We incurred operating expenses of $918,535 during the six months ended June 30, 2016, compared to $1,790,391 for the six months ended June 30, 2015. This $871,856 decrease was driven by a $280,852 in professional fees decrease from elimination of outside consultants, a $171,407 reduction in compensation from employee layoffs and $421,768 reduction of additional operational expenses. In 2015 the operational cost included approximately $320,000 from the settlement of the class action suit. Tight control on operating expenses provided the approximately $100,000 of additional reduction in operating expenses.

Non-Operating Expenses

Interest Expenses

For the six months ended June 30, 2016, we incurred net interest expense of $364,191 as compared to $293,293 for the six months ended June 30, 2015 on the related party secured promissory and short term notes.

Income Tax Expenses

For the six months ended June 30, 2016, and 2015, we had no federal taxable income due to net losses and recorded a deferred tax asset and a valuation allowance to the extent that those assets are attributable to net operating losses. We recognized the valuation allowance because we are unsure as to the ability to use these assets in the near future due to continued operating losses.

19


Net Loss

We incurred a net loss of $1,282,760 for the six months ended June 30, 2016 as compared to a net loss of $2,095,213 for the six months ended June 30, 2015. These losses consisted of losses from continuing operations of $1,282,760 and $2,077,799 for the six months ended June 30, 2016 and 2015, respectively, and gains from discontinued operations of $0 and $17,414 for the six months ended June 30, 2016 and 2015, respectively.

PLASTIC2OIL, INC. FORM 10-Q For the quarterly period ended June 30, 2016
https://www.sec.gov/Archives/edgar/data/13811...rm10-q.htm