----

----

----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

|   | For the quarterly period ended March 31, 2011 |
|--------|-----------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

----

| California(State or other jurisdiction of incorporation or organization)                    |   | 87-0673375(I.R.S. Employer Identification No.) |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                                        |   |                                           |
| 6720 North Scottsdale Road, Suite 390Scottsdale, AZ(Address of Principal Executive Offices) |   | 85253(Zip Code)                                |
|                                                                                        |   |                                           |
| Issuer’s telephone number, including area code:  (602) 522-3000             |

----

----

----

nde

| PART I. FINANCIAL INFORMATION |  Page                                                                                                                                         |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|                          | Item 1.       Unaudited Financial Statements                                                                    | 3 |
|                          |    Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010                                    | 3 |
|                          |    Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010                                                      | 4 |
|                          |    Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2011 and the Year Ended December 31, 2010 | 5 |
|                          |    Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010                                    | 6 |
|                          |        Notes to Condensed Consolidated Financial Statements                                                          | 7 |
|                          | Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations            | 20 |
|                          | Item 3.       Quantitative and Qualitative Disclosures About Market Risk                                             | 25 |
|                          | Item 4.       Controls and Procedures                                                                                | 25 |
| PART II. OTHER INFORMATION    |                                                                                                                                               |
|                          | Item 1.       Legal Proceedings                                                                                 | 25 |
|                          | Item 1A.    Risk Factors                                                                                                            | 27 |
|                          | Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds                                       | 27 |
|                          | Item 3.       Defaults Upon Senior Securities                                                                        | 27 |
|                          | Item 4.       (Removed and Reserved)                                                                                 | 27 |
|                          | Item 5.       Other Information                                                                                      | 27 |
|                          | Item 6.      Exhibits                                                                                                | 27 |
| Signatures                    | 29                                                                                                                                                 |
| Certificates                  |                                                                                                                                               |

----

Index

Condensed Consolidated Statements of Operations

|                                                          |   | 2011   |    |   | 2010   |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Revenues                                                      |   | $      | 7,998   |   |   | $      | 7,222 |   |
| Cost of goods sold                                            |   |   | 5,783   |   |   |   | 5,490 |   |
| Gross profit                                                  |   |   | 2,215   |   |   |   | 1,732 |   |
|                                                          |   |   |    |   |   |   |   |   |
| Operating expenses:                                           |   |   |    |   |   |   |   |   |
| Selling, general and administrative                           |   |   | 3,374   |   |   |   | 4,016 |   |
| Professional fees                                             |   |   | 802     |   |   |   | 457 |   |
| Provision for (recovery of) doubtful accounts                 |   |   | (740    | )      |   |   | 73 |   |
| Research and development                                      |   |   | 52      |   |   |   | 122 |   |
| Loss on disposal of trademarks, property, plant and equipment |   |   | -       |   |   |   | 376 |   |
| Total operating expenses                                      |   |   | 3,488   |   |   |   | 5,044 |   |
|                                                          |   |   |    |   |   |   |   |   |
| Loss from operations                                          |   |   | (1,273  | )      |   |   | (3,312 | ) |
|                                                          |   |   |    |   |   |   |   |   |
| Other income (expense):                                       |   |   |    |   |   |   |   |   |
| Interest income                                               |   |   | 13      |   |   |   | 18 |   |
| Interest expense                                              |   |   | (388    | )      |   |   | (281 | ) |
| Loss on equity method investments                             |   |   | (13     | )      |   |   | (11 | ) |
| Warrant liability income (expense)                            |   |   | (2,576  | )      |   |   | 321 |   |
| Other income                                                  |   |   | 102     |   |   |   | 118 |   |
| Other expense                                                 |   |   | (12     | )      |   |   | (30 | ) |
| Total other income (expense)                                  |   |   | (2,874  | )      |   |   | 135 |   |
|                                                          |   |   |    |   |   |   |   |   |
| Reorganization expenses - professional fees                   |   |   | -       |   |   |   | 337 |   |
|                                                          |   |   |    |   |   |   |   |   |
| Loss before income taxes                                      |   |   | (4,147  | )      |   |   | (3,514 | ) |
| Income tax benefit                                            |   |   | 60      |   |   |   | 244 |   |
| Net loss                                                      |   |   | (4,087  | )      |   |   | (3,270 | ) |
| Net loss attributable to noncontrolling interest in Nutra SA  |   |   | 28      |   |   |   | - |   |
| Net loss attributable to NutraCea shareholders                |   | $      | (4,059  | )      |   | $      | (3,270 | ) |
|                                                          |   |   |    |   |   |   |   |   |
| Loss per share attributable to NutraCea shareholders          |   |   |    |   |   |   |   |   |
| Basic                                                         |   | $      | (0.02   | )      |   | $      | (0.02 | ) |
| Diluted                                                       |   | $      | (0.02   | )      |   | $      | (0.02 | ) |
|                                                          |   |   |    |   |   |   |   |   |
| Weighted average number of shares outstanding                 |   |   |    |   |   |   |   |   |
| Basic                                                         |   |   | 195,358 |   |   |   | 192,992 |   |
| Diluted                                                       |   |   | 195,358 |   |   |   | 192,992 |   |

