UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2010

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File Number: 0-52128

PLASTINUM POLYMER TECHNOLOGIES CORP.

(Exact name of registrant as specified in its charter)

Delaware		20-4255141
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

10100 Santa Monica Blvd., Suite 300

Los Angeles, CA 90067

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (310) 651-9972

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ¨		Accelerated filer ¨		Non-accelerated filer ¨ (Do not check if a smaller reporting company)		Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares outstanding of the registrant's Common Stock, par value $.01 per share (the "Common Stock"), as of August 19, 2010 was 104,878,641.

PLASTINUM POLYMER TECHNOLOGIES CORP.

Form 10-Q

For the Quarter Ended June 30, 2010

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION		3

Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss	4
	Condensed Consolidated Statement of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	22
Item 4T.	Controls and Procedures	22

PART II - OTHER INFORMATION		24

Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	25
Item 4.	(Removed and Reserved)	25
Item 5.	Other Information	25
Item 6.	Exhibits	26

PART I – FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS (UNAUDITED)

PLASTINUM POLYMER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
	2010			2009
	(Unaudited)

Assets

Current assets:
Cash	$	1,232,112		$	800,442
Accounts receivable		136,370			41,191
Inventory		36,787			50,942
Prepaid expense		325,426			81,944
Value added tax refunds receivable		23,359			414,482

Total current assets		1,754,054			1,389,001

Equipment, net		7,110,459			5,644,339

Security deposit		37,957			41,777

Total assets	$	8,902,470		$	7,075,117

Liabilities and deficiency in stockholders' equity

Current liabilities:

Accounts payable and accured expenses	$	1,220,215		$	3,433,158
Accrued salary		114,101			187,569
Accrued interest		869,689			453,438
Convertible notes payable, net of discount of $0 and $11,763, respectively		500,000			488,237
Capital lease payable, current portion		86,171			-
Redeemable preferred stock, Series B called for redemption, 38,600 shares issued and outstanding, net (Face value $3,860,000)		3,692,991			-
Due to stockholder		31,261			26,723

Total current liabilities		6,514,428			4,589,125

Unearned subsidies received		866,590			533,317
Bank guarantee payable		16,031			16,031
Loan payable - bank		2,441,100			2,866,400
Capital lease payable, long term portion		157,979			-
Convertible notes payable, net of discount of $1,476,318 and $766,471		6,745,682			5,283,529
Derivative liability		909,980			1,790,660

Total liabilities		17,651,790			15,079,062

Redeemable preferred stock, Series B; par value $.01 per share; 120,000 shares authorized, 61,650 shares issued and outstanding, (Face value $6,165,000), net of 38,600 shares called for redemption and included in current liabilities (Face value $2,305,000), net		2,140,513			5,196,675

Deficiency in stockholders' equity:

Preferred stock, undesignated, par value $.01 per share; 9,880,000 shares authorized, no shares issued and outstanding		-			-
Common stock, par value $.01 per share; 250,000,000 shares authorized, 102,276,391 and 99,989,113 shares issued and outstanding, respectively		1,022,764			999,891
Additional paid-in capital		10,980,461			10,078,509
Other comprehensive income		(566	)		(62,510	)
Accumulated deficit		(27,067,918	)		(24,259,567	)
Total Plastinum Polymer Technologies Corp. stockholders' deficit		(15,065,259	)		(13,243,677	)
Noncontrolling interest		4,175,426			43,057

Total deficiency in stockholders' equity		(10,889,833	)		(13,200,620	)

Total liabilities and deficiency in stockholders' equity	$	8,902,470		$	7,075,117

See accompanying notes to these condensed consolidated financial statements.

PLASTINUM POLYMER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	Three Months ended June 30,						Six Months ended June 30,
	2010			2009			2010			2009

Sales	$	200,573		$	60,830		$	309,929		$	60,830

Cost of sales		421,738			135,886			1,029,986			135,886

Gross loss		(221,165	)		(75,056	)		(720,057	)		(75,056	)

Operating expenses:
General and administrative expenses		1,981,514			1,306,274			3,535,006			2,612,922
Research and development		112,039			455,817			304,959			932,331
Subsidy payments earned		(56,462	)		(31,706	)		(107,703	)		(38,266	)

Total operating expenses		2,037,091			1,730,385			3,732,262			3,506,987

Loss from operations		(2,258,256	)		(1,805,441	)		(4,452,319	)		(3,582,043	)

Interest expense, net		(472,624	)		(85,798	)		(860,819	)		(134,416	)
Change in fair value of derivative liability		963,039			(458,566	)		880,680			(430,417	)

