Plastic2Oil Inc (PTOI)

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Comments from Nick Terranova (Chief Financial Officer)12/10/13 AGM

Since mid-August, we have made some positive strides in decreasing our hard monthly operating costs and overall cash burn. Not only have we decreased the amount we are spending
on feedstock, but we have also been running efficiently in terms of our workforce at our Niagara Falls, New York plant.
We’ve also seen significant cash savings in the months since closing our recycling center.
We have also decreased any type of spending that is not relevant to our goal of making fuel. This includes a significant curtailment of any spending related to facility upgrades or improvements to the property and buildings here in Niagara Falls.
Although SG&A costs were approximately $2.73M during the third quarter of 2013, a portion of this expense, approximately $1M, was related to non-cash stock-based compensation charges for employees, and also the one-time immediate vesting of options of prior executives.
Additionally, costs related to severances paid in cash were approximately $180k. We are continuously working to keep spending at a minimum, and believe we are executing in that regard successfully.