Bio Concepts, LLC.

 
 
 
 
 
 
 
 
 
Bio Concepts, LLC.
13239 NW 82nd St Rd.
Ocala, FL. 34482
352-732-2333
646-607-5540
dan@bioconceptsllc.com
www.bioconceptsllc.com
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 Table of Contents

1. Executive Summary.....................................................................................................1
1.1. Objectives............................................................................................................3
1.2. Mission................................................................................................................4
1.3. Keys to Success...................................................................................................5
2. Company Summary.....................................................................................................6
2.1. Company Ownership...........................................................................................6
2.2. Start-up Summary................................................................................................9
3. Products and Services................................................................................................12
4. Market Analysis Summary........................................................................................13
4.1. Target Market Segment Strategy.......................................................................14
4.2. Service Business Analysis.................................................................................16
5. Strategy and Implementation Summary....................................................................16
5.1. Competitive Edge..............................................................................................16
5.2. Marketing Strategy............................................................................................17
5.3. Sales Strategy.....................................................................................................17
5.3.1. Sales Forecast............................................................................................17
5.4. Milestones..........................................................................................................19
6. Management Summary..............................................................................................20
6.1. Personnel Plan...................................................................................................20
7. Financial Plan............................................................................................................21
7.1. Important Assumptions......................................................................................21
7.2. Break-even Analysis..........................................................................................22
7.3. Projected Profit and Loss...................................................................................23
7.4. Projected Cash Flow..........................................................................................27
7.5. Projected Balance Sheet....................................................................................29
7.6. Business Ratios..................................................................................................30
7.7. Long-term Plan..................................................................................................32
 Bio Concepts, LLC.

1. Executive Summary
Hundreds of millions of years ago, the earth was covered with shallow oceans filled with algae and
other simple critters. As landmasses shifted and grew, water was displaced, leaving thick masses of
algal residue that were eventually buried and compressed. Skip forward a few eons, throw in some heat
and pressure and ta da . . . oil. Then, in 1859, Colonel Drake drilled the first oil well in Titusville, PA,
unleashing not only oil, but an economic juggernaut that would dictate our way of life for years to
come. The world began to use oil for everything from fuel to waterproofing, and since then has
consumed over a trillion barrels. With such furious consumption--and no way to make more--world oil
reserves are set to dwindle. Essentially, we're going to deplete in less than 300 years what took
hundreds of millions of years to form. And with the depletion of oil, alternatives are destined to
emerge and ironically, algae is one of them.

Biofuel Bliss

Research like that being done at Colorado State University's (CSU) Engines and Energy Conservation
Laboratory and the University of New Hampshire (UNH) suggests that algae could supply enough fuel
to meet all of America's transportation needs in the form of Biodiesel. That's right . . . all of it!
Whereas with our current Biodiesel feedstock, like soy and palm, there's no way we could grow
enough to supply all of our transportation needs. In fact, it would actually require twice the land area of
the U.S. devoted to soybean production to meet current heating and transportation needs. That's a lot of
beans! Algae, on the other hand, could supply all U.S. diesel power using a mere 0.2% of the nation's
land. Enough algae can actually be grown to replace all transportation fuels in the U.S. on only 15,000
square miles or 4.5 million acres of land. That's about the size of Maryland.

Granted, that still may sound like a lot of land; however, consider that we currently use 938 million
acres for farmland in the United States. I could show you a pie chart of how much land would be
required for algae growth--but the slice is so tiny, it wouldn't even be visible.

Of course, the question is how the heck can you make so much Biodiesel from such a small amount of
algae?

Well, let's revert back to ninth-grade science class for a moment. Biofuels are really a form of solar
energy because crops convert solar energy into chemical energy in a process called--anyone, anyone--
photosynthesis. It is this chemical energy, in the form of oils, which we need to produce Biofuel.
According to the UNH report, the more efficient a particular plant is at converting solar energy into
chemical energy, the better it is from a Biofuel perspective. So, in this area, algae is the clear winner.
In fact, algae does this so well that up to 50% of its body weight can be fat, or the oil needed to make
Biodiesel.

That makes algae the highest yielding feedstock for Biodiesel, producing 24 times more oil per acre,
on average, than the next leading feedstock--palm oil at 635 gallons/acre/year.

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 Bio Concepts, LLC.

Some Biodiesel companies have far surpassed the 15,000 gallon per acre accepted benchmark. In fact,
one company can produce 180,000 gallons of Biodiesel every year from just one acre of algae. That
comes to about 4,000 barrels, at a cost of $25 per barrel or $.59 per gallon.

To put that in perspective, it takes 3,750 acres of soy to make the same amount of Biodiesel at a cost of
about $2.50 per gallon for 4,000 barrels.

Algae Profits Bloom

It is possible to use human sewage and wastewater from agricultural endeavors to enhance the growth
of algae. In fact, when done right, algae can double and even triple overnight with the addition of these
fertilizers.

Compare that to the five month growing season for soy or canola! Another positive for algae is the fact
that as algae grows it absorbs C02 from the air. Massachusetts Institute of Technology (MIT) has
even fed emissions from their on-site power plant directly to algae being cultivated for Biofuel
production. In addition, fertilizer for other food crops can be produced by using the leftover nutrients
that aren't used to make the Biofuel.

That's like having your algae and eating it too. So let's back up and look at the big picture.

We have the technology right now to cultivate algae that can be used as fuel, using human and animal
waste as fertilizer. This is waste that would otherwise need to be treated or end up in our nation's
ground water. Not a bad deal at all!

After the necessary oils have been extracted from the algae, we use the byproducts (phosphorus and
nitrogen) as fertilizer for the food crops that feed the nation--all while extracting C02 from the air.
That's a beautiful thing. And that's why we are currently looking at a number of companies, some
public, some soon to go public that we believe will capitalize in a big, big way on algae. Now, don't get
me wrong, the last thing we want to do now is jump on every algae-based Biodiesel producer that
comes along. Until we see validation on a commercial scale, this is a market that will have to remain
under the microscope. But as soon as we get the validation… you'd better believe Bio Concepts,
LLC.’s stock members will hear about it first. So stay on top of the latest in algae-based Biofuel.

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 Bio Concepts, LLC.

Highlights

1.1. Objectives

The over all objective of Bio Concepts, LLC. is to have the ability to produce and directly market
our algae based B100 to the end users that currently use D2 (fossil fuel based diesel fuel). In
addition, we will produce our algae based B100 (100% renewable fuel) without utilizing the land
currently being used for food and grain farming, grass land, sugar cane, soy beans, tree farms and
the rain forest; all of which are needed to supply food to our country and in the natural reduction
in green house gasses

The daily increase demand on the crude oil, fuel cost, soy beans, corn, wheat, grains and other
farm land crops forces the need to have the ability to grow alternative means of producing the
products which are capable of producing Biofuels and Biodiesel. The cost of transportation for
goods and services as well as personal transportation causes many problems and opportunities.

Bio Concepts, LLC. has the ability to produce, with a fixed cost and sales price, our algae based
B100 at @ $3.00 per gallon. By making fuel more affordable to the trucking companies we will
in turn be helping to lower the costs of all goods which are transported by the trucking
companies, thus the savings are passed down through the chain all the way to the consumer level.

All goods and services that use B100 in the transportation of their products will be able to
provide a reduction of the sales price related to the transportation cost by 25% from the
transportation cost savings, also in addition there is a 25% reduction of the transportation cost
from tax credit, along with reducing green house gases.

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 Bio Concepts, LLC.

1.2. Mission
Bio Concepts, LLC. enjoys the ability through direct contracts with triple A rated publicly traded
end user trucking companies for 100% sales for over 40,000,000 gallons of fuel within the first
24 months. These per sales contracts will allow Bio Concepts, LLC. to be the largest B100
Biodiesel distributor by the end of 2010. We will have a “Green and Go Travel Center”, feed
stock, processing plant and distribution center all on the same property with direct access from
the interstate off ramps. The fuel distribution centers will not only service the trucking industry
but will be a state of the art full service travel center. These travel centers will also provide
service for automobiles by offering the greenest fuel products available. In addition we will
provide offices to the transportation companies on the second floor and offering them contracts
for 100% of their fuel needs.

