JBI, INC files 10-Q Quarterly report

JBI, INC - 10-Q Quarterly report Filing Date 2010-08-13

http://www.sec.gov/Archives/edgar/data/1381105/000121390010003178/f10q0610_jbi.htm

The Company currently owns five P2O processing machines including the original desk-top unit, a 1-ton unit which will continue to be used for research and development purposes as needed, a 20T processor located at the Company’s Niagara Falls location, as well as component parts that have been procured to assemble two additional production size processors.

The Company believes that these machines are capable of converting waste plastic to oil through a process using a chemical catalyst. The currently operating machine is a 20 metric-ton processor intended for commercial use. The Company intends to assemble more of these machines, which it will own and manage itself, or license to commercial operators in the United States, Canada and elsewhere.

Through a joint venture with a third party, the Company plans to install machines intended for international use on ships that will travel overseas. The machines have undergone extensive testing to determine whether, among other things, they satisfy air quality standards enforced by the New York Department of Environmental Conservation (“DEC”). To date, test results indicate that the machines comply with these standards. The Company is operating its 20T processor to gather data for a DEC air permit to allow full commercial production.

The bulk fuel blending site enables the Company to:

1. Store fuel from our P2O processors.
2. Blend additives (if required) to bring our fuel to a standard that permits the wholesale/commercial/retail sale of our fuel.
3. In-house testing of blended fuel without the cost and delays of using external laboratories.
4. Distribute our fuel to commercial and retail customers.
5. Load four tanker trucks simultaneously through our bottom-loading rack.
6. Unload tanker trucks through a separate unloading rack.
7. Inject butane or ethanol consistent with industry practices.
8. Flexibility to blend fuels including: gasoline, diesel, kerosene, furnace oil, and specialty fuels.

By acquiring the bulk fuel blending site, JBI is not dependent on 3rd party fuel refining, processing, testing, sales, and distribution. The site will service local JBI processors and enables the Company to maximize the sale price of the output by selling further down the value chain. The output from the process can still be sold to refineries at market rates.

"In July 2010, the Company scheduled a tentative date in August for an air permit test for its first production P2O processor. The configuration of the processor is in working condition and has allowed the stack test to be scheduled, contingent upon the availability of testing and regulatory attendees. The Company intends to operate the processor in full commercial capacity upon receipt of the air permit."