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<SEC-DOCUMENT>0000950123-10-054746.txt : 20100601
<SEC-HEADER>0000950123-10-054746.hdr.sgml : 20100531
<ACCEPTANCE-DATETIME>20100601161806
ACCESSION NUMBER:		0000950123-10-054746
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100601
DATE AS OF CHANGE:		20100601

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENERGY FOCUS, INC/DE
		CENTRAL INDEX KEY:			0000924168
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC LIGHTING & WIRING EQUIPMENT [3640]
		IRS NUMBER:				943021850
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-166191
		FILM NUMBER:		10869814

	BUSINESS ADDRESS:	
		STREET 1:		32000 AURORA ROAD
		CITY:			SOLON
		STATE:			OH
		ZIP:			44139
		BUSINESS PHONE:		5104900719

	MAIL ADDRESS:	
		STREET 1:		32000 AURORA ROAD
		CITY:			SOLON
		STATE:			OH
		ZIP:			44139

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIBERSTARS INC /CA/
		DATE OF NAME CHANGE:	19940527
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>l39826ce424b3.htm
<DESCRIPTION>424B3
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Filed Pursuant to Rule&nbsp;424(b)(3)<BR>
Registration Statement No.&nbsp;333-166191
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ENERGY FOCUS, INC.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">4,470,000 Shares of Common Stock
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus relates to the sale of up to 4,470,000 shares of our common stock by Lincoln
Park Capital Fund, LLC (&#147;LPC&#148;), Chicago, Illinois. LPC is sometimes referred to in this prospectus
as the selling shareholder. The prices at which LPC may sell the shares will be determined by the
prevailing market price for the shares or in negotiated transactions. We will not receive proceeds
from the sale of our shares by LPC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is registered under Section 12(g) of the Securities Exchange Act of 1934 and
quoted on the NASDAQ Global Market under the symbol &#147;EFOI.&#148; On May&nbsp;28, 2010, the last reported
sale price for our common stock as reported on the NASDAQ Global Market was $1.10 per share.
The shares of common stock offered pursuant to this prospectus have been approved for
listing on the NASDAQ Global Market.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in our common stock involves certain risks. See &#147;Risk Factors&#148; beginning on page 3
for a discussion of these risks.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholder is an &#147;underwriter&#148; within the meaning of the Securities Act of 1933,
as amended.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;17, 2010, we entered into a Purchase Agreement with LPC covering the sale or issuance
to it of up to 4,590,000 shares of our common stock. On that date, of the 21,250,304 outstanding
shares of our common stock, non-affiliates held 14,376,212 shares and affiliates held 6,874,092
shares. At the last reported sale price of our common stock on March&nbsp;16, 2010 of $1.28 per share,
the market value of the shares held by non-affiliates was $18,401,551. At that per share price,
the market value of the 4,590,000 shares issuable under the Purchase Agreement would be $5,875,200,
which number of shares and market value are equal to 31.93% of the number and market value of the
shares held by non-affiliates on March&nbsp;17, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement on Form S-3 that we filed with the
Securities and Exchange Commission. During the twelve calendar month period prior to and ending on
the date of this prospectus, we have not offered or sold any shares of common stock pursuant to
General Instruction I.B.6. of Form S-3 other than the shares covered by this prospectus.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined that this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">The date of this prospectus is June&nbsp;1, 2010.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#600">Prospectus Summary</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#601">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#602">Special Note Regarding Forward-Looking Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#603">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#604">This Transaction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#605">Selling Shareholder</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#606">Plan of Distribution</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#607">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#608">Experts</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#609">Where You Can Find More Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#610">Information Incorporated By Reference</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="600"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus provides you with a general description of the common stock being offered. You
should read this prospectus, including all documents incorporated herein by reference, together
with additional information described under the heading &#147;Where You Can Find More Information.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registration statement that contains this prospectus, including the exhibits to the
registration statement, contains additional information about us and the securities being offered
under this prospectus. You should read the registration statement and the accompanying exhibits for
further information. The registration statement and exhibits can be read and are available to the
public over the Internet at the SEC&#146;s website at <U>http://www.sec.gov</U> as described under the
heading &#147;Where You Can Find More Information.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a Delaware corporation. Our principal executive offices are located at 32000 Aurora
Road, Solon, Ohio 44139. Our telephone number is 440.715.1300. The address of our website is
<U>www.efoi.com</U>. Information on our website is not part of this prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We design, develop, manufacture, and market energy-efficient lighting products, and we are a
leading provider of turnkey energy-efficient lighting solutions in the governmental and public
sector market, general commercial market, and the pool market. Our lighting technology offers
significant energy savings, heat dissipation and maintenance cost benefits over conventional
lighting for multiple applications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2009 and early 2010, we completed the initial phase of our new business strategy to
provide turnkey solutions, which use, but are not limited to, our patented and proprietary
technology. Our solutions include light-emitting diode, ceramic metal halide, fiber optic,
high-intensity discharge, and other high energy-efficient lighting technologies. Typical savings
related to our technology approximates 80% in electricity costs, while providing full-spectrum
light closely simulating daylight colors. Our strategy also incorporates continued investment into
the research of new and emerging energy sources including, but not limited to, solar energy.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our long-term strategy is to penetrate the $100&nbsp;billion existing building lighting market by
providing turnkey lighting solutions. We will continue to focus on markets where the benefits of
our lighting solutions offerings, combined with our technology, are most compelling. These markets
include: schools, universities, hospitals, office buildings, parking garages, supermarkets,
museums, cold storage facilities, and manufacturing environments.
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>LPC Transaction and the Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;17, 2010, we executed a Purchase Agreement (the &#147;Purchase Agreement&#148;) and a
registration rights agreement with Lincoln Park Capital Fund, LLC (&#147;LPC&#148;), Chicago, Illinois,
pursuant to which LPC agreed to purchase 350,000 shares of our common stock, together with warrants
(&#147;Warrants&#148;) to purchase 350,000 shares at an exercise price of $1.20 per share, for total
consideration of $375,000. The Warrants were to have a term of five (5)&nbsp;years and were not to be
exercisable until six (6)&nbsp;months after they were issued. LPC also agreed to purchase up to an
additional 3,650,000 shares of our common stock at our option as described below. We issued
120,000 shares of our stock to LPC as consideration for entering into the Purchase Agreement, which
shares are not included in this offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;10, 2010, we and LPC amended Section 2(i) of the Purchase Agreement solely to make
clear that all of the shares that we may issue to LPC under the Agreement cannot exceed 19.99% of
our outstanding shares without shareholder approval as required by Nasdaq Rule&nbsp;5635(d). As used in
this prospectus, the term Purchase Agreement refers to the original Agreement as modified by the
May&nbsp;10, 2010 amendment to it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the registration rights agreement, we filed a registration statement that included
a preliminary prospectus with the Securities and Exchange Commission (the &#147;SEC&#148;). The prospectus
covered the 4,000,000 shares that may be sold to LPC under the Purchase Agreement, an additional
120,000 shares that we would issue pro rata as LPC purchases up to the 4,000,000 shares, as
directed by us, and 350,000 shares that would be issued upon exercise of the Warrants, which
Warrants were not to be exercisable until six (6)&nbsp;months from the date of issuance. We did not
have the right to commence any sales of our shares to LPC until the SEC had declared effective the
registration statement of which that prospectus was a part.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC declared effective the registration statement on May&nbsp;28, 2010. On May&nbsp;28, 2010, LPC
purchased and we issued 350,000 shares of common stock (together with 10,500 pro rata commitment
shares in connection with such purchase) and on June 1, 2010 we issued to LPC the Warrants to purchase 350,000 shares of common
stock, for total consideration of $375,000. The Warrants first become exercisable on December&nbsp;1,
2010 and expire on December&nbsp;1, 2015.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over approximately the next 25&nbsp;months we have the right to direct LPC to purchase up to 20,000
shares of our common stock as often as every five (5)&nbsp;business days. We can suspend purchases or
accelerate the number of shares to be purchased at any time. No sales of shares may occur below
$1.00 per share. The purchase prices of the shares will be based on the market prices of our
shares at the time of sale as computed under the Purchase Agreement without any fixed discount. We
may at any time in our sole discretion terminate the Purchase Agreement without fee, penalty, or
cost upon five (5)&nbsp;business days notice.
