<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange
Commission on July 11, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. ____________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 12pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>FORM S-1</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>EUROSITE
POWER INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified
in its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 30%; vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 2%; vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 36%; vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">4931</TD>
    <TD STYLE="width: 2%; vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 30%; vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">27-5250881</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">(State
    or other jurisdiction of</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">(Primary
    Standard Industrial</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">(I.R.S.
    Employer</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">incorporation
    or organization)</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">Classification
    Code Number)</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">Identification
    No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EuroSite Power Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>45 First Avenue </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Waltham, MA 02451</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(781) 622-1120</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address, including zip code, and telephone
number,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">including area code, of registrant&rsquo;s
principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="width: 50%; vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 49%; vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">Copies
    to:</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">Anthony
    S. Loumidis</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center"><B>Edwin
    L. Miller Jr.</B>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">Chief
    Financial Officer</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">Sullivan
    &amp; Worcester LLP</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">EuroSite
    Power Inc.</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">One
    Post Office Square</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">45
    First Avenue</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">Boston,
    MA 02109</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">Waltham,
    MA 02451</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">Tel:
    (617) 338-2800/Fax: (617) 338-2880</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center">(781)
    622-1120/Fax: (781) 622-1027</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">(Name,
    address, including zip code,</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">and
    telephone number, including area code, of agent for</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">service)</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.7pt; text-autospace: ideograph-numeric ideograph-other; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As soon as practicable after the effective
date of this Registration Statement. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Approximate date of commencement of proposed
sale to the public)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, check the following box: </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 25%; text-autospace: ideograph-numeric ideograph-other; text-align: center">Large accelerated filer:
    <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD NOWRAP STYLE="width: 21%; text-autospace: ideograph-numeric ideograph-other; text-align: center">Accelerated filer: <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD NOWRAP STYLE="width: 25%; text-autospace: ideograph-numeric ideograph-other; text-align: center">Non-accelerated filer:
    <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD NOWRAP STYLE="width: 29%; text-autospace: ideograph-numeric ideograph-other; text-align: center">Smaller reporting company:
    <FONT STYLE="font-family: Wingdings">&thorn;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CALCULATION OF REGISTRATION FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 1pt; padding-left: 0; vertical-align: top">Title&nbsp;of&nbsp;Each&nbsp;Class&nbsp;of&nbsp;
    <BR>Securities&nbsp;to&nbsp;be&nbsp;Registered</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt; vertical-align: top">Amount&nbsp;to&nbsp;be <BR>Registered</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt; vertical-align: top">Proposed&nbsp;Maximum <BR>Offering&nbsp;Price&nbsp;per
    <BR>Unit</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt; vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Proposed&nbsp;Maximum</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Aggregate&nbsp;Offering</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Price&nbsp;<SUP>1,&nbsp;2</SUP></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt; vertical-align: top">Amount&nbsp;of <BR>Registration&nbsp;Fee</TD><TD NOWRAP STYLE="padding-bottom: 1pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 28%; text-align: left; padding-bottom: 1pt; padding-left: 0">Units consisting of 1 share of Common Stock
    and a warrant to purchase 1 share of Common Stock</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; padding-bottom: 1pt; text-align: right">15,000,000</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="width: 15%; padding-bottom: 1pt; text-align: right">1.00</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="width: 15%; padding-bottom: 1pt; text-align: right">15,000,000</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="width: 15%; padding-bottom: 1pt; text-align: right">1,719</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0">Common Stock included in Units<SUP>3</SUP></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">15,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0">Warrants to purchase Common Stock included in Units<SUP>3</SUP></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">15,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0">Common Stock underlying warrants, $1.00 per share exercise price</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">15,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1pt; text-align: right">1.00</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1pt; text-align: right">15,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1pt; text-align: right">1,719</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0">Total</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1pt; text-align: right">30,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1pt; text-align: right">3,438</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>&nbsp;</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1 </SUP>Estimated solely for the purpose of calculating
the registration fee pursuant to Rule 457(o) under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black"><SUP>2 </SUP></FONT>Pursuant to
Rule 416, this registration statement shall be deemed to cover the additional securities (i) to be offered or issued in connection
with any provision of any securities purported to be registered hereby to be offered pursuant to terms that provide for a change
in the amount of securities being offered or issued to prevent dilution resulting from stock splits, stock dividends or similar
transactions and (ii) of the same class as the securities covered by this registration statement issued or issuable prior to completion
of the distribution of the securities covered by this registration statement as a result of a split of, or a stock dividend on,
the registered securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black"><SUP>3 </SUP></FONT>No registration
fee required pursuant to Rule 457 under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The registrant hereby amends this registration statement
on such date or dates as may be necessary to delay its effective date until the registrant shall file&nbsp;a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section&nbsp;8(a)
of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting
pursuant to said Section&nbsp;8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 12pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="color: red; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="color: red; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The information in this
prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting
an offer to buy these securities in any state or other jurisdiction where the offer or sale is not permitted.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>SUBJECT TO COMPLETION, DATED JULY 11,&nbsp;2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img src="logo.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>15,000,000 Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Warrants to Purchase 15,000,000 Shares
of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are offering up to 15,000,000 shares
of our common stock and warrants to purchase up to 15,000,000 shares of our common stock (and the shares of common stock issuable
from time to time upon exercise of these warrants). The common stock and the warrants will be sold in units, with each unit consisting
of one share of common stock and a warrant to purchase one&nbsp;share of common stock at an exercise price of $1.00 per share.
Each unit will be sold at a price of $1.00 per unit. Units will not be issued or certificated. The shares of common stock and
warrants are immediately separable and will be issued separately. We refer to the shares of common stock issued or issuable hereunder
upon exercise of the warrants, and the warrants to purchase common stock issued hereunder, collectively, as the securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is currently no public market for
our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The units are being offered on a best efforts
basis. We have retained Merriman Capital, Inc. as our placement agent in connection with this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.65in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify">Per&nbsp;Unit</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify">Total</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 64%; text-align: justify">Public offering price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">1.000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">15,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Placement agent&rsquo;s fee(1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.065</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">975,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: justify">Proceeds to us before expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.935</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">14,025,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-left: 0.5in; margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>In addition, we have agreed to reimburse the expenses of the
                                                                placement agent and to issue a warrant to purchase shares of our
                                                                common stock. See &ldquo;Plan of Distribution.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">We expect the
total offering expenses p</FONT><FONT STYLE="color: Black">ayable by us, excluding the placement agent&rsquo;s fee and the registration
fee, to be approximately $75,000.&nbsp;Because there is no minimum offering amount required as a condition to closing in this
offering, the actual total public offering amount, placement agent&rsquo;s fee and net proceeds to us in this offering may be
less than the amounts set forth above. The placement agent is not required to place any specific number or dollar amount of units
offered in this offering, but will use its best efforts to place the units. You should rely only on the information provided in
this prospectus or any supplement to this prospectus. We have not authorized anyone else to provide you with different information.
The selling stockholders will be responsible for any commissions or discounts due to brokers or dealers. We will pay all of the
other offering expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The placement
agent is not purchasing or selling any units pursuant to this offering, nor are we requiring any minimum purchase or sale of any
specific number of units. Because there is no minimum offering amount required as a condition to the closing of this offering,
the actual public offering amount, placement agent fees and proceeds to us are not presently determinable and may be substantially
less than the maximum amounts set forth above. We expect that delivery of the units being offered pursuant to this prospectus
will be made to purchasers on or about  <B>[&#9679;]</B>, 2012.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We are an &ldquo;emerging
growth company&rdquo; under the federal securities laws and will therefore be subject to reduced public company reporting requirements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="color: Black"><B>Investing
in our securities involves a high degree of risk.&nbsp;&nbsp;See &ldquo;Risk Factors&rdquo; beginning on page 7 of this prospectus
to read about factors you should consider before buying our securities.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="color: Black"><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 accurate or complete. Any representation to the contrary is a criminal offense.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase; color: Black"><B>Merriman
Capital, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>TABLE OF
CONTENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 91%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">About This Prospectus</FONT></TD>
    <TD STYLE="width: 9%; text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">3</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Where You Can Find More information</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">3</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Documents Incorporated by Reference</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">3</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Prospectus Summary</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">4</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">The Offering</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">6</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Risk Factors</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">7</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Summary Consolidated Financial Data</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">9</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Special Note Regarding Forward Looking
    Statements</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">10</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Use of Proceeds</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">10</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Determination of Offering Price</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">10</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Dilution</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">11</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Plan of Distribution</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">12</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Description of the Securities we
    are Offering</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">13</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Experts</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Legal Matters</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: right"><FONT STYLE="color: Black">14</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 3; Options: NewSection; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>ABOUT THIS
PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">In this prospectus,
the &ldquo;Company,&rdquo; &ldquo;we,&rdquo; &ldquo;us,&rdquo; and &ldquo;our&rdquo; and similar terms refer to EuroSite Inc.
References to our &ldquo;common stock&rdquo; refer to the common stock of EuroSite, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">You should read
this prospectus together with additional information described under the headings &ldquo;Where You Can Find More Information&rdquo;
and &ldquo;Documents Incorporated by Reference.&rdquo; If there is any inconsistency between the information contained or incorporated
by reference in this prospectus, you should rely on the information in this prospectus. You should assume that the information
appearing in this prospectus is accurate as of the dates on the cover page, regardless of time of delivery of the prospectus or
any sale of securities. Our business, financial condition, results of operation and prospects may have changed since that date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We have not
authorized any other person to provide you with different information. No offers are being made hereby in any jurisdiction where
the offer or sale is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Unless otherwise
indicated, information contained in this prospectus concerning our industry, including our market opportunity, is based on information
from independent industry analysts, third-party sources and management estimates. Management estimates are derived from publicly-available
information released by independent industry analysts and third party sources, as well as data from our internal research, and
is based on assumptions made by us using data and our knowledge of such industry and market, which we believe to be reasonable.
In addition, while we believe the market opportunity information included in this prospectus is generally reliable and is based
on reasonable assumptions, such data involves risks and uncertainties and is subject to change based on various factors, including
those discussed under the heading &ldquo;Risk Factors.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-transform: uppercase; color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase; color: Black"><B>Where
You Can Find More Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We file annual,
quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission, or the SEC.
The SEC maintains a web site that contains reports, proxy and information statements and other information regarding issuers such
as us. (http://www.sec.gov). You can also inspect and copy these reports, proxy statements and other information at the SEC&rsquo;s
Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can call the SEC at 1-800-SEC-0330 for further information
on the Public Reference Room.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Our web site
is located at http://www.eurositepower.co.uk. The information contained on our web site is not part of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-transform: uppercase; color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase; color: Black"><B>Documents
Incorporated by Reference</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The SEC allows
us to &ldquo;incorporate by reference&rdquo; information into this document. This means that we can disclose important information
to you by referring you to another document filed separately with the SEC. The information incorporated by reference is considered
to be a part of this document, except for any information superseded by information that is included directly in this document
or incorporated by reference subsequent to the date of this document.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">This prospectus incorporates by
reference the documents listed below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">Our
                                                                                                                             Annual
                                                                                                                             Report
                                                                                                                             on
                                                                                                                             Form
                                                                                                                             10-K
                                                                                                                             for
                                                                                                                             the
                                                                                                                             year
                                                                                                                             ended
                                                                                                                             December&nbsp;31,
                                                                                                                             2011
                                                                                                                             filed
                                                                                                                             with
                                                                                                                             the
                                                                                                                             SEC
                                                                                                                             on
                                                                                                                             March
                                                                                                                             23,
                                                                                                                             2012;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">Quarterly
                                                                                                                             Report
                                                                                                                             on
                                                                                                                             Form
                                                                                                                             10-Q
                                                                                                                             for
                                                                                                                             the
                                                                                                                             quarter
                                                                                                                             ended
                                                                                                                             March
                                                                                                                             31,
                                                                                                                             2012
                                                                                                                             filed
                                                                                                                             with
                                                                                                                             the
                                                                                                                             SEC
                                                                                                                             on
                                                                                                                             May
                                                                                                                             15,
                                                                                                                             2012;
                                                                                                                             and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">The
                                                                                                                             description
                                                                                                                             of
                                                                                                                             our
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             set
                                                                                                                             forth
                                                                                                                             under
                                                                                                                             Item
                                                                                                                             11
                                                                                                                             in
                                                                                                                             our
                                                                                                                             Form
                                                                                                                             10/A,
                                                                                                                             Registration
                                                                                                                             No.
                                                                                                                             000-54484,
                                                                                                                             filed
                                                                                                                             with
                                                                                                                             the
                                                                                                                             SEC
                                                                                                                             on
                                                                                                                             November
                                                                                                                             18,
                                                                                                                             2011.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">You may request
a copy of these filings, at no cost, by emailing, writing or calling our chief financial officer, Anthony Loumidis, at the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">EuroSite Power
Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">45 First Avenue</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">Waltham, MA
02451</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">Attention: Anthony
Loumidis</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">Chief Financial
Officer</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><I>Tel:</I>
781.622.1117</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><I>Email:</I>
aloumidis@americandg.com</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Copies of the
documents incorporated by reference may also be found on our website at www.eurositepower.co.uk.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 4; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>PROSPECTUS
SUMMARY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.55in"><FONT STYLE="color: Black"><I>This summary
highlights information contained elsewhere in this prospectus or incorporated by reference herein. This summary does not contain
all of the information that you should consider before investing in our securities. Before making an investment decisions, you
should carefully read the entire prospectus, including the &ldquo;Risk Factors&rdquo; section, starting on page&nbsp;7 of this
prospectus, as well as the financial statements and the other information incorporated by reference herein.</I><B> &nbsp;</B><I>
</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>Overview</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We distribute,
own and operate clean, on-site energy systems that produce electricity, hot water, heat and cooling in the United Kingdom and
Europe. Our business model is to own the equipment that we install at customers&rsquo; facilities and to sell the energy produced
by these systems to the customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional
utility rates. Because our systems may operate at up to 90% efficiency, according to the Environmental and Energy Study Institute,
<I>Energy Generation and Distribution Efficiency,</I> (versus less than 33% for the existing power&nbsp;grid), we expect to be
able to sell the energy produced by these systems to our customers at prices below their existing cost of electricity (or air
conditioning), heat and hot water.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We offer natural
gas powered cogeneration systems that are highly reliable and energy efficient. Our cogeneration systems produce electricity from
an internal combustion engine driving a generator, while the heat from the engine and exhaust is recovered and typically used
to produce heat and hot water for use at the site. We also distribute and operate water chiller systems for building cooling applications
that operate in a similar manner, except that the engine&rsquo;s power drives a large air-conditioning compressor while recovering
heat for hot water. Cogeneration systems reduce the amount of electricity that the customer must purchase from the local utility
and produce valuable heat and hot water for the site to use as required.&nbsp;&nbsp;By simultaneously providing electricity, hot
water and heat, cogeneration systems also have a significant positive impact on the environment by reducing the carbon or CO<SUB>2
</SUB>produced by offsetting the traditional energy supplied by the electric grid and conventional hot water boilers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Distributed
generation of electricity, or DG, often referred to as cogeneration systems, or combined heat and power systems, or CHP, is an
attractive option for reducing energy costs and increasing the reliability of available energy. DG has been successfully implemented
by others in large industrial installations over 10 Megawatts, or MW, where the market has been growing for a number of years,
and is increasingly being accepted in smaller size units because of technology improvements, increased energy costs and better
DG economics. We believe that our target market (users of up to 1 MW) has been barely penetrated and that the reduced reliability
of the utility grid, increasing cost pressures experienced by energy users, advances in new, low-cost technologies and DG-favorable
legislation and regulation at the state and federal level will drive our near-term growth and penetration into our target market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We believe that
our primary near-term opportunity for DG energy and equipment sales is where commercial electricity rates exceed $0.12 per kWh.