The rental income from the trucking companies will service the total expenses of the Trucking
Centers as well as the photo-bioreactors and processing plants. The "Green & Go Travel Center"
will offer fuel, a general store, food court rental, food sales, restaurants, parts, service, a green
parking system with complete climate control, DirecTV, with and with out monitors, personal
incoming direct lines with total text messaging, wired and wireless internet connections with or
with out computer, e-mail addresses, showers, hotel rooms, entertainment, banking, etc..

The first generation contracted trucking terminal will enjoy a 10 year price fixed fuel cost of
$2.75 per gallon of B100 and the fixed price will only increase as the direct cost to produce the
B100 increases. The rental charge will be fixed for the same 10 years and then any increases in
rental fees will be reflected as a direct increase in Bio Concepts, LLC. operation and maintenance
cost of the trucking terminal.

The Bio Concepts, LLC.'s "Green & Go Travel Center" full service travel fuel center will charge
$3.00 per gallon at the pump for B100 Biodiesel; for no less the 10 years. With the tax credit of
$3.00 per gallon and the $3.00 per gallon pump price totals $6.00 per gallon. The total operating
cost covers 100% of the total debt servicing, algae farming, algae pressing, algae oil processing
plant, labor, insurance, feedstock, utilities, and every other cost of doing business at 40 ton algae
production (as per the contract with the trucking company in hand). The trucking company is
going to acquire new equipment in relationship to each individual location’s production
capabilities. We are able to do this without depending on fossil fuels and foreign oil and new oil
exploration. Each location will completely pay off all costs and debts within six years just from
the fuel sales alone.

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 Bio Concepts, LLC.

1.3. Keys to Success

1) Building and utilizing renewable algae oil based Biodiesel fuel, photo-bioreactors and
processing plants owned and operated by Bio Concepts, LLC.

2) The photo-bioreactors require C02 in the production and photosynthesis to grow the algae
using the C02 from other energy production, such as coal and cogen electric products plants not
to mention ammonia and other types of products or chemical production.

3) The direct reduction in fuel cost in the transportation of goods and services plus the reduction
in the demand for fossil fuel will cause a reduction in fuel cost at the pump to each and every US
citizen.

4) The production of Bio Concepts, LLC. B100 will induce a large reduction of green house
gasses causing a better quality of life for every hard working American family.

3) The reduction of fuel cost will cause nearly every good and service to become less costly in
the day to day life of every person; making it less expensive to go shopping, less expensive to go
to work and, in turn, cause an over all retention of American dollars in our great country.

4) The huge economic impact that Bio Concepts, LLC. will have on the economy is that working
class people will have more disposable income creating greater purchasing power further causing
the production and sales of nearly all products and services.

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 Bio Concepts, LLC.

2. Company Summary
Bio Concepts, LLC

The foundation of Bio Concepts, LLC.'s ability to guarantee 100% production capabilities is directly
related to the fact that we are building or refitting locations according to the contracts for sale to the
end user trucking companies and the Bio Concepts, LLC. owned "Green & Go Travel Center" with
new locations starting in the south.

2.1 Company Ownership

Management

Bio Concepts, LLC. has a diverse and strong management team. They have been
assembled from many different fields. We have top level personnel from trucking,
insurance, compliance, trading-brokerage, oil drilling and refining. All are committed to
grow this venture to production capacities in various locations to meet the changing
demand for energy in this country

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 Bio Concepts, LLC.

Dan Case   CEO/CFO

Mr. Case's relation to the Diesel, Bio-Diesel, and Transportation industry began some 20
years ago with his first acquisition, DC Express, Inc. a 48 state trucking company. This
was sold and so began Case Cartage Transportation, Inc., an Ohio Corporation; also a
48 state trucking company. Dan then began his exposure to the commercial real estate
market and Cash Flow Management Systems, a commercial lending corp. of which he
remains president to this day. Case International Express, Inc. was the first company
formed and sold that was a LandStar Inway Company, thus beginning his relationship
with LandStar, Inc. that is integral to this day. Dan also serves on various other boards
and committees: Member and Board of Directors, SBA, Syndicate Investment Trust, Inc.,
Vice President of Lake Construction and Development, Inc., Secretary/Treasurer,
President, Colt Company, LandStar Ligon, Inc. Zyxxyxx Corp., President. He has also
been owner or board member in various trading and airline companies. Syndicate
International Trading (coal mining), Syndicate International Transportation (airlines). All
Air (ground cargo).Mr. Case has 3 children and is an avid thoroughbred owner, trainer,
and breeder.

Jim Stegmayer  COO

Jim has been in the insurance re-construction business for 22 yrs; being exposed to all
types of disasters affecting residential, commercial and, industrial properties. Jim has
worked in the construction industry structuring the costs of replacement and subsequent
re-build concerning fire, wind, and water damage to various properties including the well
publicized problems of the oil refining industry. Jim has in the past developed the entire
contents division and trained estimators for concerns in construction as well as the
insurer's side of the equation. The last 5 yrs have been spent working strictly in the
insurance field conducting the mediation and litigation of insurance claims. Jim has used
his extensive knowledge of construction and insurance to settle some of the most
difficult claims due to Hurricane Katrina. For a time he was actually located in the ninth
ward of New Orleans, reviewing the devastation from the levee breach, working on a
plan to negotiate the settlements , as well as direct contact with the Murphy Oil spill,
which was an environmental disaster. Jim has a sense of settlement for those with
losses, all the while making sure that there is no insurance fraud to undermine the
company. Jim will be traveling extensively to manage all of our construction costs.

Diana Case Secretary

Diana Case has had ownership or has been on the board of LandStar Ranger / Fast
Lane Trucking /LandStar Ligon / The Colt Company, Ltd., Sun American Mortgage
Company, Ltd. Mortgage One Services, Ltd. Dubai Worldwide Holdings, Inc. Hyperion
Racing LLC., Envision Construction Inc.,as well as owning a title company and a
Limousine Company. She brings extensive ownership experience in both real estate
finance as well as the structuring of held assets. Diana remains active in four of the
previous mentioned entities in an owner / director capacity.

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 Bio Concepts, LLC.

Kevin Curran Treasurer

Mr. Curran began his institutional career in commodities and grains with Continental
Grain. Later as a fixed income, and commodities broker / trader at Thomson McKinnon,
he learned the value of hedging future costs and the risks in various markets. Mr. Curran
spent 13 years taking an IB to full FCM on behalf of Sanwa Bank in their fixed income
futures division. He went on to cover various traders and hedge funds as an independent
broker operating out of Prudential Bache and Fimat a division of Societe Generale. He
then went on to trade managed money in various products through the volatile time of
9/11 and the aftermath. He learned the value of structured finance in the distressed real
estate market through private equity financing. Currently Mr. Curran is involved in a
currency company that facilitates the inter-bank transfer of currency B to B in the global
economy.

Jody Hoffpauir Director of Research and Development

After receiving an honorable discharge from the United States Navy as a Second Class
Petty officer, Mr. Hoffpauir completed his Bachelor of Science Degree at McNeese State
University. He went on to Pepperdine University, CIE, Louisiana for graduate studies in
Business Management. He then went back to McNeese State to obtain his Master of
Science Degree in Environmental Sciences. He furthered his education with studies in
Accounting and Business Law at the University of Southwestern Louisiana. Mr. Hoffpauir
has extensive experience in research, development and production in the Oil and Gas
Industry in areas all over the world. His travels have included extended stays on location
from America to Africa, all throughout Asia and to remote locations such as Borneo and
Malaysia. His understanding of refining and the feed stocks that come from remote
locations will benefit Bio Concepts, LLC. for years to come. 

James Warren Bolan Insurance and Compliance

Mr. Bolan began his insurance career 43 years ago in Alabama with Independent Life
Insurance where he sold private and group insurance including life, health and disability.
He advanced to Sales Manager training other agents to sell products in compliance with
the rules and regulations of the Alabama Insurance Commission. Mr. Bolan then spent
13 years with Liberty National Life Insurance where he held various positions including
District Manager in charge of up to 28 agents, 5 sales managers and 5 office managers.
He handled all responsibilities within his office such as daily training, claim adjustment,
loss mitigation, as well as monthly and yearly reports. Mr. Bolan was in charge of
maintaining a monthly budget and also directed internal audits in preparation for state
audits. His LUTCF has been earned and he is always involved in continuing his
education.

