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Here is the filing issued by JBI with regards to the Wells Notice.
We have not seen any documents from the SEC Division of Enforcement.
http://www.sec.gov/Archives/edgar/data/1381105/000121390011003788/0001213900-11-003788-index.htm
Item 8.01 Other Events
On July 14, 2011, the staff of the Securities and Exchange Commission’s (SEC) Division of Enforcement issued a “Wells Notice” to JBI, Inc., ( the “Company”) indicating that the staff intended to recommend that the SEC file a civil lawsuit alleging that the Company violated certain provisions of the federal securities laws . Based on communications with the Enforcement staff, the Company believes that the proposed lawsuit relates to the Company’s subsequently restated financial statements for the third quarter of 2009, which were included in its Form 10-Q filed on November 16, 2009 and its financial statements for the year ended December 31, 2009, which were included in its 2009 Form 10-K filed on March 31, 2010. The restatement concerned the Company’s valuation of media credits, accounting for certain acquisitions, and equity issuances. Based on information obtained from the Enforcement staff, the Company believes that the staff may also recommend naming one or more current and former officers of the Company as defendants in the proposed lawsuit.
Under the SEC’s procedures, a Wells Notice indicates that the SEC Enforcement staff has decided to recommend instituting litigation, but the Commission itself has not decided whether or not to approve such a recommendation. The Company has the opportunity to respond to the SEC staff before a decision is made whether to take any adverse action. The Company produced a large quantity of documents, and cooperated with the Enforcement staff, with regard to the investigation preceding the Wells Notice.
The Company cannot predict the outcome of the dispute with the SEC, including whether a lawsuit will be filed or the terms of any settlement that may be reached. The Company has been given an opportunity to respond to the Wells Notice, and will decide how to proceed based on consultation with its litigation counsel.
To the best of the Company’s knowledge, the Enforcement staff’s concerns do not currently encompass matters unrelated to the restatement. The Company took a number of proactive steps in connection with the restatement, including hiring additional accounting staff members, retaining a reputable, top-30 accounting firm (WithumSmith+Brown) to provide relevant expertise, and upgrading its accounting software. Previously, on May 21, 2010, the Company disclosed that its financial statements for the indicated time periods should no longer be relied upon.
The Company is deeply concerned about the recent significant trading activity and stock price decrease, which were unaccompanied by any Company disclosures during the 48 hours prior to receiving the Wells Notice. The Company was unaware of the notice until shortly prior to its receipt, and members of management did not trade in the Company’s stock during this period.
The Company does not anticipate that the notice will negatively impact its business operations.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized
JBI, INC.
Date: July 20, 2011
By:
/s/ John Bordynuik
John Bordynuik
Chief Executive Officer
Hard to tell the current OS as this information is dated.
Whose job is it to update this information? Is there another site or filing that has current information?
JBII Security Details
Share Structure
Market Value1 $110,359,066 a/o Jul 21, 2011
Shares Outstanding 55,179,533 a/o May 19, 2010
Float 37,210,000 a/o Mar 31, 2010
Authorized Shares 150,000,000 a/o Mar 03, 2010
Par Value 0.001
Shareholders
Shareholders of Record 2,000 a/o Jul 09, 2010
Short Selling Data
Short Interest 116,952 (10.21%)
Jun 30, 2011
Significant Failures to Deliver No
Transfer Agent(s)
Pacific Stock Transfer Co.
http://www.otcmarkets.com/stock/JBII/company-info
What the Wells Notice is about:
All this stuff:
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RESTATEMENT
Restatement
The Company has RESTATED its previously issued consolidated financial statements for the period ending September 30, 2009 for matters related to the following previously reported items: (1) the original accounting for the acquisitions of Javaco and Pak-It, which was improperly recorded as a reverse merger, whereby pre-acquisition operations of the acquired entities were erroneously reflected in the operations as originally reported, and (2) the valuation and subsequent impairment of media credits. The accompanying financial statements for the quarter ending September 30, 2009 have been RESTATED to reflect the corrections. The effect of this RESTATEMENT to the financial statements is a decrease in total assets of approximately $13,187,000, an increase in net loss for the nine months ended September 30, 2009, of approximately $1,110,000 and a decrease in equity of $10,343,000.