Attractive DG economics in the United Kingdom and Europe are currently attainable in applications that include hospitals, nursing
homes, multi-tenant residential housing, hotels, schools and colleges, recreational facilities, food processing plants, dairies
and other light industrial facilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Early in 2010,
American DG Energy performed a feasibility study of the European market to determine the viability of expanding its On-Site Utility
business into Europe. This study and business plan report reached the conclusions that: (a) there is untapped customer demand
to provide small-scale CHP packages in the commercial sector through a fully financed, output-based electricity and hot water
contract, (b) there is a lack of competition in this space in the target customer segments (hotel, healthcare and multi-tenant
residential) and (c) the underlying economic fundamentals are attainable, with a combination of sufficient spark spreads and government
fiscal support.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The study analyzed
the entire European market; however, it focused on the United Kingdom, Spain and Belgium as the primary markets to start operations.
The study estimated that there are over 13,700&nbsp;sites in those three countries providing a $900 million annual electricity
market plus a $600&nbsp;million heat and hot water energy market, for a combined market potential of $1.5&nbsp;billion. The data
used to calculate the Company&rsquo;s market potential is derived by Company estimates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We purchase
energy equipment from various suppliers. The primary type of equipment used is a natural gas-powered, reciprocating engine provided
by Tecogen Inc., or Tecogen, an affiliate of the Company. Tecogen is a leading manufacturer of natural gas, engine-driven commercial
and industrial cooling and cogeneration systems suitable for a variety of applications, including hospitals, nursing homes and
schools. The internal combustion reciprocating engine is provided to Tecogen by General Motors Corporation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 5; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>Corporate Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We were organized
as a Delaware corporation in July 2010. Our principal executive offices are located at 45 First Avenue, Waltham, Massachusetts
02451, and our telephone number is (781) 522-6000. Our website address is <I>www.eurositepower.co.uk. </I>The information on our
website does not constitute a part of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 6; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>THE OFFERING</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Common stock offered
    by us</FONT></TD>
    <TD STYLE="width: 66%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">15,000,000 shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">Common stock
    to be outstanding</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">after this offering</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">69,362,100 shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Warrants offered by us</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Warrants to purchase 15,000,000 shares
    of common stock. The warrants will be exercisable during the period commencing on the date of the closing of this offering
    and ending one year from the date such warrants become exercisable at an exercise price of $1.00 per share.&nbsp; This prospectus
    also relates to the offering of the shares of common stock exercisable upon the exercise of the warrants.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Use of proceeds</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">We intend to use the net proceeds
    of this offering for working capital purposes in connection with the development and installation of new energy systems such
    as cogeneration systems and chillers. The net proceeds will also be used for general corporate purposes, which may include,
    among other things, potential acquisitions of companies, products and technologies that complement our business, although
    we have no present commitments or agreements with respect to any such transactions.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Risk factors</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">See &ldquo;Risk Factors&rdquo; beginning
    on page 7 for a discussion of factors you should consider carefully when making an investment decision.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.55in"><FONT STYLE="color: Black">Unless we indicate
otherwise, common stock outstanding after this offering is based on 54,362,100 shares of our common stock outstanding as of July
9, 2012, assumes the sale of the maximum number of shares of common stock and warrants offered hereby, does not include the 15,000,000
shares issuable upon the exercise of the warrants offered hereby, and excludes, up to <B>[&#9679;]</B> shares issuable upon the
exercise of a warrant to be issued to the placement agent as further described in &ldquo;Plan of Distribution&rdquo; and excludes
as of July 9, 2012, the following: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">3,590,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             stock
                                                                                                                             options
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">910,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             available
                                                                                                                             for
                                                                                                                             future
                                                                                                                             grants
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans;
                                                                                                                             and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">400,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             warrants
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 7; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>RISK FACTORS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Investing in
our securities involves risk. You should carefully consider the risks described below as well as those risk factors incorporated
by reference herein before making an investment decision. The risks below relate to this offering. In addition, our Company is
subject to a variety of risks that may be found in the documents incorporated by reference herein, including those risk factors
described in our Annual Report on Form 10-K for our most recent fiscal year (together with any material changes thereto contained
in subsequent filed reports and other filings with the SEC). The risks and uncertainties described below and in the documents
incorporated by reference are not the only risks and uncertainties we face. Additional risks and uncertainties not presently known
to us or that we currently deem immaterial also may impair our business operations. If any of the following risks, or those incorporated
by reference actually occur, our business, results of operations and financial condition could suffer. In that event the trading
price of our common stock could decline, and you may lose all or part of your investment in the units. The risks discussed below
and those incorporated by reference also include forward-looking statements and our actual results may differ substantially from
those discussed in these forward-looking statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.4pt; text-indent: 31.6pt"><FONT STYLE="color: Black"><B>There
is no public market for the common stock or warrants to purchase common stock in this offering.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.4pt"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">There is no
public trading market for our securities. We intend to arrange for the quotation of our common stock on the OTC Bulletin Board
or the listing of our common stock on a national or international securities exchange. There is no assurance that we will be able
to do so. Without an active market, the liquidity of these securities will be limited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>Even if our
common stock becomes publicly traded, an active and liquid trading market may not develop and our share price may be volatile.
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Because we are
a small business issuer, stock market volatility over the last several years and for other reasons, an active and liquid trading
market for our common stock may never develop. Even if one does develop the market price of our common stock is likely to vary
significantly as a result of a number of factors, including the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">the
                                                                                                                             price
                                                                                                                             of
                                                                                                                             electricity
                                                                                                                             and
                                                                                                                             natural
                                                                                                                             gas;
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">the
                                                                                                                             failure
                                                                                                                             of
                                                                                                                             securities
                                                                                                                             analysts
                                                                                                                             to
                                                                                                                             cover
                                                                                                                             our
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             if
                                                                                                                             a
                                                                                                                             trading
                                                                                                                             market
                                                                                                                             develops
                                                                                                                             or
                                                                                                                             changes
                                                                                                                             in
                                                                                                                             financial
                                                                                                                             estimates
                                                                                                                             by
                                                                                                                             analysts;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">failure
                                                                                                                             to
                                                                                                                             meet
                                                                                                                             the
                                                                                                                             expected
                                                                                                                             financial
                                                                                                                             results;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">dilutive
                                                                                                                             issuances
                                                                                                                             of
                                                                                                                             securities;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">a
                                                                                                                             substantial
                                                                                                                             portion
                                                                                                                             of
                                                                                                                             our
                                                                                                                             total
                                                                                                                             issued
                                                                                                                             and
                                                                                                                             outstanding
                                                                                                                             shares
                                                                                                                             may
                                                                                                                             be
                                                                                                                             sold
                                                                                                                             into
                                                                                                                             the
                                                                                                                             market
                                                                                                                             at
                                                                                                                             any
                                                                                                                             time;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">investor
                                                                                                                             perception
                                                                                                                             of
                                                                                                                             our
                                                                                                                             Company
                                                                                                                             and
                                                                                                                             of
                                                                                                                             the
                                                                                                                             industry
                                                                                                                             in
                                                                                                                             which
                                                                                                                             we
                                                                                                                             compete;
                                                                                                                             and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">general
                                                                                                                             economic,
                                                                                                                             political
                                                                                                                             and
                                                                                                                             market
                                                                                                                             conditions.
                                                                                                                             </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>The warrants
may not have any value.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">In the event
that our common stock price does not exceed the exercise price of the warrants during the period when the warrants are exercisable,
the warrants may not have any value.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>Holders of
our warrants will have no rights as a common stockholder until they acquire our common stock.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Until you acquire
shares of our common stock upon exercise of your warrants, you will have no rights with respect to our common stock. Upon exercise
of your warrants, you will be entitled to exercise the rights of a common stockholder only as to matters for which the record
date occurs after the exercise date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>The concentration
of our share capital ownership among our largest shareholders, and their affiliates, will limit your ability to influence corporate
matters. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">After our offering,
we anticipate that our two largest shareholders will collectively own approximately 73% of our issued and outstanding common shares.
Consequently, these shareholders have significant influence over all matters that require approval by our shareholders, including
the election of directors and approval of significant corporate transactions. This concentration of ownership will limit your
ability to influence corporate matters, and as a result, actions may be taken that you may not view as beneficial.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>We will have
broad discretion over the use of the proceeds of this offering and may not realize a return.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We will have
considerable discretion in the application of the net proceeds of this offering. We may use the net proceeds for purposes that
do not yield a significant return, if any, for our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 8; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>If you purchase
our common stock in this offering, you will suffer immediate and substantial dilution of your investment. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The public offering
price in this offering is substantially higher than our net tangible book value per common share. Therefore, if you purchase our
common shares in this offering, your interest will be diluted immediately to the extent of the difference between the initial
public offering price per common share and the net tangible book value per common share after this offering. See &quot;Dilution.&quot;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>We do not
intend to pay dividends on our common shares and, consequently, your only opportunity to achieve a return on your investment is
if the price of our shares appreciates. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We do not plan
to declare dividends on shares of our common stock in the foreseeable future. Consequently, your only opportunity to achieve a
return on your investment in us will be if the value of our common stock appreciates, which may not occur.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><B>The recently
enacted JOBS Act will allow us to postpone the date by which we must comply with certain laws and regulations and to reduce the
amount of information provided in reports filed with the SEC. We cannot be certain if the reduced disclosure requirements applicable
to emerging growth companies will make our common stock less attractive to investors. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We are and we
will remain an &ldquo;emerging growth company&rdquo;, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS
Act, until the earliest to occur of (i) the last day of the fiscal year during which our total annual gross revenues equal or
exceed $1 billion (subject to adjustment for inflation), (ii) the last day of the fiscal year following the fifth anniversary
of our initial public offering, (iii) the date on which we have, during the previous three-year period, issued more than $1 billion
in non-convertible debt, or (iv) the date on which we are deemed a large accelerated filer under the Securities Exchange Act of
1934, as amended.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">For so long
as we remain an emerging growth company as we will not be required to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">have
                                                                                                                             an
                                                                                                                             auditor
                                                                                                                             report
                                                                                                                             on
                                                                                                                             our
                                                                                                                             internal
                                                                                                                             controls
                                                                                                                             over
                                                                                                                             financial
                                                                                                                             reporting
                                                                                                                             pursuant
                                                                                                                             to
                                                                                                                             Section
                                                                                                                             404(b)
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Sarbanes-Oxley
                                                                                                                             Act;</FONT></TD></TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">comply
                                                                                                                             with
                                                                                                                             any
                                                                                                                             requirement
                                                                                                                             that
                                                                                                                             may
                                                                                                                             be
                                                                                                                             adopted
                                                                                                                             by
                                                                                                                             the
                                                                                                                             Public
                                                                                                                             Company
                                                                                                                             Accounting
                                                                                                                             Oversight
                                                                                                                             Board
                                                                                                                             regarding
                                                                                                                             mandatory
                                                                                                                             audit
                                                                                                                             firm
                                                                                                                             rotation
                                                                                                                             or
                                                                                                                             a
                                                                                                                             supplement
                                                                                                                             to
                                                                                                                             the
                                                                                                                             auditor&rsquo;s
                                                                                                                             report
                                                                                                                             providing
                                                                                                                             additional
                                                                                                                             information
                                                                                                                             about
                                                                                                                             the
                                                                                                                             audit
                                                                                                                             and
                                                                                                                             the
                                                                                                                             financial
                                                                                                                             statements
                                                                                                                             (i.e.,
                                                                                                                             an
                                                                                                                             auditor
                                                                                                                             discussion
                                                                                                                             and
                                                                                                                             analysis);</FONT></TD></TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">submit
                                                                                                                             certain
                                                                                                                             executive
                                                                                                                             compensation
                                                                                                                             matters
                                                                                                                             to
                                                                                                                             shareholder
                                                                                                                             non-binding
                                                                                                                             advisory
                                                                                                                             votes;</FONT></TD></TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">submit
                                                                                                                             for
                                                                                                                             shareholder
                                                                                                                             approval
                                                                                                                             golden
                                                                                                                             parachute
                                                                                                                             payments
                                                                                                                             not
                                                                                                                             previously
                                                                                                                             approved;
                                                                                                                             and</FONT></TD></TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">disclose
                                                                                                                             certain
                                                                                                                             executive
                                                                                                                             compensation
                                                                                                                             related
                                                                                                                             items
                                                                                                                             such
                                                                                                                             as
                                                                                                                             the
                                                                                                                             correlation
                                                                                                                             between
                                                                                                                             executive
                                                                                                                             compensation
                                                                                                                             and
                                                                                                                             financial
                                                                                                                             performance
                                                                                                                             and
                                                                                                                             comparisons
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Chief
                                                                                                                             Executive
                                                                                                                             Officer&rsquo;s
                                                                                                                             compensation
                                                                                                                             to
                                                                                                                             median
                                                                                                                             employee
                                                                                                                             compensation,
                                                                                                                             when
                                                                                                                             such
                                                                                                                             disclosure
                                                                                                                             requirements
                                                                                                                             are
                                                                                                                             adopted.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">In addition,
Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised
accounting standards. An emerging growth company can therefore delay the adoption of certain accounting standards until those
standards would otherwise apply to private companies. However, we are choosing to &ldquo;opt out&rdquo; of such extended transition
period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such
standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of
the extended transition period for complying with new or revised accounting standards is irrevocable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We cannot predict
if investors will find our common stock less attractive because we may rely on some of these exemptions. If some investors find
our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price
may be more volatile. If we avail ourselves of certain exemptions from various reporting requirements, our reduced disclosure
may make it more difficult for investors and securities analysts to evaluate us and may result in less investor confidence.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 9; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>SUMMARY CONSOLIDATED
FINANCIAL DATA</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The summary
consolidated statements of operations data for each of the years ended December 31, 2011 and 2010 have been derived from our audited
consolidated financial statements and notes that are incorporated by reference into this prospectus. The summary consolidated
balance sheet data as of March 31, 2012 and the summary consolidated statements of operations data for each of the three months
ended March 31, 2012 and 2011 have been derived from our unaudited condensed consolidated financial statements that are incorporated
by reference into this prospectus. You should read this information together with the consolidated financial statements and related
notes and other information under &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo;
incorporated by reference into this prospectus.&nbsp;The Company&rsquo;s operating results for the three month period ended March
31, 2012, may not be indicative of the results expected for any succeeding interim periods or for the entire year ending December
