Viaspace, Inc. (VSPC)

[joshgets46]

Wednesday, October 28, 2009 – After Market Close

Green Baron Updated “Stock Alert”



(OTCBB: VSPC - .0235 per share)

www.VIASPACE.com

Common Shares Outstanding / 878,935,000

Current Market Cap / $20.65 million

52-Week High / $.0475 per share

52-Week Low / $.008 per share

Average Price / $.025 (50-day) .02 (200-day)

Average Volume / 2,695,200 (50-day) 2,483,500 (200-day)



VIASPACE Signs Agreement with World Leader in Biomass Power Plants; Giant King Grass Pellets Can be Used to Replace Coal

Recent News Alert: Subsidiary Inter-Pacific Arts Signs Large East Coast Retailers and Furniture Wholesalers in Move to Increase Sales and Expand Distribution of Framed Arts

Green Baron Sees New Move Up in VSPC Stock Coming!

Earlier this year on March 18th, 2009, The Green Baron Report issued its initial profile that focused on VIASPACE Inc. (BB: VSPC) as a new “Stock Alert” at .009 per share. We stated that “due to its recent acquisition, the Company now operates three businesses that should contribute strongly to profitability over the coming years.” We believed VSPC had bottomed, and in the first week after release of our profile VSPC went to as high as .014 per share. Within a month, VSPC announced a partnership with Samsung and the stock hit a high of .0475 per share, a move of over 427% from our profile price of .009 per share.

Today, The Green Baron Report issues this updated Green Baron “Stock Alert” on VIASPACE Inc. (BB: VSPC). Results will again be compiled from the most recent trade possible prior to dissemination of this report to the subsequent high and will be monitored at www.thegreenbaron.com through email updates to members. Although we have very aggressive short and long term expectations for this stock, we still suggest our members try to accumulate as close to the updated profile price as possible.

TRADER’S NOTES: Since mid June of this year, VSPC has been making progressively higher lows. We believe this bullish pattern will hold strong support at .023 per share. Liquidity in VSPC remains excellent. The spread is very tight and there are plenty of active market markers. VSPC is quoted on the Bulletin Board, therefore it is easy for investors to find Level II market maker quotes on the stock. Volume continues to average over two million shares per day. Please click the following link to view a six month chart of VSPC stock:

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=vspc&sid=0&o_symb=vspc&freq=1&time=7

About VIASPACE Inc.

VIASPACE is an alternative energy company providing products and technology for renewable and clean energy that reduce or eliminate dependence on fossil and high-pollutant energy sources. The Company provides raw material for cellulosic biofuels and develops, and markets fuel cell cartridges, products and technology. VIASPACE subsidiary Direct Methanol Fuel Cell Corporation owns a portfolio of fuel cell patents licensed from Pasadena-based California Institute of Technology (Caltech), which manages NASA’s Jet Propulsion Laboratory, where the direct methanol fuel cell was invented.

Green Baron Commentary:

VIASPACE remains a diversified company with home run potential. The renewable and alternative energy businesses provide the potential for the home run, and the steady yet growing framed art business generates consistent profitable cash flow to help fund its other businesses. The combination represents a very compelling investment, and The Green Baron Report is convinced that VSPC is a fantastic low priced stock opportunity with huge upside. We also believe it would also be a perfect time for trade entry on a short-term basis after its recent pullback from over .03 per share to the low to mid .02 range.

See Green Baron Conclusion for more of our comments. We also follow with a detailed description of each VIASPACE subsidiary, recent key press releases, and the management team.

VIASPACE Green Energy (VGE) – Renewable Energy

The VIASPACE Green Energy subsidiary grows and markets proprietary Giant King Grass, a renewable cellulosic non-food resource for: 1) producing low-carbon liquid biofuels for transportation, such as cellulosic ethanol, methanol and green gasoline (“grassoline”); and 2) a full or partial substitute for coal to reduce carbon emissions from electricity-generating power plants.

Giant King Grass is a perennial fast-growing plant that grows up to 4 m tall and can be harvested four times a year in tropical and subtropical regions with yields up to 156 metric tons (wet) per acre per year. Giant King Grass has much higher yield than competing grasses such as switchgrass and miscanthus.