Loss before provision for income taxes		(1,767,841	)		(2,349,805	)		(4,432,458	)		(4,146,876	)

Provision for income taxes		-			-			-			-

Net loss		(1,767,841	)		(2,349,805	)		(4,432,458	)		(4,146,876	)

Net loss attributable to the noncontrolling interest		815,686			402,516			1,624,107			582,961

Net loss attributable to Plastinum Polymer Technologies Corp. before accretion of preferred dividends and discount		(952,155	)		(1,947,289	)		(2,808,351	)		(3,563,915	)

Accretion of preferred dividends and discount		(402,502	)		(443,815	)		(841,440	)		(882,753	)
Accretion of subsidiary preferred stock dividends		(47,854	)		-			(99,814	)		-

Net loss attributable to Plastinum Polymer Technologies Corp. common shareholders	$	(1,402,511	)	$	(2,391,104	)	$	(3,749,605	)	$	(4,446,668	)

Net loss per common share, basic and diluted	$	(0.01	)	$	(0.02	)	$	(0.04	)	$	(0.05	)

Weighted average shares outstanding		101,471,461			98,681,749			100,895,874			98,229,826

Comprehensive loss:
Net loss	$	(952,155	)	$	(1,947,289	)	$	(2,808,351	)	$	(3,563,915	)
Foreign currency translation gain (loss)		108,788			(28,842	)		71,938			53,600

Comprehensive loss	$	(843,367	)	$	(1,976,131	)	$	(2,736,413	)	$	(3,510,315	)

See accompanying notes to these unaudited condensed consolidated financial statements.

PLASTINUM POLYMER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months ended June 30,
	2010			2009

Cash flows from operating activities:
Net loss	$	(4,432,458	)	$	(4,146,876	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation		363,060			650,819
Amortization of debt discount		323,796			58,293
Amortization of discount on redeemable preferred stock as interest expense		41,313			-
Change in fair value of derivative liability		(880,680	)		430,417
Depreciation and amortization		198,861			163,391
Decrease (increase) in accounts receivable		(123,671	)		(28,995	)
(Increase) decrease in value added tax refund receivable		359,328			(38,144	)
Increase in prepaid expense		(262,719	)		(23,798	)
(Increase) decrease in inventory		7,192			(67,359	)
Increase in deposits		-			(21,450	)
Increase (decrease) in accounts payable and accrued expenses		(1,369,600	)		294,898
Increase in unearned subsidies		449,568			-

Cash used in operating activities		(5,326,010	)		(2,728,804	)

Cash flows from financing activities
Purchase of equipment		(2,417,172	)		(990,162	)
Cash used in investing activities		(2,417,172	)		(990,162	)

Cash flows from financing activities
Proceeds from sale of subsidiary common stock		6,115,300			-
Proceeds from sale of subsidiary preferred stock		-			1,929,600
Cost of sale of subsidiary common stock		(458,638	)		-
Proceeds from sale of note and convertible notes		4,833,080			4,050,000
Repayment of note		(2,661,080	)		-
Payments on capital lease		(15,656	)		-
Advances from stockholder		4,538			1,367

Cash provided by financing activities		7,817,544			5,980,967

Effect of exchange rate changes on cash		357,308			52,970

Net increase in cash		431,670			2,314,971
Cash, beginning of period		800,442			134,554
Cash, end of period	$	1,232,112		$	2,449,525

Supplemental disclosure of non-cash financing activities:

Preferred dividends paid with common stock	$	245,924		$	362,659
Value attributed to warrants issued with convertible note		402,340			-
Beneficial conversion feature of convertible notes		619,540			881,494
Accretion of discount on redeemable preferred stock		638,180			638,180
Accretion of dividend on redeemable preferred stock		244,573			244,573
Prepaid expense applied to acquisition of fixed assets		-			17,260
Equipment acquired pursuant to capital lease		281,808			-
Common stock issued as payment of accrued consulting fees		235,215			-

See accompanying notes to these unaudited condensed consolidated financial statements.

PLASTINUM POLYMER TECHNOLOGIES CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2010 AND 2009

(Unaudited)

NOTE A - SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying unaudited condensed consolidated financial statements follows.

Business

Plastinum Polymer Technologies Corp. (“we”, “us”, “our company “, “our”, “Plastinum” or the “Company” ) (formerly Plastinum Corp.) was formed under the laws of the State of Delaware in 2000. We own and develop a patented and proprietary plastic blending technology whereby various kinds of immiscible plastics can be mixed mechanically into a new polymer compound. The technology is being marketed worldwide. During the fourth quarter of 2008, we received a test order for our Infinymer TM product, which we shipped to a customer in Asia. We signed our first contract for commercial delivery of products and began production and sales of products to a customer in the Netherlands during the second quarter of 2009 and exited the development stage.

