----

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| Nevada                                                        |   | 90-0822950                        |
|---------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (IRS Employer Identification No.) |

| 20 Iroquois StreetNiagara Falls, NY 14303 |
|-------------------------------------------|

| Large accelerated filer o | Accelerated filer x         |
|---------------------------|-----------------------------|
| Non-accelerated filer o   | Smaller reporting company o |

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|            ● | to provide the information required by Items 10, 11, 12, 13 and 14 of Part III of Form 10-K because a definitive proxy statement containing such information will not be filed by the Company within 120 days after the end of the fiscal year covered by the Original 10-K.; |
|---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|            ● | to provide the certifications required by Item 15 of Part IV of Form 10-K in connection with this Amended Report; and |
|---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|

|            ● | to update the Table of Contents to reflect the above changes. |
|---------------------------------------------------------------------------|---------------------------------------------------------------|

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| PART III |                                                                                           |   |
|----------|------------------------------------------------------------------------------------------------|--------|
|     |                                                                                           |   |
| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                         | 4      |
|     |                                                                                           |   |
| ITEM 11. | EXECUTIVE COMPENSATION                                                                         | 5      |
|     |                                                                                           |   |
| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 15     |
|     |                                                                                           |   |
| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                      | 18     |
|     |                                                                                           |   |
| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                         | 18     |
|     |                                                                                           |   |
| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                     | 18     |

----

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------|--------------------------------------------------------|

| Name           |   | Age    |   | Position                             |
|--------------------------|--------|--------|--------|--------------------------------------|
|                     |   |   |   |                                 |
| Kevin Rauber   |   | 50     |   | President, CEO and Director          |
|                     |   |   |   |                                 |
| Matthew Ingham           |   | 33     |   | Chief Financial Officer and Director |
|                     |   |   |   |                                 |
| Tony Bogolin             |   | 49     |   | Chief Operating Officer              |

----

| ITEM 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

----

| ● | Kevin Rauber, President and Chief Executive Officer, Director;                                                                                                                                                                                  |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                            |
| ● | Matthew Ingham, Chief Financial Officer, Director;                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                            |
| ● | Tony Bogolin, Chief Operating Officer; and                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                            |
| ● | John Bordynuik, former Chief Executive Officer and current Chief of Technology (Mr. Bordynuik is included as a “named executive officer” in this report because he served as our principal executive officer through May 15, 2012.) |

| ● | is competitive in the marketplace;                                                                                                                                             |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                           |
| ● | permits us to attract and retain highly qualified executives;                                                                                                                  |
|    |                                                                                                                                                                           |
| ● | encourages extraordinary effort on behalf of the Company;                                                                                                                      |
|    |                                                                                                                                                                           |
| ● | rewards the achievement of specific financial, strategic and tactical goals by the Company that aligns the interests of management with the interests of our stockholders; and |
|    |                                                                                                                                                                           |
| ● | is financially sound.                                                                                                                                                          |

| ● | base salary and benefits;                      |
|---------|------------------------------------------------|
|    |                                           |
| ● | short-term cash incentive compensation; and    |
|    |                                           |
| ● | long-term equity-based incentive compensation. |

----

| ● | Kevin Rauber, President and Chief Executive Officer – $250,000; |
|---------|-----------------------------------------------------------------------|
|    |                                                                  |
| ● | Matthew Ingham, Chief Financial Officer – $175,000;             |
|    |                                                                  |
| ● | Tony Bogolin, Chief Operating Officer - $200,000.                     |
|    |                                                                  |
| ● | John Bordynuik, former Chief Executive Officer - $275,000             |

| ● | enhance the link among Company performance, the creation of stockholder value and long-term incentive compensation; |
|---------|---------------------------------------------------------------------------------------------------------------------|

| ● | facilitate increased equity ownership by executives; |
|---------|------------------------------------------------------|

| ● | encourage executive retention through use of multiple-year vesting periods; and |
|---------|---------------------------------------------------------------------------------|

| ● | provide competitive levels of total compensation to executive officers if expected levels of performance are achieved. |
|---------|------------------------------------------------------------------------------------------------------------------------|

----

|   Named Executive Officer                   |    | Stock Options Granted |      |
|-------------------------------------------------------|--------------|-----------------------|-----------|
| Kevin Rauber,President and Chief Executive Officer    |    |                  | 500,000   |    |
| Matthew Ingham,Chief Financial Officer                |    |                  | 300,000   |    |
| Tony Bogolin,Chief Operating Officer                  |    |                  | 400,000   |    |
| John BordynuikFormer CEO, current Chief of Technology |         |                  | 4,000,000 |   |