</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April&nbsp;30, 2010, there were 21,370,304 shares outstanding, including 14,496,212 shares held
by non-affiliates, but excluding the 4,470,000 shares offered by LPC pursuant to this prospectus,
which we have not issued. We are offering 4,470,000 shares hereby, consisting of 4,000,000 shares
that we may sell to LPC pursuant to the Purchase Agreement, 120,000 shares issuable pro rata as the
4,000,000 shares are purchased by LPC, and 350,000 shares issuable to LPC upon its exercise of the
Warrants which Warrants are not exercisable until December&nbsp;1, 2010. If all of the 4,470,000 shares
offered by LPC hereby were issued and outstanding as of the date hereof, such shares would
represent 17.30% of the total common stock outstanding or 23.57% of the non-affiliates&#146; shares
outstanding, as adjusted, as of the date hereof. The number of shares ultimately offered for sale
by LPC is dependent upon the number of shares that we sell and issue to LPC under the Purchase
Agreement, including shares that we issue upon exercise of the Warrants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Securities Offered</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common stock to be offered
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4,470,000 shares consisting of:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">by the selling shareholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;
4,120,000 shares
issuable to LPC
under Purchase
Agreement; and </DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;
 350,000 shares
issuable to LPC
under the Warrants.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common stock outstanding
prior to this offering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">21,370,304 shares</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of Proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We will receive no proceeds from the
sale of shares of common stock in
this offering. If we sell 4,000,000
shares of our common stock to LPC
under the Purchase Agreement and LPC
exercises its warrant to purchase
350,000 shares in full, however, we
will receive at least $4,445,000 in
proceeds from those sales. Any
proceeds that we receive from sales
to LPC under the Purchase Agreement
will be used to fund our working
capital needs and our new business
strategy. See &#147;Use of Proceeds.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">NASDAQ Global Market symbol
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">EFOI</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="601"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should carefully consider the risks described below before purchasing our common stock.
Our most significant risks and uncertainties are described below. They are not the only risks that
we face, however. If any of the following risks actually occur, our business,
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">financial condition,
or results or operations could be materially, adversely affected, the price of our common stock could decline, and you may lose all or part of your
investment therein. You should acquire shares of our common stock only if you can afford to lose
your entire investment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Associated with Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We have a history of operating losses and may incur losses in the future.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have experienced net losses of $11,015,000 and $14,448,000 for the years ended December&nbsp;31,
2009 and 2008, respectively. As of December&nbsp;31, 2009, we had an accumulated deficit of $60,343,000.
Although management believes that we have addressed many of the legacy issues that have
historically burdened our financial performance, we still face challenges in order to reach
profitability. In order for us to attain profitability and growth, we will need to successfully
address these challenges, including the continuation of cost reductions throughout our
organization, execution of our marketing and sales plans for our new turnkey energy-efficient
lighting solutions business, continued evaluation and divestiture of non-core business product
lines, and continued improvements in our supply chain performance. Although we are optimistic
about reaching profitability, there is a risk that our business may not be as successful as we
envision or that we will never be profitable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our independent public accounting firm has added an explanatory paragraph to their audit
opinion issued in connection with the financial statements in our 2009 Annual Report on Form 10-K
raising substantial doubt as to our ability to continue as a going concern. This opinion stems
from our historically poor operating performance, the on-going global economic crisis, and our
historical inability to generate sufficient cash flow to meet obligations and sustain operations
without obtaining additional external financing. Although we are optimistic about obtaining the
funding necessary for us to continue as a going concern, by generating sufficient cash flow
internally and/or by obtaining additional external financing, there can be no assurances that this
objective will be successful. Our financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We will require additional financing to sustain our operations currently and in the near future,
and also may require it for the foreseeable future. Without it, we may not be able to continue
operations.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As indicated in the previous risk factor, we have a history of operating losses and a large
accumulated deficit. We currently do not have sufficient internal financial resources to fund our
operations. We therefore need additional funds from external sources to continue our operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are currently aggressively pursuing the following external funding sources:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtain financing and/or grants available through federal, state, and/or local
governmental agencies,</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtain financing from various financial institutions,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtain financing from non-traditional investment capital organizations,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential sale or divestiture of one or more operating units, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtain funding from the sale of our common stock or other equity instruments.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obtaining financing through the above-mentioned mechanisms contains risks, including:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>government stimulus and/or grant money is not allocated to us despite our focus on the
design, development, and manufacturing of energy-efficient lighting systems,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>loans or other debt instruments may have terms and/or conditions, such as interest
rates, restrictive covenants, and control or revocation provisions, which are not
acceptable to management or our Board of Directors,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the current global economic crisis combined with our current financial condition may
prevent us from being able to obtain any debt financing,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>financing may not be available for parties interested in pursuing the acquisition of
one or more of our operating units, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>additional equity financing may not be available to us in the current economic
environment and could lead to further dilution of shareholder value for current
shareholders of record.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Purchase Agreement with LPC, we may direct LPC to purchase up to 4,000,000 shares of
our common stock over a 25-month period. However, LPC shall not have the right nor the obligation
to purchase any shares of our common stock on any business day that the market price of our common
stock is less than $1.00. Assuming a purchase price of $1.10 per share, which was the closing
sale price of our common stock on May&nbsp;28, 2010, the purchase by LPC of the full 4,000,000 shares
under the Purchase Agreement, and the exercise by LPC of its warrant to purchase 350,000 shares in
full at $1.20 per share, proceeds to us would be $4,820,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The extent to which we rely on LPC as a source of funding will depend on a number of factors,
including the prevailing market price of our common stock and the extent to which we are able to
secure working capital from other external sources, such as through the sale of our products.