Linda Bolan Comptroller

Mrs.Bolan has handled many phases of retail loans for Bank One, NA and was involved
in the loss mitigation division in the Student Loan Department within the bank.  She then
went on to be the Comptroller for Case International Trucking handling accounts
payable, accounts receivables, scheduling, compliance, insurance, licensing and
regulations. Mrs. Bolan has also been Manager of Direct Furniture in charge of the daily
operations of the furniture store including supervising and scheduling all salespeople,
advertising, keeping sales quotas and handling all monies within the store. Mrs. Bolan
joins Bio Concepts, LLC. as Comptroller and Scheduling Manager.

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 Bio Concepts, LLC.

2.1. Start-up Summary

Bio Concepts, LLC. has completed over 24 months of research and devolvement regarding all
manners of producing Biodiesel fuels with the end result of the final determination of utilizing
algae – algae oil for the production of our Biodiesel.

During the last 24 months Bio Concepts, LLC. has created relationships and obtained contracts
with proven providers of the necessary technology and products to produce our closed system
algae based B100 Biodiesel product. We have also built relationships and obtained contracts with
end user trucking companies who have the ability to service contracted trucking companies for
full service trucking terminals with on site fuel production and fueling stations.

Over 100 individual Bio Concepts, LLC. owned "Green & Go Travel Centers" and distribution
centers will be built though out the south starting within the next 60 months. Also an additional
200 plus "Green & Go Travel Centers" though out the rest of the domestic United States of
America will begin construction in 61 to 120 months.

The additional B100 sales will come from currently held contracts with individual triple A rated
publicly traded trucking companies to not only sell 40,000,000 gallons plus per location, but to
also provide use of the full service trucking terminals including; dispatch, sales, truck service
center, showers, lounges, truck parking, truck scales, food services, driver hotel rooms,
conference rooms, driver and other employee orientation centers, on-going education and general
management offices.

Bio Concepts, LLC. will build company owned "Green and Go Travel Centers" with the ability to
distribute over 1 Billion gallons of B100 at a total of 100 travel center individual location.

The complete use of domestic production and usage will have an immediate impact on the air
quality and the over all reduction in the cost of goods and services along with an immediate
increase in employment in our country.

The remaining requirements are necessary to complete the outstanding issues and the costs are as
follows:

Deposit for the necessary testing for the first location photo-bioreactors (to determine which
of the over 100 different strains of algae has the greatest yield and produces the highest grade of
algae oil in each location).

Deposit for the purchase of the required land to build the photo-bioreactors.

Deposit for the processing plants fuels distribution and full service trucking companies.

All pre-paid deposits are guaranteed by performance bonds from the individual providers.

The final payments listed below are also guaranteed by performance bonds for the completion of
the final production plant with the pre-determined quality of B100 necessary as stated in the
terms and condition of the agreements with the individual trucking companies to provide the
B100 and the full service trucking terminals.

Final payments for the production of the turn key algae farming.

Final payment for the algae oil B100 processing plants.

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 Bio Concepts, LLC.

Final payment for the turn key full service trucking terminals.

The total turn time from start to complete turn key operation is 12 months. The over all term for
the complete payoff of the loan amount for the full service trucking terminals and B100
production will be less than 24 months.

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 Bio Concepts, LLC.

Start-up
   
Requirements  
   
Start-up Expenses  
Bio Photo Reactor $86,424,000
Laboratory $440,000
Cost of refineries $7,250,000
Land (plant site) $12,250,000
Insurance $739,231
Transportation of Bio Reactors $1,900,000
Buildings (Mechanics, control, $5,400,000
processing building, etc.)
Research and Development $1,770,000
Storage Tanks $4,999,950
Construction of Refineries and $13,750,000
Photo-bioreactors
Land Purchase for Travel $15,250,000
Center
Travel Center $61,250,000
Employee Education $224,448
Experimental Photo bio reactor $950,500
Travel Expenses, Development $2,400,000
Soft costs
Legal representation $500,000
Research and Development $27,500,000
Additives (minerals, $3,522,525
supplements)
Wages $2,124,000
Cost of CO2 operation and $4,380,000
construction
Total Start-up Expenses $253,024,654
   
Start-up Assets Needed  
Cash Balance on Starting Date $21,593,934
Start-up Inventory  
Other Current Assets $5,500,000
Total Current Assets $27,093,934
   
Long-term Assets  
Total Assets $27,093,934
Total Requirements $280,118,588
   
Funding  
   
Investment  

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 Bio Concepts, LLC.

Research and Development $20,000,000

 
Other $0
Total Investment $20,000,000
   
Current Liabilities  
Accounts Payable  
Current Borrowing $260,118,588
Other Current Liabilities $0
Current Liabilities $260,118,588
   
Long-term Liabilities $0
Total Liabilities $260,118,588
   
Loss at Start-up ($253,024,654)
Total Capital ($233,024,654)
Total Capital and Liabilities $27,093,934

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 Bio Concepts, LLC.

Start-up

3. Products and Services

Change is certain

The economics of today's Biodiesel industry requires a company that can respond with agility to the
dynamics of the changing marketplace. Biodiesel in its pure form is biodegradable, has a high flash
point and is non-toxic making it the safest fuel to use, handle and store. Biodiesel can help clear the air
with reduced emissions of carbon monoxide, hydrocarbons, sulfates and particulates matter. Biodiesel
produces up to 50 percent less dangerous particulate matter emissions than petroleum diesel. Since it is
renewable, Biodiesel also contributes to national energy security. We will use oil secretions from a
non-food grade plant therefore it will not compete with the food resources produced by our country,
such as grain or soy.

 Technology is King

We believe technical innovation, bio-technical discovery, and continuing research & development will
advantage our company and our partners. Our modular refinery is expandable allowing for growth. Our
technology allows our feedstock to regenerate two to three times a day thereby increasing our
production and making Biodiesel more affordable for the consumer. Our focus is not on the open pond
approach but on the more advanced and efficient use of proprietary photo bioreactors. Open ponds
have many issues such as takeover by low oil strains, vulnerability to temperature fluctuations, high
evaporation losses, etc.. Utilizing enclosed photo-bioreactors can immediately solve the bulk of the

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 Bio Concepts, LLC.

problems encountered by the open pond method. Photo-bioreactors offer high yields (optimization of
light path, etc.), and can now be built inexpensively enough to offer a reasonable payback rate thereby
improving processing (i.e. waste stream treatment, power plants emissions reduction, etc.) which can
further improve the payback rate and economics.

4. Market Analysis Summary

 At Bio Concepts, LLC. we continue charting the course for the future through our commitment to new
technology, long term plant performance and profitability. Bio Concepts, LLC. will be the leader in
Biodiesel, producing 1 billion gallons per year (BGPY) of Biodiesel. We have been given the
opportunity to make a difference in the world and a long term impact on the economy and
sustainability of our countries valuable resources. We take the responsibility to our environment and to
our country to heart. At Bio Concepts, LLC. we are doing more than just making an alternative fuel
source. We are helping to save our planet and make a better life for our children and their children.
Producing an efficient, cleaner, alternative form of fuel for our country is just the beginning of the
impact that Bio Concepts, LLC. and the Biodiesel fuel we produce will have overall. Our goal is to
streamline the process of producing Biodiesel, thereby making it cost efficient and affordable for our
end users which will in turn affect our country's overall economy in a positive way.

Customers 

 We intend to pass along re-captured margin as part one of a two part incentive program to use
Biodiesel in over the road trucking, and transportation. The second part will be provided by media and
political pressures building; to seek alternative fuel sources on both the cost and eco-friendly fronts.
The projections from various producers and feed stock providers are on an accelerated curve due to the
energy bill/amendment that commenced in 2005. The growth is from a beginning point in 2003,
estimated to have been 23 million gallons per year (mgpy), to a staggering 400 million gallons per year
(mgpy) looking forward to 2010.

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4.1 Target Market Segment Strategy

Bio Concepts, LLC. is making efforts to streamline the Biodiesel production industry with goals
of eliminating America's dependence on foreign oil, while drastically reducing greenhouse gas
emissions and lowering fuel prices. Biodiesel is a clear and present means of relieving the
pressures facing our country. 

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 Bio Concepts, LLC.

We will begin this by building a refining plant that will have a 20 million gallon per year
capacity. This will be our benchmark for site capacity moving forward. All refining equipment
will be modular, thus expandable to meet changing needs. Modular processing plants for
producing Biodiesel in 5 million gallon capacities per year are now being manufactured in the
U.S.A. Our modular 20 million gallon plant would have a footprint of only 10 acres and be up
and running within a 4 month period.