The following is a summary of the restatements for the nine months ended September 30, 2009:
Write off of previously recorded media credits $ (1,000,000)
Decrease in income due to change in acquisition accounting for Pak-It (1,616,600)
Decrease in income due to change in acquisition accounting for Javaco (596,213)
Decrease in income due to change in acquisition accounting for John Bordynuik, Inc. (126,569)
Decrease in operating expenses due to change in acquisition accounting 1,256,983
Increase in net interest expense due to change in acquisition accounting (141,468)
Increase in other income due to change in acquisition accounting 45,110
Increase in net income from reclassifications and timing corrections 1,068,323
Total reduction in September 30, 2009 net earnings $ (1,110,434)
Decrease in the valuation of media credits $ (9,997,134)
Decrease in the value of assets acquired from John Bordynuik, Inc. (572,102)
Decrease in the value of goodwill and other assets recorded in conjunction with the acquisition of Javaco and Pak-It (2,360,990)
Decrease in assets from other adjustments (256,432)
Total reduction in September 30, 2009 total assets $(13,186,657)
http://www.sec.gov/Archives/edgar/data/1381105/000121390010004885/f10q0909a1_jbi.htm
Do you have a copy of the original SEC Wells Notice? Or are you quoting the 8K filed by JBI?
The SEC just admitted right to your face that JBII has done nothing wrong in the last 2 years other than restatements on financials from 2 years ago based on using a wrong accounting method for noncash items with no allegation of any kind of fraud whatsoever.
That chapter is basically behind us now. Not a single thing about P2O or any of a million half-baked conspiracy theories. Do a little googling search on restatement fines. They're like parking tickets.
"The Company does not anticipate that the notice will negatively impact its business operations."
Are you talking about the 10K/A or the 8K? 10K/A was with regards to Pakit. 8K is much more than just Pakit. See areas I have "bolded".
10K/A
Management’s Discussion of Material Weakness
These material weaknesses are a result of a lack of policies and procedures, with the associated internal controls, to appropriately address routine transactions, as well as a lack of a sufficient number of qualified personnel to timely account for such transactions in accordance with U.S. GAAP. Management has identified the following groups of control deficiencies, each of which, in the aggregate, represents a material weakness in the Company’s internal control over financial reporting as of December 31, 2010.
These deficiencies exist within Pak-It, which was a private company prior to being acquired by the Company, and not subject to audits or policies and procedures that necessitate being a public company. These deficiencies in internal controls resulted in the recording of numerous audit adjustments and delayed our financial statement closing process for the fiscal year ended 2009. The Company has been working towards eliminating these deficiencies by instituting new policies, procedures, and accounting systems. However, to the extent these deficiencies continue to exist, the accuracy and time lines of financial reporting may be adversely affected.
57
The significant deficiencies related to Pak-It’s internal control systems are from an inadequate design for internal processes related to the gathering and inputting of sales and purchasing information, and the relay of such information to operations, shipping and receiving. The work environment and organizational culture of Pak-It was considered unsatisfactory by the Company, with regards to the internal control reporting standards imposed on public companies, and more specifically imposed pursuant to the Sarbanes-Oxley Act. Pak-It’s organizational culture and computer software did not foster an environment where supervisors or controllers could be held accountable for specific transactions or operational initiatives. The largest component of this deficiency was in Pak-Its accounting and order-tracking software, which was a DOS program developed in-house at Pak-It during the 1980s. Pak-It has now, as of April 4th 2011, gone live with a new accounting software package that will enhance accountability and efficiency in purchasing, receiving, operations, sales, inventory management, and shipping. The Company is also working to limit deficiencies by consolidating Pak-It’s product line, and developing an internal computer network to host the new accounting software, which will provide the appropriate access levels for designated job positions.
Management acknowledges its responsibility for internal controls over financial reporting and seeks to continually improve these controls. In order to achieve compliance with Section 404 of the Sarbanes Oxley Act, we are performing system and process documentation and evaluation needed to comply with Section 404, which is both costly and challenging. We believe our process for documenting, evaluating and monitoring our internal control over financial reporting is consistent with the objectives of Section 404 of the Act.
8K
On July 14, 2011, the staff of the Securities and Exchange Commission’s (SEC) Division of Enforcement issued a “Wells Notice” to JBI, Inc., ( the “Company”) indicating that the staff intended to recommend that the SEC file a civil lawsuit alleging that the Company violated certain provisions of the federal securities laws . Based on communications with the Enforcement staff, the Company believes that the proposed lawsuit relates to the Company’s subsequently restated financial statements for the third quarter of 2009, which were included in its Form 10-Q filed on November 16, 2009 and its financial statements for the year ended December 31, 2009, which were included in its 2009 Form 10-K filed on March 31, 2010. The restatement concerned the Company’s valuation of media credits, accounting for certain acquisitions, and equity issuances. Based on information obtained from the Enforcement staff, the Company believes that the staff may also recommend naming one or more current and former officers of the Company as defendants in the proposed lawsuit.