----

| SUMMARY COMPENSATION TABLE                                    |   |
|---------------------------------------------------------------|--------|
| NameandPrincipalPosition                                      |   | Year Ended December 31, |   | Salary($) |   |   | Bonus($) |   |   | Stock Awards($)(1) |   |   | OptionAwards($)(2) |   |   | Non-EquityIncentive PlanCompensation($) |   |   | NonqualifiedDeferredCompensationEarnings ($) |   |   | All OtherCompensation($) |   |   | Total($) |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kevin RauberPresident & Chief Executive Officer, Director |   | 2012 |   |   | 139,421 | (3) |   |   | - |   |   |   | - |   |   |   | 68,513 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 207,934  |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Matthew Ingham Chief Financial Officer, Director              |   | 2012 |   |   | 141,153 | (4) |   |   | - |   |   |   | 50,000 |   |   |   | 68,513 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 259,666 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tony Bogolin Chief Operating Officer                          |   | 2012 |   |   | 100,000 | (5) |   |   | - |   |   |   | - |   |   |   | 39,748 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 139,748 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| John Bordyunik    Former President &  |   | 2012 |   |   | 261,052 | (6) |   |   | 78,350 |   |   |   | - |   |   |   | 1,270,171 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,609,573 | (6) |
| Chief Executive Officer                                       |   | 20112010 |   |   | 216,5066,923 | (7) |   |   | 20,000- |   |   | $  | 196,550— |   |   |   | —— |   |   |   | —— |   |   |   | —— |   |   |   | —— |   |   |   | 433,0566,923 |   |

| (1)   | The amounts reported in this column reflect the fair value on the grant date of the restricted stock awards granted to our named executive officers.  These values are determined by multiplying the number of shares granted by the closing price of our common stock on the trading day of the grant date.  The dollar amounts do not necessarily reflect the dollar amounts of compensation actually realized or that may be realized by our named executive officers. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The amounts reported in this column reflect the fair value on the grant date of the option awards granted to our named executive officers. These values are determined under the principles used to calculate the grant date fair value of equity awards for purposes of our financial statements. The dollar amounts do not necessarily reflect the dollar amounts of compensation actually realized or that may be realized by our named executive officers. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents Mr. Rauber’s salary from May 15, 2012, the date Mr. Rauber became our Chief Executive Officer, through the end of the fiscal year. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Represents Mr. Ingham’s salary from January 9, 2012 , the date Mr. Ingham became our Chief Financial Officer, through the end of the fiscal year. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Represents Mr. Bogolin’s salary from June 25, 2012,  the date Mr. Bogolin became our Chief Operating Officer, through the end of the fiscal year. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Represents Mr. Bordynuik’s compensation of $102,212 in salary and $78,350 in bonus from January 1, 2012 through May 15, 2012, the date of his resignation as our Chief Executive Officer, as well as compensation of $158,840 in salary and $1,270,171 in stock compensation, from May 16, 2012 through December 31, 2012, when Mr. Bordynuik served as the Company’s Chief of Technology.  Mr. Bordynuik also served as our interim Chief Financial Officer from April 9, 2011 through January 9, 2012, the date Mr. Ingham became our Chief Financial Officer. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Amount represents salary for two weeks in 2010, pursuant to Mr. Bordynuik’s employment agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------|

----

| GRANTS OF PLAN-BASED AWARDS |   |
|-----------------------------|--------|
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | All |   |   |   |   |   |   |   |   |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Other |   | All |   |   |   |   |   |   |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Stock |   | Other |   |   |   |   | Grant |   |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Awards: |   | Option |   |   |   |   | Date |   |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Number |   | Awards: |   | Exercise |   | Fair |   |
|                        |   |   |   | Estimated Future Payouts |   |   |   |   |   |   |   |   |   | of |   | Number |   | or |   | Value |   |
|                        |   |   |   |   |   |   | Under |   |   |   |   |   |   |   |   |   |   |   |   | Shares |   | of |   | Base |   | of Stock |   |
|                        |   |   |   | Non-Equity Incentive Plan |   | Estimated Future Payouts Under |   | of |   | Securities |   | Price of |   | and |   |
|                        |   |   |   | Awards |   | Equity Incentive Plan Awards |   | Stock or |   | Underlying |   | Option |   | Option |   |
|                        |   | Grant |   | Threshold |   | Target |   | Maximum |   | Threshold |   | Target |   | Maximum |   | Units |   | Options |   | Awards |   | Awards |   |
| Name                        |   | Date |   | ($) |   | ($) |   | ($) |   | (#) |   | (#) |   | ($) |   | (#) |   | (#) |   | ($ /Sh) |   | ($)(1) |   |
| Kevin Rauber                |   | 05/15/12 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   | - |   |   | - |   | 500,000 |   | $ | 1.50 |   | $ | 548,100 |   |
| Matthew Ingham              |   | 05/15/12 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   | - |   |   | - |   | 300,000 |   | $ | 1.50 |   | $ | 328,860  |   |
|                        |   | 03/19/12 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   | - |   |   | 39,465 |   | - |   |   | - |   | $ | 50,000 |   |
| Tony Bogolin                |   | 06/25/12 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   | - |   |   | - |   | 400,000 |   | $ | 1.50 |   | $ | 397,480 |   |
| John Bordynuik              |   | 05/15/12 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   | - |   |   | - |   | 4,000,000 |   | $ | 1.50 |   | $ | 4,406,315 |   |

