> All 1.1 Billion of current contracts upgrade to Method 2. > Valero signs on for another 1.1 Billion of Method 2. > ADM signs on for another 2.2 Billion of Method 2. > All infringers settled for a total of $100 Million. > All infringers sign up for Method 2, going forward. > All 5 Billion of production is online by Q4 2011. > Corn Oil price rises to $6.00 per gallon. > Assume dilution ends at 20 Billion Shares.
5 Billion gpy * 4% Method 2 corn oil rate * $6.00 per gallon * 20% royalty rate = $240 Million per year gross profit for GERS.
$240 Million - $4 Million (overhead) = $236 Million per year EBITDA.