31, 2012.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="color: Black; text-align: center">Three&nbsp;Months&nbsp;Ended</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">March&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="color: Black; border-bottom: Black 1pt solid">Consolidated&nbsp;Statement&nbsp;of&nbsp;Operations&nbsp;Data:</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center">(unaudited)</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center">(unaudited)</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black">Revenues</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; padding-bottom: 1pt">Cost of sales</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left; padding-left: 9pt">Gross profit</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left">Operating expenses</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; color: Black; text-align: left; padding-left: 9pt">General and administrative</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; color: Black; text-align: right">854,502</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; color: Black; text-align: right">39,805</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; color: Black; text-align: right">316,245</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; color: Black; text-align: right">138,035</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; padding-bottom: 1pt; padding-left: 9pt">Selling</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">527,253</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">75,467</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; padding-bottom: 1pt; text-indent: 10pt">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">1,381,755</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">39,805</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">391,712</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">138,035</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-indent: 10pt">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left; padding-bottom: 1pt">Loss from operations</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(1,381,755</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(39,805</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(391,712</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(138,035</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left">Other income (expense)</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left; padding-left: 9pt">Interest and other income</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">333</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">4,968</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">-</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left; padding-bottom: 1pt; padding-left: 9pt">Interest expense</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">333</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">4,968</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left">Loss before income taxes</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">(1,381,422</TD><TD STYLE="color: Black; text-align: left">)</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">(39,805</TD><TD STYLE="color: Black; text-align: left">)</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">(386,744</TD><TD STYLE="color: Black; text-align: left">)</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">(138,035</TD><TD STYLE="color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left; padding-bottom: 1pt">Provision for state income taxes</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left; padding-bottom: 1pt">Net loss</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(1,381,422</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(39,805</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(386,744</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">(138,035</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left; padding-bottom: 2.5pt">Net loss per share - basic and diluted</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">(0.03</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">)</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black">Weighted average shares outstanding -</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">&nbsp;</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left; padding-bottom: 2.5pt">basic and diluted</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">54,078,401</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">52,046,867</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">54,362,100</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; color: Black; text-align: right">53,257,656</TD><TD STYLE="padding-bottom: 2.5pt; color: Black; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="color: Black; text-align: center">Three&nbsp;Months&nbsp;Ended</TD><TD NOWRAP STYLE="color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">March&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="color: Black; border-bottom: Black 1pt solid">Consolidated&nbsp;Balance&nbsp;Sheet&nbsp;Data:</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD><TD NOWRAP STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">(unaudited)</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">(unaudited)</TD><TD STYLE="color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="color: Black; text-align: center">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 40%; color: Black; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">$</TD><TD STYLE="width: 12%; color: Black; text-align: right">2,338,783</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">$</TD><TD STYLE="width: 12%; color: Black; text-align: right">2,234,551</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">$</TD><TD STYLE="width: 12%; color: Black; text-align: right">1,729,772</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">$</TD><TD STYLE="width: 12%; color: Black; text-align: right">2,980,550</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left">Working capital</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">2,468,312</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">2,231,214</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">2,212,984</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">3,133,474</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left">Total assets</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">2,578,253</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">2,362,957</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">2,357,172</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">3,153,081</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left">Total liabilities</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">105,365</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">131,743</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">141,058</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black; text-align: right">19,607</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left">Shareholders' equity</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">2,472,888</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">2,231,214</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">2,216,114</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">3,133,474</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 10; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>SPECIAL NOTE
REGARDING FORWARD LOOKING STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">This prospectus
contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal
securities laws and such forward looking statements involve substantial risks and uncertainties. All statements, other than statements
of historical facts, contained in this prospectus, including statements regarding our strategy, future operations, future financial
position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. The
words &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;expect,&rdquo; &ldquo;intend,&rdquo; &ldquo;may,&rdquo;
&ldquo;plan,&rdquo; &ldquo;predict,&rdquo; &ldquo;project,&rdquo; &ldquo;target,&rdquo; &ldquo;potential,&rdquo; &ldquo;will,&rdquo;
&ldquo;would,&rdquo; &ldquo;could,&rdquo; &ldquo;should,&rdquo; &ldquo;continue,&rdquo; and similar expressions are intended to
identify forward-looking statements, although not all forward-looking statements contain these identifying words.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The forward-looking
statements in this prospectus include, among other things, statements about:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">our
                                                                                                                             future
                                                                                                                             financial
                                                                                                                             performance,
                                                                                                                             including
                                                                                                                             our
                                                                                                                             revenue,
                                                                                                                             cost
                                                                                                                             of
                                                                                                                             revenue,
                                                                                                                             operating
                                                                                                                             expenses
                                                                                                                             and
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             achieve
                                                                                                                             and
                                                                                                                             maintain
                                                                                                                             profitability;
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             market,
                                                                                                                             commercialize
                                                                                                                             and
                                                                                                                             achieve
                                                                                                                             market
                                                                                                                             acceptance
                                                                                                                             for
                                                                                                                             our
                                                                                                                             combined
                                                                                                                             heat
                                                                                                                             and
                                                                                                                             power
                                                                                                                             systems
                                                                                                                             or
                                                                                                                             any
                                                                                                                             other
                                                                                                                             product
                                                                                                                             candidates
                                                                                                                             or
                                                                                                                             products
                                                                                                                             that
                                                                                                                             we
                                                                                                                             may
                                                                                                                             develop;
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             innovate
                                                                                                                             and
                                                                                                                             keep
                                                                                                                             pace
                                                                                                                             with
                                                                                                                             changes
                                                                                                                             in
                                                                                                                             technology;
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">the
                                                                                                                             success
                                                                                                                             of
                                                                                                                             our
                                                                                                                             marketing
                                                                                                                             and
                                                                                                                             business
                                                                                                                             development
                                                                                                                             efforts;
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             maintain,
                                                                                                                             protect
                                                                                                                             and
                                                                                                                             enhance
                                                                                                                             our
                                                                                                                             intellectual
                                                                                                                             property;
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">the
                                                                                                                             effects
                                                                                                                             of
                                                                                                                             increased
                                                                                                                             competition
                                                                                                                             in
                                                                                                                             our
                                                                                                                             market;
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             effectively
                                                                                                                             manage
                                                                                                                             our
                                                                                                                             growth
                                                                                                                             and
                                                                                                                             successfully
                                                                                                                             enter
                                                                                                                             new
                                                                                                                             markets;
                                                                                                                             and
                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">the
                                                                                                                             attraction
                                                                                                                             and
                                                                                                                             retention
                                                                                                                             of
                                                                                                                             qualified
                                                                                                                             employees
                                                                                                                             and
                                                                                                                             key
                                                                                                                             personnel.
                                                                                                                             </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We may not actually
achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance
on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations
disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included
in this prospectus, particularly in the &ldquo;Risk Factors&rdquo; section, that we believe could cause actual results or events
to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential
impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">You should read
this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement
of which this prospectus is a part completely and with the understanding that our actual future results may be materially different
from what we expect. The forward-looking statements contained in this prospectus are made as of the date of this prospectus, and
we do not assume any obligation to update any forward-looking statements except as required by applicable law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>USE OF PROCEEDS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We intend to
use the net proceeds of this offering for working capital purposes in connection with the development and installation of new
energy systems such as cogeneration systems and chillers and for general corporate purposes which may include, among other things,
potential acquisitions of companies, products and technologies that complement our business, although we have no present commitments
or agreements with respect to any such transactions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>DETERMINATION
OF OFFERING PRICE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The offering
price for the shares in this offering was determined by our management. In determining the public offering price of the shares
we considered several factors including the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">our
                                                                                                                            status
                                                                                                                            of
                                                                                                                            business
                                                                                                                            development;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">our
                                                                                                                            new
                                                                                                                            business
                                                                                                                            structure
                                                                                                                            and
                                                                                                                            operations;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">prevailing
                                                                                                                            market
                                                                                                                            conditions,
                                                                                                                            including
                                                                                                                            the
                                                                                                                            history
                                                                                                                            and
                                                                                                                            prospects
                                                                                                                            for
                                                                                                                            our
                                                                                                                            industry;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">our
                                                                                                                            future
                                                                                                                            prospects
                                                                                                                            and
                                                                                                                            the
                                                                                                                            experience
                                                                                                                            of
                                                                                                                            our
                                                                                                                            management;
                                                                                                                            and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">our
                                                                                                                            capital
                                                                                                                            structure.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Therefore, the
public offering price of the shares does not necessarily bear any relationship to established valuation criteria and may not be
indicative of prices that may prevail at any time or from time to time in the public market for our common stock if one develops
in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 11; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>DILUTION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.55in"><FONT STYLE="color: Black">Purchasers
of the units offered by this prospectus and the accompanying prospectus will suffer immediate and substantial dilution in the
net tangible book value per share of common stock.&nbsp;&nbsp;Our net tangible book value (unaudited) as of July 9, 2012, was
approximately $2,216,114, or $0.04 per share.&nbsp;&nbsp;Net tangible book value per share is calculated by subtracting our total
liabilities from our total tangible assets, which is total assets less intangible assets, and dividing this amount by the number
of shares of common stock outstanding as of July 9, 2012.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.55in"><FONT STYLE="color: Black">Dilution in
net tangible book value per share represents the difference between the amount per share paid by purchasers in this offering and
the as adjusted net tangible book value per share of our common stock immediately after this offering.&nbsp;&nbsp;After giving
effect to the sale by us of all 15,000,000 units offered in this offering at a price of $1.00 per unit (and assuming a value per
share of common stock offered in each unit of $1.00 per share), and after deducting the placement agent&rsquo;s fee and estimated
offering expenses payable by us, our as adjusted net tangible book value as of July 9, 2012, would have been approximately $16,166,114,
or $0.23 per share.&nbsp;This represents an immediate increase in the net tangible book value of $0.19 per share to our existing
shareholders and an immediate dilution in net tangible book value of $0.77 per share to investors in this offering.&nbsp;&nbsp;The
following table illustrates this per share dilution:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.55in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 85%; color: Black; text-align: justify">Price per share to investors</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: Black; text-align: left">$</TD><TD STYLE="width: 12%; color: Black; text-align: right">1.00</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black">Net tangible book value per share as of July 9, 2012</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">0.04</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left">Increase in net tangible book value per share attributable to this offering</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">0.19</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left">As adjusted net tangible book value per share as of July 9, 2012, after giving effect to this offering</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">0.23</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left">Dilution in net tangible book value per share to investors</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD STYLE="color: Black; text-align: left">$</TD><TD STYLE="color: Black; text-align: right">0.77</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The above table
is based on&nbsp;54,362,100 shares of our common stock outstanding as of July 9, 2012 and excludes, as of that date:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">3,590,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             stock
                                                                                                                             options
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             option
                                                                                                                             plans
                                                                                                                             and
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">910,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             available
                                                                                                                             for
                                                                                                                             future
                                                                                                                             grants
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             option
                                                                                                                             plans
                                                                                                                             and
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans;
                                                                                                                             and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">400,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             warrants
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="color: Black">In addition, the above
table excludes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">up
                                                                                                                             to
                                                                                                                             15,000,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             the
                                                                                                                             warrants
                                                                                                                             offered
                                                                                                                             pursuant
                                                                                                                             to
                                                                                                                             this
                                                                                                                             prospectus;
                                                                                                                             and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">up
                                                                                                                             to
                                                                                                                             <B>[&#9679;]
                                                                                                                             </B>shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             a
                                                                                                                             warrant
                                                                                                                             to
                                                                                                                             be
                                                                                                                             issued
                                                                                                                             to
                                                                                                                             the
                                                                                                                             placement
                                                                                                                             agent
                                                                                                                             as
                                                                                                                             further
                                                                                                                             described
                                                                                                                             in
                                                                                                                             &ldquo;Plan
                                                                                                                             of
                                                                                                                             Distribution.&rdquo;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">To the extent
that any options or warrants are exercised, new options are issued under our stock option or stock incentive plans, or we otherwise
issue additional shares of common stock in the future, there will be further dilution to new investors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 12; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>PLAN OF DISTRIBUTION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We have entered
into a placement agency agreement, dated as of June 19, 2012, with Merriman Capital, Inc., as placement agent. Subject to the
terms and conditions contained in the placement agency agreement, the placement agent has agreed to act as the placement agent
in connection with the sale of the securities offered hereby, or the Securities. The placement agent may engage selected dealers
to assist in the placement of the Securities. The placement agent is not purchasing or selling any securities by this prospectus
as principal, nor is it required to arrange the purchase or sale of any specific number or dollar amount of the Securities, but
it has agreed to use its best efforts to arrange for the sale of all of the Securities in this offering. There is no required
minimum number of securities that must be sold as a condition to completion of the offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The placement
agency agreement provides that the obligations of the placement agent and the purchasers are subject to certain conditions precedent,
including, among other things, the absence of any material adverse change in our business and the receipt of customary legal opinions,
letters and certificates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We have entered
into purchase agreements directly with purchasers in connection with this offering, and we will only sell to purchasers who have
entered into purchase agreements. We currently anticipate that the closing of the sale of the Securities will take place on or
before  <B>[<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT>]</B>, 2012.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We have agreed
to pay the placement agent an aggregate fee equal to 6.5% of the gross proceeds of this offering and expect the net proceeds from
this offering to be approximately $13,950,000 after deducting up to $975,000 in placement agent commissions and $75,000 in our
estimated offering expenses. In addition, the placement agent shall also be entitled to reimbursement for additional expenses
in connection with the offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We also agreed
to grant compensation warrants to the placement agent to purchase up to <B>[<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT>]
</B>shares of our common stock. The compensation warrants will have an exercise price equal to 100% of the public offering price
per share of common stock sold in this offering. The compensation warrants will expire five years from the closing of the sale
of Securities pursuant to this prospectus, and will otherwise comply with Financial Institutions Regulatory Authority, or FINRA,
Rule 5110(g)(1) in that neither the compensation warrants (which shall not be earlier than the closing date of the offering pursuant
to which the compensation warrants are being issued) nor any warrant shares issued upon exercise of the compensation warrants
shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put,
or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180
days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which the compensation
warrants are being issued, except to any FINRA member firm participating in the offering and their bona fide officers or partners.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Assuming that
all of the Securities offered hereby are sold, the placement agents&rsquo; fee will be approximately $975,000, excluding any warrants
that may be issued. Because there is no minimum offering amount required as a condition to closing in this offering, however,
the actual total offering fees, if any, are not presently determinable and may be substantially less than such amount.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">We have agreed
to indemnify the placement agent and certain other persons against certain liabilities, arising out of or in connection with our
acts, errors and omissions under the placement agency agreement and for the performance of the placement agent of its duties under
the placement agency agreement except in the case of its bad faith, willful misconduct or gross negligence, and to contribute
to payments that the placement agent may be required to make in respect of those liabilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Our common stock
is not currently publicly traded.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">With respect
to sales in the United States, this offering must be registered, or be exempt from registration, in any state in which the Securities
are to be offered or sold. We may apply to register the Securities, or may seek to obtain an exemption from registration, only
in certain states. If you are not an &ldquo;institutional investor,&rdquo; you must be a resident of these jurisdictions to purchase
Securities. The definition of an &ldquo;institutional investor&rdquo; varies from state to state, but generally includes financial
institutions, broker-dealers, banks, insurance companies and other qualified entities. If you are not an institutional investor,
you may purchase Securities in this offering only if you reside in the jurisdictions where there is an effective registration
or exemption, and, if required, meet any requisite suitability standards.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The placement
agent may distribute this prospectus electronically.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The form of
securities purchase agreement with the purchasers and the placement agency agreement are exhibits to the registration statement
of which this prospectus forms a part that has been filed with the SEC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 13; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">From time to
time in the ordinary course of its business, the placement agent or its affiliates may in the future engage in investment banking,
commercial banking and/or other services with us and our affiliates for which it may in the future receive customary fees and
expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>DESCRIPTION
OF THE SECURITIES WE ARE OFFERING</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The common stock
and warrants offered hereby will be sold in units, with each unit consisting of one share of common stock and a warrant to purchase
one share of common stock. The units will be immediately separable. Each warrant will have an exercise price of $1.00 per share
and will be exercisable immediately. The shares of common stock issuable from time to time upon exercise of the warrants, if any,
are also being offered pursuant to this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>Common Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">A description
of our common stock is incorporated by reference herein from our Form 10/A filed with the SEC on November 18, 2011.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>Warrants</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The following
summary of certain terms and provisions of the warrants offered hereby is not complete and is subject to, and qualified in its
entirety by the provisions of the form of the warrant, which has been filed as an exhibit to the registration statement of which
this prospectus is a part. Prospective investors should carefully review the terms and provisions set forth in the form of warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Exercisability</I>.
