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Thursday, November 08, 2012 5:47:18 PM
Sales P20 3rd Q 189,634
Cost of Sales $ 188,958
For our P2O business, cost of sales consists of costs to procure the appropriate material for our processors as well as the costs of our Canadian Recycling Facility for processing and delivery of waste materials. Additionally, we incur costs to operate our P2O processors in Niagara Falls, NY.
These costs related to procurement, processing and transportation of material feedstock can vary greatly depending upon the type and quality of material, distance from our facilities and pre-processing required to prepare it to be fed into our P2O processors. As we continue to grow and have a need for more waste material, we will continue to refine our process and processing abilities in order to improve throughput and improve our cost structure.
Our longer term strategy regarding this feedstock is to identify sources and channels at a significantly lower cost than paid during the quarter, in order to not only maximize revenues and processor up-time, but also to maximize our gross profit
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