----

Index

ets

|                                                                                                                 |   | March 31,2011 |     |   | December 31,2010 |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------|-----------------------|--------|
| ASSETS                                                                                                               |   |               |     |   |                  |   |
| Current assets:                                                                                                      |   |               |     |   |                  |   |
| Cash and cash equivalents                                                                                            |   | $                  | 1,219    |   |                  | $      | 537 |   |
| Restricted cash                                                                                                      |   |               | 2,118    |   |                  |   | 1,917 |   |
| Accounts receivable, net                                                                                             |   |               | 3,056    |   |                  |   | 3,502 |   |
| Inventories                                                                                                          |   |               | 3,106    |   |                  |   | 2,994 |   |
| Notes receivable, current portion, net                                                                               |   |               | 1,200    |   |                  |   | 1,200 |   |
| Deferred tax asset                                                                                                   |   |               | 326      |   |                  |   | 292 |   |
| Deposits and other current assets                                                                                    |   |               | 2,979    |   |                  |   | 2,255 |   |
| Assets held for sale - property, plant and equipment                                                                 |   |               | -        |   |                  |   | 3,598 |   |
| Total current assets                                                                                                 |   |               | 14,004   |   |                  |   | 16,295 |   |
|                                                                                                                 |   |               |     |   |                  |   |   |   |
| Notes receivable, net of current portion                                                                             |   |               | 200      |   |                  |   | 600 |   |
| Property, plant and equipment, net                                                                                   |   |               | 28,934   |   |                  |   | 24,054 |   |
| Intangible assets, net                                                                                               |   |               | 6,002    |   |                  |   | 6,296 |   |
| Goodwill                                                                                                             |   |               | 5,941    |   |                  |   | 5,835 |   |
| Equity method investments                                                                                            |   |               | 36       |   |                  |   | 49 |   |
| Other long-term assets                                                                                               |   |               | 41       |   |                  |   | 95 |   |
| Total assets                                                                                                         |   | $                  | 55,158   |   |                  | $      | 53,224 |   |
|                                                                                                                 |   |               |     |   |                  |   |   |   |
| LIABILITIES AND EQUITY                                                                                               |   |               |     |   |                  |   |   |   |
| Current liabilities:                                                                                                 |   |               |     |   |                  |   |   |   |
| Accounts payable                                                                                                     |   | $                  | 2,141    |   |                  | $      | 2,573 |   |
| Accrued expenses                                                                                                     |   |               | 4,046    |   |                  |   | 4,266 |   |
| Pre-petition liabilities                                                                                             |   |               | 3,445    |   |                  |   | 6,406 |   |
| Long-term debt, current portion                                                                                      |   |               | 2,653    |   |                  |   | 3,235 |   |
| Warrant liability, current portion                                                                                   |   |               | 250      |   |                  |   | - |   |
| Total current liabilities                                                                                            |   |               | 12,535   |   |                  |   | 16,480 |   |
|                                                                                                                 |   |               |     |   |                  |   |   |   |
| Long-term liabilities:                                                                                               |   |               |     |   |                  |   |   |   |
| Long-term debt, net of current portion                                                                               |   |               | 6,902    |   |                  |   | 7,365 |   |
| Deferred tax liability                                                                                               |   |               | 4,288    |   |                  |   | 4,361 |   |
| Warrant liability, net of current portion                                                                            |   |               | 3,954    |   |                  |   | 1,628 |   |
| Other long-term liabilities                                                                                          |   |               | 1,000    |   |                  |   | 1,000 |   |
| Total liabilities                                                                                                    |   |               | 28,679   |   |                  |   | 30,834 |   |
|                                                                                                                 |   |               |     |   |                  |   |   |   |
| Commitments and contingencies                                                                                        |   |               |     |   |                  |   |   |   |
|                                                                                                                 |   |               |     |   |                  |   |   |   |
| Redeemable noncontrolling interest in Nutra SA                                                                       |   |               | 7,697    |   |                  |   | - |   |
|                                                                                                                 |   |               |     |   |                  |   |   |   |
| Equity:                                                                                                              |   |               |     |   |                  |   |   |   |
| Equity attributable to NutraCea shareholders:                                                                        |   |               |     |   |                  |   |   |   |
| Preferred Stock, 20,000,000 authorized and none issued                                                               |   |               | -        |   |                  |   | - |   |
| Common stock, no par value, 350,000,000 shares authorized, 195,717,735 and 195,359,109 shares issued and outstanding |   |               | 207,631  |   |                  |   | 207,432 |   |
| Accumulated deficit                                                                                                  |   |               | (188,871 | )      |                  |   | (184,812 | ) |
| Accumulated other comprehensive income (loss)                                                                        |   |               | 178      |   |                  |   | (74 | ) |
| Total equity attributable to NutraCea shareholders                                                                   |   |               | 18,938   |   |                  |   | 22,546 |   |
| Noncontrolling interest in Rice Science                                                                              |   |               | (156     | )      |                  |   | (156 | ) |
| Total equity                                                                                                         |   |               | 18,782   |   |                  |   | 22,390 |   |
| Total liabilities and equity                                                                                         |   | $                  | 55,158   |   |                  | $      | 53,224 |   |

----

Index

in Equity

|                                                          |   | NutraCea Shareholders |        |   |               |   |    |                                           |   |
|---------------------------------------------------------------|--------|-----------------------|-------------|--------|--------------------|--------|---------|------------------------------------------------|--------|
|                                                          |   | Common Stock          |        |   | AccumulatedDeficit |   |    | Accumulated Other Comp-rehensive Income (Loss) |   |   | Non- controlling Interest in Rice Science |   |   | TotalEquity |   |
|                                                          |   | Shares                |        |   | Amount             |   |
|                                                          |   |                  |        |   |               |   |    |                                           |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2010                                      |   |                  | 192,967,680 |   |               | $      | 205,291 |                                           |   | $ | (169,144 | ) |   | $ | (467 | ) |   | $ | (156 | ) |   | $ | 35,524 |   |
|                                                          |   |                  |        |   |               |   |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based employee and director compensation - options      |   |                  | -           |   |               |   | 1,632   |                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,632 |   |
| Share-based consultant compensation - options                 |   |                  | -           |   |               |   | 37      |                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 37 |   |
| Share-based compensation for vendor services                  |   |                  | 2,391,429   |   |               |   | 472     |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 472 |   |
| Foreign currency translation                                  |   |                  | -           |   |               |   | -       |                                           |   |   | - |   |   |   | 393 |   |   |   | - |   |   |   | 393 |   |
| Net loss                                                      |   |                  | -           |   |               |   | -       |                                           |   |   | (15,668 | ) |   |   | - |   |   |   | - |   |   |   | (15,668 | ) |
| Balance, December 31, 2010                                    |   |                  | 195,359,109 |   |               |   | 207,432 |                                           |   |   | (184,812 |   |   |   | (74 | ) |   |   | (156 | ) |   |   | 22,390 |   |
|                                                          |   |                  |        |   |               |   |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancelled shares and options - settlement with former officer |   |                  | (35,000     | )      |               |   | (278    | )                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (278 | ) |
| Share-based employee and director compensation - options      |   |                  | -           |   |               |   | 36      |                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 36 |   |
| Share-based consultant compensation - options                 |   |                  | -           |   |               |   | 2       |                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |
| Share-based compensation for vendor services                  |   |                  | 393,626     |   |               |   | 170     |                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 170 |   |
| Beneficial conversion feature of convertible note             |   |                  | -           |   |               |   | 140     |                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 140 |   |
| Issuance of warrants for convertible note                     |   |                  | -           |   |               |   | 129     |                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 129 |   |
| Foreign currency translation                                  |   |                  | -           |   |               |   | -       |                                           |   |   | - |   |   |   | 252 |   |   |   | - |   |   |   | 252 |   |
| Net loss                                                      |   |                  | -           |   |               |   | -       |                                           |   |   | (4,059 |   |   |   | - |   |   |   | - |   |   |   | (4,059 | ) |
| Balance, March 31, 2011                                       |   |                  | 195,717,735 |   |               | $      | 207,631 |                                           |   | $ | (188,871 | ) |   | $ | 178 |   |   | $ | (156 | ) |   | $ | 18,782 |   |