Our first footprint will require 36 million in capital, be amortized over 7 years, and be profitable
in as little as 11 months. It will be run on non-traditional feedstock outside the soy complex, and
run on this for 8 months while the second part of the company comes on line. The contract with
Fast Lane Trucking to purchase all finished product @ $3.00 per gallon will insure debt service
and profitability over the duration of the finance period.

Step 2 will have already begun, that being the construction and operation of four modular algae
reactors, and algae production plant. The solution to the feedstock problem is the algae
bioreactor. Algae can produce 1000 times more oil per acre than the edible feedstock that is being
used today. Algae photosynthesis consumes tons of C02 daily. Capturing C02 from power plant
flue gas and other sources and using it as food for algae tremendously reduces greenhouse gas
emissions. 

This will begin the implementation of the technological advances that will remove our reliance on
out-sourced feedstock. This will allow us to become a self-contained plant that produces on-site
feedstock, and has on-site processing which is the goal of each subsequent location. BIO
Concepts, LLC. has seen the need for this type of on-site processing to eliminate the extra
transportation costs that are involved in the traditional refining process of crude products. Algae
will consume more C02 than it will produce even when considering the energy used in
production and delivery of the fuel. Biodiesel is a clean burning alternative fuel. It is produced
from domestic, renewable resources and contains no petroleum. When compared to emissions
from diesel, using Biodiesel in a conventional diesel engine actually cleans the engine and
provides a substantial reduction of unburned hydrocarbons, carbon monoxide, and particulate
matter. Sulphur dioxides and sulfates (acid rain) are essentially eliminated when burning
Biodiesel as compared to diesel fuel. Tests have shown up to a 78% reduction in C02 emissions
when compared to diesel. This will be a major source of influence when we go to secure and fix
our tax credits for a specific time period in Washington D.C. The algae producing reactor facility
will be adjacent to the refining and distribution centers, and will require 167M In capital.

Lastly, although being built simultaneously with refining and algae production facilities, will be
the construction of a "Green and Go travel center”. These will be our distribution sites for the
product. These will be built on an upscale travel center format. The first one to be built will
require 83M, and will be phased in over time. The first step will be the site acquisition for truck
re-fueling, pumping and storage facilities from the adjacent Biodiesel production plant. Our
concept of utilizing American made Biodiesel processing plants to extract the oil from mass
produced algae brings us to the reality of lower fuel prices. Lowering the cost of fuel for our
freight transportation system will significantly help American people in all aspects of our lives.

The lower cost can be passed on to the transportation industry in two ways; lower cost per gallon,
and shared tax credits, thus the two pronged approach will make it hard to compete (without our
help) for subsequent freight contracts. Our first distribution will be strictly on dedicated lanes, as
our capacity and availability grow we will make it available to the retail public. This is the blue
print for multiple sites to be repeated in all high traffic lanes across the country.

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 Bio Concepts, LLC.

Market Analysis
Potential Customers Gro 2008 2009 2010 2011 2012 CA
wth GR
Biodiesel 20%   63,370 76,045, 91,254, 109,50 0.00
,932 118 142 4,970 %
Algae Cake 20%   31,518 37,822, 45,387, 54,464, 0.00
,857 628 154 585 %
Glycerin 20%   133,73 160,48 192,57 231,09 0.00
4 1 7 2 %
Other 20%   59,434 71,321 85,585 102,70 0.00
2 %
Total 0.00 0 95,082 114,09 136,91 164,30 0.00
% ,957 9,548 9,458 3,349 %

4.1. Service Business Analysis

At Bio Concepts, LLC. we have examined the successes and failures of the Biodiesel industry at
length. Anyone that has examined the space will be aware that an abundance of plants were built
with very few of them monitoring their costs of materials. Although a large amount of capital was
spent building and opening these plants, very little was allotted to hedging. As we began to
acquire the first assets of the idle bio-plants, we realized immediately that only a small percentage
took the time to control their raw material from the start. The cost of capital and knowledge
required for hedging their future feedstock was not their first priority; we have a three phase
approach to avoid the most overlooked pitfall of the industry to date.    

Phase 1

To acquire modular refining and processing plants to begin fuel production while building
fixed refining capacities; the fixed facilities when completed will go on-line for a seamless
production transition, allowing us to begin the subsequent sites with the previously
purchased modular equipment.

Phase 2

We will run concurrently with phase1. Specifically while production is reaching capacity
within a specific plant we will begin implementing the technological advances that will, in
short order, become a self contained plant that produces on-site feedstock and has on-site
processing.

Phase 3

We will begin our work with the Department of Energy to secure a 5 year rate for tax
incentives. With our feedstock costs fixed, and only the variable costs are the assessorial
costs, the tax incentives will be the additional leverage for earnings ratios and margins.
Increasing margins and usages of existing infrastructure for the distribution and our
production goal of 1 BGPY, will be the benchmarks to determine the timing of our first
public offering.

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 Bio Concepts, LLC.

5. Strategy and Implementation Summary

5.1. Competitive Edge
Our competitive edge is directly based upon Bio Concepts, LLC. long term (10 year) pre-sale
contracts with a secondary contract for the on site build-to-suit full service trucking terminals.
Bio Concepts, LLC. will maintain all aspects of the production of the B100 to the trucking
company at a fixed rate of $3.00 per gallon on site.

These contracts secure our positioning as a strategic ally with our clients who are partners in the
overall goal of the on going improvements in lowering green house gasses, lowering
transportation costs and reducing the demand of fossil fuels. The benefits of our efforts in these
areas are directly passed on to the consumer by lowering the cost of fuel, which in turn lowers the
cost of most every good and service that every American enjoys and deserves.

By building a business based on long-standing relationships with U.S. based satisfied clients we
will strengthen the defenses against competition from foreign fossil fuel markets.

The fact that the American dollar will stay inside our country and not end up in today's current oil
producing countries will disable the direct funding by every U.S. citizen to these unstable
countries that have shown a complete disregard and aggressive intent against the United States of
America.

Americans will have greater opportunities, the greatest benefits are too many to completely name,
but the fact that Bio Concepts, LLC. will not use food farm lands, grass lands and other current
C02 reducing land in our production is alone a great benefit.

The major product required in the production of algae based B100 is C02, of which Bio
Concepts, LLC. will use 6 times (or parts) as much C02 to produce B100 than the 1 part C02
produced when burned in today's diesel engines.

5.2. Marketing Strategy

With the ability to reduce the fuel cost by nearly 50% at the pump, this cost savings to the
transportation companies, manufacturing companies, distribution companies and grocery stores
will lower the cost of all goods and services provided to every consumer that purchases from any
company that utilize algae based B100. The reduction of dependence on foreign fossil fuels will
cause a demand for Bio Concepts, LLC.'s B100 to lead the competition, not just compete. The use
of Bio Concepts, LLC. B100 will enable companies to enjoy the reduced fuel cost and tax credits.

The market will be forced to use the best, least expensive manner to conduct business all while
improving the environment.

5.3. Sales Strategy

Bio Concepts, LLC. currently has contracts for 100% of the production of every gallon of the
algae based B100 that will be produced as well as increased production levels for the next 20

Page 18
 Bio Concepts, LLC.

years as stated in Bio Concepts, LLC. sales contract. The current contract allows Bio Concepts,
LLC. to make a profit from the sale of our algae based B100, along with 100% of the algae cake
sales proceeds and all of the direct tax credits as profit.

5.3.1. Sales Forecast

Bio Concepts, LLC. will within 12 months become fully operational producing
40,000,000 gallons of B100 at the first location. The second, third and fourth locations
will be fully operational within 16 months with each location producing 40,000,000
gallons of B100. Each algae processing plant will produce two times the profit at each
location with a profit of two to one above the sales price of the B100. In addition, there
are several other income steams from the production of B100 that are noted in Bio
Concepts, LLC. pro forma.

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 Bio Concepts, LLC.

