (22)
10.50
Amended and Restated Form of Series B Warrant to Purchase
      Common Stock. (22)
10.51
Amended and Restated Form of Series C Warrant to Purchase
      Common Stock. (22)
16.1
Letter on change in certifying accountant. (9)
21.1
Subsidiaries of the Company. (9)
23.1
Consent of RSM Richter.*
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23.2
Consent of Burns & Levinson LLP (included with
      Exhibit 5.1) *
99.1
Audit Committee Charter. (3)
99.2
Disclosure Committee Charter. (3)
* Filed herewith.
Notes
(1)
Filed with the SEC as an exhibit to our Registration
      Statement on Form SB-2 originally filed on March 11, 2004, as
    amended.
(2)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 1, 2005.
(3)
Filed with the SEC as an exhibit to our Current Report on
      Form 10-KSB filed on February 7, 2006.
(4)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on May 22, 2006.
(5)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on July 11, 2006.
(6)
Filed with the SEC as an exhibit to our Quarterly Report
      on Form 10-QSB filed on July 17, 2006.
(7)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on September 5, 2006.
(8)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on October 5, 2006.
(9)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 originally filed on November 14,
      2006.
(10)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on December 20, 2006.
(11)
Filed with the SEC as an exhibit to our Current Report on
      Form 8-K filed on January 18, 2007.
(12)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on May 10, 2007.
(13)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K Amendment no.1 filed on May 16, 2007.
(14)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 Amendment No. 4, filed July 5,
      2007.
(15)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on August 28, 2007.
(16)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form SB-2 filed January 30, 2008.
(17)
Previously filed with the SEC as an exhibit to our
      Quarterly Report on Form 10-QSB filed on October 23, 2006.
(18)
Previously filed with the SEC as an exhibit to our DEF
      14C filed on November 14, 2006.
(19)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 11, 2008.
(20)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on June 17, 2008.
(21)
Previously filed with the SEC as an exhibit to our
      Registration Statement on Form S-1 filed July 15, 2008.
(22)
Previously filed with the SEC as an exhibit to our
      Current Report on Form 8-K filed on January 7,
2009.
II-15