----

Index

Cash Flows

|                                                                        |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash flows from operating activities:                                       |   |   |   |   |   |   |
| Net loss                                                                    |   | $      | (4,087 | )      |   | $      | (3,270 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                               |   |   | 1,186  |   |   |   | 1,139 |   |
| Provision for doubtful accounts                                             |   |   | 60     |   |   |   | 73 |   |
| Loss on disposal of property, plant and equipment                           |   |   | -      |   |   |   | 376 |   |
| Share-based compensation                                                    |   |   | 208    |   |   |   | 174 |   |
| Warrant liability expense (income)                                          |   |   | 2,576  |   |   |   | (321 | ) |
| Deferred tax benefit                                                        |   |   | (175   | )      |   |   | (244 | ) |
| Reorganization expenses                                                     |   |   | -      |   |   |   | 337 |   |
| Loss on equity method investments                                           |   |   | 13     |   |   |   | 11 |   |
| Changes in operating assets and liabilities:                                |   |   |   |   |   |   |   |   |
| Accounts receivable                                                         |   |   | 510    |   |   |   | (250 | ) |
| Inventories                                                                 |   |   | (70    | )      |   |   | (882 | ) |
| Other current assets                                                        |   |   | (916   | )      |   |   | 454 |   |
| Accounts payable and accrued expenses                                       |   |   | (122   | )      |   |   | 255 |   |
| Pre-petition liabilities                                                    |   |   | (3,531 | )      |   |   | - |   |
| Net cash used in operating activities, before reorganization items          |   |   | (4,348 | )      |   |   | (2,148 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Reorganization items:                                                       |   |   |   |   |   |   |   |   |
| Reorganization expenses                                                     |   |   | -      |   |   |   | (337 | ) |
| Change in accounts payable for reorganization items                         |   |   | -      |   |   |   | 178 |   |
| Net cash used for reorganization items                                      |   |   | -      |   |   |   | (159 | ) |
| Net cash used in operating activities                                       |   |   | (4,348 | )      |   |   | (2,307 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                       |   |   |   |   |   |   |   |   |
| Receipts on notes receivable                                                |   |   | 400    |   |   |   | 300 |   |
| Restricted cash                                                             |   |   | (201   | )      |   |   | - |   |
| Purchases of property, plant and equipment                                  |   |   | (1,853 | )      |   |   | (61 | ) |
| Proceeds from sale of property, plant and equipment                         |   |   | -      |   |   |   | 3,715 |   |
| Other                                                                       |   |   | 43     |   |   |   | (7 | ) |
| Net cash provided by (used in) investing activities                         |   |   | (1,611 | )      |   |   | 3,947 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                       |   |   |   |   |   |   |   |   |
| Proceeds from sale of membership interest in Nutra SA, net of costs         |   |   | 7,725  |   |   |   | - |   |
| Proceeds from issuance of warrants and convertible note conversion feature  |   |   | 269    |   |   |   |  - |   |
| Payment on debt, net                                                        |   |   | (1,335 | )      |   |   | (1,698 | ) |
| Net cash provided by (used) in financing activities                         |   |   | 6,659  |   |   |   | (1,698 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                |   |   | (18    | )      |   |   | 3 |   |
| Net change in cash and cash equivalents                                     |   |   | 682    |   |   |   | (55 | ) |
| Cash and cash equivalents, beginning of period                              |   |   | 537    |   |   |   | 952 |   |
| Cash and cash equivalents, end of period                                    |   | $      | 1,219  |   |   | $      | 897 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Supplemental disclosures:                                                   |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                      |   | $      | 206    |   |   | $      | 234 |   |
| Cash paid for taxes                                                         |   |   | -      |   |   |   | - |   |

----

Index

Not

----

Index

|             |   |                      |   |                                                              |   |                                                                                                          |
|------------------|--------|---------------------------|--------|-------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
|             |   |                      |   | Pledged Assets Subject to                                    |   |                                                                                                          |
|             |   | Required Cumulative  |   | Sale by Plan Agent, if                                  |   | Net Proceeds Plan Agent Retains for the                                                                  |
| Benchmark Date   |   |  Payment             |   |  Benchmark Not Met                                           |   |  General Unsecured Creditors                                                                             |
| July 15, 2011    |   |   50%           |   | Dillon, Montana facility and all loose equipment                  |   | 75% of proceeds from the sale of the facility and up to 100% of the proceeds from the sale of loose equipment |
|             |   |                      |   |                                                              |   |                                                                                                          |
| October 15, 2011 |   |   75%           |   | Dillon, Montana facility and all loose equipment                  |   | 75% of proceeds from the sale of the facility and up to 100% of the proceeds from the sale of loose equipment |
|             |   |                      |   |                                                              |   |                                                                                                          |
| January 15, 2012 |   | 100%                      |   | Lake Charles, Louisiana facility and any remaining pledged assets |   | Up to 100% of net proceeds from the sale                                                                      |
|             |   |                      |   |                                                              |   |                                                                                                          |

|   | · | 75% of the net proceeds from the sale of the Dillon, Montana facility; |
|--------|--------|------------------------------------------------------------------------|

|   | · | the greater of (i) $2.2 million or (ii) 40% of the first $5.0 million in net proceeds we receive from the monetization of our interest in Nutra SA, LLC (Nutra SA) plus 50% of any net proceeds over $5.0 million; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 50% of the net proceeds from the sale of our interest in Rice Science, LLC or Rice Rx LLC; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | 100% of the net proceeds from the sale of any loose (uninstalled) equipment; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | 75% of any prepayments received on the note receivable from Ceautamed Worldwide, LLC (Ceautamed), if any, and all receipts on the note beginning April 1, 2011; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 75% of the net proceeds from the sale or monetization of the Lake Charles, Louisiana improvements or Mermentau, Louisiana facility, after payment of professional fees; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 75% of the net proceeds from the sale or monetization of any other pledged assets; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | 100% of any recoveries from avoidance actions or actions against former officers and directors. |
|--------|--------|-------------------------------------------------------------------------------------------------|

| · | growing sales in existing markets, including bulk processed rice bran (SRB) and rice oil; |
|--------|-------------------------------------------------------------------------------------------|

| · | aligning with strategic partners who can provide channels for additional sales of our products including rice oil extraction; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | price increases. |
|--------|------------------|

| · | sale or a sale-lease back of certain facilities; |
|--------|--------------------------------------------------|

| · | sale of a noncontrolling interest in one or more subsidiaries; or |
|--------|-------------------------------------------------------------------|