| (1) | With respect to the restricted stock and stock options, the fair values are determined under the principles used to calculate the grant date fair value of equity awards for purposes of our financial statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END |   |
|----------------------------------------------|--------|
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |   | Option Awards |   | Stock Awards |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Equity |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Equity |   |   | Incentive |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Incentive |   |   | Plan |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Plan |   |   | Awards: |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Awards: |   |   | Market or |   |
|                                         |   |   |   |   |   |   |   |   | Equity |   |   |   |   |   |   |   |   |   |   |   |   | Number |   |   | Payout |   |
|                                         |   |   |   |   |   |   |   |   | Incentive |   |   |   |   |   |   | Number |   |   | Market |   |   | of |   |   | Value of |   |
|                                         |   |   |   |   |   |   |   |   | Plan |   |   |   |   |   |   | of |   |   | Value of |   |   | Unearned |   |   | Unearned |   |
|                                         |   |   |   |   |   |   |   |   | Awards: |   |   |   |   |   |   | Shares |   |   | Shares |   |   | Shares, |   |   | Shares, |   |
|                                         |   |   | Number of |   |   | Number of |   |   | Number of |   |   |   |   |   |   | or Units |   |   | or Units |   |   | Units or |   |   | Units or |   |
|                                         |   |   | Securities |   |   | Securities |   |   | Securities |   |   |   |   |   |   | of Stock |   |   | of Stock |   |   | Other |   |   | Other |   |
|                                         |   |   | Underlying |   |   | Underlying |   |   | Underlying |   |   |   |   |   |   | That |   |   | That |   |   | Rights |   |   | Rights |   |
|                                         |   |   | Unexercised |   |   | Unexercised |   |   | Unexercised |   |   | Option |   |   |   | Have |   |   | Have |   |   | That |   |   | That |   |
|                                         |   |   | Options |   |   | Options |   |   | Unearned |   |   | Exercise |   | Option |   | Not |   |   | Not |   |   | Have Not |   |   | Have Not |   |
|                                         |   |   | (#) |   |   | (#) |   |   | Options |   |   | Price |   | Expiration |   | Vested |   |   | Vested |   |   | Vested |   |   | Vested |   |
| Name                                         |   | Exercisable |   |   | Unexercisable |   |   | (#) |   |   | ($) |   | Date |   | (#) |   |   | ($) |   |   | (#) |   |   | ($) |   |
| Kevin Rauber                                 |   |   |  - |   |   |   |  500,000 | (1) |   |   |  - |   |   |   |   1.50 |   |      |   |   |  - |   |   |   |  - |   |   |   |  - |   |   |   |  - |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Matthew Ingham                               |   |   |  - |   |   |   |  300,000 | (2) |   |   |  - |   |   |   |   1.50 |   |  - |   |   |  - |   |   |   |  - |   |   |   |  - |   |   |   |  - |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tony Bogolin                                 |   |   |  - |   |   |   |  400,000 | (3) |   |   |  - |   |   |   |   1.50 |   |  - |   |   |  - |   |   |   |  - |   |   |   |  - |   |   |   |  - |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| John Bordynuik                               |   |   | 750,000 | (4) |   |   | 3,250,000 | (5) |   |   | - |   |   |   | 1.50 |   | - |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