Under the SEC’s procedures, a Wells Notice indicates that the SEC Enforcement staff has decided to recommend instituting litigation, but the Commission itself has not decided whether or not to approve such a recommendation. The Company has the opportunity to respond to the SEC staff before a decision is made whether to take any adverse action. The Company produced a large quantity of documents, and cooperated with the Enforcement staff, with regard to the investigation preceding the Wells Notice.
The Company cannot predict the outcome of the dispute with the SEC, including whether a lawsuit will be filed or the terms of any settlement that may be reached. The Company has been given an opportunity to respond to the Wells Notice, and will decide how to proceed based on consultation with its litigation counsel.
To the best of the Company’s knowledge, the Enforcement staff’s concerns do not currently encompass matters unrelated to the restatement. The Company took a number of proactive steps in connection with the restatement, including hiring additional accounting staff members, retaining a reputable, top-30 accounting firm (WithumSmith+Brown) to provide relevant expertise, and upgrading its accounting software. Previously, on May 21, 2010, the Company disclosed that its financial statements for the indicated time periods should no longer be relied upon.
The Company is deeply concerned about the recent significant trading activity and stock price decrease, which were unaccompanied by any Company disclosures during the 48 hours prior to receiving the Wells Notice. The Company was unaware of the notice until shortly prior to its receipt, and members of management did not trade in the Company’s stock during this period.
The Company does not anticipate that the notice will negatively impact its business operations.
Item 9.01 Financial Statements and Exhibits.
Pak-it concerns were in the 10K/A.
The 8K is about a Wells Notice.
I know it can be hard to keep it all straight.
There are 900 entries for Wells Notice on the link you provided for the past 4 years. Some are multiple posts for the same company. There are over 15,000 publicly traded companies. JBI is in a very special group! Top 2%!
New York City agencies issued 9,955,441 parking tickets from July 2007 to June 2008. Population of NYC 8,008,278. You have a 124% chance of getting a ticket in NYC.
So how is a Wells Notice is like a parking ticket?
Could be breaking news - Sales to Coco!
True. A lot has changed in 2 years.
Alternatively, JBII could ask to increase the volume/hour put through the machine. This was a projection two years away. JMO
Thanks again Rawnoc. Can you post this information again tomorrow?
Item 8.01 Other Events - SALES
As of July 20, 2011, JBI, Inc. (“JBI” or the “Company”) has shipped over 60,000 Litres of Petroleum Distillate to Coco Asphalt Engineering, A division of Coco Paving, Inc. (“Coco Asphalt”), pursuant to the Agreement executed June 10, 2011. The Company will continue to ship fuel on a weekly, per demand basis at a cost of $109.80 per barrel.
http://www.sec.gov/Archives/edgar/data/1381105/000121390011003790/f8k072011_jbi.htm
Equals 3 days of processed fuel.
The 20T processor processes approximately 20 tonnes per day or 40,000lbs. Seems to be some confusion. The permit allows for 2000lbs/hour to be processed. If they run the processor 24 hours a day, these numbers will be slightly higher at approximately 123 barrels per day or $13,407.00 per day at $109.00/barrel.
20T = 40,000lbs = 18144kg
1kg feedstock = 1 liter of fuel = .26 gallons
18144kg = 4793 gallons
1 barrel holds approximately 42 gallons
4793 gallons = 114 barrels
163 processors would be needed to run 20,000 barrels per day
4 processors would be needed to run 20,000 gallons per day
Anyone check for additional filings? If the 10K/A amendment 1 was immaterial, why was it filed? I still say it opens the door for a possible restatement.
Looks like the bear raid ran out of steam and POPPED because nobody was dumb enough to fall for an immaterial routine amendment filing about accounting software being spun as a "restatement"
What does that do to the pps?
What? No mention of the 8,470,517 restricted shares added since
Friday? Or the 103,500 added to the float since Friday? The O/S
is now almost back to what it was before JB 'gave up' his shares
~16 months ago.
Have you decided when you are going by the plant & other facilities?
MAYBE. WE'LL NEVER KNOW
Those trades were sell, buy, sell correct? So it wasn't 30K getting in.
Looks like someone wanted out.
Not according to this filing. Looks like it may still be in development.
Pak-It has now, as of April 4th 2011, gone live with a new accounting software package that will enhance accountability and efficiency in purchasing, receiving, operations, sales, inventory management, and shipping. The Company is also working to limit deficiencies by consolidating Pak-It’s product line, and developing an internal computer network to host the new accounting software, which will provide the appropriate access levels for designated job positions.
They started the new accounting software at Pak-It at the start of this fiscal did they not?
I remember something about their software in prior filings but don't have the time to look it up.