The warrants are exercisable upon issuance and at any time up to the date that is one year from the date of issuance. The warrants
will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice accompanied
by payment in full for the number of shares of our common stock purchased upon such exercise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Exercise
Price</I>. The initial exercise price per share of common stock purchasable upon exercise of the warrants is $1.00 per share.
The exercise price is subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits,
stock combinations, reclassifications or similar events affecting our common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Certain Adjustments</I>.
The exercise price and the number of shares of common stock purchasable upon the exercise of the warrants are subject to adjustment
upon the occurrence of specific events, including stock dividends, stock splits, combinations, reclassifications or similar events
affecting our of our common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Transferability</I>.
Subject to applicable laws, the warrants may be transferred at the option of the holders upon surrender of the warrants to us
together with the appropriate instruments of transfer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Listing.
</I>The warrants are not currently listed on any trading market. The warrants will be issued in certificated form and delivered
directly to the purchasers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Rights as
a Stockholder</I>. Except as otherwise provided in the warrants or by virtue of such holder's ownership of shares of our common
stock, the holder of a warrant does not have the rights or privileges of a holder of our common stock, including any voting rights,
until the holder exercises the warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>Transfer Agent</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The transfer
agent for our common stock will be Continental Stock Transfer and Trust Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 14; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>EXPERTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The consolidated
financial statements as of and for the periods ended December 31, 2011 and 2010, appearing in this registration statement and
Prospectus have been audited by McGladrey LLP (formerly McGladrey &amp; Pullen, LLP), an independent registered public accounting
firm, as stated in their report appearing elsewhere herein, and are included in reliance upon such report and upon the authority
of such firm as experts in accounting and auditing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">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
Common Stock was employed on a contingency basis, or had, or is to receive, any interest, directly or indirectly, in our Company
or any of our parents or subsidiaries. Nor was any such person connected with us or any of our parents or subsidiaries, if any,
as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>LEGAL MATTERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The validity
of our Common Stock offered under this prospectus will be passed upon by Sullivan &amp; Worcester LLP, Boston, Massachusetts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 15; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>PART II -
INFORMATION NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><FONT STYLE="color: Black"><B>ITEM 13.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>OTHER EXPENSES OF ISSUANCE
AND DISTRIBUTION.</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The following
table sets forth our expenses in connection with this registration statement. All of such amounts are estimates, other than the
fee payable to the SEC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black">&nbsp;</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 82%; color: Black; text-align: left">Securities and Exchange Commission registration fee</TD><TD STYLE="width: 1%; color: Black">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; color: Black; text-align: left">$</TD><TD NOWRAP STYLE="width: 15%; color: Black; text-align: right">3,438</TD><TD STYLE="width: 1%; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left">Legal fees and expenses</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD NOWRAP STYLE="color: Black; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="color: Black; text-align: right">25,000</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black; text-align: left">Accounting fees and expenses</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD NOWRAP STYLE="color: Black; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="color: Black; text-align: right">10,000</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: Black; text-align: left; padding-bottom: 1pt">Printing, miscellaneous and travel</TD><TD STYLE="color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; color: Black; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; color: Black; text-align: right">40,000</TD><TD STYLE="padding-bottom: 1pt; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="color: Black">Total</TD><TD STYLE="color: Black">&nbsp;</TD>
    <TD NOWRAP STYLE="color: Black; text-align: left">$</TD><TD NOWRAP STYLE="color: Black; text-align: right">78,438</TD><TD STYLE="color: Black; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><FONT STYLE="color: Black"><B>ITEM 14.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>INDEMNIFICATION OF DIRECTORS
AND OFFICERS.</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The Delaware
General Corporation Law and the Company's charter and by-laws provide for indemnification of the Company's directors and officers
for liabilities and expenses that they may incur in such capacities. In general, directors and officers are indemnified with respect
to actions taken in good faith in a manner reasonably believed to be in, or not opposed to, the best interests of the Company,
and with respect to any criminal action or proceeding, actions that the indemnitee had no reasonable cause to believe were unlawful.
Reference is made to the Company's corporate charter and by-laws filed as Exhibits 3.1 and 3.2 hereto, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our Company pursuant
to the foregoing provisions, the opinion of the SEC is that such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">In addition,
we may maintain insurance on behalf of our directors and executive officers insuring them against any liability asserted against
them in their capacities as directors or officers or arising out of such status.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><FONT STYLE="color: Black"><B>ITEM 15.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>RECENT SALES OF UNREGISTERED
SECURITIES.</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Set forth below
is information regarding Common Stock issued, warrants issued and stock options granted by the Company within the past three years.
Also included is the consideration, if any, we received and information relating to the section of the Securities Act, or rule
of the SEC, under which exemption from registration was claimed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Common Stock</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">On July 9, 2010
American DG Energy invested $45,000 in exchange for 45 million shares of the Company&rsquo;s Common Stock and such investment
resulted in American DG Energy receiving a controlling interest in the Company. Also on July 9, 2010 Nettlestone Enterprises Limited,
invested $5,000 in exchange for 5 million shares of the Company&rsquo;s Common Stock. During the period from July 9, 2010 to December
31, 2010, the Company raised an additional $2,261,000 in a private placement by selling 2,261,000 shares of Common Stock to 25
accredited investors at a price of $1.00 per share. The investors were accredited investors, and such transactions were exempt
from registration under the Securities Act under Section 4(a)(2).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">During the period
from January 1, 2011 to June 30, 2011, the Company raised an additional $1,250,000 in a private placement by selling 1,250,000
shares of Common Stock to 4 accredited investors at a price of $1.00 per share. The investors were accredited investors, and such
transactions were exempt from registration under the Securities Act under Section 4(a)(2).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">No underwriters
were involved in the foregoing sales of securities. All of the foregoing securities are deemed restricted securities for purposes
of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Warrants</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">On July 12,
2010 the Company granted to Nettlestone Enterprises Limited a special purchase right, or warrant. The warrant grants Nettlestone
Enterprises Limited the non-assignable right but not the obligation, for a period of two years after July 12, 2010, to purchase
400,000 shares of Common Stock at a per share purchase price of $1.00. Nettlestone Enterprises Limited is an accredited investor,
and such transaction was exempt from registration under the Securities Act under Section 4(a)(2).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 16; Options: NewSection -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black"><I>Stock Options</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">On January 15,
2011, the Company granted nonqualified options to purchase 2,100,000 shares of Common Stock to five employees and two directors
at a purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The fair
value of the options issued was $790,908, with a weighted average grant date fair value of $0.38 per option.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">On June 13,
2011, the Company granted nonqualified options to purchase 300,000 shares of Common Stock to three directors at a purchase price
of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The fair value of the options
was $109,304, with a weighted average grant date fair value of $0.36 per option.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">On November
3, 2011, the Company granted its managing director options to purchase 900,000 shares of common stock at purchase price of $1.00
per share and granted to the three members of its advisory board options to purchase 300,000 shares of common stock at purchase
price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years and were made under the
UK Sub-Plan to the Company&rsquo;s 2011 Stock Incentive Plan. The fair value of the options was $423,400, with a weighted average
grant date fair value of $0.35 per option.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The grant of
all options was exempt from registration under Rule 701 under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">No underwriters
were involved in the foregoing sales of securities. All purchasers represented to us in connection with their purchase that they
were accredited investors and made other customary investment representations. All of the foregoing securities were deemed restricted
securities when granted for purposes of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><FONT STYLE="color: Black"><B>ITEM 16.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>EXHIBITS.</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The exhibits
to the Registration Statement are listed in the Exhibit Index attached hereto and incorporated by reference herein.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><FONT STYLE="color: Black"><B>ITEM 17.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>UNDERTAKINGS.</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in"><FONT STYLE="color: Black">The
undersigned registrant hereby undertakes that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black">a.</FONT></TD><TD><FONT STYLE="color: Black">(1)
                                                                                                  To file, during any period in
                                                                                                  which offers or sales are being
                                                                                                  made, a post-effective amendment
                                                                                                  to this registration statement:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="color: Black">(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="color: Black">(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding 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% change in the maximum aggregate offering
price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="color: Black">(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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="color: Black">(2) That, for the purpose
of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of the securities at that time shall be deemed
to be the initial bona fide offering thereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="color: Black">(3) To remove from registration
by means of a post-effective amendment any of the securities being registered that remain unsold at the termination of the offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="color: Black">(6) That, for the purpose
of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the
securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant
to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller
to the purchaser and will be considered to offer or sell such securities to such purchaser:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 17 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="color: Black">(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant
to Rule 424 (&sect;230.424 of Title 17 of the Code of Federal Regulations);</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="color: Black">(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred
to by the undersigned registrant;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="color: Black">(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned
registrant or its securities provided by or on behalf of the undersigned registrant; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="color: Black">(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="color: Black">i.&#9;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: Black">1.</FONT></TD><TD><FONT STYLE="color: Black">For
                                                                                                purposes of determining any liability
                                                                                                under the Securities Act of 1933,
                                                                                                the information omitted from the
                                                                                                form of prospectus filed as part
                                                                                                of this registration statement
                                                                                                in reliance upon Rule 430A and
                                                                                                contained in a form of prospectus
                                                                                                filed by the registrant pursuant
                                                                                                to Rule 424(b) (1) or (4) or 497(h)
                                                                                                under the Securities Act shall
                                                                                                be deemed to be part of this registration
                                                                                                statement as of the time it was
                                                                                                declared effective.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: Black">2.</FONT></TD><TD><FONT STYLE="color: Black">For
                                                                                                the purpose of determining any
                                                                                                liability under the Securities
                                                                                                Act of 1933, each post-effective
                                                                                                amendment that contains a form
                                                                                                of prospectus 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.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black">h.</FONT></TD><TD><FONT STYLE="color: Black">Insofar
                                                                                                  as indemnification for liabilities
                                                                                                  arising under the Securities
                                                                                                  Act of 1933 may be permitted
                                                                                                  to directors, officers and controlling
                                                                                                  persons of the registrant pursuant
                                                                                                  to the foregoing provisions,
                                                                                                  or otherwise, the registrant
                                                                                                  has been advised that in the
                                                                                                  opinion of the Securities and
                                                                                                  Exchange Commission such indemnification
                                                                                                  is against public policy as
                                                                                                  expressed in the Act and is,
                                                                                                  therefore, unenforceable. In
                                                                                                  the event that a claim for indemnification
                                                                                                  against such liabilities (other
                                                                                                  than the payment by the registrant
                                                                                                  of expenses incurred or paid
                                                                                                  by a director, officer or controlling
                                                                                                  person of the registrant in
                                                                                                  the successful defense of any
                                                                                                  action, suit or proceeding)
                                                                                                  is asserted by such director,
                                                                                                  officer or controlling person
                                                                                                  in connection with the securities
                                                                                                  being registered, the registrant
                                                                                                  will, unless in the opinion
                                                                                                  of its counsel the matter has
                                                                                                  been settled by controlling
                                                                                                  precedent, submit to a court
                                                                                                  of appropriate jurisdiction
                                                                                                  the question whether such indemnification
                                                                                                  by it is against public policy
                                                                                                  as expressed in the Act and
                                                                                                  will be governed by the final
                                                                                                  adjudication of such issue.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<!-- Field: Page; Sequence: 18 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">Pursuant
to the requirements of the Securities Act of&nbsp;1933, the registrant has duly caused this registration statement on Form S-1
to be signed on its behalf by the undersigned, thereunto duly authorized, in Waltham, Massachusetts on&nbsp;July 11, 2012.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">EUROSITE POWER INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">(Registrant)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 28%; border-bottom: windowtext 1pt solid; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">By:
    /s/ Barry J. Sanders</FONT></TD>
    <TD STYLE="width: 21%; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Chief Executive Officer
    and President</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">(Principal Executive
    Officer)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>POWER OF
ATTORNEY AND SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">The undersigned
officers and directors of the Company hereby constitute and appoint Barry J. Sanders and Anthony S. Loumidis, and each of them
singly, with full power of substitution, our true and lawful attorneys-in-fact and agents to take any actions to enable the Company
to comply with the Securities Act, and any rules, regulations and requirements of the SEC, in connection with this registration
statement on Form S-1, including the power and authority to sign for us in our names in the capacities indicated below any and
all further amendments to this registration statement and any other registration statement filed pursuant to the provisions of
Rule 462 under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: Black">Pursuant to
the requirements of the Securities Act of 1933, this registration statement on Form S-1 has been signed by the following persons
in the capacities and on the dates indicated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">July 11, 2012</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 33%; border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other; font-weight: bold"><FONT STYLE="color: Black">Signature</FONT></TD>
    <TD STYLE="width: 2%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 45%; border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center"><FONT STYLE="color: Black">Title</FONT></TD>
    <TD STYLE="width: 1%; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 19%; border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other; font-weight: bold; text-align: center"><FONT STYLE="color: Black">Date</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">/s/
    John N. Hatsopoulos</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Chairman of the Board and Director</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">July 11, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">John N. Hatsopoulos</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">/s/
    Barry J. Sanders</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Director, President and Chief Executive
    Officer&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">July 11, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Barry J. Sanders</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">(Principal Executive Officer)</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">/s/
    Anthony S. Loumidis</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Treasurer, Secretary and Chief Financial
    Officer</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">July 11, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Anthony S. Loumidis</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">(Principal Financial and Accounting
    Officer)</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">/s/
    Ahmed F. Ghoniem</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Director</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">July 11, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Ahmed F. Ghoniem</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">/s/
    James C. Devas</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Director</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">July 11, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">James C. Devas</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">/s/