Sales Forecast
Sales FY FY 2010 FY 2011 FY 2012 FY 2013
2009
Biodiesel $63,370 $76,045, $91,254, $109,50 $131,40
,932 118 142 4,970 5,964
Algae cake $31,518 $37,822, $45,387, $54,464, $65,357,
,857 628 153 583 499
Glycerin $133,73 160,480 $192,57 $231,09 $277,31
4 6 2 0
Other $59,434 $71,321 $85,585 $102,70 $123,24
2 2
Total Sales $95,082 $114,09 $136,91 $164,30 $197,16
,957 9,547 9,456 3,347 4,015
           
Direct Cost of Sales FY FY 2010 FY 2011 FY 2012 FY 2013
2009
Supplement, $4,776, $4,394,0 $5,053,1 $5,811,1 $6,682,8
Nutrient 144 55 64 38 09
Salaries $3,424, $4,545,0 $4,999,5 $5,499,5 $6,049,4
005 56 61 18 69
Transportation $559,63 $454,57 $522,75 $601,17 $691,34
3 1 7 1 6
Maintenance, spare $290,00 $962,14 $1,106,4 $1,272,4 $1,463,3
parts 0 5 66 37 02
Overhead $247,84 $207,58 $238,71 $274,52 $315,70
Administration costs 2 1 9 7 6
Insurance $677,62 $779,27 $896,16 $1,030,5 $1,185,1
9 3 4 89 77
Energy $1,684, $2,167,1 $2,492,1 $2,866,0 $3,295,9
436 19 87 15 18
Catalyser $137,31 $45,191 $51,970 $59,765 $68,730
8
Alcohol Methyl $346,81 $274,30 $315,45 $362,76 $417,18
9 6 1 9 5
Hexane Solvent $334,80 $126,82 $145,84 $167,72 $192,88
0 2 5 2 0
Financial interest $24,310 $24,310, $24,310, $24,310, $24,310,
,000 000 000 000 000
Sales $368,70 $424,00 $487,60 $560,74 $644,85
0 5 5 6 8
Miscellaneous & $343,00 $394,45 $453,62 $521,66 $599,91
unpredicted costs 3 3 1 4 4
Amortization $4,488, $4,488,1 $4,488,1 $4,488,1 $4,488,1
114 14 14 14 14
Subtotal Direct Cost $41,988 $43,572, $45,561, $47,826, $50,405,
of Sales ,443 691 624 175 408

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 Bio Concepts, LLC.

Sales Monthly

Page 21
 Bio Concepts, LLC.

Sales Yearly

5.1 Milestones
Milestones
Milestone Start End Budget Manag Departme
Date Date er nt
Research and 3/1/200 12/31/2 $20,000, Jim Research
Engineering 8 008 000 Stegm &
ayer Develop
ment
Web Design 3/1/200 5/30/20 $10,000 Jim Web
8 08 Stegm
ayer
Business Plan 2/1/200 6/10/20 $50,000 Jim Marketin
development 8 08 Stegm g
ayer
Equipment, 5/30/20 10/31/2 $2,500,0 Dan Equipme
Trucks, Travel 08 008 00 Case nt
Trailer
Land purchase 7/30/20 10/1/20 $12,250, Dan Acquisiti
(350 Acres @ 08 08 000 Case on
$35000.00)
Travel 6/21/20 6/21/20 $2,400,0 Dan Marketin
expenses, soft 08 09 00 Case g
cost,
development

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 Bio Concepts, LLC.

Photo- 8/15/20 11/30/2 $86,424, Jody Acquisiti

bioreactor 08 008 000 Hoffpa on
purchase (4 uir
units @
$21,606,000.00
ea)
Engineering 9/30/20 12/31/2 $2,350,0 Jody Research
Land 08 008 00 Hoffpa &
uir Develop
ment
Cost of 8/1/200 11/31/2 $207,860 Jim Construct
Experimental 8 008 Stegm ion
Bio-reactor ayer
Construction 11/31/2 12/31/2 $850,000 Jim Construct
of Experiential 008 008 Stegm ion
Photo-reactor ayer
Construction 10/31/2 1/31/20 $4,999,9 Jody Construct
of Storage 008 09 50 Hoffpa ion
Tanks uir
Bring 12/31/2 1/31/20 $750,000 Jody Administr
Experiential 008 09 Hoffpa ative
Photo-reactor uir
on-line
(manpower,
Supplies,
Nutrients)
Cost of 8/1/200 10/31/2 $7,250,0 Jody Construct
refineries (4 @ 8 008 00 Hoffpa ion
$1,812,500 EA) uir
Construction 10/31/2 1/31/20 $3,250,0 Jody Construct
of Refinery’s 008 09 00 Hoffpa ion
for 4 Photo uir
Bio-reactors /
Bring
Refinery's on-
line
Equipment 4/30/20 6/30/20 $875,000 Dan Equipme
Experiential 09 09 Case nt
Semi-Tractor
Trailers
Construction 4/1/200 7/1/200 $5,500,0 Jody Construct
of Photo- 9 9 00 Hoffpa ion
Reactors uir
Testing and 2/28/20 8/1/200 $1,770,0 Jody Research
Experimental 09 9 00 Hoffpa &
stage uir Develop

Page 23
 Bio Concepts, LLC.

ment
Construction 2/28/20 7/1/200 $10,500, Jody Construct
of 100 Ton 09 9 000 Hoffpa ion
Unit (4 @ uir
$2,625,000.00e
a)
Bring Photo- 7/1/200 8/1/200 $4,500,0 Jody Administr
reactors on- 9 9 00 Hoffpa ative
line (4 @ uir
1,125,000.00
ea)
Land Purchase 5/20/20 7/31/20 $7,000,0 Dan Acquisiti
for Travel 09 09 00 Case on
Center (200
@35,000.00 per
acre)
Engineering of 8/1/200 11/1/20 $15,250, Jody Research
Travel Station 9 09 000 Hoffpa &
uir Develop
ment
Open Travel 11/1/20 6/20/20 $61,250, Jim Administr
Station 09 10 000 Stegm ative
ayer
Totals     $249,936    
,810

6. Management Summary
Our management philosophy is based on responsibility and mutual respect. People who work at Bio
Concepts, LLC. want to work at Bio Concepts, LLC. because we have an environment that encourages
creativity and achievement. The team includes 22 employees, under a president and three managers.

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 Bio Concepts, LLC.

6.1 Personnel Plan

Personnel Plan
  FY FY FY FY FY
2009 2010 2011 2012 2013
Dan Case $480,00 $480,00 $480,00 $480,00 $480,00
0 0 0 0 0
Jim Stegmayer $240,00 $240,00 $240,00 $240,00 $240,00
0 0 0 0 0
Kevin Curran $120,00 $120,00 $120,00 $120,00 $120,00
0 0 0 0 0
Diane Case $480,00 $480,00 $480,00 $480,00 $480,00
0 0 0 0 0
Jody Hoffpauir $240,00 $240,00 $240,00 $240,00 $240,00
0 0 0 0 0
Linda Bolan $90,000 $90,000 $90,000 $90,000 $90,000
Warren Bolan $90,000 $90,000 $90,000 $90,000 $90,000
Employee's $1,845, $2,511, $2,511, $2,511, $2,511,
747 744 744 744 744
Total People 22 22 22 22 22
Total Payroll $3,585, $4,251, $4,251, $4,251, $4,251,
747 744 744 744 744

7. Financial Plan
Bio Concepts, LLC. will provide a fixed cost of algae based, B100 while enjoying tax credits from the
following: carbon credits, Biodiesel fuel tax credits and renewable fuel tax credits from the federal
government and the state and local levels. Fixing the production cost of the algae based B100 will
guarantee profit and market share with zero risk factors to lenders and investors. The more Bio
Concepts, LLC. grows the greater the demand. These technologies are the new Apple computer
opportunity of the 1970's. Times have changed but technology is and will always be king.

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 Bio Concepts, LLC.

7.1. Assumptions

General Assumptions
  FY FY FY FY FY
2009 2010 2011 2012 2013
Plan Month 1 2 3 4 5
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0

7.2. Break-even Analysis

For our break-even analysis, we assume running costs of approximately $2,000,000 per month,
which includes our full payroll, rent, utilities and an estimation of other running costs. Payroll
alone, at our present run rate, is only about $$354,312

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 Bio Concepts, LLC.

The following chart shows that we need to sell about 395,673 gallons of

Biodiesel and 2,643,367 Kg. algae cakes per month to break-even.

  Break-even Analysis:
Monthly Units Break-even 730,500
Monthly Revenue Break-even $2,191,499
   
Assumptions:  
Average Per-Unit Revenue $3.00
Average Per-Unit Variable $0.20
Cost
Estimated Monthly Fixed Cost $2,045,399

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 Bio Concepts, LLC.