Specifically, LPC shall not have the right nor the obligation to purchase any shares of our common
stock on any business days on which the market price of our common stock is less than $1.00. If
obtaining sufficient funding from LPC were to prove unavailable or prohibitively dilutive and if we
are unable to sell enough of our products, we will need to secure another source of funding in
order to satisfy our working capital needs. Even if we sell all 4,000,000 shares under the
Purchase Agreement to LPC, we may still need additional capital to fully implement our business,
operating and development plans. Should the financing we require to sustain our working capital
needs be unavailable or prohibitively expensive when we require it, the consequences could be a
material adverse effect on our business, operating results, financial condition and prospects.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Downturns in general economic conditions and construction trends could continue to materially and
adversely affect our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Downturns in general economic and market conditions, both nationally and internationally,
could have a material adverse effect on our business. In most areas, sales of new and existing
homes have slowed and there has been a continued downturn in the housing market, as well as adverse
changes in employment levels, job growth, consumer confidence and interest rates, in addition to an
oversupply of commercial and residential buildings for sale. In our legacy businesses, sales of
our lighting products depend significantly upon the level of new building construction, which are
affected by housing market trends, interest rates and the weather. Sales of our pool and spa
lighting products depend substantially upon the level of new pool construction, which is also
affected by housing market and construction trends. In addition, due to the seasonality of
construction, sales of swimming pool and lighting products, and thus our revenue and income, have
tended to be significantly lower in the first quarter of each year. Our future results of
operations may experience substantial fluctuations from period to period as a consequence of these
factors, and such conditions and other factors affecting capital spending may affect the timing of
orders. An economic downturn coupled with a decline in our net sales could adversely affect our
ability to meet our working capital requirements, support our capital requirements and growth
objectives, or could otherwise adversely affect our business financial condition, and results of
operations. As a result, any general or market-specific economic downturns, particularly those
affecting new building construction and renovation, or that cause end-users to reduce or delay
their purchases of lighting products, services, or retrofit activities, would have a material
adverse effect on our business, cash flows, financial condition, and results of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We have significant international sales and are subject to risks associated with operating in
international markets.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the years ending December&nbsp;31, 2009 and 2008, net sales of our products outside of the
United States represented approximately 36.5% and 35.6%, respectively, of our total net sales from
continuing operations. We generally provide technical expertise and limited marketing support,
while our independent international distributors generally provide sales staff, local marketing,
and product services. We believe our international distributors are better able to service
international markets due to their understanding of local market conditions and best business
practices. International business operations are subject to inherent risks, including, among
others:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unexpected changes in regulatory requirements, tariffs and other trade barriers or
restrictions,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>longer accounts receivable payment cycles and the difficulty of enforcing contracts and
collecting receivables through certain foreign legal systems,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties in managing and staffing international operations,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potentially adverse tax consequences,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the burdens of compliance with a wide variety of foreign laws,</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>import and export license requirements and restrictions of the United States and each
other country in which we operate,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exposure to different legal standards and reduced protection for intellectual property
rights in some countries,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>currency fluctuations and restrictions,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>political, social and economic instability, including war and the threat of war, acts
of terrorism, pandemics, boycotts, curtailment of trade or other business restrictions,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>periodic foreign economic downturns, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sales variability as a result of transacting our foreign sales in United States
dollars.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>If we are unable to respond effectively as new lighting technologies and market trends emerge, our
competitive position and our ability to generate revenue and profits may be harmed.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To be successful, we will need to keep pace with rapid changes in light-emitting diode (&#147;LED&#148;)
and fiber optics lighting technology, changing customer requirements, new product introductions by
competitors and evolving industry standards, any of which could render our existing products
obsolete if we fail to respond in a timely manner. Development of new products incorporating
advanced technology is a complex process subject to numerous uncertainties. We have previously
experienced, and could in the future, experience delays in introduction of new products. If
effective new sources of light other than LED and fiber optics are discovered, our current products
and technologies could become less competitive or obsolete. If others develop innovative
proprietary lighting technology that is superior to ours, or if we fail to accurately anticipate
technology and market trends, respond on a timely basis with our own development of new products
and enhancements to existing products, and achieve broad market acceptance of these products and
enhancements, our competitive position may be harmed and we may not achieve sufficient growth in
our net sales to attain or sustain profitability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>If we are not able to compete effectively against companies with greater resources, our prospects
for future success will be jeopardized.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The lighting industry is highly competitive. In the high performance lighting markets in
which we sell our advanced lighting systems, our products compete with lighting products utilizing
traditional lighting technology provided by many vendors. Additionally, in the advanced lighting
markets in which we have primarily competed to date, competition has largely been fragmented among
a number of small manufacturers. However, some of our competitors, particularly those that offer
traditional lighting products, are larger companies with greater resources to devote to research
and development, manufacturing and marketing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover, in the general lighting market, we expect to encounter competition from an even
greater number of companies. Our
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">competitors are expected to include the large, established companies in the general lighting industry, such as General Electric, Osram
Sylvania and Royal Philips Electronics. Each of these competitors has undertaken initiatives to
develop LED technology. These companies have global marketing capabilities and substantially
greater resources to devote to research and development and other aspects of the development,
manufacture and marketing of LED lighting products than we possess. We may also face competition
from traditional lighting fixture companies, such as Acuity Brands Lighting, Cooper Lighting,
Hubbell Lighting, Lithonia Lighting, and Royal Philips Electronics. The relatively low barriers to
entry into the lighting industry and the limited proprietary nature of many lighting products also
permit new competitors to enter the industry easily.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In each of our markets, we also anticipate the possibility that LED manufacturers, including
those that currently supply us with LEDs, may seek to compete with us. Our competitors&#146; lighting
technologies and products may be more readily accepted by customers than our products.
Additionally, to the extent that competition in our markets intensifies, we may be required to
reduce our prices in order to remain competitive. If we do not compete effectively, or if we
reduce our prices without making commensurate reductions in our costs, our net sales and
profitability, and our future prospects for success, may be harmed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We have made strategic acquisitions in the past and intend to do so in the future, which may
adversely affect our operating results, financial condition, and existing business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We seek to grow through strategic acquisitions in order to transition our company into a
nationwide, turnkey, energy-efficient lighting systems solutions company. On December&nbsp;31, 2009, we
acquired Stones River Companies, LLC (&#147;SRC&#148;), and we anticipate making additional acquisitions in
the future. The success of our acquisition strategy will depend on, among other things:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the availability of suitable candidates,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>competition from other companies for the purchase of available candidates,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to value those candidates accurately and negotiate favorable terms for
those acquisitions,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the availability of funds to finance acquisitions,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability to establish new informational, operational and financial systems to meet
the needs of our business,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability to achieve anticipated synergies, including with respect to complementary
products or services, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the availability of management resources to oversee the integration and operation of
the acquired businesses.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we are not successful in integrating acquired businesses and completing acquisitions in the
future, we may be required to reevaluate our acquisition strategy. We also may incur substantial
expenses and devote significant management time and resources to completing these acquisitions.
Furthermore, acquired businesses may fail to meet our performance expectations. If we do not
achieve the anticipated benefits of
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">an acquisition as rapidly as expected, or at all, investors or analysts may not perceive the same
benefits of the acquisition as we do. If these risks materialize, our performance and stock price
could be materially affected.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our inability to successfully integrate businesses we acquire could have adverse consequences on
our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions may result in greater administrative burdens and operating costs and, to the
extent financed with debt, additional interest costs. We cannot assure you that we will be able to
manage or integrate acquired companies or businesses successfully. The process of integrating
acquired businesses, including the recent acquisition of SRC, may be disruptive to our business and
may cause an interruption of or a loss of momentum in, our business as a result of the following
factors, among others:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>loss of key employees or customers,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible inconsistencies in standards, controls, procedures and policies among the
combined companies and the need to implement company-wide financial, accounting,
information and other systems,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>failure to maintain the quality of services that the companies have historically
provided,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>coordinating sales, distribution, and marketing functions,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the need to coordinate geographically diverse organizations, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the diversion of management&#146;s attention from our day-to-day business as a result of the
need to deal with any disruptions and difficulties and the need to add management
resources to do so.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These disruptions and difficulties, if they occur, may cause us to fail to realize the cost
savings, revenue enhancements and other benefits that we may expect from such acquisitions and may
cause material adverse short- and long-term effects on our operating results and financial
condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>If we are unable to obtain and adequately protect our intellectual property rights, our ability to
commercialize our products could be substantially limited.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider our technology and processes proprietary. If we are not able to adequately
protect or enforce the proprietary aspects of our technology, competitors may utilize our
proprietary technology and our business, financial condition and results of operations could be
adversely affected. We protect our technology through a combination of patent, copyright,
trademark and trade secret laws, employee and third-party nondisclosure agreements and similar
means. Despite our efforts, other parties may attempt to disclose, obtain or use our technologies.
Our competitors may also be able to independently develop products that are substantially
equivalent or superior to our products or slightly modify our patents. In addition, the laws of
some foreign countries do not protect our proprietary rights as fully as do the laws of the United
States. As a result, we may not be able to protect our proprietary rights adequately in the United
States or abroad.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009 and March&nbsp;31, 2010, our intellectual property portfolio consisted of
68 and 69, respectively, issued United States and foreign patents, various pending United States
patent applications, and various pending Patent Cooperation Treaty patent applications filed with
the World Intellectual Property Organization that serves as the basis of national patent filings in
countries of interest. A total of fifteen applications are pending. Because our patent position
involves complex legal, scientific, and factual questions, the issuance, scope, validity and
enforceability of our patents cannot be predicted with certainty. Our issued patents may be
invalidated or their enforceability challenged, and they may not provide us with competitive
advantages against others with similar products and technology. Furthermore, others may
independently develop similar products or technology or duplicate or design around any technologies
that we have developed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may receive notices that claim we have infringed upon the intellectual property of others.