    Bruno Meier</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Director</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">July 11, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">Bruno Meier</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-autospace: ideograph-numeric ideograph-other"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 19 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>EXHIBIT INDEX</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">Exhibit</FONT></TD>
    <TD STYLE="width: 1%; text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">Number</FONT></TD>
    <TD STYLE="text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: ideograph-numeric ideograph-other; text-align: center"><FONT STYLE="color: Black">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in; text-autospace: ideograph-numeric ideograph-other; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">3.1</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Certificate of Incorporation, as amended and restated
    February 22, 2012 (incorporated by reference to Exhibit 3.2 to the Company&rsquo;s Form 10, as amended, originally filed with
    the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">3.2</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Bylaws as amended and restated January 27, 2012
    (incorporated by reference&nbsp; to Exhibit 3.4 to the Company&rsquo;s Form 10, as amended, originally filed with the SEC
    on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">4.1</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Warrant to Nettlestone Enterprises Limited dated
    July 12, 2010 (incorporated by reference to Exhibit 4.1 to the Company&rsquo;s Form 10, as amended, originally filed with
    the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">4.2##</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Form of Warrant (for this offering).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">5.1##</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Opinion of Sullivan &amp; Worcester LLP.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">10.1*</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">EuroSite Power Inc. 2011 Stock Incentive Plan,
    as amended on June 13, 2011 (incorporated by reference&nbsp; to Exhibit 10.4 to the Company&rsquo;s Form 10, as amended, originally
    filed with the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">10.2*</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">UK Sub-Plan to the EuroSite Power Inc. 2011 Stock
    Incentive Plan (incorporated by reference&nbsp; to Exhibit 10.5 to the Company&rsquo;s Form 10, as amended, originally filed
    with the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">10.3</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Form of EuroSite Power Inc. Subscription Agreement
    for private placement of Common Stock (incorporated by reference to Exhibit 10.6 to the Company&rsquo;s Form 10, as amended,
    originally filed with the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">10.4*</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Service Agreement by and between EuroSite Power
    Limited and Paul J. Hamblyn dated July 18, 2011 (incorporated by reference&nbsp; to Exhibit 10.7 to the Company&rsquo;s Form
    10, as amended, originally filed with the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">10.5+</FONT></TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="color: Black">Facilities, Support Services and Business Agreement between American
    DG Energy Inc. and Tecogen Inc., dated January 1, 2006 <FONT STYLE="font-style: normal">(incorporated by reference to Exhibit
    10.8 to the Company&rsquo;s Form 10, as amended, originally filed with the SEC on August 16, 2011).</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">10.6##</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Form of Securities Purchase Agreement (for this
    offering).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">10.7#</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Placement Agency Agreement, dated June 19, 2012,
    between the Company and Merriman Capital Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">14.1</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Code of Business Conduct and Ethics (incorporated
    by reference to Exhibit 14.1 to the Company&rsquo;s Form 10, as amended, originally filed with the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">21.1</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">List of subsidiaries (incorporated by reference
    to Exhibit 21.1 to the Company&rsquo;s Form 10, as amended, originally filed with the SEC on August 16, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">23.1#</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Consent of McGladrey LLP.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">23.2</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Consent of Sullivan &amp; Worcester LLP (included
    in Exhibit 5.1).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">24.1</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font-style: normal; text-indent: 0in"><FONT STYLE="color: Black">Power of Attorney (included on signature page).</FONT></TD></TR>
</TABLE>
<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; color: Black">&nbsp;</FONT></P>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; color: Black"></FONT></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-left: 0; margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; color: Black"></FONT></P>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 9%">#</TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black"></FONT></TD><TD STYLE="text-align: justify; width: 90%"><FONT STYLE="color: Black">Filed herewith.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 9%"><FONT STYLE="color: Black">##</FONT></TD><TD STYLE="width: 1%; text-align: left"></TD><TD STYLE="text-align: justify; width: 90%"><FONT STYLE="color: Black">To be filed by amendment.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 9%"><FONT STYLE="color: Black">*</FONT></TD><TD STYLE="width: 1%; text-align: left"></TD><TD STYLE="text-align: justify; width: 90%"><FONT STYLE="color: Black">Management contract or compensatory
plan or arrangement.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 9%">+</TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black"></FONT></TD><TD STYLE="text-align: justify; width: 90%"><FONT STYLE="color: Black">Previously filed&nbsp;with
the SEC on November 22, 2006 as Exhibit 10.5 to the American DG Energy Inc. Registration Statement on&nbsp;Form 10-SB/A (Registration
No. 000-52294) and incorporated herein by reference. Confidential treatment has been granted for portions of this document.&nbsp;The
confidential portions were omitted and filed separately, on a confidential basis, with the SEC.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="color: Black">&nbsp;&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 20; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "v318189_s1.htm", "description": "S-1", "secsgml_size_bytes": 327044}]
{"company-data": {"conformed-name": "EUROSITE POWER INC", "cik": "0001528103", "assigned-sic": "4931", "irs-number": "275250881"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-182620", "film-number": "12957464"}, "business-address": {"street1": "45 FIRST AVENUE", "city": "WALTHAM", "state": "MA", "zip": "02451", "phone": "781 622 1120"}, "mail-address": {"street1": "45 FIRST AVENUE", "city": "WALTHAM", "state": "MA", "zip": "02451"}}
As filed with the Securities and Exchange
Commission on July 11, 2012
Registration No. ____________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
EUROSITE
POWER INC.
(Exact name of registrant as specified
in its charter)
Delaware
4931
27-5250881
(State
    or other jurisdiction of
(Primary
    Standard Industrial
(I.R.S.
    Employer
incorporation
    or organization)
Classification
    Code Number)
Identification
    No.)
EuroSite Power Inc.
45 First Avenue
Waltham, MA 02451
(781) 622-1120
(Address, including zip code, and telephone
number,
including area code, of registrant's
principal executive offices)
Copies
    to:
Anthony
    S. Loumidis
Edwin
    L. Miller Jr.
Chief
    Financial Officer
Sullivan
    & Worcester LLP
EuroSite
    Power Inc.
One
    Post Office Square
45
    First Avenue
Boston,
    MA 02109
Waltham,
    MA 02451
Tel:
    (617) 338-2800/Fax: (617) 338-2880
(781)
    622-1120/Fax: (781) 622-1027
(Name,
    address, including zip code,
and
    telephone number, including area code, of agent for
service)
As soon as practicable after the effective
date of this Registration Statement.
(Approximate date of commencement of proposed
sale to the public)
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, check the following box:
þ
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, 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.
Large accelerated filer:
¨
Accelerated filer:
¨
Non-accelerated filer:
¨
Smaller reporting company:
þ
CALCULATION OF REGISTRATION FEE
Title of Each Class of
Securities to be Registered
Amount to be
Registered
Proposed Maximum
Offering Price per
Unit
Proposed Maximum
Aggregate Offering
Price
1, 2
Amount of
Registration Fee
Units consisting of 1 share of Common Stock
    and a warrant to purchase 1 share of Common Stock
15,000,000
$
1.00
$
15,000,000
$
1,719
Common Stock included in Units
3
15,000,000
-
-
-
Warrants to purchase Common Stock included in Units
3
15,000,000
-
-
-
Common Stock underlying warrants, $1.00 per share exercise price
15,000,000
$
1.00
$
15,000,000
$
1,719
Total
$
30,000,000
$
3,438
1
Estimated solely for the purpose of calculating
the registration fee pursuant to Rule 457(o) under the Securities Act.
2
Pursuant to
Rule 416, this registration statement shall be deemed to cover the additional securities (i) to be offered or issued in connection
with any provision of any securities purported to be registered hereby to be offered pursuant to terms that provide for a change
in the amount of securities being offered or issued to prevent dilution resulting from stock splits, stock dividends or similar
transactions and (ii) of the same class as the securities covered by this registration statement issued or issuable prior to completion
of the distribution of the securities covered by this registration statement as a result of a split of, or a stock dividend on,
the registered securities.
3
No registration
fee required pursuant to Rule 457 under the Securities Act.
The registrant hereby amends this registration statement
on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.
The information in this
prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting
an offer to buy these securities in any state or other jurisdiction where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED JULY 11, 2012
PROSPECTUS
15,000,000 Shares of Common Stock
Warrants to Purchase 15,000,000 Shares
of Common Stock
We are offering up to 15,000,000 shares
of our common stock and warrants to purchase up to 15,000,000 shares of our common stock (and the shares of common stock issuable
from time to time upon exercise of these warrants). The common stock and the warrants will be sold in units, with each unit consisting
of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $1.00 per share.
Each unit will be sold at a price of $1.00 per unit. Units will not be issued or certificated. The shares of common stock and
warrants are immediately separable and will be issued separately. We refer to the shares of common stock issued or issuable hereunder
upon exercise of the warrants, and the warrants to purchase common stock issued hereunder, collectively, as the securities.
There is currently no public market for
our common stock.
The units are being offered on a best efforts
basis. We have retained Merriman Capital, Inc. as our placement agent in connection with this offering.
Per Unit
Total
Public offering price
$
1.000
$
15,000,000
Placement agent's fee(1)
$
0.065
$
975,000
Proceeds to us before expenses
$
0.935
$
14,025,000
(1)
In addition, we have agreed to reimburse the expenses of the
                                                                placement agent and to issue a warrant to purchase shares of our
                                                                common stock. See "Plan of Distribution."
We expect the
total offering expenses p
ayable by us, excluding the placement agent's fee and the registration
fee, to be approximately $75,000. Because there is no minimum offering amount required as a condition to closing in this
offering, the actual total public offering amount, placement agent's fee and net proceeds to us in this offering may be
less than the amounts set forth above. The placement agent is not required to place any specific number or dollar amount of units
offered in this offering, but will use its best efforts to place the units. You should rely only on the information provided in
this prospectus or any supplement to this prospectus. We have not authorized anyone else to provide you with different information.
The selling stockholders will be responsible for any commissions or discounts due to brokers or dealers. We will pay all of the
other offering expenses.
The placement
agent is not purchasing or selling any units pursuant to this offering, nor are we requiring any minimum purchase or sale of any
specific number of units. Because there is no minimum offering amount required as a condition to the closing of this offering,
the actual public offering amount, placement agent fees and proceeds to us are not presently determinable and may be substantially
less than the maximum amounts set forth above. We expect that delivery of the units being offered pursuant to this prospectus
will be made to purchasers on or about
[●]
, 2012.
We are an "emerging
growth company" under the federal securities laws and will therefore be subject to reduced public company reporting requirements.
Investing
in our securities involves a high degree of risk.  See "Risk Factors" beginning on page 7 of this prospectus
to read about factors you should consider before buying our securities.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
Merriman
Capital, Inc.
TABLE OF
CONTENTS
About This Prospectus
3
Where You Can Find More information
3
Documents Incorporated by Reference
3
Prospectus Summary
4
The Offering
6
Risk Factors
7
Summary Consolidated Financial Data
9
Special Note Regarding Forward Looking
    Statements
10
Use of Proceeds
10
Determination of Offering Price
10
Dilution
11
Plan of Distribution
12
Description of the Securities we
    are Offering
13
Experts
14
Legal Matters
14
2
ABOUT THIS
PROSPECTUS
In this prospectus,
the "Company," "we," "us," and "our" and similar terms refer to EuroSite Inc.
References to our "common stock" refer to the common stock of EuroSite, Inc.
You should read
this prospectus together with additional information described under the headings "Where You Can Find More Information"
and "Documents Incorporated by Reference." If there is any inconsistency between the information contained or incorporated
by reference in this prospectus, you should rely on the information in this prospectus. You should assume that the information
appearing in this prospectus is accurate as of the dates on the cover page, regardless of time of delivery of the prospectus or
any sale of securities. Our business, financial condition, results of operation and prospects may have changed since that date.
We have not
authorized any other person to provide you with different information. No offers are being made hereby in any jurisdiction where
the offer or sale is not permitted.
Unless otherwise
indicated, information contained in this prospectus concerning our industry, including our market opportunity, is based on information
from independent industry analysts, third-party sources and management estimates. Management estimates are derived from publicly-available
information released by independent industry analysts and third party sources, as well as data from our internal research, and
is based on assumptions made by us using data and our knowledge of such industry and market, which we believe to be reasonable.
In addition, while we believe the market opportunity information included in this prospectus is generally reliable and is based
on reasonable assumptions, such data involves risks and uncertainties and is subject to change based on various factors, including
those discussed under the heading "Risk Factors."
Where
You Can Find More Information
We file annual,
quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission, or the SEC.
The SEC maintains a web site that contains reports, proxy and information statements and other information regarding issuers such
as us. (http://www.sec.gov). You can also inspect and copy these reports, proxy statements and other information at the SEC's
Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can call the SEC at 1-800-SEC-0330 for further information
on the Public Reference Room.
Our web site
is located at http://www.eurositepower.co.uk. The information contained on our web site is not part of this prospectus.
Documents
Incorporated by Reference
The SEC allows
us to "incorporate by reference" information into this document. This means that we can disclose important information
to you by referring you to another document filed separately with the SEC. The information incorporated by reference is considered
to be a part of this document, except for any information superseded by information that is included directly in this document
or incorporated by reference subsequent to the date of this document.
This prospectus incorporates by
reference the documents listed below:
·
Our
                                                                                                                             Annual
                                                                                                                             Report
                                                                                                                             on
                                                                                                                             Form
                                                                                                                             10-K
                                                                                                                             for
                                                                                                                             the
                                                                                                                             year
                                                                                                                             ended
                                                                                                                             December 31,
                                                                                                                             2011
                                                                                                                             filed
                                                                                                                             with
                                                                                                                             the
                                                                                                                             SEC
                                                                                                                             on
                                                                                                                             March
                                                                                                                             23,
                                                                                                                             2012;
·
Quarterly
                                                                                                                             Report
                                                                                                                             on
                                                                                                                             Form
                                                                                                                             10-Q
                                                                                                                             for
                                                                                                                             the
                                                                                                                             quarter
                                                                                                                             ended
                                                                                                                             March
                                                                                                                             31,
                                                                                                                             2012
                                                                                                                             filed
                                                                                                                             with
                                                                                                                             the
                                                                                                                             SEC
                                                                                                                             on
                                                                                                                             May
                                                                                                                             15,
                                                                                                                             2012;
                                                                                                                             and
·
The
                                                                                                                             description
                                                                                                                             of
                                                                                                                             our
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             set
                                                                                                                             forth
                                                                                                                             under
                                                                                                                             Item
                                                                                                                             11
                                                                                                                             in
                                                                                                                             our
                                                                                                                             Form
                                                                                                                             10/A,
                                                                                                                             Registration
                                                                                                                             No.
                                                                                                                             000-54484,
                                                                                                                             filed
                                                                                                                             with
                                                                                                                             the
                                                                                                                             SEC
                                                                                                                             on
                                                                                                                             November
                                                                                                                             18,
                                                                                                                             2011.
You may request
a copy of these filings, at no cost, by emailing, writing or calling our chief financial officer, Anthony Loumidis, at the following:
EuroSite Power
Inc.
45 First Avenue
Waltham, MA
02451
Attention: Anthony
Loumidis
Chief Financial
Officer
Tel:
781.622.1117
Email:
aloumidis@americandg.com
Copies of the
documents incorporated by reference may also be found on our website at www.eurositepower.co.uk.