| · | sale of surplus equipment. |
|--------|----------------------------|

----

Index

----

Index

|                                                                                                                                                                     |   | 2011   |        |   | 2010   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| NUMERATOR (in thousands):                                                                                                                                                |   |   |        |   |   |   |
| Basic and diluted - net loss attributable to NutraCea                                                                                                                    |   | $      | (4,059      | )      |   | $      | (3,270 | ) |
|                                                                                                                                                                     |   |   |        |   |   |   |   |   |
| DENOMINATOR:                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Basic EPS - weighted average number of shares outstanding                                                                                                                |   |   | 195,358,442 |   |   |   | 192,991,680 |   |
| Effect of dilutive securities outstanding                                                                                                                                |   |   | -           |   |   |   | - |   |
| Diluted EPS - weighted average number of shares outstanding                                                                                                              |   |   | 195,358,442 |   |   |   | 192,991,680 |   |
|                                                                                                                                                                     |   |   |        |   |   |   |   |   |
| Number of shares of common stock which could be purchased with weighted average outstanding securities not included in diluted EPS because effect would be antidilutive- |   |   |        |   |   |   |   |   |
| Stock options (average exercise price of $0.30 and $0.45 )                                                                                                          |   |   | 42,735,539  |   |   |   | 26,630,425 |   |
| Warrants (average exercise price of $1.24 and $1.27)                                                                                                                     |   |   | 40,994,431  |   |   |   | 39,845,173 |   |
| Convertible note payable                                                                                                                                                 |   |   | 1,000,000   |   |   |   | - |   |

|                                                                       |   | 2011   |   |   | 2010   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net loss                                                                   |   | $      | (4,087 | )      |   | $      | (3,270 | ) |
| Other comprehensive loss - foreign currency translation, net of tax        |   |   | 252    |   |   |   | (407 | ) |
| Comprehensive loss, net of tax                                             |   |   | (3,835 | )      |   |   | (3,677 | ) |
| Comprehensive loss attributable to the noncontrolling interest, net of tax |   |   | 28     |   |   |   | - |   |
| Total comprehensive loss attribibutable to NutraCea shareholders           |   | $      | (3,807 | )      |   | $      | (3,677 | ) |

----

Index

|   | · | A Nutra SA business plan deviation, defined as the occurrence, in either 2012, 2013 or 2014, of a 20% unfavorable variation in two out of three of the following: (i) revenue, (ii) earnings before interest, taxes, depreciation and amortization (EBITDA) or (iii) debt, |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A Nutra SA EBITDA default, which is defined as the failure to achieve 85% of planned EBITDA for three consecutive quarters, beginning with the quarter ended March 31, 2011, or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A material problem, which is defined as a material problem in a facility (unrelated to changes in law, weather, etc.) likely to cause a Nutra SA business plan deviation or Nutra SA EBITDA default, which results in damages not at least 80% covered by insurance proceeds. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Conversion Rights – The Investors may exchange units in Nutra SA for equity interests in Irgovel beginning in July 2011.  After any exchange, the Investors would possess the same rights and obligations with respect to the securities of Irgovel, as they have in Nutra SA. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Global Holding Company (GHC) Roll-Up – If we form an entity GHC, to hold our bio-refining segment assets, the Investors may exchange units in Nutra SA for equity interests in GHC.  The investors may exercise this right after the second anniversary of the formation of GHC or, if an event of default has occurred, the later of January 2013 and the GHC formation date.  The appraised fair value of the Investors’ interest in Nutra SA would be used to determine the amount of ownership interest the Investors would receive in GHC. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | NutraCea Roll-Up – The Investors may exchange units in Nutra SA for NutraCea common stock..  This right is available upon the earlier of January 2014 or, if an event of default has occurred, January 2013.  We may elect to postpone our obligation to complete the NutraCea roll-up to January 2015 if the roll-up would result in over 25% of our common stock being owned by the Investors.  The appraised fair value of the Investors’ interest in Nutra SA would be used to determine the amount of ownership interest the Investors would receive in NutraCea. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Drag Along Rights – The Investors have the right to force the sale of all Nutra SA assets after January 2015, January 2013 if an event of default occurs, or February 2014, if we make a NutraCea roll-up postponement election.  The right terminates upon the occurrence of certain events (a $50 million Nutra SA initial public offering or a change of control, as defined).  We may elect to exercise a right of first refusal to purchase the Investors’ interest instead of proceeding to a sale. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Investors' initial interest in carrying value of Nutra SA at Closing      |   | $      | 4,349 |   |
|---------------------------------------------------------------------------|--------|--------|-------|--------|
| Adjustment to increase initial interest to fair value                     |   |   | 3,376 |   |
| Investors interest in net loss of Nutra SA from Closing to March 31, 2011 |   |   | (28   | )      |
| Redeemable noncontrolling interest in Nutra SA, March 31, 2011            |   | $      | 7,697 |   |

----

Index

|   | a. | We will assume the Rice Rx LLC (RRX) and Rice Science, LLC (RS) limited liability company agreements, together with a related supply agreement and license agreement, and the proof of claim will be deemed satisfied; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | HS will assign to us all of its interests in the RRX and RS limited liability companies; |
|--------|----|------------------------------------------------------------------------------------------|

|   | c. | HS and the affiliates will assign to us any interest they have in the patentable pharmaceuticals, SRB isolates and related intellectual property; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | HS will assign to us the supply agreement, the license agreement and certain related research and development agreements; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------|

|   | e. | HS and the affiliates will agree not to engage in any research, development, sale, distribution, commercialization, and/or manufacturing activities concerning the patentable pharmaceuticals, SRB isolates and related intellectual property; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | HS and the affiliates will agree to cooperate with us in specified ways to protect, preserve and perfect the patentable pharmaceuticals, SRB isolates and related intellectual property; and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | The parties will waive and release all claims against each other in regard to the limited liability companies, the supply agreement, the license agreement and the research and development agreements. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                            |   | March 31,2011 |   |   | December 31,2010 |   |
|---------------------------------|--------|---------------|--------|--------|------------------|--------|
| Domestic:                       |   |          |   |   |             |   |
| Customer list purchase          |   | $             | 902    |   |             | $      | 993 |   |
| Supplier note                   |   |          | 142    |   |             |   | 177 |   |
| Convertible note payable        |   |          | 375    |   |             |   | - |   |
|                            |   |          | 1,419  |   |             |   | 1,170 |   |
| Foreign:                        |   |          |   |   |             |   |   |   |
| Equipment financing             |   |          | 261    |   |             |   | 290 |   |
| Working capital lines of credit |   |          | 3,289  |   |             |   | 4,404 |   |
| Special tax program             |   |          | 4,491  |   |             |   | 4,470 |   |
| Other obligations               |   |          | 95     |   |             |   | 266 |   |
|                            |   |          | 8,136  |   |             |   | 9,430 |   |
| Total debt                      |   |          | 9,555  |   |             |   | 10,600 |   |
| Current portion                 |   |          | 2,653  |   |             |   | 3,235 |   |
| Long-term portion               |   | $             | 6,902  |   |             | $      | 7,365 |   |