Even if these claims are not valid, they could subject us to significant costs. We have engaged in
litigation and litigation may be necessary in the future to enforce our intellectual property
rights or to determine the validity and scope of the proprietary rights of others. Litigation may
also be necessary to defend against claims of infringement or invalidity by others. An adverse
outcome in litigation or any similar proceedings could subject us to significant liabilities to
third parties, require us to license disputed rights from others or require us to cease marketing
or using certain products or technologies. We may not be able to obtain any licenses on acceptable
terms, if at all. We also may have to indemnify certain customers if it is determined that we have
infringed upon or misappropriated another party&#146;s intellectual property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any of these results could adversely affect our business, financial condition and results of
operations. In addition, the cost of addressing any intellectual property litigation claim, both
in legal fees and expenses, and the diversion of management resources, regardless of whether the
claim is valid, could be significant and could materially harm our business, financial condition
and results of operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>If critical components that we currently purchase from a small number of third-party suppliers
become unavailable or third-party manufacturers otherwise experience delays, we may incur delays in
shipment, which would damage our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We depend on others to manufacture a significant portion of the component parts incorporated
into our products. We purchase our component parts from third-party manufacturers that serve the
advanced lighting systems market and believe that alternative sources of supply are readily
available for most component parts. However, consolidation in the lighting industry could result
in one or more current suppliers being acquired by a competitor, rendering us unable to continue
purchasing necessary amounts of key components at competitive prices.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In an effort to reduce manufacturing costs, we have outsourced the production of certain parts
and components as well as finished goods in our product lines to a number of overseas suppliers.
We expect to outsource all of the production for selected products.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While we believe alternative sources for the production of these products are available, we have
selected these particular manufacturers based on their ability to consistently produce these
products per our specifications ensuring the best quality product at the most cost effective price.
We depend on our suppliers to satisfy performance and quality specifications and to dedicate
sufficient production capacity within scheduled delivery times. Although we maintain contracts
with selected suppliers, we may be vulnerable to unanticipated price increases and product
shortages. Accordingly, the loss of all or one of these suppliers or delays in obtaining shipments
could have a material adverse effect on our operations until such time as an alternative supplier
could be found. We may be subject to various import duties applicable to materials manufactured
in foreign countries and, in addition, may be affected by various other import and export
restrictions, as well as other considerations or developments impacting upon international trade,
including economic or political instability, shipping delays, and product quotas. These
international trade factors will, under certain circumstances, have an impact both on the cost of
components, which will, in turn, have an impact on the cost to us of the manufactured product, and
the wholesale and retail prices of its products.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>If the companies to which we outsource the manufacture of our products fail to meet our
requirements for quality, quantity and timeliness, our revenue and reputation in the marketplace
could be harmed.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We outsource a significant portion of the manufacture and assembly of our products and we
expect to outsource all of the production of many of our products. We currently depend on a small
number of contract manufacturers to manufacture our products at plants in various locations
throughout the world, primarily in the United States, Mexico, China, and Taiwan. These
manufacturers supply most of the necessary raw materials and provide all necessary facilities and
labor to manufacture our products. We currently do not have long-term contracts with some of these
manufacturers. If these companies were to terminate their arrangements with us without adequate
notice, or fail to provide the required capacity and quality on a timely basis, we would be unable
to manufacture and ship our lighting products until replacement manufacturing services could be
obtained. To qualify a new contract manufacturer, familiarize it with our products, quality
standards and other requirements, and commence volume production is a costly and time-consuming
process. If it became necessary to do so, we may not be able to establish alternative
manufacturing relationships on acceptable terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our reliance on contract manufacturers involves certain additional risks, including the
following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>lack of direct control over production capacity and delivery schedules,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>lack of direct control over quality assurance, manufacturing yields and production
costs,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risk of loss of inventory while in transit from China, Mexico, India, Japan, and
Taiwan, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks associated with international commerce, particularly with China, Mexico, India,
Japan, and Taiwan, including unexpected </TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in legal and regulatory requirements, changes in tariffs and trade policies, risks associated with the protection
of intellectual property and political and economic instability.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any interruption in our ability to manufacture and distribute products could result in delays
in shipment, lost sales, reductions in revenue and damage to our reputation in the market, all of
which would adversely affect our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We depend on independent distributors and sales representatives for a substantial portion of our
net sales, and the failure to manage successfully our relationships with these third parties, or
the termination of these relationships, could cause our net sales to decline and harm our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely significantly on indirect sales channels to market and sell our products. Most of our
products are sold through third-party independent distributors and sales representatives. In
addition, these parties provide technical sales support to end-users. Our current agreements
within these sales channels are non-exclusive with regard to lighting products in general, but
exclusive with respect to LED lighting and fiber optic products. We anticipate that any such
agreements we enter into in the future will be on similar terms. Furthermore, our agreements are
generally short-term, and can be cancelled by these sales channels without significant financial
consequence. We cannot control how these sales channels perform and cannot be certain that we or
end-users will be satisfied by their performance. If these distributors and sales representatives
significantly change their terms with us, or change their historical pattern of ordering products
from us, there could be a significant impact on our net sales and profits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our products could contain defects or they may be installed or operated incorrectly, which could
reduce sales of those products or result in claims against us.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite product testing, defects have been found and may be found in our existing or future
products. This could result in, among other things, a delay in the recognition or loss of net
sales, loss of market share or failure to achieve market acceptance. These defects could cause us
to incur significant warranty, support and repair costs, divert the attention of our engineering
personnel from our product development efforts and harm our relationship with our customers. The
occurrence of these problems could result in the delay or loss of market acceptance of our lighting
products and would likely harm our business. Some of our products use line voltages (such as 120 or
240 AC), or are designed for installation in environments such as swimming pools and spas, which
involve enhanced risk of electrical shock, injury or death in the event of a short circuit or other
malfunction. Defects, integration issues or other performance problems in our lighting products
could result in personal injury or financial or other damages to end-users or could damage market
acceptance of our products. Our customers and end-users could also seek damages from us for their
losses. A product liability claim brought against us, even if unsuccessful, would likely be time
consuming and costly to defend.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><i><B>If we are unable to attract or retain qualified personnel, our business and product development
efforts could be harmed.</B></i>
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To a large extent, our future success will depend on the continued contributions of
certain employees, such as our current Chief Executive Officer, Chief Financial Officer, Chief
Operating Officer, President, and Chief Technical Officer. These and other key employees would be
difficult to replace. Our future success will also depend on our ability to attract and retain
qualified technical, sales, marketing and management personnel, for whom competition is very
intense. The loss of, or failure to attract, hire, and retain, any such persons could delay
product development cycles, disrupt our operations, or otherwise harm our business or results of
operations. We have been successful in hiring experienced energy solutions salespeople from
leading firms in the industry but if these individuals are not successful in achieving our
expectations, and then planned sales may not occur and the anticipated net sales may not be
realized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>A significant portion of our business is dependent upon the existence of government funding, which
may not be available in the future and could result in a significant reduction in sales and could
cause significant harm to our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over the last three years, approximately 40.7% of our research and development efforts have
been supported directly by government funding. In 2009, approximately 70.5% of our research and
development funding came from government sources and was contracted for short periods, usually one
to two years. Further, a significant portion of net sales generated by SRC are derived from state
government funding and supported by federal government funding. If government funding is reduced
or eliminated, there is no guarantee that we would be able to continue to fund our activities in
these areas at their current levels, if at all. If we are unable to maintain our access to
government funding in these areas, there could be a significant impact on our net sales and
profits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We believe that certification and compliance issues are critical to adoption of our lighting
systems, and failure to obtain such certification or compliance would harm our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to comply with certain legal requirements governing the materials in our
products. Although we are not aware of any efforts to amend any existing legal requirements or
implement new legal requirements in a manner with which we cannot comply, our net sales might be
adversely affected if such an amendment or implementation were to occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover, although not legally required to do so, we strive to obtain certification for
substantially all our products. In the United States, we seek, and to date have obtained,
certification on substantially all of our products from Underwriters Laboratories or Intertek.
