The DEC people must have back strain by now.
Auntie Joyce and Uncle Glenn must be looking forward to those regular mortgage payments, and doing their own jumping up and down.
NOTE 7 – LONG-TERM DEBT
Long term debt consists of the following at June 30, 2010:
MORTGAGE note payable to bank in monthly installments of $1,610 (Canadian dollars), 7.0% interest only, due on July 15, 2015, secured by office building and land $263,358
The debt matures on July 15, 2015.
....
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2010, we had $1,945,594 cash on hand. The Company is developing a cash plan to help manage future expenditures.
During the quarter the Company purchased property and equipment of $819,360 principally relating to development of the P2O processor and to upgrade the fuel blending site, bringing the total investment in property and equipment to $1,475,478 year-to-date. Some specific investments include approximately $130,000 for the fuel blending site and $25,000 for equipment relating to the site as well as approximately $140,000 for parts and equipment relating to P2O, including the off-gas compression system, a shredder and a granulator.
During the quarter the Company paid approximately $100,000 toward the purchase of a new corporate office building located in Thorold, Ontario. The purchase price of the building was $369,769 at an interest rate of 7%. The vendor took back the MORTGAGE on the building, which is denominated in Canadian dollars and will fluctuate based on the exchange rate in effect. The Company expects to continue to make significant investments in property and equipment in the future.
While the Company has experienced a cumulative operating loss, a significant portion of the expenses incurred this year have related to non-cash items such as the issuance of stock compensation totaling $3,013,020. The Company expects that its current cash balance will sustain operations until an air permit for its first production Plastic2Oil processor is obtained, resulting in a new revenue stream from the sale of the output from the process. While the Company does not currently have sufficient cash for the next 12 months, in the event that cash is needed before a permit is obtained, the Company has a good current ratio and access to short and long-term borrowings. Additionally, the Company is taking steps to minimize expenses and reduce operating costs.
Historically, we have funded our operations through financing activities consisting primarily of private placements of debt and equity securities with existing shareholders and outside investors. Our principal use of funds has been for capital expenditures and general corporate expenses.
We expect to rely upon funds raised from private placements, as well as future equity and debt offerings to implement our growth plan and meet our liquidity needs going forward. Management believes that our Company’s cash will be sufficient to meet our working capital requirements for the next twelve month period at which point further funding will be necessary. However, we cannot assure you that such financing will be available to us on favorable terms, or at all.
JBI, INC - 10-Q Quarterly report Filing Date 2010-08-13
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