Seriously? Change the language?
This says basically that the Pakit accounting is off. I'm thinking another round of amendments on the way.
On the other hand....maybe as part of uplisting to the TSX the accountants/lawyers wanted them to change the language????????........z
You didn't say anything about issues..........just about nitpicking.
I said nothing about any SEC issues.....don't put words into my mouth.......z
Zardiw Member Level Grandfathered Member
Share Monday, July 18, 2011 9:50:10 PM
Re: MorningLightMountain post# 120426 Post # of 120484
Nitpicking by the SEC due to frivolous complaints by persons 'unknown' no doubt.........z
TSX? Not sure this has anything to do with that. It seems to be about Pakit's accounting and software. I'm sure I read something in a filing that they had updated the software. More than likely it has to do with revaluing things to prepare for the sale of Pakit's assets as has been mentioned numerous times on this board and at the AGM.
When are you going? I'll be in that area in the next couple of weeks.
Thanks! Looking forward to the pictures. Here are some addresses.
Processing facility:
20 Iroquois St
Niagara Falls, NY 14303
Corporate office:
1783 Allanport Road
Thorold, Ontario Canada L0S 1K0
905-384-4383
Blending facility
Allanport Road
Look for this:
http://maps.google.com/maps?oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&q=jbi+thorold+ontario&fb=1&gl=us&hq=jbi&hnear=0x89d34ff27154bc97:0x3b0d481719e3e990,Thorold,+ON,+Canada&ei=g24kTpGtOML20gGpmunUAw&sa=X&oi=local_result&ct=image&ved=0CAQQtgM&cid=0,0,12828619695866304516
I believe the recycling facility is on Allanport as well.
Authorized shares unlimited?
DOMK Security Details
Share Structure
Market Value1 $41,929,960 a/o Jul 15, 2011
Shares Outstanding 36,460,835 a/o Oct 12, 2010
Float 4,000,000 a/o Jun 27, 2008
Authorized Shares Unlimited a/o
Par Value 0.001
Shareholders
Shareholders of Record 60 a/o Aug 20, 2010
Good way to do research. Have you had any issues reaching anyone at the company?
My belief is based in doing research and talking with the people involved, both within the company and outside the company.
A friend of mine called the company Thursady and Friday no answer...dont know how pipe was successful....
7/15
I spoke to someone at JBI today. Nothing has changed. They are shipping a tanker a week to Coco. Not sure if any sales will be recorded for the Q to be reported in August. There have been no follow up sales to OXY so far but they are expected. Rock Tenn has been in after the acquisition but there has been no further progress. They are just as baffled as we are in regards to the stocks behaviour and don't know why.
My theory for what its worth is that it perhaps did not belong at $4.20 which would have put a value of about $200 million on the company. For a company with modest sales, that may have been to much. From a technical perspective for what its worth, it may have been a massive breakout pullback based on a massive move to $4.20 in very short order.
However I am relieved that the business plan is still on track according to this source.
Not the same thing. http://en.wikipedia.org/wiki/Bleach
Love Canal was a very scary time, especially if you lived in the area.
BioHazard Warning: Do they allow bleach
in toilet bowls in NY?
You can generate free chlorine gas if not careful to flush before use! LOL
You're right Paula. See this post from Justice.
Justice37 Member Profile Justice37 Member Level
Share Saturday, January 29, 2011 7:47:11 PM
Re: None Post # of 120282
Click to learn more...
Why JBI isn't processing PVC in Niagara Falls?
According to John Bordynuik the JBI P2O Processor can convert PVC easily. The reason it isn't allowed at the Niagara Falls, New York site is because they have to be sensitive to the needs of the community they are in. Niagara Falls contains the area known as Love Canal, an area that had national attention in the 70's as a result of toxic waste found buried beneath the neighborhood put there by Hooker Chemical.
http://en.wikipedia.org/wiki/Love_Canal
In particular, the toxins were disposed of at the Hyde Park dump, not all that far from the JBI P2O Factory is located. It is where 80,000 tons of waste, some of it hazardous material, was dumped from 1953 to 1975.
http://www.epa.gov/region2/superfund/npl/0201306c.pdf
The toxin's in particular, benzine and dioxin, had a disastrous effect on the health of the residents whose homes were built in that area.
Since they are a privately held company, no one knows how much Agilyx has sold. http://www.agilyx.com/about-us/faq.html And Agilyx is only one of the other companies emerging in this market. To have any sales, including P2O, is important. I wasn't aware Agilyx made dog food.
They are limited to processing a maximum of 2000lbs per hour per processor per the permit. http://www.sec.gov/Archives/edgar/data/1381105/000121390011003255/f8k061411ex99ii_jbi.htm
They currently are not allowed to process PVC per the permit.