Where appropriate in jurisdictions outside the United States and Europe, we seek to obtain other
similar national or regional certifications for our products. Although we believe that our broad
knowledge and experience with electrical codes and safety standards have facilitated certification
approvals, we cannot ensure that we will be able to obtain any such certifications for our new
products or that, if certification standards are amended, that we will be able to maintain such
certifications for our existing products. Moreover, although we are not aware of any effort to

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">amend any existing certification standard or implement a new certification standard in a manner that would render us unable to
maintain certification for our existing products or obtain ratification for new products, our net
sales might be adversely affected if such an amendment or implementation were to occur.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We must comply with regulatory requirements regarding internal control over financial reporting,
corporate governance and public disclosure, which will cause us to incur significant costs and our
failure to comply with these requirements could cause our stock price to decline.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;404 of the Sarbanes-Oxley Act of 2002 requires that we annually evaluate and report on
our systems of internal controls. These rules and regulations have increased our legal and
compliance costs and made certain activities more time-consuming and costly. In the future, there
may be material weaknesses in our internal controls that would be required to be reported in future
Annual Reports on Form 10-K and/or Quarterly Reports on Form 10-Q. A negative reaction by the
equity markets to the reporting of a material weakness could cause our stock price to decline. In
addition, if we acquire a company with weak internal controls, it will take time to improve the
internal controls of the acquired company to a satisfactory level of operating effectiveness. Any
failure to improve an acquired company&#146;s financial systems could result in delays or inaccuracies
in reporting financial information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We may be subject to legal claims against us or claims by us which could have a significant impact
on our resulting financial performance.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any given time, we may be subject to litigation, the disposition of which may have an
adverse affect upon our business, financial condition, or results of operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Associated with an Investment in our Common Stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The market price of our common stock may be adversely affected by market volatility.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price of our common stock has been and is expected to continue to be highly
volatile. A number of factors may have significant impact on the market price of our stock,
including announcements of technological innovations by us or other companies, regulatory matters,
new or existing products or procedures, concerns about our financial position, operating results,
litigation, government regulation, developments or disputes relating to agreements, patents or
proprietary rights. In addition, potential dilutive effects of future sales of shares of common
stock by shareholders and by the Company, including by LPC pursuant to this prospectus, and
subsequent sales of common stock by the holders of warrants and options, could have an adverse
effect on the market price of our shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>The sale or our common stock to LPC may cause dilution and the sale of the shares of common stock
acquired by LPC could cause the price of our common stock to decline.</I></B>
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with entering into the LPC Purchase Agreement, we authorized the sale to LPC of
up to 4,350,000 shares of our common stock and the issuance to LPC of an additional 240,000 shares.
The number of shares ultimately offered for sale by LPC under this prospectus is dependent upon
the number of shares purchased or acquired by LPC under the Agreement. The purchase price for the
common stock to be sold and/or issued to LPC pursuant to the Agreement will fluctuate based on the
price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;28, 2010 we sold 350,000 shares of our common stock to LPC
(and we issued to LPC 10,500 pro rata commitment shares in connection
with the sale), and on June 1, 2010 we issued to LPC the Warrants to purchase
350,000 shares, at an exercise price of $1.20 per share, for a total consideration of $375,000.
Earlier, when we entered into the Purchase Agreement we issued to LPC 120,000 shares. It is
anticipated that we will sell or issue to LPC up to 3,759,500 more shares over a period of up to 25
months from the date of this prospectus. The Warrants for 350,000 shares issued to LPC have an
exercise term of five years, but are not exercisable until December&nbsp;1, 2010. Depending upon market
liquidity at the time, a sale of shares to LPC at any given time could cause the trading price of
our common stock to decline. We can elect to direct purchases in our sole discretion but no sales
may occur if the price of our common stock is below $1.00. Therefore, LPC may ultimately purchase
or receive all, some, or none of the 4,120,000 shares of common stock not yet issued under the
Agreement with LPC. After it has acquired such shares, it may sell all, some, or none of those
shares. Therefore, sales to LPC by us under the Agreement may result in substantial dilution to the
interests of other holders of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sale of a substantial number of shares of our common stock under the LPC Agreement, or
anticipation of such sales, could make it more difficult for us to sell equity or equity-related
securities in the future at a time and at a price that we might otherwise wish to effect sales.
However, we have the right to suspend and therefore control the timing and amount of any sales of
our shares to LPC and the Agreement may be terminated by us at any time at our discretion without
any cost to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We have not been in compliance with the continued listing requirements of the NASDAQ Global Market.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time during the fourth quarter of 2009 and early in the first quarter of 2010, we
did not meet the NASDAQ Global Market (&#147;NASDAQ&#148;) continued listing requirements that call for the
maintenance of a minimum bid price of our common stock of $1.00 per share and minimum shareholder
equity of $10,000,000. We received formal notices of non-compliance from NASDAQ. Although we
regained compliance with NASDAQ continued listing requirements on those occasions, there has been a
continuing risk that we could again become non-compliant with the listing requirements. In this
regard, our shareholders equity as of the end of the first quarter fell below the minimum
shareholder equity requirement. On May&nbsp;18, 2010, we received a notification from NASDAQ that we
have fallen out of compliance, that we have until July&nbsp;2, 2010 to submit a plan to regain
compliance, and if our plan is acceptable, an additional 135&nbsp;days to evidence compliance. We are
currently preparing a remedial plan. If the minimum bid price of our common stock should fall
below $1.00 for an extended period of time
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"> in the future, we will be required to take remedial action on it as well. If we are unable to maintain
the minimum listing price of our common stock, or regain and maintain minimum shareholders equity,
and if our common stock becomes subject to being delisted from trading on the NASDAQ Global Market,
we could transfer trading in our common stock to the NASDAQ Capital Market or other exchange which
could potentially result in a loss of trading liquidity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We could issue additional common stock apart from the LPC transaction, which might dilute the book
value of our common stock.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors has the authority, without action or vote of our shareholders, to issue
all or a part of our authorized but unissued shares. Such stock issuances could be made at a price
that reflects a discount or a premium from the then-current trading price of our common stock. In
addition, in order to raise capital or acquire businesses in the future, including future lighting
retrofit businesses, we may need to issue securities or promissory notes that are convertible or
exchangeable for shares of our common stock. These issuances would dilute shareholders&#146; percentage
ownership interest, which would have the effect of reducing influence on matters on which our
shareholders vote, and might dilute the book value of our common stock. Shareholders may incur
additional dilution if holders of stock options, whether currently outstanding or subsequently
granted, exercise those options, or if warrant holders exercise warrants purchasing shares of our
common stock. If an insufficient amount of authorized, but unissued, shares of common stock exists
to issue in connection with a subsequent equity financing or acquisition transactions, we may be
required to call a special meeting of our shareholders to authorize additional shares before
undertaking, or as a condition to completing a financing or acquisition transaction.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have asked our shareholders to increase our authorized shares of common stock from 30,000,000 to
60,000,000 at our Annual Meeting to be held on June&nbsp;16, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>We may need to request our shareholders to authorize additional shares of common stock in
connection with subsequent equity finance or acquisition transactions.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are authorized to issue 30,000,000 shares of common stock, of which approximately
21,370,304 shares are issued and outstanding as of April&nbsp;30, 2010. An additional 7,310,000 shares
have been reserved for issuance upon exercise of stock options and warrants outstanding and under
our Purchase Agreement with LPC. If we require additional shares of common stock in connection
with a subsequent equity financing or acquisition transaction, we may be required to call a special
meeting of our shareholders to authorize additional shares before undertaking or as a condition to
completing an offering or transaction. We cannot be assured that our shareholders would authorize
an increase in the number of shares of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Shares eligible for future sale may adversely affect the market for our common stock.</I></B>
</DIV>






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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2009, we had a significant number of convertible or derivative securities
outstanding, including: (i)&nbsp;1,721,000 shares of common stock issuable upon exercise of outstanding
stock options at a weighted average exercise price of $3.63 per share, and (ii)&nbsp;4,438,000 shares of
common stock issuable upon exercise of our outstanding warrants at a weighted average exercise
price of $2.84 per share. If or when these securities are exercised into shares of our common
stock, the number of our shares of common stock outstanding will increase. Increases in our
outstanding shares, and any sales of shares, could have an adverse affect on the trading activity
