Replies to post #90032 on Plastic2Oil Inc (PTOI)

[jimmenknee]

Abruptness of reg withdrawal? Okay-- concede.

Am I missing something? Is there a filing that suggests the tape business is operating independently of JBII?

Yes.

As for tracking the cash flow of the tape business prior to the acquisition by JBII, I'm not sure how one would accomplish this, and I'm not sure why this would matter to a JBII shareholder who was not also a shareholder of the tape business independently of JBII. It would be an exercise in futility to do so, in my opinion.

Great exercise in following the money and shares; teaches you a lot about equity structure/use and allows you to chuckle at $1 or "no salary" claims-- easy too.

I already provided the links to the Canadian Offerings. When JBI-CAN reverse merged into Expedite2 (now JBI-DE) the financials filed revealed the cash position (bear in mind the offerings started in May-- the Q statement's cash position pretty much shows the only "flow" in was via the offerings):

Cash 7/31/08: 2,664,386
http://www.sec.gov/Archives/edgar/data/1415602/000121390009000261/f8k021009ex99i_expedite2.htm

But the flow out was considerable:

Cash: 10/31/08: 1,554,685
http://www.sec.gov/Archives/edgar/data/1415602/000121390009000261/f8k021009ex99ii_expedite2.htm

The last known cash position was via the S1:

Cash: 1/31/09 1,241,688
http://www.sec.gov/Archives/edgar/data/1415602/000121390009000789/fs1_jbi.htm

So you have "IPO" investment money going where? (Check out the salary structure on page 18)

But the asset purchase agreement from JBI-DE to JBI-NV shows this purchase "price" basis originally:

Assets: $477,600
http://www.sec.gov/Archives/edgar/data/1381105/000121390009001582/f8k062509ex10_310holdings.htm

Which changed to this (added P2O stuff):
Assets: $550,645.64
http://www.sec.gov/Archives/edgar/data/1381105/000121390009001773/f8k062509a1ex99i_310.htm

But the PR talked to purchasing ~ $1.5 million total in assets-- $500k at 1st with an additional $1 mill to follow (now granted you have an asset mismatch with Expedite filings).

310 Holdings Inc. will continue to charge a flat rate fee of $22 per tape for volume data recovery migration services. None of JBI's liabilities are being assumed by 310 Holdings Inc. The fixed assets are presently valued at approximately $500,000 after depreciation. This equipment includes in excess of 15 multi-core HP servers in a cloud configuration, dozens of HP workstations, a complete 40-foot mobile data recovery container loaded with 18 tape drives and JBI technologies to read tapes off-site; another 45 customized tape drives; and other related supporting assets.

In addition, there is approximately $1M in other related hardware and assets that the Company intends to purchase from John Bordynuik Inc. which are presently being inventoried and catalogued for the final purchase.http://www.plastic2oil.com/news/2009-press-releases/20090625-310-asset-purchase-agreement-with-john-bordynuik-inc.aspx

So you have considerable cash and assets (and liabilities) left over and contracts still funneled through JBI-DE-- and then you have the "analysis" (not the "reading") side of the tape reading (courtesy of posters' contributions here). Again with phrasing being important-- wiggle room in your snippet exists IMO. Conveniently then coincidental to file "dark" so we don't get to see financials anymore...

At minimum-- where did the money go-- it drops dead in JBI-DE and who runs that? The CEO with a $1 salary working for JBI-NV :-(

Does it matter? I suspect to the subjective (based on desired outcome) investors no, but it does flavor the story a bit differently to those objective (based on personal risk weighing) or newly interested.