3
PROSPECTUS
SUMMARY
This summary
highlights information contained elsewhere in this prospectus or incorporated by reference herein. This summary does not contain
all of the information that you should consider before investing in our securities. Before making an investment decisions, you
should carefully read the entire prospectus, including the "Risk Factors" section, starting on page 7 of this
prospectus, as well as the financial statements and the other information incorporated by reference herein.
Overview
We distribute,
own and operate clean, on-site energy systems that produce electricity, hot water, heat and cooling in the United Kingdom and
Europe. Our business model is to own the equipment that we install at customers' facilities and to sell the energy produced
by these systems to the customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional
utility rates. Because our systems may operate at up to 90% efficiency, according to the Environmental and Energy Study Institute,
Energy Generation and Distribution Efficiency,
(versus less than 33% for the existing power grid), we expect to be
able to sell the energy produced by these systems to our customers at prices below their existing cost of electricity (or air
conditioning), heat and hot water.
We offer natural
gas powered cogeneration systems that are highly reliable and energy efficient. Our cogeneration systems produce electricity from
an internal combustion engine driving a generator, while the heat from the engine and exhaust is recovered and typically used
to produce heat and hot water for use at the site. We also distribute and operate water chiller systems for building cooling applications
that operate in a similar manner, except that the engine's power drives a large air-conditioning compressor while recovering
heat for hot water. Cogeneration systems reduce the amount of electricity that the customer must purchase from the local utility
and produce valuable heat and hot water for the site to use as required.  By simultaneously providing electricity, hot
water and heat, cogeneration systems also have a significant positive impact on the environment by reducing the carbon or CO
2
produced by offsetting the traditional energy supplied by the electric grid and conventional hot water boilers.
Distributed
generation of electricity, or DG, often referred to as cogeneration systems, or combined heat and power systems, or CHP, is an
attractive option for reducing energy costs and increasing the reliability of available energy. DG has been successfully implemented
by others in large industrial installations over 10 Megawatts, or MW, where the market has been growing for a number of years,
and is increasingly being accepted in smaller size units because of technology improvements, increased energy costs and better
DG economics. We believe that our target market (users of up to 1 MW) has been barely penetrated and that the reduced reliability
of the utility grid, increasing cost pressures experienced by energy users, advances in new, low-cost technologies and DG-favorable
legislation and regulation at the state and federal level will drive our near-term growth and penetration into our target market.
We believe that
our primary near-term opportunity for DG energy and equipment sales is where commercial electricity rates exceed $0.12 per kWh.
Attractive DG economics in the United Kingdom and Europe are currently attainable in applications that include hospitals, nursing
homes, multi-tenant residential housing, hotels, schools and colleges, recreational facilities, food processing plants, dairies
and other light industrial facilities.
Early in 2010,
American DG Energy performed a feasibility study of the European market to determine the viability of expanding its On-Site Utility
business into Europe. This study and business plan report reached the conclusions that: (a) there is untapped customer demand
to provide small-scale CHP packages in the commercial sector through a fully financed, output-based electricity and hot water
contract, (b) there is a lack of competition in this space in the target customer segments (hotel, healthcare and multi-tenant
residential) and (c) the underlying economic fundamentals are attainable, with a combination of sufficient spark spreads and government
fiscal support.
The study analyzed
the entire European market; however, it focused on the United Kingdom, Spain and Belgium as the primary markets to start operations.
The study estimated that there are over 13,700 sites in those three countries providing a $900 million annual electricity
market plus a $600 million heat and hot water energy market, for a combined market potential of $1.5 billion. The data
used to calculate the Company's market potential is derived by Company estimates.
We purchase
energy equipment from various suppliers. The primary type of equipment used is a natural gas-powered, reciprocating engine provided
by Tecogen Inc., or Tecogen, an affiliate of the Company. Tecogen is a leading manufacturer of natural gas, engine-driven commercial
and industrial cooling and cogeneration systems suitable for a variety of applications, including hospitals, nursing homes and
schools. The internal combustion reciprocating engine is provided to Tecogen by General Motors Corporation.
4
Corporate Information
We were organized
as a Delaware corporation in July 2010. Our principal executive offices are located at 45 First Avenue, Waltham, Massachusetts
02451, and our telephone number is (781) 522-6000. Our website address is
www.eurositepower.co.uk.
The information on our
website does not constitute a part of this prospectus.
5
THE OFFERING
Common stock offered
    by us
15,000,000 shares
Common stock
    to be outstanding
after this offering
69,362,100 shares
Warrants offered by us
Warrants to purchase 15,000,000 shares
    of common stock. The warrants will be exercisable during the period commencing on the date of the closing of this offering
    and ending one year from the date such warrants become exercisable at an exercise price of $1.00 per share.  This prospectus
    also relates to the offering of the shares of common stock exercisable upon the exercise of the warrants.
Use of proceeds
We intend to use the net proceeds
    of this offering for working capital purposes in connection with the development and installation of new energy systems such
    as cogeneration systems and chillers. The net proceeds will also be used for general corporate purposes, which may include,
    among other things, potential acquisitions of companies, products and technologies that complement our business, although
    we have no present commitments or agreements with respect to any such transactions.
Risk factors
See "Risk Factors" beginning
    on page 7 for a discussion of factors you should consider carefully when making an investment decision.
Unless we indicate
otherwise, common stock outstanding after this offering is based on 54,362,100 shares of our common stock outstanding as of July
9, 2012, assumes the sale of the maximum number of shares of common stock and warrants offered hereby, does not include the 15,000,000
shares issuable upon the exercise of the warrants offered hereby, and excludes, up to
[●]
shares issuable upon the
exercise of a warrant to be issued to the placement agent as further described in "Plan of Distribution" and excludes
as of July 9, 2012, the following:
·
3,590,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             stock
                                                                                                                             options
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share;
·
910,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             available
                                                                                                                             for
                                                                                                                             future
                                                                                                                             grants
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans;
                                                                                                                             and
·
400,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             warrants
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share.
6
RISK FACTORS
Investing in
our securities involves risk. You should carefully consider the risks described below as well as those risk factors incorporated
by reference herein before making an investment decision. The risks below relate to this offering. In addition, our Company is
subject to a variety of risks that may be found in the documents incorporated by reference herein, including those risk factors
described in our Annual Report on Form 10-K for our most recent fiscal year (together with any material changes thereto contained
in subsequent filed reports and other filings with the SEC). The risks and uncertainties described below and in the documents
incorporated by reference are not the only risks and uncertainties we face. Additional risks and uncertainties not presently known
to us or that we currently deem immaterial also may impair our business operations. If any of the following risks, or those incorporated
by reference actually occur, our business, results of operations and financial condition could suffer. In that event the trading
price of our common stock could decline, and you may lose all or part of your investment in the units. The risks discussed below
and those incorporated by reference also include forward-looking statements and our actual results may differ substantially from
those discussed in these forward-looking statements.
There
is no public market for the common stock or warrants to purchase common stock in this offering.
There is no
public trading market for our securities. We intend to arrange for the quotation of our common stock on the OTC Bulletin Board
or the listing of our common stock on a national or international securities exchange. There is no assurance that we will be able
to do so. Without an active market, the liquidity of these securities will be limited.
Even if our
common stock becomes publicly traded, an active and liquid trading market may not develop and our share price may be volatile.
Because we are
a small business issuer, stock market volatility over the last several years and for other reasons, an active and liquid trading
market for our common stock may never develop. Even if one does develop the market price of our common stock is likely to vary
significantly as a result of a number of factors, including the following:
·
the
                                                                                                                             price
                                                                                                                             of
                                                                                                                             electricity
                                                                                                                             and
                                                                                                                             natural
                                                                                                                             gas;
·
the
                                                                                                                             failure
                                                                                                                             of
                                                                                                                             securities
                                                                                                                             analysts
                                                                                                                             to
                                                                                                                             cover
                                                                                                                             our
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             if
                                                                                                                             a
                                                                                                                             trading
                                                                                                                             market
                                                                                                                             develops
                                                                                                                             or
                                                                                                                             changes
                                                                                                                             in
                                                                                                                             financial
                                                                                                                             estimates
                                                                                                                             by
                                                                                                                             analysts;
·
failure
                                                                                                                             to
                                                                                                                             meet
                                                                                                                             the
                                                                                                                             expected
                                                                                                                             financial
                                                                                                                             results;
·
dilutive
                                                                                                                             issuances
                                                                                                                             of
                                                                                                                             securities;
·
a
                                                                                                                             substantial
                                                                                                                             portion
                                                                                                                             of
                                                                                                                             our
                                                                                                                             total
                                                                                                                             issued
                                                                                                                             and
                                                                                                                             outstanding
                                                                                                                             shares
                                                                                                                             may
                                                                                                                             be
                                                                                                                             sold
                                                                                                                             into
                                                                                                                             the
                                                                                                                             market
                                                                                                                             at
                                                                                                                             any
                                                                                                                             time;
·
investor
                                                                                                                             perception
                                                                                                                             of
                                                                                                                             our
                                                                                                                             Company
                                                                                                                             and
                                                                                                                             of
                                                                                                                             the
                                                                                                                             industry
                                                                                                                             in
                                                                                                                             which
                                                                                                                             we
                                                                                                                             compete;
                                                                                                                             and
·
general
                                                                                                                             economic,
                                                                                                                             political
                                                                                                                             and
                                                                                                                             market
                                                                                                                             conditions.
The warrants
may not have any value.
In the event
that our common stock price does not exceed the exercise price of the warrants during the period when the warrants are exercisable,
the warrants may not have any value.
Holders of
our warrants will have no rights as a common stockholder until they acquire our common stock.
Until you acquire
shares of our common stock upon exercise of your warrants, you will have no rights with respect to our common stock. Upon exercise
of your warrants, you will be entitled to exercise the rights of a common stockholder only as to matters for which the record
date occurs after the exercise date.
The concentration
of our share capital ownership among our largest shareholders, and their affiliates, will limit your ability to influence corporate
matters.
After our offering,
we anticipate that our two largest shareholders will collectively own approximately 73% of our issued and outstanding common shares.
Consequently, these shareholders have significant influence over all matters that require approval by our shareholders, including
the election of directors and approval of significant corporate transactions. This concentration of ownership will limit your
ability to influence corporate matters, and as a result, actions may be taken that you may not view as beneficial.
We will have
broad discretion over the use of the proceeds of this offering and may not realize a return.
We will have
considerable discretion in the application of the net proceeds of this offering. We may use the net proceeds for purposes that
do not yield a significant return, if any, for our stockholders.
7
If you purchase
our common stock in this offering, you will suffer immediate and substantial dilution of your investment.
The public offering
price in this offering is substantially higher than our net tangible book value per common share. Therefore, if you purchase our
common shares in this offering, your interest will be diluted immediately to the extent of the difference between the initial
public offering price per common share and the net tangible book value per common share after this offering. See "Dilution."
We do not
intend to pay dividends on our common shares and, consequently, your only opportunity to achieve a return on your investment is
if the price of our shares appreciates.
We do not plan
to declare dividends on shares of our common stock in the foreseeable future. Consequently, your only opportunity to achieve a
return on your investment in us will be if the value of our common stock appreciates, which may not occur.
The recently
enacted JOBS Act will allow us to postpone the date by which we must comply with certain laws and regulations and to reduce the
amount of information provided in reports filed with the SEC. We cannot be certain if the reduced disclosure requirements applicable
to emerging growth companies will make our common stock less attractive to investors.
We are and we
will remain an "emerging growth company", as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS
Act, until the earliest to occur of (i) the last day of the fiscal year during which our total annual gross revenues equal or
exceed $1 billion (subject to adjustment for inflation), (ii) the last day of the fiscal year following the fifth anniversary
of our initial public offering, (iii) the date on which we have, during the previous three-year period, issued more than $1 billion
in non-convertible debt, or (iv) the date on which we are deemed a large accelerated filer under the Securities Exchange Act of
1934, as amended.
For so long
as we remain an emerging growth company as we will not be required to:
·
have
                                                                                                                             an
                                                                                                                             auditor
                                                                                                                             report
                                                                                                                             on
                                                                                                                             our
                                                                                                                             internal
                                                                                                                             controls
                                                                                                                             over
                                                                                                                             financial
                                                                                                                             reporting
                                                                                                                             pursuant
                                                                                                                             to
                                                                                                                             Section
                                                                                                                             404(b)
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Sarbanes-Oxley
                                                                                                                             Act;
·
comply
                                                                                                                             with
                                                                                                                             any
                                                                                                                             requirement
                                                                                                                             that
                                                                                                                             may
                                                                                                                             be
                                                                                                                             adopted
                                                                                                                             by
                                                                                                                             the
                                                                                                                             Public
                                                                                                                             Company
                                                                                                                             Accounting
                                                                                                                             Oversight
                                                                                                                             Board
                                                                                                                             regarding
                                                                                                                             mandatory
                                                                                                                             audit
                                                                                                                             firm
                                                                                                                             rotation
                                                                                                                             or
                                                                                                                             a
                                                                                                                             supplement
                                                                                                                             to
                                                                                                                             the
                                                                                                                             auditor's
                                                                                                                             report
                                                                                                                             providing
                                                                                                                             additional
                                                                                                                             information
                                                                                                                             about
                                                                                                                             the
                                                                                                                             audit
                                                                                                                             and
                                                                                                                             the
                                                                                                                             financial
                                                                                                                             statements
                                                                                                                             (i.e.,
                                                                                                                             an
                                                                                                                             auditor
                                                                                                                             discussion
                                                                                                                             and
                                                                                                                             analysis);
·
submit
                                                                                                                             certain
                                                                                                                             executive
                                                                                                                             compensation
                                                                                                                             matters
                                                                                                                             to
                                                                                                                             shareholder
                                                                                                                             non-binding
                                                                                                                             advisory
                                                                                                                             votes;
·
submit
                                                                                                                             for
                                                                                                                             shareholder
                                                                                                                             approval
                                                                                                                             golden
                                                                                                                             parachute
                                                                                                                             payments
                                                                                                                             not
                                                                                                                             previously
                                                                                                                             approved;
                                                                                                                             and
·
disclose
                                                                                                                             certain
                                                                                                                             executive
                                                                                                                             compensation
                                                                                                                             related
                                                                                                                             items
                                                                                                                             such
                                                                                                                             as
                                                                                                                             the
                                                                                                                             correlation
                                                                                                                             between
                                                                                                                             executive
                                                                                                                             compensation
                                                                                                                             and
                                                                                                                             financial
                                                                                                                             performance
                                                                                                                             and
                                                                                                                             comparisons
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Chief
                                                                                                                             Executive
                                                                                                                             Officer's
                                                                                                                             compensation
                                                                                                                             to
                                                                                                                             median
                                                                                                                             employee
                                                                                                                             compensation,
                                                                                                                             when
                                                                                                                             such
                                                                                                                             disclosure
                                                                                                                             requirements
                                                                                                                             are
                                                                                                                             adopted.
