On December 28, 2008, the company exercised its option to acquire the relevant patents and intellectual property for the Magnegas Technology for the United States which includes all related domain names and the Magnegas Trademark. The Company issued 30,000,000 shares of common stock, valued at the fair market trading value of the stock at the time of purchase, in exchange for the intellectual property.

The value of the 30M shares at issuance was $627,000, which was the value of the stocks trading value (this was the lowest point to date), conservatively considering effect of dilution (the 30M shares was approximately 45% of the total outstanding shares, before the transaction).

Additionally, there was a remaining $93k of unamortized value from the shares issued in the original technology licensing agreement, before the acquisition, which is included in the basis for the valuation.