| (1) | Represents options to purchase common stock granted to Mr. Rauber on May 15, 2012, which options vest in equal installments of 100,000 shares on each anniversary of the grant date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents options to purchase common stock granted to Mr. Ingham on May 15, 2012, which options vest in equal installments of 100,000 shares on each anniversary of the grant date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents options to purchase common stock granted to Mr. Bogolin on June 25, 2012, which options vest in equal installments of 80,000 shares on each anniversary of the grant date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Represents options to purchase common stock granted to Mr. Bordynuik on May 15, 2012, which options vested on May 15, 2012. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (5) | Represents options to purchase common stock granted to Mr. Bordynuik on May 15, 2012, which options vest in equal installments of 650,000 on each anniversary of the grant date. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name               |   | Year   |   | Fees Earned or Paid in Cash($) |   |   | StockAwards($) |   |   | OptionAwards($) |   |   | Non-Equity Incentive Plan Compensation($) |   |   | Change in Pension Value and Nonqualified Deferred Compensation Earnings($) |   |   | All Other Compensation($) |   |   | Total($) |   |
|--------------------|--------|--------|--------|--------------------------------|--------|--------|----------------|--------|--------|-----------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|----------|--------|
|               |   |   |   |                           |   |   |           |   |   |            |   |   |                                      |   |   |                                                                       |   |   |                      |   |   |     |   |
| Kevin Rauber (1)   |   | 2012   |   |                           | -      |   |           |   | -      |            |   |   | -                                         |   |   |                                                                       | -      |   |                      |   | -      |     |   |   | - |   |   |   | - |   |
|               |   |   |   |                           |   |   |           |   |   |            |   |   |                                      |   |   |                                                                       |   |   |                      |   |   |     |   |   |   |   |   |   |   |   |
| Matthew Ingham (1) |   | 2012   |   |                           | -      |   |           |   | -      |            |   |   | -                                         |   |   |                                                                       | -      |   |                      |   | -      |     |   |   | - |   |   |   | - |   |
|               |   |   |   |                           |   |   |           |   |   |            |   |   |                                      |   |   |                                                                       |   |   |                      |   |   |     |   |   |   |   |   |   |   |   |
| John Bordynuik (2) |   | 2012   |   |                           | -      |   |           |   | -      |            |   |   | -                                         |   |   |                                                                       | -      |   |                      |   | -      |     |   |   | - |   |   |   | - |   |
|               |   |   |   |                           |   |   |           |   |   |            |   |   |                                      |   |   |                                                                       |   |   |                      |   |   |     |   |   |   |   |   |   |   |   |
| John M Wesson      |   | 2012   |   |                           | -      |   |           |   | 60,000 |            |   |   | -                                         |   |   |                                                                       | -      |   |                      |   | -      |     |   |   | - |   |   |   | 60,000 |   |
|               |   |   |   |                           |   |   |           |   |   |            |   |   |                                      |   |   |                                                                       |   |   |                      |   |   |     |   |   |   |   |   |   |   |   |
| Robin Bagai (3)    |   | 2012   |   |                           | -      |   |           |   | 35,000 |            |   |   | -                                         |   |   |                                                                       | -      |   |                      |   | -      |     |   |   | - |   |   |   | 35,000 |   |

| Triggering Event                                                   |    |   | Severance |    |    | Stock BasedCompensationAwards (1) |   |    | Benefits     |         |    | Total   |         |
|--------------------------------------------------------------------|--------------|--------|-----------|---------|--------------|-----------------------------------|--------|--------------|--------------|--------------|--------------|---------|--------------|
| Termination Without Cause as defined in the employment agreement   |    |   | $         | 593,750 |    |                         | $      | 479,588      |    |    | $            | 5,022   |    |    | $ | 1,078,360 |    |
| Termination for Good Reason as defined in the employment agreement |    |   |      | 593,750 |    |                         |   | 109,620      |    |    |         | 5,022   |    |    |   | 708,392 |    |
| Change in Control                                                  |    |   |      | — |    |                         |   | 479,588      |    |    |         | — |    |    |   | 479,588 |    |
| Disability or Death                                                |    |   |      | — |    |                         |   | 109,620      |    |    |         | 5,022   |    |    |   | 114,642 |    |

| (1) | The value of stock based compensation awards is based on the value of the employee's stock options at the grant date of May 15, 2012. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

----

| Triggering Event                                                   |    |   | Severance |    |    | Stock BasedCompensationAwards (1) |   |    | Benefits     |         |    | Total   |         |
|--------------------------------------------------------------------|--------------|--------|-----------|---------|--------------|-----------------------------------|--------|--------------|--------------|--------------|--------------|---------|--------------|
| Termination Without Cause as defined in the employment agreement   |    |   | $         | 415,625 |    |                         | $      | 260,348      |    |    | $            | 582     |    |    | $ | 676,555 |    |
| Termination for Good Reason as defined in the employment agreement |    |   |      | 415,625 |    |                         |   | 109,620      |    |    |         | 582     |    |    |   | 525,827 |    |
| Change in Control                                                  |    |   |      | -       |    |                         |   | 260,348      |    |    |         | — |    |    |   | 260,348 |    |
| Disability or Death                                                |    |   |      | -       |    |                         |   | 109,620      |    |    |         | 582     |    |    |   | 110,202 |    |

