Evercel, Inc. develops and manufactures rechargeable nickel-zinc batteries through its manufacturing facility in the Peoples Republic of China (PRC). The Company's proprietary nickel-zinc rechargeable battery is the result of a substantial investment in the development of advanced battery technologies. The Company is addressing applications in transportation, including the small electric vehicle market, principally scooters, bicycles, wheelchairs and neighborhood electric vehicles, and the electric trolling motor market, primarily focused on bass fishing boats. In July 1998, Xiamen Three Circles ERC Battery Co. Ltd., a joint venture, was established in Xiamen, PRC. The mission of the joint venture in the PRC is the continued development, manufacture and sale of nickel-zinc batteries based on the Company's technology. As of January 5, 2003, the joint venture was restructured as Xiamen Evercel Battery Co., a wholly owned foreign enterprise of the Company.