VGE initially planted 1.2 million seedlings in late 2008 in Guangdong province in southern China. 3 million new grass seedlings propagated from the initial planting are now growing on 112 acres of land leased for 25 years in China. VGE is negotiating for additional land and plans to propagate again later this year.

Giant King Grass is considered a renewable and environmentally friendly alternative to fossil fuels. Burning grass or a biofuel made from grass releases carbon dioxide into the atmosphere. However the next crop of grass 60 days later absorbs the carbon dioxide during its growth and the process can be carbon neutral over a 60 day growing cycle. Additional carbon dioxide can be released by the trucks that transport the grass and the processes used to make the biofuel. If these are carefully managed, Giant King Grass can be a very low carbon fuel source.

Giant King Grass is also a potential replacement for food crop-based energy sources like corn. The US Department of Agriculture estimated that one third of the US corn crop was dedicated to ethanol production. The World Bank is concerned that using biofuels made from food is increasing food prices and causing world hunger. Since grass is a non-food crop, production of biofuels made from grass should have much less impact on food crops and therefore food prices. Several countries including China have banned biofuels made from food crops.

Transportation applications such as automobiles and trucks require liquid fuels which are easy to store on the vehicle. Giant King Grass can be made into liquid biofuels by gasification or by advanced enzyme fermentation. Biofuels made from nonfood crops are called cellulosic biofuels because the cellulose content is used rather than the sugar content in food crops. Liquid biofuels made from grass have been termed “GRASSOLINE”. BP (formerly named British Petroleum) recently announced plans to build a cellulosic ethanol plant in Florida with grass as a feedstock. Many other companies are pursuing cellulosic biofuels. Giant King Grass is a feedstock for cellulosic biofuels.

Giant King Grass is also considered a viable alternative to coal for firing electrical energy generating plants. Many existing coal-fired power plants can be straightforwardly modified to accept up to 30% grass as the feedstock in place of coal in a process referred to as co-firing. This would reduce the carbon emissions of the power plant immediately and is the most near-term solution to beginning to clean up coal-fired power plants. It is a proven approach and available now, whereas other clean coal technologies such as carbon sequestration are years away and very expensive.

A growing trend is toward simply burning 100% biomass in the form of agricultural waste in power plants that have been specially designed to use agricultural feedstock--whether agricultural waste or dedicated crops like grass--instead of coal or fossil fuel. Dedicated biomass power plants are encouraged and receive substantial government subsidies in the US, China and other countries. More than 20 dedicated biomass power plants have built in China over the last three years. Coal power plants in the US are being converted to biomass. These biomass power plants use agricultural waste such as corn straw, wheat straw, cotton waste and wood chips as their fuel today. There are major problems using agricultural waste because the fuel supply type and quantity changes with the seasons; it is not consistent in quality, and the sources are not reliable. Biomass power plants would like to have a dedicated energy crop such as Giant King Grass to meet at least one half of their fuel needs and provide a consistent and reliable source.

A single modest 30 megawatt grass-powered electricity generating plant would require approximately 460 tons of grass every day to meet 100% of its fuel requirements. In a tropical or subtropical area this could be produced on approximately 2400 acres of land. In China, 30 megawatts of electricity can supply the electricity needs for approximately 200,000 households.

VIASPACE Green Energy is seeking long-term grass supply contracts from biofuel companies and from biomass power plants. VGE is working to secure sufficient land and propagate enough seedlings to support a dedicated power plant. VGE is examining business opportunities in China, South America, India, Africa and other regions. Giant King Grass was originally developed as an animal feed and this market presents an opportunity for near-term revenue. Giant King Grass, as animal feed, would be able help meet rising demand for feed to raise livestock for human consumption such as cattle, pigs, sheep, poultry, dairy cows and fish. VGE is also seeking contracts to supply producers of livestock.

The extremely high productivity of Giant King Grass allows its use for both fuel production and livestock feed. In addition to being a viable low-pollution alternative to fossil fuels, i.e., petroleum products, as fuel sources, the trend to cellulosic low-carbon biofuels is attracting strong political support. The Obama administration is calling for a national low-carbon fuel standard, and recent landmark legislation in California to reduce carbon emissions "would boost the use of biofuels" by "spurring investment in cellulosic low-carbon fuels made from switch grass and other non-food plants." (Los Angeles Times, March 27, 2009, page A12).