| Triggering Event                                                   |    |   | Severance |    |    | Stock BasedCompensationAwards (1) |   |    | Benefits     |         |    | Total |         |
|--------------------------------------------------------------------|--------------|--------|-----------|---------|--------------|-----------------------------------|--------|--------------|--------------|--------------|--------------|-------|--------------|
| Termination Without Cause as defined in the employment agreement   |    |   | $         | 500,000 |    |                         | $      | 357,732      |    |    | $            | 5,022 |    |    | $ | 862,754 |    |
| Termination for Good Reason as defined in the employment agreement |    |   |      | 500,000 |    |                         |   | 79,496       |    |    |         | 5,022 |    |    |   | 584,518 |    |
| Change in Control                                                  |    |   |      | -       |    |                         |   | 357,732      |    |    |         | -     |    |    |   | 357,732 |    |
| Disability or Death                                                |    |   |      | -       |    |                         |   | 79,496       |    |    |         | 5,022 |    |    |   | 84,518 |    |

| Triggering Event                                                   |   | Severance |    |    | Stock BasedCompensationAwards (1) |   |    | Benefits     |         |    | Total |         |
|--------------------------------------------------------------------|--------|-----------|---------|--------------|-----------------------------------|--------|--------------|--------------|--------------|--------------|-------|--------------|
| Termination Without Cause as defined in the employment agreement   |   | $         | 653,125 |    |                         | $      | 3,053,016    |    |    | $            | 3,815 |    |    | $ | 3,709,956 |    |
| Termination for Good Reason as defined in the employment agreement |   |      | 653,125 |    |                         |   | 712,530      |    |    |         | 3,815 |    |    |   | 1,369,470 |    |
| Change in Control                                                  |   |      | -       |    |                         |   | 3,053,016    |    |    |         | -     |    |    |   | 3,053,016 |    |
| Disability or Death                                                |   |      | -       |    |                         |   | 712,530      |    |    |         | 3,815 |    |    |   | 716,345 |    |

----

----

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------|------------------------------------------------------------------------------------------------|

----

| Name                                                         |   | Position with the Company         |    | Shares ofCommonStock |       |   | Percentage of CommonStock Held |   |   | Shares ofSeries APreferredStock |   |      | Percentage ofSeries APreferredStock Held |   |
|--------------------------------------------------------------|--------|-----------------------------------|---------|----------------------|------------|--------|--------------------------------|--------|--------|---------------------------------|--------|-----------|------------------------------------------|--------|
| Kevin Rauber                                                 |   | Chief Executive Officer, Director |    |                 | 110,000    | (1)    |                           |   |   |                            |   | -         |                                     |   |   | - |   |
| Matthew Ingham                                               |   | Chief Financial Officer, Director |    |                 | 539,465    | (2)    |                           | *      |   |                            |   | -         |                                     |   |   | - |   |
| Tony Bogolin                                                 |   | Chief Operating Officer           |    |                 | 80,000     | (3)    |                           | *      |   |                            |   | -         |                                     |   |   | - |   |
| All executive officers and directors as a group (3 persons): |   |                              | 729,465 |                 |       | *      |                           |   |   | -                               |   |      |                                     | -      |   |
|                                                         |   |                              |    |                 |       |   |                           |   |   |                            |   |      |                                     |   |   |   |   |
| 5% Holders                                                   |   |                              |    |                 |       |   |                           |   |   |                            |   |      |                                     |   |   |   |   |
| May 2012 Investor Group(4)                                   |   |                              |    |                 | 20,973,504 | (5)    |                           | 21.6   | %      |                            |   | -         |                                     |   |   | - |   |
| Richard Dunn                                                 |   |                              |    |                 | 4,991,996  | (6)    |                           | 5.4    | %      |                            |   | -         |                                     |   |   | - |   |
| Meyer & Doreen Luskin Family Trust                       |   |                              |    |                 | 4,899,999  | (7)    |                           | 5.3    | %      |                            |   | -         |                                     |   |   | - |   |
| John Bordynuik(8)                                            |   |                              |    |                 | 5,723,846  | (9)    |                           | 6.3    | %      |                            |   | 1,000,000 |                                     |   |   | 100.0 | % |