In addition,
Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised
accounting standards. An emerging growth company can therefore delay the adoption of certain accounting standards until those
standards would otherwise apply to private companies. However, we are choosing to "opt out" of such extended transition
period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such
standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of
the extended transition period for complying with new or revised accounting standards is irrevocable.
We cannot predict
if investors will find our common stock less attractive because we may rely on some of these exemptions. If some investors find
our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price
may be more volatile. If we avail ourselves of certain exemptions from various reporting requirements, our reduced disclosure
may make it more difficult for investors and securities analysts to evaluate us and may result in less investor confidence.
8
SUMMARY CONSOLIDATED
FINANCIAL DATA
The summary
consolidated statements of operations data for each of the years ended December 31, 2011 and 2010 have been derived from our audited
consolidated financial statements and notes that are incorporated by reference into this prospectus. The summary consolidated
balance sheet data as of March 31, 2012 and the summary consolidated statements of operations data for each of the three months
ended March 31, 2012 and 2011 have been derived from our unaudited condensed consolidated financial statements that are incorporated
by reference into this prospectus. You should read this information together with the consolidated financial statements and related
notes and other information under "Management's Discussion and Analysis of Financial Condition and Results of Operations"
incorporated by reference into this prospectus. The Company's operating results for the three month period ended March
31, 2012, may not be indicative of the results expected for any succeeding interim periods or for the entire year ending December
31, 2012.
Three Months Ended
December 31,
March 31,
Consolidated Statement of Operations Data:
2011
2010
2012
2011
(unaudited)
(unaudited)
Revenues
$
-
$
-
$
-
$
-
Cost of sales
-
-
-
-
Gross profit
-
-
-
-
Operating expenses
General and administrative
854,502
39,805
316,245
138,035
Selling
527,253
-
75,467
-
1,381,755
39,805
391,712
138,035
Loss from operations
(1,381,755
)
(39,805
)
(391,712
)
(138,035
)
Other income (expense)
Interest and other income
333
-
4,968
-
Interest expense
-
-
-
-
333
-
4,968
-
Loss before income taxes
(1,381,422
)
(39,805
)
(386,744
)
(138,035
)
Provision for state income taxes
-
-
-
-
Net loss
(1,381,422
)
(39,805
)
(386,744
)
(138,035
)
Net loss per share - basic and diluted
$
(0.03
)
$
(0.00
)
$
(0.01
)
$
(0.00
)
Weighted average shares outstanding -
basic and diluted
54,078,401
52,046,867
54,362,100
53,257,656
Three Months Ended
December 31,
March 31,
Consolidated Balance Sheet Data:
2011
2010
2012
2011
(unaudited)
(unaudited)
Cash and cash equivalents
$
2,338,783
$
2,234,551
$
1,729,772
$
2,980,550
Working capital
2,468,312
2,231,214
2,212,984
3,133,474
Total assets
2,578,253
2,362,957
2,357,172
3,153,081
Total liabilities
105,365
131,743
141,058
19,607
Shareholders' equity
$
2,472,888
$
2,231,214
$
2,216,114
$
3,133,474
9
SPECIAL NOTE
REGARDING FORWARD LOOKING STATEMENTS
This prospectus
contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal
securities laws and such forward looking statements involve substantial risks and uncertainties. All statements, other than statements
of historical facts, contained in this prospectus, including statements regarding our strategy, future operations, future financial
position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. The
words "anticipate," "believe," "estimate," "expect," "intend," "may,"
"plan," "predict," "project," "target," "potential," "will,"
"would," "could," "should," "continue," and similar expressions are intended to
identify forward-looking statements, although not all forward-looking statements contain these identifying words.
The forward-looking
statements in this prospectus include, among other things, statements about:
·
our
                                                                                                                             future
                                                                                                                             financial
                                                                                                                             performance,
                                                                                                                             including
                                                                                                                             our
                                                                                                                             revenue,
                                                                                                                             cost
                                                                                                                             of
                                                                                                                             revenue,
                                                                                                                             operating
                                                                                                                             expenses
                                                                                                                             and
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             achieve
                                                                                                                             and
                                                                                                                             maintain
                                                                                                                             profitability;
·
our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             market,
                                                                                                                             commercialize
                                                                                                                             and
                                                                                                                             achieve
                                                                                                                             market
                                                                                                                             acceptance
                                                                                                                             for
                                                                                                                             our
                                                                                                                             combined
                                                                                                                             heat
                                                                                                                             and
                                                                                                                             power
                                                                                                                             systems
                                                                                                                             or
                                                                                                                             any
                                                                                                                             other
                                                                                                                             product
                                                                                                                             candidates
                                                                                                                             or
                                                                                                                             products
                                                                                                                             that
                                                                                                                             we
                                                                                                                             may
                                                                                                                             develop;
·
our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             innovate
                                                                                                                             and
                                                                                                                             keep
                                                                                                                             pace
                                                                                                                             with
                                                                                                                             changes
                                                                                                                             in
                                                                                                                             technology;
·
the
                                                                                                                             success
                                                                                                                             of
                                                                                                                             our
                                                                                                                             marketing
                                                                                                                             and
                                                                                                                             business
                                                                                                                             development
                                                                                                                             efforts;
·
our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             maintain,
                                                                                                                             protect
                                                                                                                             and
                                                                                                                             enhance
                                                                                                                             our
                                                                                                                             intellectual
                                                                                                                             property;
·
the
                                                                                                                             effects
                                                                                                                             of
                                                                                                                             increased
                                                                                                                             competition
                                                                                                                             in
                                                                                                                             our
                                                                                                                             market;
·
our
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             effectively
                                                                                                                             manage
                                                                                                                             our
                                                                                                                             growth
                                                                                                                             and
                                                                                                                             successfully
                                                                                                                             enter
                                                                                                                             new
                                                                                                                             markets;
                                                                                                                             and
·
the
                                                                                                                             attraction
                                                                                                                             and
                                                                                                                             retention
                                                                                                                             of
                                                                                                                             qualified
                                                                                                                             employees
                                                                                                                             and
                                                                                                                             key
                                                                                                                             personnel.
We may not actually
achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance
on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations
disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included
in this prospectus, particularly in the "Risk Factors" section, that we believe could cause actual results or events
to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential
impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.
You should read
this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement
of which this prospectus is a part completely and with the understanding that our actual future results may be materially different
from what we expect. The forward-looking statements contained in this prospectus are made as of the date of this prospectus, and
we do not assume any obligation to update any forward-looking statements except as required by applicable law.
USE OF PROCEEDS
We intend to
use the net proceeds of this offering for working capital purposes in connection with the development and installation of new
energy systems such as cogeneration systems and chillers and for general corporate purposes which may include, among other things,
potential acquisitions of companies, products and technologies that complement our business, although we have no present commitments
or agreements with respect to any such transactions.
DETERMINATION
OF OFFERING PRICE
The offering
price for the shares in this offering was determined by our management. In determining the public offering price of the shares
we considered several factors including the following:
·
our
                                                                                                                            status
                                                                                                                            of
                                                                                                                            business
                                                                                                                            development;
·
our
                                                                                                                            new
                                                                                                                            business
                                                                                                                            structure
                                                                                                                            and
                                                                                                                            operations;
·
prevailing
                                                                                                                            market
                                                                                                                            conditions,
                                                                                                                            including
                                                                                                                            the
                                                                                                                            history
                                                                                                                            and
                                                                                                                            prospects
                                                                                                                            for
                                                                                                                            our
                                                                                                                            industry;
·
our
                                                                                                                            future
                                                                                                                            prospects
                                                                                                                            and
                                                                                                                            the
                                                                                                                            experience
                                                                                                                            of
                                                                                                                            our
                                                                                                                            management;
                                                                                                                            and
·
our
                                                                                                                            capital
                                                                                                                            structure.
Therefore, the
public offering price of the shares does not necessarily bear any relationship to established valuation criteria and may not be
indicative of prices that may prevail at any time or from time to time in the public market for our common stock if one develops
in the future.
10
DILUTION
Purchasers
of the units offered by this prospectus and the accompanying prospectus will suffer immediate and substantial dilution in the
net tangible book value per share of common stock.  Our net tangible book value (unaudited) as of July 9, 2012, was
approximately $2,216,114, or $0.04 per share.  Net tangible book value per share is calculated by subtracting our total
liabilities from our total tangible assets, which is total assets less intangible assets, and dividing this amount by the number
of shares of common stock outstanding as of July 9, 2012.
Dilution in
net tangible book value per share represents the difference between the amount per share paid by purchasers in this offering and
the as adjusted net tangible book value per share of our common stock immediately after this offering.  After giving
effect to the sale by us of all 15,000,000 units offered in this offering at a price of $1.00 per unit (and assuming a value per
share of common stock offered in each unit of $1.00 per share), and after deducting the placement agent's fee and estimated
offering expenses payable by us, our as adjusted net tangible book value as of July 9, 2012, would have been approximately $16,166,114,
or $0.23 per share. This represents an immediate increase in the net tangible book value of $0.19 per share to our existing
shareholders and an immediate dilution in net tangible book value of $0.77 per share to investors in this offering.  The
following table illustrates this per share dilution:
Price per share to investors
$
1.00
Net tangible book value per share as of July 9, 2012
$
0.04
Increase in net tangible book value per share attributable to this offering
$
0.19
As adjusted net tangible book value per share as of July 9, 2012, after giving effect to this offering
$
0.23
Dilution in net tangible book value per share to investors
$
0.77
The above table
is based on 54,362,100 shares of our common stock outstanding as of July 9, 2012 and excludes, as of that date:
·
3,590,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             stock
                                                                                                                             options
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             option
                                                                                                                             plans
                                                                                                                             and
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share;
·
910,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             available
                                                                                                                             for
                                                                                                                             future
                                                                                                                             grants
                                                                                                                             under
                                                                                                                             our
                                                                                                                             stock
                                                                                                                             option
                                                                                                                             plans
                                                                                                                             and
                                                                                                                             stock
                                                                                                                             incentive
                                                                                                                             plans;
                                                                                                                             and
·
400,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             warrants
                                                                                                                             outstanding
                                                                                                                             prior
                                                                                                                             to
                                                                                                                             this
                                                                                                                             offering,
                                                                                                                             at
                                                                                                                             a
                                                                                                                             weighted
                                                                                                                             average
                                                                                                                             exercise
                                                                                                                             price
                                                                                                                             of
                                                                                                                             $0.90
                                                                                                                             per
                                                                                                                             share.
In addition, the above
table excludes:
·
up
                                                                                                                             to
                                                                                                                             15,000,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             the
                                                                                                                             warrants
                                                                                                                             offered
                                                                                                                             pursuant
                                                                                                                             to
                                                                                                                             this
                                                                                                                             prospectus;
                                                                                                                             and
·
up
                                                                                                                             to
[●]
shares
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             issuable
                                                                                                                             upon
                                                                                                                             the
                                                                                                                             exercise
                                                                                                                             of
                                                                                                                             a
                                                                                                                             warrant
                                                                                                                             to
                                                                                                                             be
                                                                                                                             issued
                                                                                                                             to
                                                                                                                             the
                                                                                                                             placement
                                                                                                                             agent
                                                                                                                             as
                                                                                                                             further
                                                                                                                             described
                                                                                                                             in
                                                                                                                             "Plan
                                                                                                                             of
                                                                                                                             Distribution."
To the extent
that any options or warrants are exercised, new options are issued under our stock option or stock incentive plans, or we otherwise
issue additional shares of common stock in the future, there will be further dilution to new investors.
11
PLAN OF DISTRIBUTION
We have entered
into a placement agency agreement, dated as of June 19, 2012, with Merriman Capital, Inc., as placement agent. Subject to the
terms and conditions contained in the placement agency agreement, the placement agent has agreed to act as the placement agent
in connection with the sale of the securities offered hereby, or the Securities. The placement agent may engage selected dealers
to assist in the placement of the Securities. The placement agent is not purchasing or selling any securities by this prospectus
as principal, nor is it required to arrange the purchase or sale of any specific number or dollar amount of the Securities, but
it has agreed to use its best efforts to arrange for the sale of all of the Securities in this offering. There is no required
minimum number of securities that must be sold as a condition to completion of the offering.
The placement
agency agreement provides that the obligations of the placement agent and the purchasers are subject to certain conditions precedent,
including, among other things, the absence of any material adverse change in our business and the receipt of customary legal opinions,
letters and certificates.
We have entered
into purchase agreements directly with purchasers in connection with this offering, and we will only sell to purchasers who have
entered into purchase agreements. We currently anticipate that the closing of the sale of the Securities will take place on or
before
[
●
]
, 2012.
We have agreed
to pay the placement agent an aggregate fee equal to 6.5% of the gross proceeds of this offering and expect the net proceeds from
this offering to be approximately $13,950,000 after deducting up to $975,000 in placement agent commissions and $75,000 in our
estimated offering expenses. In addition, the placement agent shall also be entitled to reimbursement for additional expenses
in connection with the offering.
We also agreed
to grant compensation warrants to the placement agent to purchase up to
[
●
]
shares of our common stock. The compensation warrants will have an exercise price equal to 100% of the public offering price
per share of common stock sold in this offering. The compensation warrants will expire five years from the closing of the sale
of Securities pursuant to this prospectus, and will otherwise comply with Financial Institutions Regulatory Authority, or FINRA,
Rule 5110(g)(1) in that neither the compensation warrants (which shall not be earlier than the closing date of the offering pursuant
to which the compensation warrants are being issued) nor any warrant shares issued upon exercise of the compensation warrants
shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put,
or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180
days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which the compensation
warrants are being issued, except to any FINRA member firm participating in the offering and their bona fide officers or partners.
Assuming that
all of the Securities offered hereby are sold, the placement agents' fee will be approximately $975,000, excluding any warrants
that may be issued. Because there is no minimum offering amount required as a condition to closing in this offering, however,
the actual total offering fees, if any, are not presently determinable and may be substantially less than such amount.
We have agreed
to indemnify the placement agent and certain other persons against certain liabilities, arising out of or in connection with our
acts, errors and omissions under the placement agency agreement and for the performance of the placement agent of its duties under
the placement agency agreement except in the case of its bad faith, willful misconduct or gross negligence, and to contribute
to payments that the placement agent may be required to make in respect of those liabilities.
Our common stock
is not currently publicly traded.
With respect
to sales in the United States, this offering must be registered, or be exempt from registration, in any state in which the Securities
are to be offered or sold. We may apply to register the Securities, or may seek to obtain an exemption from registration, only
in certain states. If you are not an "institutional investor," you must be a resident of these jurisdictions to purchase
Securities. The definition of an "institutional investor" varies from state to state, but generally includes financial
institutions, broker-dealers, banks, insurance companies and other qualified entities. If you are not an institutional investor,
you may purchase Securities in this offering only if you reside in the jurisdictions where there is an effective registration
or exemption, and, if required, meet any requisite suitability standards.
The placement
agent may distribute this prospectus electronically.
The form of
securities purchase agreement with the purchasers and the placement agency agreement are exhibits to the registration statement
of which this prospectus forms a part that has been filed with the SEC.
12
From time to
time in the ordinary course of its business, the placement agent or its affiliates may in the future engage in investment banking,
commercial banking and/or other services with us and our affiliates for which it may in the future receive customary fees and
expenses.