|   | · | Convertible Note: We issued a convertible note in the amount of $0.5 million with a stated interest rate of 8.5%.  Interest is payable monthly.  The entire principal and any remaining unpaid interest are due February 2013.  Until repaid, the outstanding principal and any accrued interest are convertible into our common stock, at the option of the holder, at a value of $0.25 per share (beneficial conversion feature).  In addition, in the event of a qualified financing – a securities offering of common stock (or securities convertible into stock) or certain debt with proceeds of $3.0 million or more prior to the expiration of the financial advisor agreement described below - the note is convertible at the option of the holder into the securities issued in the offering on the same terms that apply to other investors.  If the note is converted in a qualified financing, the warrant described below is cancelled.  The note is secured by a second lien on our Dillon, Montana facility. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Warrant: We issued a warrant to purchase up to 500,000 shares of common stock.  The strike price of the warrant is $0.25 per share.  It vested immediately and became exercisable upon issuance and expires in February 2015. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Financial Advisor Agreement:  We entered into financial advisory agreement with a term of February 2011 to April 2012.  We are obligated to pay the advisor success fees ranging from 2.5% to 5.0% of the consideration received from certain equity, convertible securities or debt transactions.  We must also issue warrants to purchase shares of common stock that equal from 2.5% to 5.0 % of the consideration received in those transactions, divided by either the market price of our common stock or the conversion price of the securities issued in the transaction. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $0.1 million to the warrant at its fair value, as determined using the Black-Scholes valuation methodology, |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | $0.1 million to the beneficial conversion feature of the convertible note, at its intrinsic value, the difference between the price of our common stock on the date of the transaction and the conversion price, multiplied by the number of shares into which the note was convertible, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $0.4 million to the note payable portion of the convertible note, based on its calculated fair value, determined by using the discounted present value of the payments due on the note, at a 25.0% interest rate, offset by |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $0.1 million to an asset, representing the amount attributable to favorable terms on the financial services agreement. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

----

Index

|                            |   | Number of Options |       |   | Weighted Average Option Exercise Price |   |   | Weighted Average Remaining Contractual Option Life (Years) |   |   | Number of Warrrants |   |   | Weighted Average Warrant Exercise Price |       |   | Weighted Average Remaining Contractual Warrant Life |   |
|---------------------------------|--------|-------------------|------------|--------|----------------------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|--------------------------|--------|--------|-----------------------------------------|------------|--------|-----------------------------------------------------|--------|
| Outstanding, Janaury 1, 2011    |   |              | 45,485,111 |   |                                   | $      | 0.30   |                                                            |   |   | 6.9                      |   |   |                                    | 40,429,577 |   |                                                | $      | 1.27 |   |   |   | 1.9 |   |
| Granted                         |   |              | 2,187,500  |   |                                   |   | 0.25   |                                                            |   |   | 10.0                     |   |   |                                    | 1,105,149  |   |                                                |   | 1.18 |   |   |   | 1.1 |   |
| Exercised                       |   |              | -          |   |                                   |   | -      |                                                            |   |   | -                        |   |   |                                    | -          |   |                                                |   | - |   |   |   | - |   |
| Forfeited, expired or cancelled |   |              | (6,204,798 | )      |                                   |   | 0.31   |                                                            |   |   |                     |   |   |                                    | -          |   |                                                |   | - |   |   |   |   |   |
| Outstanding, March 31, 2011     |   |              | 41,467,813 |   |                                   | $      | 0.30   |                                                            |   |   | 7.3                      |   |   |                                    | 41,534,726 |   |                                                | $      | 1.24 |   |   |   | 1.7 |   |
|                            |   |              |       |   |                                   |   |   |                                                            |   |   |                     |   |   |                                    |       |   |                                                |   |   |   |   |   |   |   |
| Exercisable, March 31, 2011     |   |              | 24,575,029 |   |                                   | $      | 0.35   |                                                            |   |   | 6.4                      |   |   |                                    | 41,534,726 |   |                                                | $      | 1.24 |   |   |   | 1.7 |   |

----

Index

----

Index

----

Index

|                                                                   |   | Three Months Ended March 31, 2011 |   |
|------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                   |   | Corporate                         |   |   | SRB |   |   |   |   |   | Bio-Refining |   |   |   | Consolidated |   |
| Revenues                                                               |   | $                                 | -      |   |   | $ | 2,560 |   |   |   |   |   | $ | 5,438 |   |   |   | $ | 7,998 |   |
| Cost of goods sold                                                     |   |                              | -      |   |   |   | 1,633 |   |   |   |   |   |   | 4,150 |   |   |   |   | 5,783 |   |
| Gross profit                                                           |   |                              | -      |   |   |   | 927 |   |   |   |   |   |   | 1,288 |   |   |   |   | 2,215 |   |
| Depreciation and amortization (in selling, general and administrative) |   |                              | (47    | ) |   |   | (325 | ) |   |   |   |   |   | (306 | ) |   |   |   | (678 | ) |
| Other operating income (expense)                                       |   |                              | (1,931 | ) |   |   | 197 |   |   |   | (1 | ) |   |   | (1,076 | ) |   |   |   | (2,810 | ) |
| Income (loss) from operations                                          |   | $                                 | (1,978 | ) |   | $ | 799 |   |   |   |   |   |   | $ | (94 | ) |   |   | $ | (1,273 | ) |
| Net loss attributable to NutraCea shareholders                         |   | $                                 | (4,711 | ) |   | $ | 799 |   |   |   |   |   |   | $ | (147 | ) |   |   | $ | (4,059 | ) |
| Interest expense                                                       |   |                              | (214   | ) |   |   | - |   |   |   |   |   |   |   | (174 | ) |   |   |   | (388 | ) |
| Depreciation (in cost of goods sold)                                   |   |                              | -      |   |   |   | (157 | ) |   |   |   |   |   |   | (351 | ) |   |   |   | (508 | ) |
| Purchases of property, plant and equipment                        |   |                              | -      |   |   |   | 43 |   |   |   |   |   |   |   | 1,810 |   |   |   |   | 1,853 |   |
|                                                                   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of the end of the period:                                           |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment                                          |   |                              | 1,996  |   |   |   | 12,608 |   |   |   |   |   |   |   | 14,330 |   |   |   |   | 28,934 |   |
| Assets held for sale                                                   |   |                              | -      |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   | - |   |
| Goodwill                                                               |   |                              | -      |   |   |   | - |   |   |   |   |   |   |   | 5,941 |   |  (2) |   |   | 5,941 |   |
| Intangible assets, net                                                 |   |                              | -      |   |   |   | 2,754 |   |   |   |   |   |   |   | 3,248 |   |   |   |   | 6,002 |   |
| Total assets                                                           |   |                              | 6,994  |   |   |   | 17,463 |   |   |   |   |   |   |   | 30,701 |   |   |   |   | 55,158 |   |