----

| *   | Less than one (1%) percent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Represents 10,000 shares owned of record and options to purchase 100,000 shares of common stock which are exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (2) | Represents 439,465 shares owned of record and options to purchase 100,000 shares of common stock which are exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (3) | Represents options to purchase 80,000 shares of common stock which are exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (4) | Represents shares held by certain investors in the Company’s May 2012 private placement that filed a Schedule 13D with the SEC as a “group” (the “May 2012 Investor Group”). The information regarding the May 2012 Investor Group was derived solely from the Schedule 13D filed by the May 2012 Investor Group with the SEC on May 25, 2012, as amended and restated by Amendment No. 1 to Schedule 13D filed with the SEC on June 1, 2012, and as further amended and supplemented by Amendment No. 2 to Schedule 13D filed with the SEC on March 8, 2013. Each Reporting Person, however, disclaims beneficial ownership with respect to the shares owned by each of the other Reporting Persons except to the extent of his or its pecuniary interest therein.  |
| (5) | The amount reported includes 1,020,643 shares of Series B Preferred Stock held by the May 2012 Investor Group convertible into 7,144,501 shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| (6) | Includes 427,428 shares of Series B Preferred Stock which are convertible into 2,991,996 shares of common stock.                                                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Includes 342,857 shares of Series B Preferred Stock which are convertible into 2,399,999 shares of common stock.  Meyer Luskin has voting and investment control of the shares owned by the Meyer & Doreen Luskin Family Trust.                                                                                                |
| (8) | Mr. Bordynuik is party to a letter agreement dated May 15, 2012 with the members of the May 2012 Investor Group with respect to, among other things, Mr. Bordynuik’s ability to vote his shares of common stock and Series A Super Voting Preferred Shares, as further described in “Changes in Control” set forth below.  |
| (9) | Represents 4,323,846 shares owned of record, options to purchase 750,000 shares of common stock which are presently exercisable and options to purchase 650,000 shares of common stock which are exercisable within 60 days of the date of this report.                                                                                                |

| Plan Name                                           |   | Number of securities to beissued upon exercise ofoutstanding options,warrants and rights |      |   | Weighted average exerciseprice of outstanding options,warrants and rights |   |   | Number of securities remaining available for future issuance under equity compensation plans |   |
|-----------------------------------------------------|--------|------------------------------------------------------------------------------------------|-----------|--------|---------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|
| Equity Compensation Plans Approved by Shareholders: |   |                                                                                     |      |   |                                                                      |   |   |                                                                                         |   |
| JBI, Inc. 2012 Long-Term Incentive Plan             |   |                                                                                     | 5,240,000 |   |                                                                      | $      | 1.50   |                                                                                         |   |   | 4,721,731 |   |

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| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

|  ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|----------------|----------------------------------------|

| Service Provided          |   |   | Fiscal 2012 |    |      | Fiscal 2011 |   |
|--------------------------------|--------|--------|------------------|---------|-----------|------------------|--------|
|                           |   |   |             |    |      |             |   |
| Audit Fees                     |   |   |             |    |      |             |   |   |   |
| Annual Audit                   |   |   | $                | 455,519 | (1)       |             | $      | 557,210 | (2) |
|                           |   |   |             |    |      |             |   |   |   |
| Audit Related Fees             |   |   |             |    |      |             |   |   |   |
| Assurances and Related Sources |   |   |             | 17,644  | (3)  |             |   |  48,000 | (4) |
|                           |   |   |             |    |      |             |   |   |   |
| Tax Fees                       |   |   |             |    |      |             |   |   |   |
| Tax Services                   |   |   |             | 14,060  | (5)  |             |   | 19,500 |   |
|                           |   |   |             |    |      |             |   |   |   |
| All Other Fees                 |   |   |             |    |      |             |   |   |   |
| Fees for other services        |   |   |             |  - |      |             |   | - |   |
|                           |   |   |             |    |      |             |   |   |   |
| Total Fees                     |   |   |             | 487,223 |      |             |   | 624,710 |   |

----

| (1)    | Includes the review of 2012 Quarterly Reports on Form 10-Q by MSCM, LLP and 2011 audit fees.                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                            |
| (2)    | Includes the review of 2011 Quarterly Reports on Form 10-Q by MSCM, LLP and 2010 audit fees.                                                                                                    |
|   |                                                                                                                                                                                            |
| (3)    | Includes fees for the review and procedures performed on the Company’s filing of a Registration Statement on Form S-8 in conjunction with the 2012 Long Term Incentive Compensation Plan. |
|   |                                                                                                                                                                                            |
| (4)    | Includes fees for review of prior auditor work-papers and work related to client acceptance.                                                                                                    |
|   |                                                                                                                                                                                            |
| (5)    | Fees related to the preparation of an amendment of tax returns for 2009, 2010 and 2011 tax years.                                                                                               |

| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
|----------|--------------------------------------------|