and market price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, from time to time, certain of our shareholders may be eligible to sell all, or a
portion of, their shares of common stock by means of ordinary brokerage transactions in the open
market pursuant to Rule&nbsp;144, promulgated under the Securities Act of 1933, or under effective
resale prospectuses. Any substantial sale of our common stock pursuant to Rule&nbsp;144 or any resale
prospectus may have an adverse affect on the market price of our securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>As a &#147;thinly-traded&#148; stock, large sales can place negative pressure on our common stock price.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock, despite certain increases of trading volume from time to time, experiences
periods when it could be considered &#147;thinly-traded.&#148; Financing or acquisition transactions
resulting in a large number of newly issued shares that become immediately tradable, or other
events that cause current shareholders to sell shares, could place negative pressure on the trading
price of our stock. In addition, the lack of a robust secondary market may require a shareholder
who desires to sell a large number of shares to sell those shares in increments over time in order
to mitigate any adverse impact of the sales on the market price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our executive officers, directors, and affiliates maintain the ability to substantially influence
all matters submitted to shareholders for approval.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As March&nbsp;31, 2010, our executive officers, directors, and affiliates owned shares representing
approximately 32.17% or our outstanding common stock. Our current executive officers, directors,
and affiliates therefore have and will continue to have substantial influence over the outcome of
corporate actions requiring shareholder approval, including the election of directors, a merger,
consolidation, or sale of all or substantially all of our assets, or any other significant
corporate transactions, as well as over our management and affairs. This concentration of
ownership may delay or prevent a change of control of us at a premium price if these shareholders
oppose it, even if it would benefit our other shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Provisions in our charter documents and our Rights Agreement may prevent or frustrate attempts by
our shareholders to change our management and hinder efforts to acquire a controlling interest in
us.</I></B>
</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions of our corporate charter and bylaws, and of our Rights Agreement dated as of
October&nbsp;25, 2006 with Mellon Shareowner Services, as amended, may discourage, delay, or prevent a
merger, acquisition, or other change in control that shareholders may consider favorable, including
transactions in which you might otherwise receive premium for your shares. These provisions may
also prevent or frustrate attempts by our shareholders to replace or remove our management. These
provisions include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limitation on the removal of directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>advanced notice requirements for shareholder proposals and nominations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the inability of shareholders to act by written consent or to call a special meeting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of our board of directors to designate the terms of and issue new series
of preferred stock without shareholder approval; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the poison pill contained in our Rights Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Because the risk factors referred to above, as well as other risks not mentioned above, could
cause actual results or outcomes to differ materially from those expressed in any forward-looking
statements made by us, you should not place undue reliance on any such forward-looking statements.
Further, any forward-looking statement speaks only as of the date on which it is made. We undertake
no obligation to update any forward-looking statement to reflect events or circumstances after the
date on which such statement is made or reflect the occurrence of unanticipated events. New factors
emerge from time to time, and it is not possible for us to predict which ones will arise. In
addition, we cannot assess the impact of each factor on our business or the extent to which any
factor, or combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements.</I>
</DIV>
<DIV align="left">
<A name="602"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains forward-looking statements within the meaning of Section&nbsp;27A of the
Securities Act of 1933, as amended, and Section&nbsp;21E of the Securities Exchange Act of 1934, as
amended. Such forward-looking statements include statements regarding, among other things, (a)&nbsp;our
projected sales and profitability, (b)&nbsp;our growth strategies, (c)&nbsp;anticipated trends in our
industry, (d)&nbsp;our future financing plans, and (e)&nbsp;our anticipated needs for working capital.
Forward-looking statements, which involve assumptions and describe our future plans, strategies,
and expectations, are generally identifiable by use of the words &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;expect,&#148;
&#147;anticipate,&#148; &#147;estimate,&#148; &#147;believe,&#148; &#147;intend,&#148; or &#147;project&#148; or the negative of these words or other
variations on these words or comparable terminology. This information may involve known and
unknown risks, uncertainties, and other factors that may cause our actual results, performance, or
achievements to be materially different from the future results, performance, or achievements
expressed or implied by any forward-looking statements.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These statements may be found under &#147;Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations&#148; and &#147;Business&#148; in our 2009 Annual Report on Form 10-K, as well as in
this prospectus generally. Actual events or results may differ materially from those discussed in
forward-looking statements as a result of various factors, including, without limitation, the risks
outlined under &#147;Risk Factors&#148; and matters described in this prospectus generally. In light of
these risks and uncertainties, there can be no assurance that the forward-looking statements
contained in this prospectus will in fact occur. In addition to the information expressly required
to be included in this prospectus, we provide such further material information, if any, as may be
necessary to make the required statements, in light of the circumstances under which they are made,
not misleading.
</DIV>

<DIV align="left">
<A name="603"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus relates to shares of our common stock that may be offered and sold from time
to time by the selling shareholder. We will receive no proceeds from the sale of shares of common
stock in this offering. However, we may receive proceeds from the sale of up to 4,350,000 shares
to LPC under the Purchase Agreement, including 350,000 shares covered by the Warrant issuable to
LPC under the Agreement. Any proceeds from LPC that we receive under the Agreement will be used
for working capital and general corporate purposes, including the implementation of our new
business strategy.
</DIV>
<DIV align="left">
<A name="604"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE TRANSACTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;17, 2010, we executed a Purchase Agreement and a registration rights agreement with
LPC, pursuant to which LPC agreed to purchase 350,000 shares of our common stock, together with
warrants (&#147;Warrants&#148;) to purchase 350,000 shares at an exercise price of $1.20 per share, for total
consideration of $375,000. The Warrants were to have a term of five (5)&nbsp;years and were not be exercisable
until six (6)&nbsp;months after they were issued. LPC also agreed to purchase up to an additional
3,650,000 shares of our common stock at our option as described below. We issued 120,000 shares of
our stock to LPC as consideration for entering into the Agreement, which shares are not included in
this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;10, 2010, we and LPC amended Section 2(i) of the Purchase Agreement solely to make
clear that all of the shares that we may issue to LPC under the Agreement cannot exceed 19.99% of
our outstanding shares without shareholder approval as required by Nasdaq Rule&nbsp;5635(d). As used in
this prospectus, the term Purchase Agreement refers to the original Agreement as modified by the
May&nbsp;10, 2010 amendment to it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the registration rights agreement, we filed a registration statement that included
a preliminary prospectus with the Securities and Exchange Commission (the &#147;SEC&#148;). The prospectus
covered the 4,000,000 shares that may be sold to LPC under the Purchase Agreement, an additional
120,000 shares that we would issue pro rata as LPC purchases up to the 4,000,000 shares, as
directed by us, and 350,000 shares that
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">would be issued upon exercise of the Warrants, which Warrants were not to be exercisable for six (6)&nbsp;months
from the date of issuance, for a total of 4,470,000 shares. We did not have the right to commence
any sales of our shares to LPC until the SEC had declared effective the registration statement of
which that prospectus was a part.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC declared effective the registration statement on May&nbsp;28, 2010. On May&nbsp;28, 2010, LPC
purchased and we issued to LPC 350,000 shares of common stock (together with 10,500 pro rata
commitment shares in connection with such purchase) and on June 1, 2010 we issued to LPC the Warrants to purchase 350,000 shares of
common stock, for total consideration of $375,000. The Warrants first become exercisable December
1, 2010 and expire on December&nbsp;1, 2015.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over approximately the next 25&nbsp;months we have the right to direct LPC to purchase up to 20,000
shares of our common stock as often as every five (5)&nbsp;business days. We can suspend purchases or
accelerate the number of shares to be purchased at any time. No sales of shares may occur below
$1.00 per share. The purchase prices of the shares will be based on the market prices of our
shares at the time of sale as computed under the Purchase Agreement without any fixed discount. We
may at any time in our sole discretion terminate the Purchase Agreement without fee, penalty, or
cost upon five (5)&nbsp;business days notice. Upon entering into the Purchase Agreement with LPC, we
issued 120,000 shares as a commitment fee, which shares are not part of this offering and which
shares we have no obligation to register. We may issue up to an additional 120,000 shares pro rata
as LPC purchases the 4,000,000 shares, as directed by us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April&nbsp;30, 2010, there were 21,370,304 shares outstanding, including 14,496,212 shares held
by non-affiliates, but excluding the 4,470,000 shares offered by LPC pursuant to this prospectus,
which we have not issued. We are offering 4,470,000 shares hereby, consisting of 4,000,000 shares
that we may sell to LPC pursuant to the Purchase Agreement, 120,000 shares issuable pro rata as the
4,000,000 shares are purchased by LPC, and 350,000 shares issuable to LPC upon its exercise of the