|                                                                   |   | Three Months Ended March 31, 2010 |   |
|------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                   |   | Corporate                         |   |   | SRB |   |   | Bio-Refining |   |   |   | Consolidated |   |
| Revenues                                                               |   | $                                 | -      |   |   | $ | 3,234 |   |   | $ | 3,988 |   |   |   | $ | 7,222 |   |
| Cost of goods sold                                                     |   |                              | -      |   |   |   | 2,023 |   |   |   | 3,467 |   |   |   |   | 5,490 |   |
| Gross profit                                                           |   |                              | -      |   |   |   | 1,211 |   |   |   | 521 |   |   |   |   | 1,732 |   |
| Depreciation and amortization (in selling, general and administrative) |   |                              | (58    | ) |   |   | (334 | ) |   |   | (281 | ) |   |   |   | (673 | ) |
| Loss on disposal of property, plant and equipment                      |   |                              | -      |   |   |   | (376 | ) |   |   | - |   |   |   |   | (376 | ) |
| Other operating expense                                                |   |                              | (2,162 | ) |   |   | (994 | ) |   |   | (839 | ) |   |   |   | (3,995 | ) |
| Loss from operations                                                   |   | $                                 | (2,220 | ) |   | $ | (493 | ) |   | $ | (599 | ) |   |   | $ | (3,312 | ) |
| Net loss attributable to NutraCea shareholders                         |   | $                                 | (2,301 | ) |   | $ | (493 | ) |   | $ | (476 | ) |   |   | $ | (3,270 | ) |
| Interest expense                                                       |   |                              | (151   | ) |   |   | - |   |   |   | (130 | ) |   |   |   | (281 | ) |
| Depreciation (in cost of goods sold)                                   |   |                              | -      |   |   |   | (146 | ) |   |   | (320 | ) |   |   |   | (466 | ) |
| Purchases of property, plant and equipment                        |   |                              | 15     |   |   |   | 7 |   |   |   | 39 |   |   |   |   | 61 |   |
|                                                                   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of the end of the period:                                           |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Property, plant and equipment                        |   |                              | 1,974  |   |   |   | 10,327 |   |   |   | 12,785 |   |   |   |   | 25,086 |   |
|    Assets held for sale                                 |   |                              | -      |   |   |   | 11,142 |   |   |   | - |   |   |   |   | 11,142 |   |
|    Goodwill                                             |   |                              | -      |   |   |   | - |   |   |   | 5,472 |   |  (2) |   |   | 5,472 |   |
|    Intangible assets, net                               |   |                              | -      |   |   |   | 3,437 |   |   |   | 3,758 |   |   |   |   | 7,195 |   |
|    Total assets                                         |   |                              | 8,196  |   |   |   | 28,293 |   |   |   | 27,853 |   |   |   |   | 64,342 |   |

| (1) | SRB segment operating expenses for the first quarter of 2011 included a reduction in expense as a result of the recovery of an $0.8 million accounts receivable previously written off as uncollectible. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | All changes in goodwill between March 31, 2011 and March 31, 2010, relate to foreign currency translation. |
|-----|------------------------------------------------------------------------------------------------------------|

----

Index

|                |   | 2011   |   |   | 2010   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| United States       |   | $      | 2,277  |   |   | $      | 2,451 |   |
| Brazil              |   |   | 3,501  |   |   |   | 3,987 |   |
| Other international |   |   | 2,220  |   |   |   | 784 |   |
| Total revenues      |   | $      | 7,998  |   |   | $      | 7,222 |   |

|                                     |   | March 31, 2011 |   |   | December 31, 2010 |   |
|------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| United States                            |   | $              | 14,604 |   |              | $      | 11,333 |   |
| Brazil                                   |   |           | 14,330 |   |              |   | 12,721 |   |
| Total property, plant and equipment, net |   | $              | 28,934 |   |              | $      | 24,054 |   |

|   | ● | Level 1 – inputs include quoted prices for identical instruments and are the most observable. |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | ● | Level 2 – inputs include quoted prices for similar assets and observable inputs such as interest rates, currency exchange rates and yield curves. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Level 3 – inputs are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   |   |   |   | As of March 31, 2011 |   |
|---------------------------------|--------|--------|--------|--------|----------------------|--------|
|                            |   |   |   |   | Level 1              |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                            |   |   |   |   |                 |   |   |   |   |   |   |   |   |   |   |
| Warrant liability               |   |   | (1     | )      |                 | $      | - |   |   | $ | - |   |   | $ | 4,204 |   |   | $ | 4,204 |   |
| Total liabilities at fair value |   |   |   |   |                 | $      | - |   |   | $ | - |   |   | $ | 4,204 |   |   | $ | 4,204 |   |

|                            |   |   |   |   | As of December 31, 2010 |   |
|---------------------------------|--------|--------|--------|--------|-------------------------|--------|
|                            |   |   |   |   | Level 1                 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                            |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Warrant liability               |   |   | (1     | )      |                    | $      | - |   |   | $ | - |   |   | $ | 1,628 |   |   | $ | 1,628 |   |
| Total liabilities at fair value |   |   |   |   |                    | $      | - |   |   | $ | - |   |   | $ | 1,628 |   |   | $ | 1,628 |   |

| (1) | Represents fair value of warrant liability established as a result of adoption of FASB ASC 815, “Derivatives and Hedging” (FASB ASC 815) (previously EITF 07-5, “Determining Whether an Instrument (or an Embedded Feature) is Indexed to an Entity’s Own Stock).  Fair value of the warrant liabilities was determined using the Lattice Model. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                     |   | Three Months Ended March 31, 2011    |   |
|--------------------------|--------|--------------------------------------|--------|
|                     |   | Fair Value as of Beginning of Period |   |   | TotalRealized/ UnrealizedGains(Losses) |   |   | Issuance of New Warrants |   |   | NetTransfersInto (Out of) Level 3 |   |   | Fair Value, at End of Period |   |   | Change in Unrealized Gains (Losses) on Instruments Still Held |   |
|                     |   |                                 |   |   (1) |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrant liability        |   | $                                    | 1,628  |   |   | $ | (2,576 | ) |   | $ | - |   |   | $ | - |   |   | $ | 4,204 |   |   | $ | (2,576 | ) |
| Total Level 3 fair value |   | $                                    | 1,628  |   |   | $ | (2,576 | ) |   | $ | - |   |   | $ | - |   |   | $ | 4,204 |   |   | $ | (2,576 | ) |