----

|                 | JBI, INC. |
|----------------------|-----------|
|                 |      |   |
| Date: April 30, 2013 | By:       | /s/ Kevin Rauber |
|                 |      | Name: Kevin Rauber |
|                 |      | Title: President and Chief Executive Officer(Principal Executive Officer) |

| Signature                |   | Title                                                          |   | Date           |
|--------------------------|--------|----------------------------------------------------------------|--------|----------------|
|                     |   |                                                           |   |           |
| /s/ Kevin Rauber    |   | Director; President and Chief Executive Officer           |   | April 30, 2013 |
| Kevin Rauber             |   | (Principal Executive Officer)                                  |   |           |
|                     |   |                                                           |   |           |
| /s/ Matthew Ingham  |   | Director; Chief Financial Officer                              |   | April 30, 2013 |
|  Matthew Ingham     |   | (Principal Financial Officer and Principal Accounting Officer) |   |           |

----

| Exhibit No.                  |   | Description                                                                                                                                                                                                                                                      |
|------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |   |                                                                                                                                                                                                                                                             |
| 2.1                          |   | Asset Purchase Agreement, dated February 10, 2012, by and between JBI, Inc. and Big 3 Packaging LLC (Incorporated herein by reference to Exhibit 2.1 to our Current Report on Form 8-K filed on February 16, 2012).                                              |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.1                          |   | Articles of Incorporation of JBI, Inc. (Incorporated by reference to Exhibit 3(a) to our Registration Statement on Form SB-2 filed on December 11, 2006).                                                                                                        |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.2                          |   | Certificate of Amendment to Articles of Incorporation of JBI, Inc. dated January 10, 2007 (Incorporated herein by reference to Exhibit 3.1 to our Quarterly Report on Form 10-Q filed on August 9, 2012).                                                        |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.2                          |   | Certificate of Amendment to Articles of Incorporation of JBI, Inc. dated October 5, 2009 (Incorporated herein by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on October 6, 2009).                                                           |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.4                          |   | Certificate of Amendment to Articles of Incorporation of JBI, Inc. dated December 11, 2009 (Incorporated herein by reference to Exhibit 3.2 to our Quarterly Report on Form 10-Q filed on August 9, 2012).                                                       |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.5                          |   | Certificate of Amendment to Articles of Incorporation of JBI, Inc. dated May 11, 2012 (Incorporated herein by reference to Exhibit 3.5 to our Quarterly Report on Form 10-Q filed on August 9, 2012).                                                            |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.6                     |   | Amended and Restated Bylaws of JBI, Inc. (Incorporated herein by reference to Exhibit 3.2 to our Current Report on Form 8-K filed on December 31, 2012).                                                                                                         |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.7                          |   | Certificate of Designation of Series A Super Voting Preferred Stock of JBI, Inc. dated December 1, 2009 (Incorporated herein by reference to Exhibit 3.3 to our Quarterly Report on Form 10-Q filed on August 9, 2012).                                          |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.8                          |   | Amendment to Certificate of Designation of Series A Super Voting Preferred Stock of JBI, Inc. dated May 10, 2012 (Incorporated herein by reference to Exhibit 3.4 to our Quarterly Report on Form 10-Q filed on August 9, 2012).                                 |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.9                          |   | Certificate of Correction to Certificate of Designation of Series A Super Preferred Voting Stock of JBI, Inc. dated May 14, 2012 (Incorporated herein by reference to Exhibit 3.6 to our Quarterly Report on Form 10-Q filed on August 9, 2012).                 |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.10                         |   | Certificate of Designation of Series B Convertible Preferred Stock of JBI, Inc. dated December 24, 2012 (Incorporated herein by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on December 31, 2012).                                          |
|                         |   |                                                                                                                                                                                                                                                             |
| 3.11                         |   | Certificate of Amendment to Certificate of Designation of Series B Convertible Preferred Stock of JBI, Inc. dated January 11, 2013 (Incorporated herein by reference to Exhibit 3.1 to the Issuer’s Current Report on Form 8-K filed on January 17, 2013). |
|                         |   |                                                                                                                                                                                                                                                             |
| 4.1           |   | Form of Warrant (Incorporated herein by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on January 6, 2012).                                                                                                                                    |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.1     |   | Master Revenue Sharing Agreement between JBI, Inc. and RockTenn Company dated July 29, 2011 (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on August 4, 2011) .*                                                      |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.2                    |   | Supply and Service Agreement between JBI, Inc. and Coco Asphalt Engineering a division of Coco Paving, Inc. dated June 10, 2011 (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on June 13, 2011).                     |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.3               |   | Form of Subscription Agreement (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on January 6, 2012).                                                                                                                    |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.4                    |   | Promissory Note, dated February 14, 2012, by Big 3 Packaging LLC in favor of JBI, Inc. (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on February 16, 2012).                                                          |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.5                    |   | Lease, dated December 1, 2011, between JBI, Inc. and Avondale Stores Limited. (Incorporated herein by reference to Exhibit 10.5 to our Annual Report on Form 10-K, filed on March 19, 2012)                                                                      |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.6                         |   | Form of Subscription Agreement (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on May 17, 2012).                                                                                                                       |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.7                         |   | Employment Agreement, dated May 15, 2012, by and between JBI, Inc. and John Bordynuik (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on May 17, 2012).                                                                |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.8                         |   | 2012 Long-Term Incentive Plan of JBI, Inc. dated as of May 23, 2012 (Incorporated herein by reference to Appendix A of our Definitive Proxy Statement on Schedule 14A filed on June 20, 2012).                                                                   |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.9                         |   | Form of Incentive Stock Option Agreement pursuant to the 2012 Long-Term Incentive Plan of JBI, Inc. (Incorporated herein by reference to Exhibit 10.4 to our Current Report on Form 8-K filed on October 19, 2012)                                               |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.9                         |   | Amended and Restated Employment Agreement, dated October 18, 2012, by and between the Company and Kevin Rauber (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on October 19, 2012).                                   |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.10                        |   | Amended and Restated Employment Agreement, dated October 18, 2012, by and between the Company and Matthew Ingham (Incorporated herein by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on October 19, 2012).                                 |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.11                        |   | Amended and Restated Employment Agreement, dated October 18, 2012, by and between the Company and Tony Bogolin (Incorporated herein by reference to Exhibit 10.3 to our Current Report on Form 8-K filed on October 19, 2012).                                   |
|                         |   |                                                                                                                                                                                                                                                             |
| 10.12                        |   | Form of Subscription Agreement (Incorporated herein by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on December 31, 2012).                                                                                                                  |