Break-even Analysis

7.3. Projected Profit and Loss

Pro Forma Profit and Loss
  FY FY 2010 FY 2011 FY 2012 FY 2013
2009
Sales $95,082 $114,099 $136,919 $164,303 $197,164
,957 ,547 ,456 ,347 ,015
Direct $41,988 $43,572, $45,561, $47,826, $50,405,
Costs of ,443 691 624 175 408
Goods
Other $0 $0 $0 $0 $0
Costs of
Goods
  ---------- ----------- ----------- ----------- -----------
-- - - - -
Cost of $41,988 $43,572, $45,561, $47,826, $50,405,
Goods Sold ,443 691 624 175 408

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 Bio Concepts, LLC.

Gross $53,094 $70,526, $91,357, $116,477 $146,758

Margin ,513 856 832 ,172 ,607
Gross 55.84% 61.81% 66.72% 70.89% 74.43%
Margin %
Expenses:          
Payroll $3,585, $4,251,7 $4,251,7 $4,251,7 $4,251,7
747 44 44 44 44
Sales and $450,00 $517,500 $595,125 $684,393 $787,052
Marketing 0
and Other
Expenses
Depreciatio $560,80 $560,808 $560,808 $560,808 $560,808
n 8
Supplement $4,203, $4,833,4 $5,558,4 $6,392,2 $7,351,0
s, Minerals 010 61 80 52 90
Utilities $2,400, $2,760,2 $3,174,2 $3,650,3 $4,197,9
192 20 53 92 50
Insurance $739,22 $739,224 $739,224 $739,224 $739,224
4
Payroll $562,12 $637,762 $637,762 $637,762 $637,762
Taxes 4
Other $0 $0 $0 $0 $0
  ---------- ----------- ----------- ----------- -----------
-- - - - -
Total $12,501 $14,300, $15,517, $16,916, $18,525,
Operating ,105 719 396 575 630
Expenses
Profit $40,593 $56,226, $75,840, $99,560, $128,232
Before ,409 137 436 597 ,977
Interest
and Taxes
Interest $26,011 $26,011, $26,011, $26,011, $26,011,
Expense ,859 859 859 859 859
Taxes $4,374, $9,064,2 $14,948, $22,064, $30,666,
Incurred 465 84 573 622 336
Net Profit $10,207 $21,149, $34,880, $51,484, $71,554,
,085 995 004 117 783
Net 10.73% 18.54% 25.47% 31.33% 36.29%
Profit/Sales

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Bio Concepts, LLC.

Profit Monthly

Page 30
Bio Concepts, LLC.

Profit Yearly

Page 31
 Bio Concepts, LLC.

Gross Margin Monthly

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 Bio Concepts, LLC.

Gross Margin Yearly

7.4 Projected Cash Flow

Pro Forma Cash Flow
  FY FY 2010 FY 2011 FY 2012 FY 2013
2009
           
Cash $95,082 $114,09 $136,91 $164,30 $197,16
Sales ,957 9,547 9,456 3,347 4,015
Cash $0 $0 $0 $0 $0
from
Receiva
bles
Subtotal $95,082 $114,09 $136,91 $164,30 $197,16
Cash ,957 9,547 9,456 3,347 4,015
from
Operati
ons
Subtotal $95,082 $114,09 $136,91 $164,30 $197,16
Cash ,957 9,547 9,456 3,347 4,015
Receive
d
           
Expendi FY FY 2010 FY 2011 FY 2012 FY 2013
tures 2009

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 Bio Concepts, LLC.

Expendi          
tures
from
Operati
ons:
Cash $3,585, $4,251,7 $4,251,7 $4,251,7 $4,251,7
Spendin 747 44 44 44 44
g
Payment $76,344 $87,259, $96,174, $106,74 $119,28
of ,091 955 446 3,733 1,146
Account
s
Payable
Subtotal $79,929 $91,511, $100,42 $110,99 $123,53
Spent on ,838 699 6,190 5,477 2,890
Operati
ons
           
Subtotal $79,929 $91,511, $100,42 $110,99 $123,53
Cash ,838 699 6,190 5,477 2,890
Spent
           
Net $15,153 $22,587, $36,493, $53,307, $73,631,
Cash ,119 848 266 870 125
Flow
Cash $36,747 $59,334, $95,828, $149,13 $222,76
Balance ,053 901 168 6,038 7,163

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 Bio Concepts, LLC.

Cash

7.4. Projected Balance Sheet

Pro Forma Balance Sheet
           
Assets          
Current FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Assets
Cash $36,747,0 $59,334,9 $95,828,1 $149,136, $222,767,
53 01 68 038 163
Inventor $434,550 $521,459 $625,751 $750,902 $901,082
y
Other $5,500,00 $5,500,00 $5,500,00 $5,500,00 $5,500,00
Current 0 0 0 0 0
Assets
Total $42,681,6 $65,356,3 $101,953, $155,386, $229,168,
Current 03 61 919 939 245
Assets

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 Bio Concepts, LLC.

Long-          
term
Assets
Long- $0 $0 $0 $0 $0
term
Assets
Accumu $560,808 $1,121,61 $1,682,42 $2,243,23 $2,804,04
lated 6 4 2 0
Depreci
ation
Total ($560,808 ($1,121,6 ($1,682,4 ($2,243,2 ($2,804,0
Long- ) 16) 24) 32) 40)
term
Assets
Total $42,120,7 $64,234,7 $100,271, $153,143, $226,364,
Assets 95 45 495 707 205
           
Liabiliti          
es and
Capital
Current FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Liabiliti
es
Account $4,819,77 $5,783,73 $6,940,47 $8,328,57 $9,994,28
s 5 0 7 2 6
Payable
Current $260,118, $260,118, $260,118, $260,118, $260,118,
Borrowi 588 588 588 588 588
ng
Other $0 $0 $0 $0 $0
Current
Liabiliti
es
Subtotal $264,938, $265,902, $267,059, $268,447, $270,112,
Current 363 318 065 160 874
Liabiliti
es
           
Long- $0 $0 $0 $0 $0
term
Liabiliti
es
Total $264,938, $265,902, $267,059, $268,447, $270,112,
Liabiliti 363 318 065 160 874
es
           

Page 36
 Bio Concepts, LLC.

Paid-in $20,000,0 $20,000,0 $20,000,0 $20,000,0 $20,000,0

Capital 00 00 00 00 00
Retaine ($253,024 ($242,817 ($221,667 ($186,787 ($135,303
d ,654) ,569) ,574) ,570) ,453)
Earning
s
Earning $10,207,0 $21,149,9 $34,880,0 $51,484,1 $71,554,7
s 85 95 04 17 83
Total ($222,817 ($201,667 ($166,787 ($115,303 ($43,748,
Capital ,569) ,574) ,570) ,453) 670)
Total $42,120,7 $64,234,7 $100,271, $153,143, $226,364,
Liabiliti 95 45 495 707 205
es and
Capital
Net ($222,817 ($201,667 ($166,787 ($115,303 ($43,748,
Worth ,569) ,574) ,570) ,453) 670)

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 Bio Concepts, LLC.

7.5. Business Ratios

Ratio Analysis
  FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Indust
ry
Profil
e
Sales 0.00% 20.00% 20.00% 20.00% 20.00% 0.00
Growth %
             
Percent            
of Total
Assets
Accounts 0.00% 0.00% 0.00% 0.00% 0.00% 0.00
Receivabl %
e
Inventory 1.03% 0.81% 0.62% 0.49% 0.40% 0.00
%
Other 13.06% 8.56% 5.49% 3.59% 2.43% 100.0
Current 0%
Assets
Total 101.33% 101.75% 101.68% 101.46% 101.24% 100.0
Current 0%
Assets
Long- -1.33% -1.75% -1.68% -1.46% -1.24% 0.00
term %
Assets
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.0
Assets 0%
             
Current 629.00% 413.95% 266.34% 175.29% 119.33% 0.00
Liabilities %
Long- 0.00% 0.00% 0.00% 0.00% 0.00% 0.00
term %
Liabilities
Total 629.00% 413.95% 266.34% 175.29% 119.33% 0.00
Liabilities %
Net -529.00% -313.95% -166.34% -75.29% -19.33% 100.0
Worth 0%
             
Percent            
of Sales

Page 38
 Bio Concepts, LLC.

