Additionally, the largest portion of the debt on our balance sheet is owed to management and insiders, most of whom have taken little or no cash payment for their efforts.

While the intrinsic value cannot be quantified with precision, consider these quantitative factors. Our Invested-Asset Operations delivered $20Million in sales last year and the annual run-rate in the last two quarters was over $50Million. In addition, we signed a contract with Tanke Inc. expected to deliver at least $30MM this year. When our audits of these operations are completed and systems installed, we will either consolidate these in their entirety or account for them under an equity method. We have the right financial minds and auditors working on this now, and either way, the values are there for our shareholders.

We have accelerated our Owned-Business Revenue to an annual run rate of $2Million and our
Invested-Asset Revenue to an annual run rate over $50Million - - from zero barely a year ago.

To complete the picture, our new audit firm will complete a full audit of the Invested-Asset Operations so that we can consolidate the revenues and start making the intrinsic value of our firm more clearly recognized in the market.

Clearly the market is not currently factoring in all that our Invested-Assets bring to the company – but we believe that both EWSI’s market capitalization and intrinsic value will outperform the market in the near future. Our stock has underperformed in the last few months after reaching a short-term peak in the 4th quarter as a consequence of actions taken in consistent with our laser focus on being completely compliant. After our current aggressive implementation of systems and processes to support our growth and compliance obligations are implemented, we expect to see our extrinsic values match the intrinsic.

I still missed this $20 million in revenue's interest accounted for, I mean the money must be sitting in an account somewhere still waiting to be recognized.

Let’s also examine our balance sheet. The assets forming our Ohio and New York operations were recorded at book value while we gather information on the fair market value. Similarly, the assets and goodwill of Surf and China and other US operations need further review. We charged most of these costs to the P&L as professional fees and expenses but we are working with our professionals to revisit this. Additionally, the largest portion of the debt on our balance sheet is owed to management and insiders, most of whom have taken little or no cash payment for their efforts. We are working on the best way to turn this debt into equity. All of these steps will positively impact our assets, our investments and our debt renegotiation as part of the plan to prepare to be an Exchange Listed company.

Invested-Asset Operations delivered $20Million in sales last year and the annual run-rate in the last two quarters was over $50Million. In addition, we signed a contract with Tanke Inc. expected to deliver at least $30MM this year. When our audits of these operations are completed and systems installed, we will either consolidate these in their entirety or account for them under an equity method. We have the right financial minds and auditors working on this now, and either way, the values are there for our shareholders.

We have dramatically expanded our team of financial and accounting professionals led by Joseph Himy and
Michael Armandi - - talented financial executives with rich experience in enterprise level public accounting.
They came in at the very end of last year along with our new auditors. We also added Annie Ou, a former
‘big three’ auditor to be our internal financial talent. They will be driving all of our reporting, compliance
and accounting functions with a very vigorous set of challenges. Together they will take over all accounting
and finance responsibilities with four times the resources of the past.

We were incorporated on December 19, 2008 in the State of Nevada. Our wholly owned subsidiary, E-Waste Systems (UK) Ltd. was founded in January 2011 for the purpose of implementing our business strategy and has had limited operations. We acquired all of the issued and outstanding capital stock of EWSO on October 14, 2011. On September 20, 2012, certain of the assets and business of EWSO were physically transferred to Two Fat Greek, LLC. In 2013, the company acquired 100% of Surf Investments and entered into a series of lease arrangements through XuFu which was previously consolidated as a Variable Interest Entity. While the lease agreements are still in force and generating revenues, the company is working with XuFu to ensure that sufficient operational and financial controls are in place to warrant consolidation and has de-consolidated for the purposes based upon the suspension of the management and related agreements creating the VIE. It is expected that this will be resolved in the second quarter of 2014.

Our Invested-Asset Business includes primarily our significant Operation in China. Our decision to shift
operations to the Invested-Assets group meant a shift of nearly $20Million in revenue. Our decision to
move the operations was done after careful consideration and was ultimately made to give us time to
strengthen the controls and compliance foundations necessary to be consistent with our commitment to
remaining a SEC fully reporting public company.

Expectations for 2014 are of three operational ePlant in three different continents by the end of the year. While the ePlants in Cincinnati and Geneva will be upgrades of existing technology, those will be new facilities using the best and most efficient technologies delivered on EWSI specs. A fully deployed ePlant can generate an annualized revenue stream of over $9M with basic working shifts and up to $36M for a continuous operation. The recent agreement with Chinese Technology firm Loyalty has generated the optimal strategy to implement a fully functional ePlant quickly and efficiently with a goal to enable implementation in just 6 months from the initial order of the hardware.

EWSI is developing, with its technology partners, miniaturized recycling equipment to be provided to local partners in order to achieve a more efficient transportation. Further efforts have been put into expanding implementation of equipment for recycling of air conditioning hardware and refrigerators. Those two specific home appliances are becoming a sensitively big number in the ewaste stream and providing a complete recycling solution, including insulation. Recent developments with a US R&D firm brought into signing a letter of interest to test a Rare Earths Elements (“REE”) sorting technology into one of the EWSI’s operational sites in the US. REE sorting is one of the last step into achieving the 100% no-landfill policy to which EWSI has voluntarily committed.