Direct Methanol Fuel Cell Corp. (DMFCC) – Alternative Energy

Direct Methanol Fuel Cell Corporation develops and manufactures disposable methanol fuel cartridges that provide the energy source for fuel cell powered notebook computers, mobile phones, military equipment and other applications being developed by electronics OEMs, such as Samsung and Toshiba, and other companies.

Fuel cells are electrochemical devices that efficiently and cleanly convert a fuel, such as methanol, into electricity without burning. The fuel cell is permanently built into a notebook computer in the space where the battery is now. A small disposable fuel cartridge is inserted into the computer which provides the fuel for the fuel cell.

The advantages of a fuel cell are longer-lasting power compared to a rechargeable battery, instantaneous recharging by simply replacing the disposable fuel cartridge, non-toxic disposal, and light weight. As a result, methanol fuel cells are being developed by many companies as a new, clean alternative power source for portable electronic devices. Fuel cells offer freedom from the electrical grid which is important for many business and professional applications.

Fuel cell powered notebook computers and mobile phones are projected to use approximately 100 disposable fuel cartridges during their workable lives and represent a recurring and potentially very large revenue stream. It has been projected that up to 22% of notebook computers and 2.5% of mobile phones will be powered by fuel cells in the future, which would result in demand for more than three billion cartridges per year.

Methanol fuel cells and fuel cartridges are efficient, clean and safe and have been approved to be carried on airplanes by the US Department of Transportation and The International Civil Aviation Organization. These approvals are expected to encourage faster and more widespread adoption of fuel cells for portable electronic devices.

Patented Clean Energy Technology

DMFCC has licensed an extensive portfolio of direct methanol fuel cell patents from Pasadena-based California Institute of Technology (Caltech) and the University of Southern California (USC). Caltech manages NASA's Jet Propulsion Laboratory (JPL) where the direct methanol fuel cell was invented in collaboration with professors at USC. The 65 issued and 33 pending patents cover direct liquid hydrocarbon fuel cells (including direct methanol fuel cells), electrode construction, membrane electrode assemblies (MEAs), fuel cell systems, methanol sensors and filters, water recovery, monopolar geometry, and electrolysis of methanol to form hydrogen. Access to these patents is needed for companies making, using or selling direct methanol fuel cells.

DMFCC also has several patent applications pending on disposable fuel cartridges, their valves and connectors to fuel cells.

Business Partners

Direct Methanol Fuel Cell Corporation and its partners are working to develop the worldwide infrastructure to manufacture, fill and distribute disposable methanol fuel cartridges. This global capability is needed to support widespread adoption of fuel cell powered devices. DMFCC’s cartridge manufacturing partners are experienced and trusted suppliers to a wide range of industries including electronics OEMs.

Through its patent portfolio, DMFCC also offers patent protection for OEMs and manufacturers of direct methanol and other liquid hydrocarbon fuel cells. DMFCC will partner with fuel cell and electronics manufacturers worldwide to bring their fuel cell products to market within cost-effective parameters. DMFCC develops custom-designed cartridges for partners’ varying applications while ensuring the finished products meet technical and safety requirements and are available at an attractive price.

DMFCC is partnered with Samsung and other companies engaged in fuel cell development and applications. To support the ongoing needs of our customers—including commercial introduction of liquid fuel cells as an economical and environmentally friendly alternative to traditional batteries—DMFCC is forming a worldwide supply infrastructure of cartridge manufacturing, methanol filling and distribution.

With state of the art proprietary products, a global network of manufacturing partners, and a comprehensive suite of fundamental fuel cell patents, DMFCC has a mechanism in place to commercialize this exciting new technology. Since the cartridges are a disposable consumable item, they are analogous to razor blades and printer cartridges and, as such, represent a significant ongoing recurring revenue stream. According to Frost & Sullivan, the market for commercial fuel cells for portable electronics devices is expected to reach more than $600 million by 2013.