|                     |   | Three Months Ended March 31, 2010                   |   |
|--------------------------|--------|-----------------------------------------------------|--------|
|                     |   | Adoption of ASC 815-40-15 as of Beginning of Period |   |   | TotalRealized/ UnrealizedGains(Losses) |   |   | Issuance of New Warrants |   |   | NetTransfersInto (Out of) Level 3 |   |   | Fair Value, at End of Period |   |   | Change in Unrealized Gains (Losses) on Instruments Still Held |   |
|                     |   |                                                |   |   (1) |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrant liability        |   | $                                                   | 1,279  |   |   | $ | 321 |   |   | $ | - |   |   | $ | - |   |   | $ | 958 |   |   | $ | 321 |   |
| Total Level 3 fair value |   | $                                                   | 1,279  |   |   | $ | 321 |   |   | $ | - |   |   | $ | - |   |   | $ | 958 |   |   | $ | 321 |   |

| (1) | Included in warrant liability income (expense) in the consolidated statements of operations. |
|-----|----------------------------------------------------------------------------------------------|

|                                                 |   |   |   |   | As of December 31, 2010 |   |
|------------------------------------------------------|--------|--------|--------|--------|-------------------------|--------|
|                                                 |   |   |   |   | Level 1                 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                 |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Assets held for sale - property, plant and equipment |   |   | (1     | )      |                    | $      | - |   |   | $ | - |   |   | $ | 3,598 |   |   | $ | 3,598 |   |
| Total assets at fair value                           |   |   |   |   |                    | $      | - |   |   | $ | - |   |   | $ | 3,598 |   |   | $ | 3,598 |   |

| (1) | Represents land, building and equipment at our Dillon, Montana facility carried at fair value, based on an evaluation of market conditions and discounted cash flow analyses, less cost to sell (see Note 8). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

perations

----

Index

|                 |   | Three Months Ended March 31, |   |
|----------------------|--------|------------------------------|--------|
|                 |   | 2011                         |   |   | % of Total Revenues |   |   | 2010 |   |   | % of Total Revenues |   |   | Change |   |   | % Change |   |
| SRB segment          |   | $                            | 2,560  |   |   |   | 32.0 |   |   | $ | 3,234 |   |   |   | 44.8 |   |   | $ | (674 | ) |   |   | (20.8 | ) |
| Bio-Refining segment |   |                         | 5,438  |   |   |   | 68.0 |   |   |   | 3,988 |   |   |   | 55.2 |   |   |   | 1,450 |   |   |   | 36.4 |   |
| Total revenues       |   | $                            | 7,998  |   |   |   | 100.0 |   |   | $ | 7,222 |   |   |   | 100.0 |   |   | $ | 776 |   |   |   | 10.7 |   |

|   | · | Cereal product revenues declined $0.3 million.  A $0.5 million decline in cereal product revenues due to the March 2010 sale of the cereal product related assets to Kerry Ingredients (Kerry) was partially offset by an increase in tolling revenue of $0.2 million in the first quarter of 2011.  Under the tolling agreement, we continued to produce certain cereal products for Kerry on an order by order basis until March 2011. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Animal nutrition product revenues declined $0.2 million due to competitive pressures. |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | Human nutrition product revenues declined $0.2 million.  We implemented a price increase which took effect in the middle of the first quarter of 2011.  Human nutrition product orders can be relatively large and infrequent orders.  Therefore, revenues often fluctuate between periods due to the timing of shipment of orders. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | Three Months Ended March 31, |   |
|--------------------------|--------|------------------------------|--------|
|                     |   | 2011                         |   |   | % of Revenues |   |   | 2010 |   |   | % of Revenues |   |   | Change |   |   | % Change |   |
| SRB segment              |   | $                            | 1,633  |   |   |   | 63.8 |   |   | $ | 2,023 |   |   |   | 62.6 |   |   | $ | (390 | ) |   |   | (19.3 | ) |
| Bio-Refining segment     |   |                         | 4,150  |   |   |   | 76.3 |   |   |   | 3,467 |   |   |   | 86.9 |   |   |   | 683 |   |   |   | 19.7 |   |
| Total cost of goods sold |   | $                            | 5,783  |   |   |   | 72.3 |   |   | $ | 5,490 |   |   |   | 76.0 |   |   | $ | 293 |   |   |   | 5.3 |   |

|                 |   | Three Months Ended March 31, |   |
|----------------------|--------|------------------------------|--------|
|                 |   | 2011                         |   |   | Gross Profit % |   |   | 2010 |   |   | Gross Profit % |   |   | Change |   |   | Change in Gross Profit % |   |
| SRB segment          |   | $                            | 927    |   |   |   | 36.2 |   |   | $ | 1,211 |   |   |   | 37.4 |   |   | $ | (284 | ) |   |   | (1.2 | ) |
| Bio-Refining segment |   |                         | 1,288  |   |   |   | 23.7 |   |   |   | 521 |   |   |   | 13.1 |   |   |   | 767 |   |   |   | 10.6 |   |
| Total gross profit   |   | $                            | 2,215  |   |   |   | 27.7 |   |   | $ | 1,732 |   |   |   | 24.0 |   |   | $ | 483 |   |   |   | 3.7 |   |

----

Index

|                                              |   | Three Months Ended March 31, 2011 |   |
|---------------------------------------------------|--------|-----------------------------------|--------|
|                                              |   | Corporate                         |   |   | SRB |   |   | Bio-Refining |   |   | Consolidated |   |
| Selling, general and administrative               |   | $                                 | 1,277  |   |   | $ | 912 |   |   | $ | 1,185 |   |   | $ | 3,374 |   |
| Professional fees                                 |   |                              | 582    |   |   |   | - |   |   |   | 220 |   |   |   | 802 |   |
| Loss on disposal of property, plant and equipment |   |                              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Provision for (recovery of) doubtful accounts     |   |                              | 83     |   |   |   | (800 | ) |   |   | (23 | ) |   |   | (740 | ) |
| Research and development                          |   |                              | 36     |   |   |   | 16 |   |   |   | - |   |   |   | 52 |   |
| Total operating expenses                          |   | $                                 | 1,978  |   |   | $ | 128 |   |   | $ | 1,382 |   |   | $ | 3,488 |   |

|                                              |   | Three Months Ended March 31, 2010 |   |
|---------------------------------------------------|--------|-----------------------------------|--------|
|                                              |   | Corporate                         |   |   | SRB |   |   | Bio-Refining |   |   | Consolidated |   |
| Selling, general and administrative               |   | $                                 | 1,903  |   |   | $ | 1,205 |   |   | $ | 908 |   |   | $ | 4,016 |   |
| Professional fees                                 |   |                              | 318    |   |   |   | - |   |   |   | 139 |   |   |   | 457 |   |
| Loss on disposal of property, plant and equipment |   |                              | -      |   |   |   | 376 |   |   |   | - |   |   |   | 376 |   |
| Provision for doubtful accounts                   |   |                              | -      |   |   |   | - |   |   |   | 73 |   |   |   | 73 |   |
| Research and development                          |   |                              | -      |   |   |   | 122 |   |   |   | - |   |   |   | 122 |   |
| Total operating expenses                          |   | $                                 | 2,221  |   |   | $ | 1,703 |   |   | $ | 1,120 |   |   | $ | 5,044 |   |

