We have been working with the Federal Government, going through all of the NHTSA rules and regulations required
to produce a complete, street-legal vehicle. The Feds do not offer any help up-front inspecting a new vehicle
for rule compliance. They only step in after you start production.

If they find any errors in your interpretation of their rules, it is a $6000 fine per error, per vehicle. So let's
say you put a side reflector in the wrong position on 10 vehicles ... you guessed it ... a $60,000 fine.

It is a daunting challange, with many ways to fail, and no support from NHTSA. Because of the potential financial
ruin that could come from an honest mistake, we are most likely going to make kits only. Luckily, NHTSA rules do
not extend to the kit builder.

All that will be required of the builder is to assemble the vehicle, and have it inspected and registered as a kit
in their state. We have done this numerous times, and as long as you follow the state's proceedures, it is a
painless process.

Our end goal is still the same ... a quality vehicle at a price near that of a good scooter. Thank you all for your
continued support. To quote Mal from "Firefly" ... "I have no need to beat them (the Feds), I just want to stay out
of their way".

On a note about progress ...

We have just finished designing a second swingarm with the motor in the center and a CVT belt transmission.
This layout greatly improves acceleration and hill climbing ability. It is about $400 more than the centrifugal
clutch option.