You said he was a 10% owner. That's how this whole thread started.
Bigfoot13
Share Sunday, July 17, 2011 9:59:20 AM
Re: None Post # of 120168
Click to learn more...
Who is Bagai Robin? He is a 10% owner and has aquired a boatload of shares. What does that all mean to JBII if anything.
That's only showing 75,000 shares. How many does he need to be a 10% owner?
Thank you Justice. And I remembered it existed - just did not know the capacity or if it was being used for storage.
From Wiki:
Over-the-counter market
Over-the-counter (OTC) or off-exchange trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. It is contrasted with exchange trading, which occurs via facilities constructed for the purpose of trading (i.e., exchanges), such as futures exchanges or stock exchanges. In the U.S., over-the-counter trading in stock is carried out by market makers that make markets in OTCBB and Pink Sheets securities using inter-dealer quotation services such as Pink Quote (operated by Pink OTC Markets) and the OTC Bulletin Board (OTCBB). OTC stocks are not usually listed nor traded on any stock exchanges, though exchange listed stocks can be traded OTC on the third market. Although stocks quoted on the OTCBB must comply with United States Securities and Exchange Commission (SEC) reporting requirements, other OTC stocks, such as those stocks categorized as Pink Sheets securities, have no reporting requirements, while those stocks categorized as OTCQX have met alternative disclosure guidelines through Pink OTC Markets. An over-the-counter contract is a bilateral contract in which two parties agree on how a particular trade or agreement is to be settled in the future. It is usually from an investment bank to its clients directly. Forwards and swaps are prime examples of such contracts. It is mostly done via the computer or the telephone. For derivatives, these agreements are usually governed by an International Swaps and Derivatives Association agreement.
This segment of the OTC market is occasionally referred to as the "Fourth Market."
The NYMEX has created a clearing mechanism for a slate of commonly traded OTC energy derivatives which allows counterparties of many bilateral OTC transactions to mutually agree to transfer the trade to ClearPort, the exchange's clearing house, thus eliminating credit and performance risk of the initial OTC transaction counterparts.
Do you know the current fuel storage capacity?
I know about the tanks from the DEC site that hold approx 28,000 gallons(about 5 days of fuel from 1 20 ton processor).
http://www.dec.ny.gov/cfmx/extapps/derexternal/abs/details.cfm
Do they have additional storage facilities?
Using your grab any date method, I've come up with the following:
JBII since 6/15/2011 down -104.43%
REPR since 7/14/2011 down -20.59%
BDVI since 5/13/2011 down -65.29%
DOMK since 5/23/2009 down -107.83%
JBII +126% since Monday, February 21, 2011 3:17:10 PM
DOMK +500% since 03/14/2011 07:25:37 AM
BDVI +142% since 04/01/2011 07:38:46 AM
REPR +118% since 04/03/2011 12:27:58 PM
What else do you not like so that I can load up and make triple digit percentage gains and fast?
Then shouldn't you stop getting my posts limited on those boards?
You must have misunderstood my post. I asked for the YOY numbers you have been so good about posting. TYIA
JBI has always respected and taken seriously the trust and financial commitment of our shareholders. JBI's policy has been, and will continue to be, transparency and open dialogue with our investors to the extent allowed by SEC rules. The Company looks forward to building an even stronger relationship with shareholders as our alternative oil and gas company grows. http://www.plastic2oil.com/investor-relations.aspx
Poster 1: This poster was challenged as he had speculated about the recent stock movement. He took the time to make a call to JBI and posted what he was told. We know about the 1 shipment to OXY(public information) and we know about the Coco contract(public information). We didn’t know that they were already shipping to Coco.
I spoke to someone at JBI today. Nothing has changed. They are shipping a tanker a week to Coco. Not sure if any sales will be recorded for the Q to be reported in August. There have been no follow up sales to OXY so far but they are expected. Rock Tenn has been in after the acquisition but there has been no further progress. They are just as baffled as we are in regards to the stocks behaviour and don't know why.
My theory for what its worth is that it perhaps did not belong at $4.20 which would have put a value of about $200 million on the company. For a company with modest sales, that may have been to much. From a technical perspective for what its worth, it may have been a massive breakout pullback based on a massive move to $4.20 in very short order.
However I am relieved that the business plan is still on track according to this source.
Poster 2: Is challenging the post. Why challenge good information that is positive?
I think you misunderstood. They sold multiple tankers since the NYSE: OXY sale through June 11 so of ourse there will be sales in the report. CoCo deal involves shipping of tankerS plural each week, your contact repeating the public info.