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.0

0%
Gross 55.84% 61.81% 66.72% 70.89% 74.43% 0.00
Margin %
Selling, 45.11% 43.28% 41.25% 39.56% 38.14% 0.00
General %
&
Administ
rative
Expenses
Advertisi 0.00% 0.00% 0.00% 0.00% 0.00% 0.00
ng %
Expenses
Profit 42.69% 49.28% 55.39% 60.60% 65.04% 0.00
Before %
Interest
and
Taxes
             
Main            
Ratios
Current 0.16 0.25 0.38 0.58 0.85 0.00
Quick 0.16 0.24 0.38 0.58 0.85 0.00
Total 629.00% 413.95% 266.34% 175.29% 119.33% 0.00
Debt to %
Total
Assets
Pre-tax -6.54% -14.98% -29.88% -63.79% - 0.00
Return 233.66% %
on Net
Worth
Pre-tax 34.62% 47.04% 49.69% 48.03% 45.16% 0.00
Return %
on Assets
             
Additiona FY 2009 FY 2010 FY 2011 FY 2012 FY 2013  
l Ratios
Net Profit 10.73% 18.54% 25.47% 31.33% 36.29% n.a
Margin
Return 0.00% 0.00% 0.00% 0.00% 0.00% n.a
on Equity
             
Activity            
Ratios
Accounts 0.00 0.00 0.00 0.00 0.00 n.a
Receivabl

Page 39
 Bio Concepts, LLC.

e
Turnover
Collectio 0 0 0 0 0 n.a
n Days
Inventory 17.23 91.16 79.43 69.48 61.02 n.a
Turnover
Accounts 16.84 15.25 14.02 12.98 12.10 n.a
Payable
Turnover
Payment 28 16 24 26 28 n.a
Days
Total 2.26 1.78 1.37 1.07 0.87 n.a
Asset
Turnover
             
Debt            
Ratios
Debt to 0.00 0.00 0.00 0.00 0.00 n.a
Net
Worth
Current 1.00 1.00 1.00 1.00 1.00 n.a
Liab. to
Liab.
             
Liquidity            
Ratios
Net ($222,256 ($200,545 ($165,105 ($113,060 ($40,944, n.a
Working ,761) ,958) ,146) ,221) 630)
Capital
Interest 1.56 2.16 2.92 3.83 4.93 n.a
Coverage
             
Additiona            
l Ratios
Assets to 0.44 0.56 0.73 0.93 1.15 n.a
Sales
Current 629% 414% 266% 175% 119% n.a
Debt/Tot
al Assets
Acid Test 0.16 0.24 0.38 0.58 0.85 n.a
Sales/Net 0.00 0.00 0.00 0.00 0.00 n.a
Worth
Dividend 0.00 0.00 0.00 0.00 0.00 n.a
Payout

Page 40
 Bio Concepts, LLC.

7.6. Long-term Plan

Bio Concepts, LLC. will build “Green & Go Travel Center” and full service trucking terminals
both with photo-bioreactors producing algae based B100 throughout the entire United States.
Each location will have self contained, complete photo-bioreactor algae farms and complete algae
oil processing plants. Each processing center and every type of distribution center will completely
debt service the complete cost of construction, operation, maintenance, taxes and loan repayment,
including principal and interest, within a 60 month period.

The ability for Bio Concepts, LLC. to fix the $3.00 price per gallon and still be profitable in the
61st month without the debt servicing may allow or at least provide the opportunity to even lower
the price per gallon of Algae B100. With the ability to reduce the cost of fuel, larger vehicles will
once again be the mainstay; like the SUV.

Nearly every economist believes non renewable fuels will become over $5.00 per gallon and this
will cause an overall reduction in the standard or living for the next 20 plus years do to the impact
of the cost of fossil fuels.

Today the current sad state of affairs for the American worker and citizen has to change. This will
only happen as we as good American’s have to keep great jobs in the United States of America
and become self reliant for our fuel and energy needs. Other counties currently subsidize the
manufacturing process to reduce energy cost causing an even great demand for fossil fuels. China
has become a world power by inducing lower fuel cost to the manufacturing companies reducing
the cost of goods sold. This will cause a reduction in fuel cost and increased availability for the
cheapest fuels without subsidizing energy from the federal government. This is the most effective
manner in fixing fuel cost while reducing C02

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 Appendix

Sales Forecast
Sales   Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Biodiesel     $1,059 $1,059 $3,118 $3,118 $5,005 $5,005 $5,005 $10,000 $10,000 $10,000 $10,000
,197 ,197 ,394 ,394 ,250 ,250 ,250 ,000 ,000 ,000 ,000
Algae 20   $677,1 $677,1 $1,354 $1,354 $3,683 $3,683 $4,017 $4,017, $4,017, $4,017, $4,017,
cake % 80 80 ,359 ,359 ,092 ,092 ,919 919 919 919 919
Glycerin     $4,012 $4,012 $8,024 $8,024 $14,71 $14,71 $16,04 $16,048 $16,048 $16,048 $16,048
1 1 8
Other     $1,783 $1,783 $3,566 $3,566 $6,538 $6,538 $7,132 $7,132 $7,132 $7,132 $7,132
Total   $0 $1,742 $1,742 $4,484 $4,484 $8,709 $8,709 $9,046 $14,041 $14,041 $14,041 $14,041
Sales ,172 ,172 ,343 ,343 ,591 ,591 ,349 ,099 ,099 ,099 ,099
                           
Direct   Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Cost of
Sales
Suppleme     $95,52 $95,52 $191,0 $191,0 $382,0 $382,0 $382,0 $764,18 $764,18 $764,18 $764,18
nt, 2 2 44 44 92 92 92 4 4 4 4
Nutrient
Salaries   $192, $192,5 $192,5 $240,1 $240,1 $240,1 $354,3 $354,3 $354,31 $354,31 $354,31 $354,31
570 70 70 41 41 41 12 12 2 2 2 2
Transpor     $28,50 $28,50 $33,61 $33,61 $39,58 $39,58 $39,58 $79,166 $79,166 $79,166 $79,166
tation 0 0 0 0 3 3 3
Maintena     $12,00 $12,00 $20,00 $20,00 $20,00 $20,00 $30,00 $30,000 $42,000 $42,000 $42,000
nce, 0 0 0 0 0 0 0
spare
parts
Overhead     $14,50 $14,50 $16,83 $16,83 $16,83 $16,83 $16,83 $33,668 $33,668 $33,668 $33,668
Administ 0 0 4 4 4 4 4
ration
costs
Insuranc     $61,60 $61,60 $61,60 $61,60 $61,60 $61,60 $61,60 $61,603 $61,603 $61,603 $61,603
e 3 3 3 3 3 3 3

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 Appendix
Energy     $42,15 $42,15 $100,0 $100,0 $200,0 $200,0 $200,0 $200,01 $200,01 $200,01 $200,01
4 4 08 08 16 16 16 6 6 6 6
Catalyser     $3,922 $3,922 $7,845 $7,845 $10,34 $10,34 $10,34 $20,688 $20,688 $20,688 $20,688
4 4 4
Alcohol     $16,93 $16,93 $24,07 $24,07 $24,07 $24,07 $24,07 $48,146 $48,146 $48,146 $48,146
Methyl 5 5 3 3 3 3 3
Hexane     $10,80 $10,80 $21,60 $21,60 $32,40 $32,40 $32,40 $43,200 $43,200 $43,200 $43,200
Solvent 0 0 0 0 0 0 0
Financial     $2,210 $2,210 $2,210 $2,210 $2,210 $2,210 $2,210 $2,210, $2,210, $2,210, $2,210,
interest ,000 ,000 ,000 ,000 ,000 ,000 ,000 000 000 000 000
Sales     $15,60 $15,60 $37,50 $37,50 $37,50 $37,50 $37,50 $37,500 $37,500 $37,500 $37,500
0 0 0 0 0 0 0
Miscellan     $20,00 $20,00 $33,66 $33,66 $33,66 $33,66 $33,66 $33,667 $33,667 $33,667 $33,667
eous & 0 0 7 7 7 7 7
unpredict
ed costs
Amortiza     $366,0 $366,0 $417,3 $417,3 $417,3 $417,3 $417,3 $417,34 $417,34 $417,34 $417,34
tion 00 00 46 46 46 46 46 6 6 6 6
Subtotal   $192, $3,090 $3,090 $3,415 $3,415 $3,725 $3,839 $3,849 $4,333, $4,345, $4,345, $4,345,
Direct 570 ,106 ,106 ,271 ,271 ,599 ,770 ,770 496 496 496 496
Cost of
Sales