Warrants which Warrants are not exercisable until December&nbsp;1, 2010. If all of the 4,470,000 shares
offered by LPC hereby were issued and outstanding as of the date hereof, such shares would
represent 17.30% of the total common stock outstanding, or 23.57% of the non-affiliates&#146; shares
outstanding, as adjusted, as of the date hereof. The number of shares ultimately offered for sale
by LPC is dependent upon the number of shares that we sell and issue to LPC under the Purchase
Agreement, including shares that we issue upon exercise of the Warrants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purchase of Shares Under the Purchase Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right to direct LPC to purchase up to 3,650,000 shares of our common stock, which
shares will be purchased in increments of 5,000 to up to 20,000 shares as determined by us, as
often as every five business (5)&nbsp;days, as directed by us during the 25-month term of the Purchase
Agreement. Any such purchases shall be completed within five (5)&nbsp;business days of our direction to
LPC.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right to terminate the Agreement with LPC at any time, as described below. We
have the right at our discretion to suspend purchases at any time and to direct LPC to again make
purchases at our discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to regular purchases of 5,000 to 20,000 shares as often as every five (5)&nbsp;business
days, purchases may be accelerated by us by directing LPC to purchase up to an additional 10,000
shares of our common stock (an &#147;Accelerated Purchase.&#148;). We can direct LPC to make multiple
Accelerated Purchases from time to time and at our sole discretion, so long as at least two (2)
business days have passed since the most recent Accelerated Purchase was completed. Any such
Accelerated Purchases must be completed within five (5)&nbsp;business days of our direction to LPC. LPC
shall also purchase up to an equivalent number of shares under any regular purchase or Accelerated
Purchase within five (5)&nbsp;business days of any such purchase. LPC may therefore be purchasing
approximately 80,000 shares every five (5)&nbsp;business days, depending on the number of shares we
direct LPC to purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purchase Price</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase price per share is equal to the lesser of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the lowest sale price of our common stock on the purchase date; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the average of the three (3)&nbsp;lowest closing sale prices of our common
stock during the ten (10)&nbsp;consecutive business days prior to the date of a
purchase by LPC.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purchase price will be equitably adjusted for any reorganization, recapitalization, non-cash
dividend, stock split, or other similar transaction occurring during the business days used to
compute the purchase price.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Minimum Purchase Price</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Purchase Agreement, we have set a minimum purchase price (&#147;floor price&#148;) of $1.00.
LPC shall not have the right nor the obligation to purchase any shares of our common stock in the
event that the purchase price would be less the floor price. Specifically, LPC shall not have the
right or the obligation to purchase shares of our common stock on any business day that the market
price of our common stock is below the floor price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Events of Default</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, LPC may terminate the Purchase Agreement without any liability or payment to the
Company upon the occurrence of any of the following events of default:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effectiveness of the registration statement of which this prospectus is a part
lapses for any reason, including without limitation the </TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>issuance of a stop order, or is unavailable to LPC for sale of our common stock offered hereby, and such lapse or
unavailability continues for a period of ten (10)&nbsp;consecutive business days or for more
than an aggregate of thirty (30)&nbsp;business days in any 365-day period;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the suspension by our principal market of our common stock from trading for a period of
three (3)&nbsp;consecutive business days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the de-listing of our common stock from our principal market, provided our common stock
is not immediately thereafter trading on the NASDAQ OTC Bulletin Board Market, the NASDAQ
Capital Market, the New York Stock Exchange or the NYSE AMEX;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the transfer agent&#146;s failure for five (5)&nbsp;business days to issue to LPC shares of our
common stock which LPC is entitled to under the Purchase Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any material breach of the representations or warranties or covenants contained in the
Purchase Agreement or any related agreements which has or which could have a material
adverse effect on us, subject to a cure period of five (5)&nbsp;business days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any participation or threatened participation in insolvency or bankruptcy proceedings
by or against us; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a material adverse change in our business.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Termination Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the unconditional right at any time for any reason to give notice to LPC terminating
the Purchase Agreement without any cost to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>No Short-Selling or Hedging by LPC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPC has agreed that neither it nor any of its affiliates shall engage in any direct or
indirect short-selling or hedging of our common stock during any time prior to the termination of
the Purchase Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Effect of Performance of the Purchase Agreement on Our Shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All 4,470,000 shares registered in this offering are expected to be freely tradable. It is
anticipated that shares registered in this offering will be sold over a period of up to 25&nbsp;months
from the date of this prospectus, except perhaps for the 350,000 shares covered by the Warrants.
The sale by LPC of a significant amount of shares registered in this offering at any given time
could cause the market price of our common stock to decline and to be highly volatile. LPC may
ultimately purchase all, some or none of the 4,470,000 shares of common stock not yet issued but
registered in this offering. After it has acquired such shares, it may sell all, some or none of
such shares. Therefore, sales to LPC by us under
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Purchase Agreement may result in substantial
dilution to the interests of other holders of our common stock. However, we have the right to control the timing and amount of any sales of our shares to
LPC and the Agreement may be terminated by us at any time at our discretion without any cost to us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with entering into the Purchase Agreement, we authorized the sale to LPC of up
to 4,000,000 shares of our common stock, exclusive of the 350,000 Warrant shares that are not
exercisable until December&nbsp;1, 2010 and the 240,000 commitment shares of which up to 120,000 are
part of this offering. We will sell no more than 4,000,000 shares to LPC under the Purchase
Agreement, exclusive of the up to 240,000 shares issuable to LPC as the commitment fee and of the
350,000 shares covered by the Warrants, all of which are included in this offering. We have the
right to terminate the Agreement without any payment or liability to LPC at any time, including in
the event that all 4,000,000 shares are sold to LPC under the Purchase Agreement. The number of
shares ultimately offered for sale by LPC under this prospectus is dependent upon the number of
shares purchased by LPC under the Agreement. The following table sets forth the amount of proceeds
we would receive from LPC from the sale of shares at varying purchase prices:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding Shares be</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proceeds from the Sale</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>After Giving Effect</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Shares</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Purchase</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Issued if Full</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>to the Issuance to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>to LPC Under the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Purchase</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LPC</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Purchase Agreement</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$1.00<SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px">$1.10<SUP style="FONT-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,400,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$1.25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$1.50</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$1.75</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$2.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$2.25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The denominator is equal to the sum of (a)&nbsp;21,370,304 shares, which is the
number of shares outstanding as of April&nbsp;30, 2010 and which includes the 120,000 shares
previously issued to LPC, which shares are not a part of this offering, and (b)&nbsp;the
number of shares set forth in the adjacent column to the left. The numerator is the
number of shares issuable under the Purchase Agreement at the corresponding assumed
purchase price set forth in the adjacent column to the left.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Under the Purchase Agreement, the company may not sell and LPC cannot
purchase any shares in the event the price of our stock is below $1.00</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Closing sale price of our shares on May&nbsp;28, 2010.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="605"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE SELLING SHAREHOLDER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents information about the selling shareholder. Neither the selling
shareholder nor any of its affiliates has held a position or office, or had any other material
relationship, with us.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares to be Sold</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>in the Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assuming the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Company Issues the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding Shares</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Before</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares Under the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Selling Shareholder</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Before Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Purchase Agreement</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>After Offering</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lincoln Park Capital Fund, LLC (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">120,000</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.56</TD>
