Operating Expenses
The Company’s operating expenses for 2010 have exceeded gross margin by $5,367,949, resulting in a net loss. Many of the expenses incurred in 2010 have been non-cash and/or non-recurring.
The Company’s current run rate on recurring expenses is approximately $1,000,000 per quarter. This includes cost of salaries and selling, general and administrative expenses.
Year-to-date, stock compensation has been issued and expensed totaling $3,013,020, with $643,120 occurring in the second quarter. This non-cash expense will likely continue in future quarters but the amount will vary based on number of shares issued and the stock price on the date of issuance.
The Company has incurred many non-recurring expenses in preparation for the commercialization of its Plastic2Oil technology and the operation of its fuel blending site.
Approximately $24,000 was spent on one-time services for the blending site, including environmental, tank, pipeline and gasket repairs, corrosion system upgrades as well as general repairs and upgrades such as having the facility painted.
Relating to Plastic2Oil, the Company has invested around $28,000 in security equipment, $14,000 in fencing around the property, $2,000 for a guard building, $4,000 for engineering support relating to the off-gas and sensors, $25,000 for chemical engineering and $10,000 for general engineering relating to the processor.
Additional expenditures include approximately $23,000 toward new software to centralize accounting and reporting for all of the Company’s operating units. The Company paid approximately $65,000 to host the Annual Shareholders’ Meeting in April in Niagara Falls.
The Company incurred auditing and accounting fees of approximately $178,000 and legal fees of $132,000 during the second quarter.
JBI, INC - 10-Q Quarterly report Filing Date 2010-08-13
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