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 Appendix

Personnel Plan
  Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Dan Case $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0
00 00 00 00 00 00 00 00 00 00 00 00
Jim Stegmayer $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0
00 00 00 00 00 00 00 00 00 00 00 00
Kevin Curran $10,0 $10,0 $10,0 $10,0 $10,0 $10,0 $10,0 $10,0 $10,0 $10,0 $10,0 $10,0
00 00 00 00 00 00 00 00 00 00 00 00
Diane Case $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0
00 00 00 00 00 00 00 00 00 00 00 00
Jody Hoffpauir $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0
00 00 00 00 00 00 00 00 00 00 00 00
Linda Bolan $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50
0 0 0 0 0 0 0 0 0 0 0 0
Warren Bolan $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50 $7,50
0 0 0 0 0 0 0 0 0 0 0 0
Employee's $47,5 $47,5 $95,1 $95,1 $95,1 $209, $209, $209, $209, $209, $209, $209,
70 70 41 41 41 312 312 312 312 312 312 312
Total People 5 5 10 10 10 22 22 22 22 22 22 22
Total Payroll $192, $192, $240, $240, $240, $354, $354, $354, $354, $354, $354, $354,
570 570 141 141 141 312 312 312 312 312 312 312

General Assumptions
  Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Long-term Interest Rate 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

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 Appendix
Tax Rate 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

    Dec Jan Feb Mar Apr May
Sales   $0 $1,742,172 $1,742,172 $4,484,343 $4,484,343 $8,709,591
Direct Costs of   $192,570 $3,090,106 $3,090,106 $3,415,271 $3,415,271 $3,725,599
Goods
Other Costs of   $0 $0 $0 $0 $0 $0
Goods
    ------------ ------------ ------------ ------------ ------------ ------------
Cost of Goods   $192,570 $3,090,106 $3,090,106 $3,415,271 $3,415,271 $3,725,599
Sold
Gross Margin   ($192,570) ($1,347,934) ($1,347,934) $1,069,072 $1,069,072 $4,983,992
Gross Margin %   0.00% -77.37% -77.37% 23.84% 23.84% 57.22%
Expenses:              
Payroll   $192,570 $192,570 $240,141 $240,141 $240,141 $354,312
Sales and   $37,500 $37,500 $37,500 $37,500 $37,500 $37,500
Marketing and
Other Expenses
Depreciation   $46,734 $46,734 $46,734 $46,734 $46,734 $46,734
Supplements,   $191,045 $191,045 $382,092 $382,092 $382,092 $382,092
Minerals
Utilities   $200,016 $200,016 $200,016 $200,016 $200,016 $200,016
Insurance   $61,602 $61,602 $61,602 $61,602 $61,602 $61,602
Payroll Taxes 15% $53,147 $28,886 $36,021 $36,021 $36,021 $53,147
Other   $0 $0 $0 $0 $0 $0
    ------------ ------------ ------------ ------------ ------------ ------------
Total Operating   $782,614 $758,353 $1,004,106 $1,004,106 $1,004,106 $1,135,403
Expenses
Profit Before   ($975,184) ($2,106,287) ($2,352,040) $64,966 $64,966 $3,848,590
Interest and
Taxes

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 Appendix
Interest Expense   $2,167,655 $2,167,655 $2,167,655 $2,167,655 $2,167,655 $2,167,655
Taxes Incurred   ($942,852) ($1,282,183) ($1,355,909) ($630,807) ($630,807) $504,280
Net Profit   ($2,199,987) ($2,991,759) ($3,163,787) ($1,471,882) ($1,471,882) $1,176,654
Net Profit/Sales   0.00% -171.73% -181.60% -32.82% -32.82% 13.51%

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 Appendix

Pro Forma Cash Flow

    Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
                           
Cash                          
Receive
d
Cash                          
from
Operati
ons:
Cash   $0 $1,742, $1,742, $4,484, $4,484, $8,709, $8,709, $9,046, $14,041 $14,041 $14,041 $14,041
Sales 172 172 343 343 591 591 349 ,099 ,099 ,099 ,099
Cash   $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
from
Receiva
bles
Subtotal   $0 $1,742, $1,742, $4,484, $4,484, $8,709, $8,709, $9,046, $14,041 $14,041 $14,041 $14,041
Cash 172 172 343 343 591 591 349 ,099 ,099 ,099 ,099
from
Operati
ons
                           
Subtotal   $0 $1,742, $1,742, $4,484, $4,484, $8,709, $8,709, $9,046, $14,041 $14,041 $14,041 $14,041
Cash 172 172 343 343 591 591 349 ,099 ,099 ,099 ,099
Receive
d
                           
Expendi   Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
tures
Expendi                          
tures
from

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 Appendix
Operati
ons:
Cash   $192,57 $192,57 $240,14 $240,14 $240,14 $354,31 $354,31 $354,31 $354,31 $354,31 $354,31 $354,31
Spendin 0 0 1 1 1 2 2 2 2 2 2 2
g
Paymen   $0 $1,960, $7,893, $1,528, $9,117, $2,254, $10,888 $3,372, $11,296 $9,688, $4,819, $13,523
t of 683 743 978 137 079 ,522 041 ,195 970 775 ,967
Account
s
Payable
Subtotal   $192,57 $2,153, $8,133, $1,769, $9,357, $2,608, $11,242 $3,726, $11,650 $10,043 $5,174, $13,878
Spent on 0 253 884 119 278 391 ,834 353 ,507 ,282 087 ,279
Operati
ons
                           
Subtotal   $192,57 $2,153, $8,133, $1,769, $9,357, $2,608, $11,242 $3,726, $11,650 $10,043 $5,174, $13,878
Cash 0 253 884 119 278 391 ,834 353 ,507 ,282 087 ,279
Spent
                           
Net   ($192,5 ($411,0 ($6,391, $2,715, ($4,872, $6,101, ($2,533, $5,319, $2,390, $3,997, $8,867, $162,82
Cash 70) 82) 712) 224 935) 200 243) 996 592 817 012 0
Flow
Cash   $21,401 $20,990 $14,598 $17,313 $12,440 $18,542 $16,008 $21,328 $23,719 $27,717 $36,584 $36,747
Balance ,364 ,282 ,570 ,794 ,859 ,059 ,816 ,812 ,404 ,221 ,233 ,053
Pro Forma Balance Sheet
           
Assets          
Current Assets Starting Balances Dec Jan Feb Mar
Cash $21,593,934 $21,401,364 $20,990,282 $14,598,570 $17,313,794 $1
Inventory $0   $3,399,117 $309,011 $3,756,798
Other Current $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $
Assets
Total Current $27,093,934 $26,901,364 $29,889,399 $20,407,581 $26,570,592 $1
Assets
Long-term Assets          

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 Appendix
Long-term Assets $0 $0 $0 $0 $0
Accumulated $0 $46,734 $93,468 $140,202 $186,936
Depreciation
Total Long-term $0 ($46,734) ($93,468) ($140,202) ($186,936) (
Assets
Total Assets $27,093,934 $26,854,630 $29,795,931 $20,267,379 $26,383,656 $1
           
Liabilities and          
Capital
Current   Dec Jan Feb Mar
Liabilities
Accounts Payable $0 $1,960,683 $7,893,743 $1,528,978 $9,117,137 $
Current $260,118,588 $260,118,588 $260,118,588 $260,118,588 $260,118,588 $26
Borrowing
Other Current $0 $0 $0 $0 $0
Liabilities
Subtotal Current $260,118,588 $262,079,271 $268,012,331 $261,647,566 $269,235,725 $26
Liabilities
           
Long-term $0 $0 $0 $0 $0
Liabilities
Total Liabilities $260,118,588 $262,079,271 $268,012,331 $261,647,566 $269,235,725 $26
           
Paid-in Capital $20,000,000 $20,000,000 $20,000,000 $20,000,000 $20,000,000 $2
Retained ($253,024,654) ($253,024,654) ($253,024,654) ($253,024,654) ($253,024,654) ($253
Earnings
Earnings $0 ($2,199,987) ($5,191,746) ($8,355,533) ($9,827,415) ($11
Total Capital ($233,024,654) ($235,224,641) ($238,216,400) ($241,380,187) ($242,852,069) ($244
Total Liabilities $27,093,934 $26,854,630 $29,795,931 $20,267,379 $26,383,656 $1
and Capital
Net Worth ($233,024,654) ($235,224,641) ($238,216,400) ($241,380,187) ($242,852,069) ($244

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