    <TD nowrap>%(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,470,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.47</TD>
    <TD nowrap>%(1)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Josh Scheinfeld and Jonathan Cope, the principals of LPC, are deemed to be beneficial
owners of all of the shares of common stock owned by LPC. Messrs.&nbsp;Scheinfeld and Cope have
shared voting and disposition power over the shares being offered under this prospectus.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>120,000 shares of our common stock have been previously acquired by LPC under the
Purchase Agreement, consisting of shares we issued to LPC as a commitment fee, which shares
are not part of this offering.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="606"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock offered by this prospectus is being offered by Lincoln Park Capital Fund,
LLC, the selling shareholder<B>. </B>The common stock may be sold or distributed from time to time by the
selling stockholder directly to one or more purchasers or through brokers, dealers, or underwriters
who may act solely as agents at market prices prevailing at the time of sale, at prices related to
the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The
sale of the common stock offered by this prospectus may be effected in one or more of the following
methods:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ordinary brokers&#146; transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>transactions involving cross or block trades;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through brokers, dealers, or underwriters who may act solely as agents;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;at the market&#148; into an existing market for the common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in other ways not involving market makers or established business markets, including
direct sales to purchasers or sales effected through agents;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in privately negotiated transactions; or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any combination of the foregoing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with the securities laws of certain states, if applicable, the shares may
be sold only through registered or licensed brokers or dealers. In addition, in certain states,
the shares may not be sold unless they have been registered or qualified for sale in the state or
an exemption from the registration or qualification requirement is available and complied with.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokers, dealers, underwriters, or agents participating in the distribution of the shares as
agents may receive compensation in the form of commissions, discounts, or concessions from the
selling shareholder and/or purchasers of the common stock for whom the broker-dealers may act as
agent. The compensation paid to a particular broker-dealer may be less than or in excess of
customary commissions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPC is an &#147;underwriter&#148; within the meaning of the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither we nor LPC can presently estimate the amount of compensation that any agent will
receive. We know of no existing arrangements between LPC, any other shareholder, broker, dealer,
underwriter, or agent relating to the sale or distribution of the shares offered by this
prospectus. At the time a particular offer of shares is made, a prospectus supplement, if
required, will be distributed that will set forth the names of any agents, underwriters, or dealers
and any compensation from the selling shareholder, and any other required information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pay all of the expenses incident to the registration, offering, and sale of the shares
to the public other than commissions or discounts of underwriters, broker-dealers, or agents. We
have also agreed to indemnify LPC and related persons against specified liabilities, including
liabilities under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to our directors, officers, and controlling persons, we have been advised that in the opinion of
the SEC this indemnification is against public policy as expressed in the Securities Act and is,
therefore, unenforceable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPC and its affiliates have agreed not to engage in any direct or indirect short selling or
hedging of our common stock during the term of the Purchase Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have advised LPC that while it is engaged in a distribution of the shares included in this
prospectus, it is required to comply with Regulation&nbsp;M promulgated under the Securities Exchange
Act of 1934, as amended. With certain exceptions, Regulation&nbsp;M precludes the selling shareholder,
any affiliated purchasers, and any broker-dealer or other person who participates in the
distribution from bidding for or purchasing, or attempting to induce any person to bid for or
purchase, any security which is the subject of the distribution until the entire distribution is
complete. Regulation&nbsp;M also prohibits any bids or purchases made in order to stabilize the price
of a security in connection with
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the distribution of that security. All of the foregoing may affect the marketability of the shares offered hereby this
prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This offering will terminate on the date that all shares offered by this prospectus have been
sold by LPC.
</DIV>
<DIV align="left">
<A name="607"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the common stock offered in this prospectus has been passed upon for us by
Cowden &#038; Humphrey Co. LPA, 4600 Euclid Avenue, Suite&nbsp;400, Cleveland, Ohio 44103-3748.
</DIV>
<DIV align="left">
<A name="608"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements, as of and for the years ended December&nbsp;31, 2009 incorporated by
reference in this prospectus and Registration Statement have been audited by Plante &#038; Moran, PLLC,
an independent registered public accounting firm, as stated in their report incorporated herein by
reference, and are incorporated in reliance upon such report and upon the authority of such firm as
experts in accounting and auditing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements and schedule as of December&nbsp;31, 2008 and for the years ended December
31, 2008 and 2007, before the effects of the retrospective adjustments for the discontinued
operations discussed in Note 4 and the retrospective adjustments for the change in the composition
of reportable segments discussed in Note 13 (not separately incorporated by reference in this
Prospectus and elsewhere in the registration statement), have been audited by Grant Thornton LLP,
independent registered public accountants, as indicated in their report with respect thereto and
are included herein in reliance upon the authority of said firm as experts in accounting and
auditing.
</DIV>
<DIV align="left">
<A name="609"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement on Form S-3 that we filed with the SEC.
This prospectus does not contain all of the information included in the registration statement. For
further information about us and our securities, you should refer to the registration statement and
the exhibits filed with the registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the information requirements of the Securities Exchange Act of 1934 and file
annual, quarterly and current reports, proxy statements and other information with the SEC. You can
read our SEC filings, including the registration statement, over the internet at the SEC&#146;s website
at <U>www.sec.gov</U> or through our website at <U>www.efoi.com</U>. Information contained on our
website is not considered to be a part of, nor incorporated by reference in, this prospectus. You
may also read and copy any document we file with the SEC at its Public Reference Room at 100 F
Street, NE, Washington, D.C. 20549.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may also obtain copies of the documents at prescribed rates by writing to the Public
Reference Room of the SEC at 100 F Street, NE, Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information on the operation of the Public Reference Room.
</DIV>
<DIV align="left">
<A name="610"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INFORMATION INCORPORATED BY REFERENCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to &#147;incorporate by reference&#148; the information that we file with it, which
means that we can disclose important information to you by referring you to those documents. The
information incorporated by reference is considered to be an important part of this prospectus.
Later information that we file with the SEC will automatically update and supersede this
information. We incorporate by reference the documents listed below, and any future filing we make
with the SEC under Sections&nbsp;13(a), 13(c), 14, or 15(d) of the Securities Exchange Act of 1934 prior
to the termination of the offering. The documents that we incorporate by reference are:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our annual report on Form 10-K for our fiscal year ended December&nbsp;31,
2009, SEC File No.&nbsp;000-24230.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our quarterly report on Form 10-Q for our fiscal quarter ended March
31, 2010, SEC File No.&nbsp;000-24230.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our current reports on Form 8-K, SEC File No.&nbsp;000-24230, filed with
the SEC on January&nbsp;5, 2010, January&nbsp;7, 2010, January&nbsp;28, 2012, March
3, 2010, March&nbsp;19, 2010, April&nbsp;7, 2010, May&nbsp;10, 2010, May&nbsp;18, 2010,
and May&nbsp;24, 2010.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our definitive proxy statement on Schedule&nbsp;14A for our annual meeting
of shareholders, SEC File No.&nbsp;000-24230, filed with the SEC on April
30, 2010.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A description of our Common Stock, Preferred Stock, and Series&nbsp;A
Participating Preferred Stock Purchase Rights contained in our current
report on Form 8-K, SEC File No.&nbsp;000-24230, and any amendment or
report filed for the purpose of updating that description filed
subsequent to the date of this prospectus and prior to the termination
of this offering.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may request a copy of these filings, at no cost, by writing or telephoning us at the
following address: Energy Focus, Inc., 32000 Aurora Road, Solon, Ohio 44139; telephone number
440.715.1300.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information incorporated by reference or provided in this
prospectus or any supplement. We have not authorized anyone else to provide you with different
information. We will not make offers to sell these shares in any state where the offer is not
permitted. You should not assume that the information in this prospectus or any supplement is
accurate as of any date other that the date on the front of those documents.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ENERGY FOCUS, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>4,470,000 Shares of Common Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PROSPECTUS
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">June&nbsp;1, 2010
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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