VIASPACE Worldwide Partners


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Cartridge Manufacturing Partners


Sato Corporation of Tsu-city in Mie Prefecture, Japan was founded in 1954. The company's main business is manufacturing toner cartridges for leading manufacturers of laser printers. The company's key technologies are plastic injection molding and ultrasonic welding. Sato Corporation has 125 injection molding machines and 60 ultrasonic welders.


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Nypro, Inc, headquartered in Clinton Massachusetts, is the leading global, custom plastic manufacturer. Sales for the most recent fiscal year (end 6/30/2006) exceeded one billion dollars. Nypro is one of the largest U.S. employee-owned companies. For more information please visit the web site at http://www.nypro.com/


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Tyco Electronics fills an incredibly wide range of the many diversified needs of businesses and governments, educational and medical institutions, and commercial industries ranging from food to aerospace. Tyco Electronics is a US$12.8 billion global provider of engineered electronic components for thousands of consumer and industrial products; network solutions and systems for telecommunications and energy markets; and wireless systems for critical communications, radar and defense applications.



SMC Co., Ltd., located at 398-1 Gochun-Dong, Euiwang-City, Kyonggi-Do, Republic of Korea , supplies lithium ion battery packs to OEMs of laptop computers, cell phones, PDAs, portable DVD players and other consumer electronics. SMC also produces Organic Light Emitting Diodes (OLED). SMC has manufacturing facilities in Korea and China. For more information please visit the web site at http://www.smcg.co.kr/


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Elentec Co., Ltd. is a diversified company with electronic and portable power products. It produces lithium ion battery packs to power cell phones, PDAs, camcorders and laptop computers. Elentec is experienced in producing injection molded plastic parts, similar to fuel cartridges, and has 21 injection molding machines in its Suwon factory. Elentec is a leading Korean supplier of lithium ion battery packs for portable electronic devices to OEMs worldwide. For more information please visit the web site at http://www.elentec.co.kr/


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Cartridge Filling and Distribution Partner


Hayman’s specialty products division (Link) outside of London, England, specializes in blending and packaging a range of solvents, including methanol and methanol/water mixtures, to standard or specific customer requirements. In business for more than 30 years, Hayman has established a reputation for quality and service, which is backed by a fully equipped laboratory and qualified technicians. Hayman can fill liquid products into standard or custom-designed containers of all sizes, from bulk to very small, including customer-specific containers.

Tokai Bussan, a publicly listed company on the Nagoya Stock exchange, engages in development and sales of computer and microcomputer applied systems, design, development and sales of software systems, and development, sales, import and export of electronic devices and high-performance materials.

Lithium Rechargeable Battery Solutions

VIASPACE is partnered with two leading manufacturers of lithium polymer and lithium-ion rechargeable, batteries for portable electronics, power tools, electric bicycles, scooters and other light electric vehicles. VIASPACE staff has over 20 years experience in battery power to guide you through your design process in order to meet your goals for price performance and reliability.

VIASPACE battery solutions provide:

Li-Ion and Li-Polymer Chemistries
Excellent Safety
Long Cycle Life
High Energy and Power
Available in Cells or Packs
Capacities from 50 mAh to 50 Ah
Cylindrical and Prismatic Cells
Advanced Power Control Modules Available
VIASPACE Battery Partners

YOKU – A Premier Lithium Polymer Cell Manufacturer

Yoku provides over 250 standard sizes for a wide range of applications. Lithium polymer is known both for its intrinsic safety due to zero-pressure packaging, as well as offering very flexible form factors. Custom sizes are available for modest investments in tooling. YOKU batteries are used by customers around the world in cell phones, Bluetooth headsets, GPS navigators, MP3/MP4 players, PDAs, DVD players, laptop computers, medical carts, toys, radio controlled model airplanes and light electric vehicles.

HYB– A Premier Lithium Ion Cell Manufacturer in both Cylindrical and Prismatic Form Factors

HYB supplies cells for cell phones, laptops, power tools and light electric vehicles. HYB has a superb R&D, quality control and production staff. HYB offers world class manufacturing and quality.

Ionfinity – Monitoring and Detection Systems

Ionfinity is developing next-generation sensors based on new mass spectrometry (MS) technology that can detect and analyze extremely small quantities (or residues) of chemicals and hazardous materials such as explosives, toxic gases, chemical/biological weapons and drugs.