DESCRIPTION
OF THE SECURITIES WE ARE OFFERING
The common stock
and warrants offered hereby will be sold in units, with each unit consisting of one share of common stock and a warrant to purchase
one share of common stock. The units will be immediately separable. Each warrant will have an exercise price of $1.00 per share
and will be exercisable immediately. The shares of common stock issuable from time to time upon exercise of the warrants, if any,
are also being offered pursuant to this prospectus.
Common Stock
A description
of our common stock is incorporated by reference herein from our Form 10/A filed with the SEC on November 18, 2011.
Warrants
The following
summary of certain terms and provisions of the warrants offered hereby is not complete and is subject to, and qualified in its
entirety by the provisions of the form of the warrant, which has been filed as an exhibit to the registration statement of which
this prospectus is a part. Prospective investors should carefully review the terms and provisions set forth in the form of warrant.
Exercisability
.
The warrants are exercisable upon issuance and at any time up to the date that is one year from the date of issuance. The warrants
will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice accompanied
by payment in full for the number of shares of our common stock purchased upon such exercise.
Exercise
Price
. The initial exercise price per share of common stock purchasable upon exercise of the warrants is $1.00 per share.
The exercise price is subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits,
stock combinations, reclassifications or similar events affecting our common stock.
Certain Adjustments
.
The exercise price and the number of shares of common stock purchasable upon the exercise of the warrants are subject to adjustment
upon the occurrence of specific events, including stock dividends, stock splits, combinations, reclassifications or similar events
affecting our of our common stock.
Transferability
.
Subject to applicable laws, the warrants may be transferred at the option of the holders upon surrender of the warrants to us
together with the appropriate instruments of transfer.
Listing.
The warrants are not currently listed on any trading market. The warrants will be issued in certificated form and delivered
directly to the purchasers.
Rights as
a Stockholder
. Except as otherwise provided in the warrants or by virtue of such holder's ownership of shares of our common
stock, the holder of a warrant does not have the rights or privileges of a holder of our common stock, including any voting rights,
until the holder exercises the warrant.
Transfer Agent
The transfer
agent for our common stock will be Continental Stock Transfer and Trust Company.
13
EXPERTS
The consolidated
financial statements as of and for the periods ended December 31, 2011 and 2010, appearing in this registration statement and
Prospectus have been audited by McGladrey LLP (formerly McGladrey & Pullen, LLP), an independent registered public accounting
firm, as stated in their report appearing elsewhere herein, and are included in reliance upon such report and upon the authority
of such firm as experts in accounting and auditing.
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
Common Stock was employed on a contingency basis, or had, or is to receive, any interest, directly or indirectly, in our Company
or any of our parents or subsidiaries. Nor was any such person connected with us or any of our parents or subsidiaries, if any,
as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.
LEGAL MATTERS
The validity
of our Common Stock offered under this prospectus will be passed upon by Sullivan & Worcester LLP, Boston, Massachusetts.
14
PART II -
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13.
OTHER EXPENSES OF ISSUANCE
AND DISTRIBUTION.
The following
table sets forth our expenses in connection with this registration statement. All of such amounts are estimates, other than the
fee payable to the SEC.
Amount
Securities and Exchange Commission registration fee
$
3,438
Legal fees and expenses
25,000
Accounting fees and expenses
10,000
Printing, miscellaneous and travel
40,000
Total
$
78,438
ITEM 14.
INDEMNIFICATION OF DIRECTORS
AND OFFICERS.
The Delaware
General Corporation Law and the Company's charter and by-laws provide for indemnification of the Company's directors and officers
for liabilities and expenses that they may incur in such capacities. In general, directors and officers are indemnified with respect
to actions taken in good faith in a manner reasonably believed to be in, or not opposed to, the best interests of the Company,
and with respect to any criminal action or proceeding, actions that the indemnitee had no reasonable cause to believe were unlawful.
Reference is made to the Company's corporate charter and by-laws filed as Exhibits 3.1 and 3.2 hereto, respectively.
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our Company pursuant
to the foregoing provisions, the opinion of the SEC is that such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.
In addition,
we may maintain insurance on behalf of our directors and executive officers insuring them against any liability asserted against
them in their capacities as directors or officers or arising out of such status.
ITEM 15.
RECENT SALES OF UNREGISTERED
SECURITIES.
Set forth below
is information regarding Common Stock issued, warrants issued and stock options granted by the Company within the past three years.
Also included is the consideration, if any, we received and information relating to the section of the Securities Act, or rule
of the SEC, under which exemption from registration was claimed.
Common Stock
On July 9, 2010
American DG Energy invested $45,000 in exchange for 45 million shares of the Company's Common Stock and such investment
resulted in American DG Energy receiving a controlling interest in the Company. Also on July 9, 2010 Nettlestone Enterprises Limited,
invested $5,000 in exchange for 5 million shares of the Company's Common Stock. During the period from July 9, 2010 to December
31, 2010, the Company raised an additional $2,261,000 in a private placement by selling 2,261,000 shares of Common Stock to 25
accredited investors at a price of $1.00 per share. The investors were accredited investors, and such transactions were exempt
from registration under the Securities Act under Section 4(a)(2).
During the period
from January 1, 2011 to June 30, 2011, the Company raised an additional $1,250,000 in a private placement by selling 1,250,000
shares of Common Stock to 4 accredited investors at a price of $1.00 per share. The investors were accredited investors, and such
transactions were exempt from registration under the Securities Act under Section 4(a)(2).
No underwriters
were involved in the foregoing sales of securities. All of the foregoing securities are deemed restricted securities for purposes
of the Securities Act.
Warrants
On July 12,
2010 the Company granted to Nettlestone Enterprises Limited a special purchase right, or warrant. The warrant grants Nettlestone
Enterprises Limited the non-assignable right but not the obligation, for a period of two years after July 12, 2010, to purchase
400,000 shares of Common Stock at a per share purchase price of $1.00. Nettlestone Enterprises Limited is an accredited investor,
and such transaction was exempt from registration under the Securities Act under Section 4(a)(2).
II-
1
Stock Options
On January 15,
2011, the Company granted nonqualified options to purchase 2,100,000 shares of Common Stock to five employees and two directors
at a purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The fair
value of the options issued was $790,908, with a weighted average grant date fair value of $0.38 per option.
On June 13,
2011, the Company granted nonqualified options to purchase 300,000 shares of Common Stock to three directors at a purchase price
of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The fair value of the options
was $109,304, with a weighted average grant date fair value of $0.36 per option.
On November
3, 2011, the Company granted its managing director options to purchase 900,000 shares of common stock at purchase price of $1.00
per share and granted to the three members of its advisory board options to purchase 300,000 shares of common stock at purchase
price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years and were made under the
UK Sub-Plan to the Company's 2011 Stock Incentive Plan. The fair value of the options was $423,400, with a weighted average
grant date fair value of $0.35 per option.
The grant of
all options was exempt from registration under Rule 701 under the Securities Act.
No underwriters
were involved in the foregoing sales of securities. All purchasers represented to us in connection with their purchase that they
were accredited investors and made other customary investment representations. All of the foregoing securities were deemed restricted
securities when granted for purposes of the Securities Act.
ITEM 16.
EXHIBITS.
The exhibits
to the Registration Statement are listed in the Exhibit Index attached hereto and incorporated by reference herein.
ITEM 17.
UNDERTAKINGS.
The
undersigned registrant hereby undertakes that:
a.
(1)
                                                                                                  To file, during any period in
                                                                                                  which offers or sales are being
                                                                                                  made, a post-effective amendment
                                                                                                  to this registration statement:
(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding 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% 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 the purpose
of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of the 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 that remain unsold at the termination of the offering.
(6) That, for the purpose
of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the
securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant
to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller
to the purchaser and will be considered to offer or sell such securities to such purchaser:
II-
2
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant
to Rule 424 (§230.424 of Title 17 of the Code of Federal Regulations);
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred
to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned
registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
i.
1.
For
                                                                                                purposes of determining any liability
                                                                                                under the Securities Act of 1933,
                                                                                                the information omitted from the
                                                                                                form of prospectus filed as part
                                                                                                of this registration statement
                                                                                                in reliance upon Rule 430A and
                                                                                                contained in a form of prospectus
                                                                                                filed by the registrant pursuant
                                                                                                to Rule 424(b) (1) or (4) or 497(h)
                                                                                                under the Securities Act shall
                                                                                                be deemed to be part of this registration
                                                                                                statement as of the time it was
                                                                                                declared effective.
2.
For
                                                                                                the purpose of determining any
                                                                                                liability under the Securities
                                                                                                Act of 1933, each post-effective
                                                                                                amendment that contains a form
                                                                                                of prospectus 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.
h.
Insofar
                                                                                                  as indemnification for liabilities
                                                                                                  arising under the Securities
                                                                                                  Act of 1933 may be permitted
                                                                                                  to directors, officers and controlling
                                                                                                  persons of the registrant pursuant
                                                                                                  to the foregoing provisions,
                                                                                                  or otherwise, the registrant
                                                                                                  has been advised that in the
                                                                                                  opinion of the Securities and
                                                                                                  Exchange Commission such indemnification
                                                                                                  is against public policy as
                                                                                                  expressed in the Act and is,
                                                                                                  therefore, unenforceable. In
                                                                                                  the event that a claim for indemnification
                                                                                                  against such liabilities (other
                                                                                                  than the payment by the registrant
                                                                                                  of expenses incurred or paid
                                                                                                  by a director, officer or controlling
                                                                                                  person of the registrant in
                                                                                                  the successful defense of any
                                                                                                  action, suit or proceeding)
                                                                                                  is asserted by such director,
                                                                                                  officer or controlling person
                                                                                                  in connection with the securities
                                                                                                  being registered, the registrant
                                                                                                  will, unless in the opinion
                                                                                                  of its counsel the matter has
                                                                                                  been settled by controlling
                                                                                                  precedent, submit to a court
                                                                                                  of appropriate jurisdiction
                                                                                                  the question whether such indemnification
                                                                                                  by it is against public policy
                                                                                                  as expressed in the Act and
                                                                                                  will be governed by the final
                                                                                                  adjudication of such issue.
II-
3
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement on Form S-1
to be signed on its behalf by the undersigned, thereunto duly authorized, in Waltham, Massachusetts on July 11, 2012.
EUROSITE POWER INC.
(Registrant)
By:
    /s/ Barry J. Sanders
Chief Executive Officer
    and President
(Principal Executive
    Officer)
POWER OF
ATTORNEY AND SIGNATURES
The undersigned
officers and directors of the Company hereby constitute and appoint Barry J. Sanders and Anthony S. Loumidis, and each of them
singly, with full power of substitution, our true and lawful attorneys-in-fact and agents to take any actions to enable the Company
to comply with the Securities Act, and any rules, regulations and requirements of the SEC, in connection with this registration
statement on Form S-1, including the power and authority to sign for us in our names in the capacities indicated below any and
all further amendments to this registration statement and any other registration statement filed pursuant to the provisions of
Rule 462 under the Securities Act.
Pursuant to
the requirements of the Securities Act of 1933, this registration statement on Form S-1 has been signed by the following persons
in the capacities and on the dates indicated.
July 11, 2012
Signature
Title
Date
/s/
    John N. Hatsopoulos
Chairman of the Board and Director
July 11, 2012
John N. Hatsopoulos
/s/
    Barry J. Sanders
Director, President and Chief Executive
    Officer
July 11, 2012
Barry J. Sanders
(Principal Executive Officer)
/s/
    Anthony S. Loumidis
Treasurer, Secretary and Chief Financial
    Officer
July 11, 2012
Anthony S. Loumidis
(Principal Financial and Accounting
    Officer)
/s/
    Ahmed F. Ghoniem
Director
July 11, 2012
Ahmed F. Ghoniem
/s/
    James C. Devas
Director
July 11, 2012
James C. Devas
/s/
    Bruno Meier
Director
July 11, 2012
Bruno Meier
II-
4
EXHIBIT INDEX
Exhibit
Number
Description
3.1
Certificate of Incorporation, as amended and restated
    February 22, 2012 (incorporated by reference to Exhibit 3.2 to the Company's Form 10, as amended, originally filed with
    the SEC on August 16, 2011).
3.2
Bylaws as amended and restated January 27, 2012
    (incorporated by reference  to Exhibit 3.4 to the Company's Form 10, as amended, originally filed with the SEC
    on August 16, 2011).
4.1
Warrant to Nettlestone Enterprises Limited dated
    July 12, 2010 (incorporated by reference to Exhibit 4.1 to the Company's Form 10, as amended, originally filed with
    the SEC on August 16, 2011).
4.2##
Form of Warrant (for this offering).
5.1##
Opinion of Sullivan & Worcester LLP.
10.1*
EuroSite Power Inc. 2011 Stock Incentive Plan,
    as amended on June 13, 2011 (incorporated by reference  to Exhibit 10.4 to the Company's Form 10, as amended, originally
    filed with the SEC on August 16, 2011).
10.2*
UK Sub-Plan to the EuroSite Power Inc. 2011 Stock
    Incentive Plan (incorporated by reference  to Exhibit 10.5 to the Company's Form 10, as amended, originally filed
    with the SEC on August 16, 2011).
10.3
Form of EuroSite Power Inc. Subscription Agreement
    for private placement of Common Stock (incorporated by reference to Exhibit 10.6 to the Company's Form 10, as amended,
    originally filed with the SEC on August 16, 2011).
10.4*
Service Agreement by and between EuroSite Power
    Limited and Paul J. Hamblyn dated July 18, 2011 (incorporated by reference  to Exhibit 10.7 to the Company's Form
    10, as amended, originally filed with the SEC on August 16, 2011).
10.5+
Facilities, Support Services and Business Agreement between American
    DG Energy Inc. and Tecogen Inc., dated January 1, 2006
(incorporated by reference to Exhibit
    10.8 to the Company's Form 10, as amended, originally filed with the SEC on August 16, 2011).
10.6##
Form of Securities Purchase Agreement (for this
    offering).
10.7#
Placement Agency Agreement, dated June 19, 2012,
    between the Company and Merriman Capital Inc.
14.1
Code of Business Conduct and Ethics (incorporated
    by reference to Exhibit 14.1 to the Company's Form 10, as amended, originally filed with the SEC on August 16, 2011).
21.1
List of subsidiaries (incorporated by reference
    to Exhibit 21.1 to the Company's Form 10, as amended, originally filed with the SEC on August 16, 2011).
23.1#
Consent of McGladrey LLP.
23.2
Consent of Sullivan & Worcester LLP (included
    in Exhibit 5.1).
24.1
Power of Attorney (included on signature page).
#
Filed herewith.
##
To be filed by amendment.
*
Management contract or compensatory
plan or arrangement.
+
Previously filed with
the SEC on November 22, 2006 as Exhibit 10.5 to the American DG Energy Inc. Registration Statement on Form 10-SB/A (Registration
No. 000-52294) and incorporated herein by reference. Confidential treatment has been granted for portions of this document. The
confidential portions were omitted and filed separately, on a confidential basis, with the SEC.