|                                              |   | Favorable (Unfavorable) Change |   |
|---------------------------------------------------|--------|--------------------------------|--------|
|                                              |   | Corporate                      |   |   | SRB |   |   | Bio-Refining |   |   | Consolidated |   |
| Selling, general and administrative               |   | $                              | 626    |   |   | $ | 293 |   |   | $ | (277 | ) |   | $ | 642 |   |
| Professional fees                                 |   |                           | (264   | ) |   |   | - |   |   |   | (81 | ) |   |   | (345 | ) |
| Loss on disposal of property, plant and equipment |   |                           | -      |   |   |   | 376 |   |   |   | - |   |   |   | 376 |   |
| Provision for doubtful accounts                   |   |                           | (83    | ) |   |   | 800 |   |   |   | 96 |   |   |   | 813 |   |
| Research and development                          |   |                           | (36    | ) |   |   | 106 |   |   |   | - |   |   |   | 70 |   |
| Total operating expenses                          |   | $                              | 243    |   |   | $ | 1,575 |   |   | $ | (262 | ) |   | $ | 1,556 |   |

----

Index

|                              |   | Three Months Ended March 31, 2011 |   |
|-----------------------------------|--------|-----------------------------------|--------|
|                              |   | Corporate                         |   |   | SRB |   |   | Bio-Refining |   |   | Consolidated |   |
| Interest income                   |   | $                                 | 13     |   |   | $ | - |   |   | $ | - |   |   | $ | 13 |   |
| Interest expense                  |   |                              | (214   | ) |   |   | - |   |   |   | (174 | ) |   |   | (388 | ) |
| Loss on equity method investments |   |                              | (13    | ) |   |   | - |   |   |   | - |   |   |   | (13 | ) |
| Warrant liability expense         |   |                              | (2,576 | ) |   |   | - |   |   |   | - |   |   |   | (2,576 | ) |
| Other                             |   |                              | 58     |   |   |   | - |   |   |   | 32 |   |   |   | 90 |   |
| Other income (expense)            |   | $                                 | (2,732 | ) |   | $ | - |   |   | $ | (142 | ) |   | $ | (2,874 | ) |

|                              |   | Three Months Ended March 31, 2010 |   |
|-----------------------------------|--------|-----------------------------------|--------|
|                              |   | Corporate                         |   |   | SRB |   |   | Bio-Refining |   |   | Consolidated |   |
| Interest income                   |   | $                                 | 8      |   |   | $ | - |   |   | $ | 10 |   |   | $ | 18 |   |
| Interest expense                  |   |                              | (151   | ) |   |   | - |   |   |   | (130 | ) |   |   | (281 | ) |
| Loss on equity method investments |   |                              | (11    | ) |   |   | - |   |   |   | - |   |   |   | (11 | ) |
| Warrant liability income          |   |                              | 321    |   |   |   | - |   |   |   | - |   |   |   | 321 |   |
| Other                             |   |                              | 89     |   |   |   | - |   |   |   | (1 | ) |   |   | 88 |   |
| Other income (expense)            |   | $                                 | 256    |   |   | $ | - |   |   | $ | (121 | ) |   | $ | 135 |   |

|                              |   | Favorable (Unfavorable) Change |   |
|-----------------------------------|--------|--------------------------------|--------|
|                              |   | Corporate                      |   |   | SRB |   |   | Bio-Refining |   |   | Consolidated |   |
| Interest income                   |   | $                              | 5      |   |   | $ | - |   |   | $ | (10 | ) |   | $ | (5 | ) |
| Interest expense                  |   |                           | (63    | ) |   |   | - |   |   |   | (44 | ) |   |   | (107 | ) |
| Loss on equity method investments |   |                           | (2     | ) |   |   | - |   |   |   | - |   |   |   | (2 | ) |
| Warrant liability expense         |   |                           | (2,897 | ) |   |   | - |   |   |   | - |   |   |   | (2,897 | ) |
| Other                             |   |                           | (31    | ) |   |   | - |   |   |   | 33 |   |   |   | 2 |   |
| Other income (expense)            |   | $                              | (2,988 | ) |   | $ | - |   |   | $ | (21 | ) |   | $ | (3,009 | ) |

----

Index

| · | growing sales in existing markets, including bulk processed rice bran (SRB), rice oil and derivative products; |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | aligning with strategic partners who can provide channels for additional sales of our products including rice oil extraction; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | price increases. |
|--------|------------------|

| · | sale or a sale-lease back of certain facilities; |
|--------|--------------------------------------------------|

| · | sale of a noncontrolling interest in one or more subsidiaries; or |
|--------|-------------------------------------------------------------------|

| · | sale of surplus equipment. |
|--------|----------------------------|

----

Index

Market Risk

|   | · | While we were in Chapter 11 Reorganization, we had inadequate staffing to allow us to file in a timely manner our Quarterly Reports on Form 10-Q for 2009 and 2010 and our Annual Report on Form 10-K for 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our Brazilian subsidiary, Irgovel, implemented a new enterprise resource planning (ERP) system during 2010, which precipitated changes to several of the underlying control processes.  Due to a limited staff, certain processes were carried out by a single individual and were not subjected to a separate review process.  This lack of review caused some inventory and interest calculations to be inaccurate requiring material post-closing adjustments. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ION

eedings

----

Index

----

Index

Factors

ceeds

ecurities

eserved

rmation

ibits

----

Index

| ExhibitNumber  | Description of Exhibit                                                                                                          |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------|
| 10.1*               | 2010 Equity Incentive Plan                                                                                                      |
|                |                                                                                                                            |
| 10.2*               | Form of Indemnification Agreement for officers and directors of NutraCea                                                        |
|                |                                                                                                                            |
| 10.3*               | Second Amendment of Employment Agreement between NutraCea and W. John Short.                                                    |
|                |                                                                                                                            |
| 31.1                | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                             |
|                |                                                                                                                            |
| 31.2                | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                             |
|                |                                                                                                                            |
| 32.1                | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

|      * | Indicates a management contract or compensatory plan, contract or arrangement in which any director or any executive officer participates. |
|---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

SI

| Dated:  May  11, 2011 |                    |   |
|-------------------------------------------|-------------------------|--------|
|                                      |                    |   |
|                                      | /s/ W. John Short       |   |
|                                      | W. John Short           |
|                                      | Chief Executive Officer |

|   | /s/ J. Dale Belt        |   |
|--------|-------------------------|--------|
|   | Jerry Dale Belt         |
|   | Chief Financial Officer |

----