And with the incorporation of Ionfinity miniaturization technology, new portable monitoring devices and detection systems are being developed for homeland security, defense, biomedical, industrial process control, agricultural and environmental monitoring and safety applications.

Markets

Ionfinity's new sensor technology has direct application in the defense and homeland security industry, in which approximately $55 billion is spent annually, as well as potential applications in chemical analysis and monitoring for commercial applications, such as environmental monitoring, agriculture and medicine.

Technology

Ionfinity is developing a "soft-ionization" technology for next-generation mass spectrometers, differential mobility spectrometers and systems dependent on ion-level sampling that can not only revolutionize the traditional applications of MS for industrial process control, biomedical, and environmental monitoring but also lead to new detection systems for homeland security.

The latest technology being developed enables detection at levels from ppt (parts-per-trillion) to sub-ppb (parts-per-billion) within 10 seconds and, with miniaturization, by a system no larger than a shoe box. And with projected ruggedness, low power consumption and low cost, the system could be used in many applications where monitoring of air, water or other substances is required.

Product Development

Ionfinity is developing a compact, stand-alone chemical-sensing device consisting of: 1) a new and powerful detector called a Differential Mobility Spectrometer; 2) a non-radioactive ionization method that does not fragment or multiply-ionize sampled specimens; and 3) a micro-gas chromatograph for confirmation and enhanced detection capability. The device will detect chemicals and materials of interest at ppt (parts-per-trillion) to ppb (parts-per-billion) levels after 6 seconds. The sensor is self contained with respect to power and communications.

Research & Development and Technology Partners

Ionfinity is involved in ongoing collaborations with California Institute of Technology (Caltech), National Aeronautical and Space Administration (NASA, and NASA's Jet Propulsion Laboratory (JPL). Ionfinity is also involved in partnerships with General Dynamics Corp., Sionex Corp., and Imaginative Technologies LLC.

Business Partners



Development Projects

Current development projects include:

· U.S. Navy contract to develop and commercialize a miniaturized, high-sensitivity system for detecting and analyzing chemical, explosive, and drug residues in suspect vessels. (See News, April 21, 2009)

· U.S. Army contract to develop and demonstrate a prototype—an enhanced version of General Dynamics' JUNO™ hand-held chemical agent detector incorporating VIASPACE's chemical-agent sensor—detection and analysis system to identify the chemical components of improvised explosive devices (IEDs). (See News, May 4, 2009)

Inter-Pacific Arts

Inter-Pacific Arts manufactures high quality, custom designed framed art and sells to large U.S. retailers.

IPA designers work with buyers at major retailers to select custom combinations of art, mattes and frames to assure that IPA customers have a unique combination of art and frame that is not available to other retailers. All IPA artwork consists of genuine prints purchased in the U.S. or Europe, and all royalties are fully paid. The prints are then shipped to IPA’s factory in Guangzhou, China, where the custom matting and framing are completed under strict quality controls. IPA places clear plastic corner protectors on each frame to prevent damage. These plastic protectors do not obscure the corners of the art as do cardboard corners and allow full visibility in rack displays. The minimum order is 100 pieces of the same design, although typical orders exceed 500 pieces. Containers of framed artwork are shipped weekly from IPA China.

IPA can accommodate requests for custom framing of any size and format and will matte and frame a customer's proprietary art upon request.

Recent Key Announcements

Monday, October 26, 2009 – VIASPACE Subsidiary Inter-Pacific Arts Increasing Sales, Expanding Distribution of Framed Art – Signs Large East Coast Retailers, Furniture Wholesalers - IRVINE, Calif., (PRNewswire-FirstCall) - VIASPACE Inc. (OTC Bulletin Board: VSPC) announced that its framed-art subsidiary Inter-Pacific Arts (IPA) has signed sales contracts with four new customers including two large furniture chain-retailers on the East Coast and two high-volume furniture wholesalers that sell through catalogs and outlet stores. Shipments are expected to begin before this year's holiday season.

IPA is also in discussions with other retailers and wholesalers, including "big box" wholesale-to-the-public membership clubs.

The economic downturn has affected all areas of consumer spending, but IPA's strategy to continue to increase its customer base is expected to enhance sales growth in future periods, as economic activity and consumer spending recover.