Plastic2Oil Inc (PTOI)

[Artiztic1]

You left out this part "does not require further modifications" it would be interesting to know what happened from not needing any further modifications, to what appears to be almost dead in the water for the second quarter.


"The second processor was fully assembled from rack modules in approximately 8 weeks. The second processor was debugged within two weeks of assembly. Remarkably, only two components required replacement during debugging, due to the fact that these components were deemed non-functional upon arrival. The second processor has been converting plastic at 2000 lbs/hr and producing fuel since it was initially debugged. The processor does not require further modifications and therefore our focus going forward is to maximize fuel sales and build more processors."


http://www.sec.gov/Archives/edgar/data/1381105/000121390012001206/f10k2011_jbi.htm

The SAIC test was a 3 day period from April 25-27.

According to another poster, IR said they spent 3 weeks "getting it just right" even if we wipe out all of April for getting it just right, then what happened to the other two months in the same quarter? The second quarter report only shows 179,420 in sales which were still being combined with cardboard recycling at that time.

The company says that they have 75% up time, there were 61 days in the remaining Quarter without counting April, or as the company claims 46 days of uptime. 46 days at $11,968 each would equal $550,528 for just processor number two running "just right".

20 TPD, 109 BBL's per day at 109.80 per barrel = 11,968 in revenue per day, or $550,528.

JBI reported P20 sales that included cardboard sales at 179,420 for the second quarter. I believe the last time they broke out cardboard sales was the 3rd Quarter 2011, at that time cardboard sales were 55,075.00.

Assuming no cardboard growth, backing out the last reported cardboard sales would leave 124,345 for second quarter fuel sales. We know during the SAIC test according to the company they successfully made fuel for three days straight or about another 36K of fuel.

We didn't learn that processor one was broke until the AGM by the new CEO. JBI signed the 1st Quarter report on May 15th 2012, with no mention of processor one being broke, so let's just assume that it broke the day after he signed the first Quarter report, that means it had about 34 days of uptime out of 45 (75%) prior to breaking or 406,912 of fuel production that should have been made according to JBI's statements.

JBI reported 179,420 in P2O sales for the second quarter, backing out previous reported cardboard sales roughly 124,345 in possible fuel sales, from what should have been 406,912 for processor one, again, assuming it broke the day after JBI signed the 10K. Procesor number two made fuel for three days in April worth roughly 36K and should have made 550,528 more for the remaining quarter.

Both processors should have made a total of 993,440.00 with 75% uptime.

Instead they reported P2O sales of 179K with roughly 55k in cardboard lumped in.

If we go further and speculate that procssor number one didn't run during April because of the SAIC test that would still leave 2 weeks to the 10K which reported no problems with one or two, or 134,640 for number one, and what should have been 586K for number two in quarter two, or 720,640 in total.

It's been reported by others who attended the AGM that even with the current petcoke design the processor is good for 75% uptime.

If the design was good enough for 75% uptime, then what happened in quarter two that resulted in roughly 125K in fuel production out of a possible 720K, after spending almost a month getting processor two "just right", while shutting processor one down for the test, and with processor one possibly breaking the day after the 10K?