Plastic2Oil Inc (PTOI)

[buenokite]

JBI / PTOI Pyrolysis

Here are the documented facts. Not the hype or hyperbole used by the company to sell shares but the actual facts.

1) The machines cannot handle the real-world scenario of unwashed and commingled material. They had their contract terminated for cause by Madison County and the County said this regarding JBI/PTOI's process: "They closed their preprocessing plant in Canada and said that unless Madison County can provide them with cleaner preprocessed material they can't process it. Our contract with JBI Inc. should be terminated, said Zecca."

2) But this is not the only deal that has failed for JBI/PTOI. The company did not install even one processor with the announced RKT deal. We were told endlessly how much free plastic was available for the JBI/PTOI process but nothing ever happened. Why? The company did not install even one processor as part of the 45 site Florida deal. The company did not install even one processor as part of the announced Ohio deal. And the company did not build even one P20 ship as part of the Heddle deal. Every single one of these announcements despite tremendous fanfare and great excitement led to absolutely nothing.

3) The processors patents are in trouble. The company has dropped it's European patent claims due to non-payment. The patent claims themselves have been deemed to lack novelty, are not inventive, and duplicate existing patents. Any serious engineering firm would do this basic level of diligence and this would need fixing asap if they are serious about selling a processor. The company has no response to this lack of novelty in the database.

PTOI/JBI USPTO patent info:

http://portal.uspto.gov/pair/PublicPair

select PCT number search...enter PCT/US2011/046783

You can see there has been no correspondence from the company since their process was deemed to lack novelty and duplicated existing patents.

You can see the European patent was deemed withdrawn here:

"08.04.2014 New entry: Application deemed to be withdrawn: despatch of communication + time limit

08.04.2014 Despatch of communication that the application is deemed to be withdrawn, reason: filing fee / search fee not paid in time"

https://register.epo.org/application?number=EP11748819&lng=en&tab=main

4) Processor #3 has barely and run and as of August 14th was broken. Timeline of for the "Flagship":

Q3 2013
1) "On June 13, 2013, we completed the assembly of our third P2O processor and began start-up testing. The overall system designs, as well as the individual component designs behind the third processor had undergone significant upgrades from the previous generation processors."

2) "Processor 2 has run longer per cycle and consistently yielded more fuel than in the past since the inclusion of heat transfer fluids into the P2O process."

3) Based on the 10Q, all three processors produced l70,725 gallons of fuel in Q3. The company did not break out processor performance but we know processor #2 and #1 did 115,000 gallons in Q4 2012 using HTF. Let's assume zero improvement with that total in over a year despite number #2 above.

So being generous processor #3 may have produced 55,000 gallons of fuel in Q3, 2013.

Link for Q3: http://www.sec.gov/Archives/edgar/data/1381105/000121390013006199/0001213900-13-006199-index.htm

Q4 2013
1) According to the 10K the company produced less than 48,000 gallons of fuel in Q4 with all three processors. It is anybody's guess what processor #3 actually did but it is less than 48.000 gallons and likely much less

But let's be generous processor #3 produced all 47,000+ gallons of fuel in Q4, 2013.

Link for Q4 2013: http://www.sec.gov/Archives/edgar/data/1381105/000121390014003943/f10k2013_jbiinc.htm

Q1 2014
All processors produced zero gallons.

Link for Q1 2014: http://www.sec.gov/Archives/edgar/data/1381105/000126493114000369/jbi10q_r.htm

Q2 2014
All processors produced zero gallons.

Link for Q2 2014: http://www.sec.gov/Archives/edgar/data/1381105/000126493114000399/0001264931-14-000399-index.htm

Q3 2014
"The Company had to shut down its production late in the fourth quarter of 2013 due to severe cold weather that caused damage to condensers and other components of our processors. Management estimates that the repair of the processors will require the expenditure of between $175,000 and $200,000. At August 14,, 2014, we lacked the working capital or access to bank credit to make these repairs. We are reviewing our financing options, including the sale of shares of our common stock or other securities, in order to allow us to obtain sufficient funds to make the required repairs and resume operation of our processors. Management currently anticipates that the processors will remain idle at least until the third quarter of 2014."

Link: http://www.sec.gov/Archives/edgar/data/1381105/000126493114000399/0001264931-14-000399-index.htm