----

| 21.1   |   | Subsidiaries of the Registrant (Incorporated herein by reference to Exhibit 21.1 to our Annual Report on Form 10-K filed on March 15, 2013).                                                                                                         |
|------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                                                 |
| 23.1             |   | Consent of MSCM LLP (Incorporated herein by reference to Exhibit 23.1 to our Annual Report on Form 10-K filed on March 15, 2013).                                                                                                                    |
|             |   |                                                                                                                                                                                                                                                 |
| 31.1        |   | Certification of our Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended (Incorporated herein by reference to Exhibit 31.1 to our Annual Report on Form 10-K filed on March 15, 2013). |
|             |   |                                                                                                                                                                                                                                                 |
| 31.2        |   | Certification of our Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended (Incorporated herein by reference to Exhibit 31.2 to our Annual Report on Form 10-K filed on March 15, 2013). |
|             |   |                                                                                                                                                                                                                                                 |
| 31.3        |   | Certification of our Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended. (1)                                                                                                          |
|             |   |                                                                                                                                                                                                                                                 |
| 31.4        |   | Certification of our Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended. (1)                                                                                                          |
|             |   |                                                                                                                                                                                                                                                 |
| 32.1        |   | Certification of our Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended (Incorporated herein by reference to Exhibit 32.1 to our Annual Report on Form 10-K filed on March 15, 2013). |
|             |   |                                                                                                                                                                                                                                                 |
| 32.2        |   | Certification of our Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended (Incorporated herein by reference to Exhibit 32.2 to our Annual Report on Form 10-K filed on March 15, 2013). |
|             |   |                                                                                                                                                                                                                                                 |
| 32.3        |   | Certification of our Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2)                                                                                           |
|             |   |                                                                                                                                                                                                                                                 |
| 32.4             |   | Certification of our Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2)                                                                                           |

| 101.INS |   | XBRL Instance Document (Incorporated herein by reference to Exhibit 101.INS to our Annual Report on Form 10-K filed on March 15, 2013).                            |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                    |
| 101.SCH |   | XBRL Taxonomy Extension Schema Document (Incorporated herein by reference to Exhibit 101.SCH to our Annual Report on Form 10-K filed on March 15, 2013).           |
|    |   |                                                                                                                                                                    |
| 101.CAL |   | XBRL Taxonomy Extension Calculation Linkbase Document (Incorporated herein by reference to Exhibit 101.CAL to our Annual Report on Form 10-K filed on March 15, 2013).  |
|    |   |                                                                                                                                                                    |
| 101.DEF |   | XBRL Taxonomy Extension Definition Linkbase Document (Incorporated herein by reference to Exhibit 101.DEF to our Annual Report on Form 10-K filed on March 15, 2013).   |
|    |   |                                                                                                                                                                    |
| 101.LAB |   | XBRL Taxonomy Extension Label Linkbase Document (Incorporated herein by reference to Exhibit 101.LAB to our Annual Report on Form 10-K filed on March 15, 2013).        |
|    |   |                                                                                                                                                                    |
| 101.PRE |   | XBRL Taxonomy Extension Presentation Linkbase Document (Incorporated herein by reference to Exhibit 101.PRE to our Annual Report on Form 10-K filed on March 15, 2013). |

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