Taken from the MD&A:

"For the three months ended June 30, 2009, the Company reported sales of $126,122 as compared to $245,133 for the three months ended June 30, 2008. The revenue for the three months ended June 30, 2009 represents the sale of 20 Jetstars compared to 35 Jetstars for the three months ended June 30, 2008."

So in 2008 a Jetstar sold for $7003.80 and in 2009 $6306.10. The difference could well be the US$ rate, unlike HGS (100 units = $1.2M from their NR, i.e. $12,000 each) we have never been given these figures directly. When I asked Tom he told me it was a secret.

Sales for 2008 were $656,959 which represents approx 98 Jetstars if you use $6700 per unit (approx average of the 2 $ values above). Again, I have to guess as I'm not party to the secret.

Info from 2008 NRs:

Jan 8th 2008

"Dynamic Fuel Systems Inc. (DYA – TSX Venture) ("Dynamic" or the "Corporation") is pleased to announce that Hydrogen Fuel Systems Inc. ("HFS") (formerly Specialties Marketing Group LLC) has increased its previously announced purchase order for 250 Jetstar™ units by an additional 100 units. A further 25 Jetstar™ units have been delivered in December 2007, bringing the total number of units shipped in the 4

July 22nd 2008

"Dynamic Fuel Systems Inc. (DYA – TSX Venture) ("Dynamic" or the "Corporation") is pleased to announce that it has recently delivered a further 25 Jetstar™ units to Hydrogen Fuel Systems Inc. ("HFS") pursuant to HFS' previously announced purchase order. This brings the total number of units delivered to date pursuant to the foregoing purchase order to 150. A total of 200 Jetstar™ units remain deliverable under the purchase order (over and above the foregoing delivery) and the Corporation expects to complete all such deliveries no later than the end of the current fiscal year."

So between Jan 2008 and Jul 2008 they delivered 275 - 150 = 125 units. Add onto that the "80 units" and we end up with AT LEAST 205 units at an average of $6700 should give sales of $1,375,000 for 2008 plus 2009 first six months. In fact sales recorded are $656,595 + $339,386 = $995,981. That's shortfall of $379,019, at least (approx 56 units). Plus these numbers don't take account of sales to the Canadian (or other) distributor in Q3 and Q4.

Now, I'm no accountant. That was the late Qmark's forte. If he were with us today he would likely shine a much clearer light on this. What worries me the most is when I was talking with Tim yesterday he seemed somewhat surprised as to exactly why we were demanding to know where the "80 units" or cash for them had gone. Whilst on the 'phone with him he sent an email to the auditors. Can you see now Tim, we don't know and it would appear that you don't know. Perhaps a forensic audit is the answer, unless you can find out from those in power at the time what exactly happened to it, eh Tim? It also look like a bunch of cashflow could be generated by fulfilling outstanding orders, possibly some 200 units. Unless of course, hypothetically for example, the 80 units were sold to an insider who then passed them onto a US distributor in order to break a Fairfull-imposed embargo or something like that. In which case, where's the $$$s? And even if something shady did happen, what about the outstanding 120 units?