Through June 30, 2010, we have generated a relatively small amount of sales revenues, have incurred significant expenses and have sustained losses. Consequently, our operations are subject to all the risks inherent in the establishment of a new business enterprise.

The unaudited condensed consolidated financial statements include the accounts of Plastinum and its subsidiaries. All significant intercompany transactions and balances have been eliminated in the consolidated financial statements.

Proposed Reorganization

We currently anticipate undertaking a reorganization, subject to stockholder approval, whereby shares of our common stock will no longer publicly trade in the United States, but instead our business operations, which are controlled by PPT Holding B.V., a Dutch company and currently a subsidiary of ours (“PPT”), will publicly trade under PPT on a European securities market and the holders of our securities will become holders of similar PPT securities (the “Reorganization”).

The Reorganization will be accomplished by (i) the transfer by us to PPT of our liabilities against the settlement of a receivable that we have from PPT, (ii) the transfer by us to PPT of our assets (other than our share ownership in PPT) as a contribution of share premium on our share ownership in PPT, (iii) the holders of our securities receiving similar securities in PPT via a liquidating distribution from us, (iv) PPT converting from a B.V. (a Dutch private limited liability company) into Plastinum Polymer Technologies N.V. (a Dutch public limited liability company), (v) the shares of PPT being publicly traded on the NYSE Alternext market in Amsterdam and (vi) the shares of our Common Stock being deregistered under the U.S. Securities Exchange Act of 1934.

If approved by our stockholders, the Reorganization will be consummated and become effective as soon as practicable after the date of the granting of approval by the stockholders and the satisfaction or waiver of all other closing conditions, including the shares of PPT being traded on the Alternext market. After the Reorganization, our stockholders will own an interest in Plastinum Polymer Technologies N.V. (“Plastinum Netherlands”) which will be engaged in the same business that we, through PPT, were engaged in before the Reorganization. Our stockholders’ proportionate ownership in our current business and voting rights will not change as a result of the Reorganization. However, 15.93% of the ownership interest in Plastinum Netherlands will continue be held by other investors as a result of investments they previously made directly in Plastinum Netherlands.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of June 30, 2010 and for the three and six month periods ended June 30, 2010 and 2009 have been prepared by Plastinum pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-X. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The company believes that the disclosures provided are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended December 31, 2009 as disclosed in the company's 10-K for that year as filed with the SEC, as it may be amended.

The results of the six months ended June 30, 2010 are not necessarily indicative of the results to be expected for the pending full year ending December 31, 2010.

Going Concern

The financial statements have been prepared on a going concern basis and do not reflect any adjustments related to the uncertainty surrounding our recurring losses or accumulated deficit.

We have had substantial net losses of $4,432,458 and $4,146,876 for the six month periods ended June 30, 2010 and 2009, respectively, have a working capital deficit of $4,760,374 at June 30, 2010 and have generated minimal revenue through June 30, 2010. These factors raise substantial doubt about our ability to continue as a going concern.

We are currently developing a proprietary technology designed to process and blend two or more discrete plastic polymers. The technology is being marketed worldwide.

In accordance with the terms of the Certificate of Designation of our Series B-1 Convertible Preferred Stock ("Preferred Stock"), each holder of shares of Preferred Stock is entitled to demand that we redeem such shares for the original purchase price paid by such holder plus any accrued and unpaid dividends beginning November 1, 2010. On June 18, 2010, we received a demand from a significant holder of shares of our Preferred Stock that those shares be redeemed by us on November 1, 2010 (the “Demanded Redemption”). The Demanded Redemption will require us to expend $3,860,000 plus the amount of any accrued and unpaid dividends thereon. We do not currently have sufficient cash on hand to make the Demanded Redemption. Therefore, we will need to raise such funds prior to November 1, 2010 in order to comply with the Demanded Redemption. In the event such funds are raised through equity investments in the Company, current investors in the Company may incur significant dilution. Should we be unable to raise the cash necessary to make the Demanded Redemption by November 1, 2010, such holder would become a creditor of the Company and as a creditor, could seek to obtain a judgment against the Company for the amount of the Demanded Redemption. In the event such holder obtains a judgment against the Company and seeks to enforce such judgment against the Company, we may be forced into seeking protection under bankruptcy laws, which could result in the stockholders' equity in the Company being rendered worthless. Additionally, though no additional redemption demands have been received to date, other holders of shares of our Preferred Stock may also make redemption demands effective November 1, 2010 for an aggregate additional redemption price of $2,305,000 plus any accrued and unpaid dividends for all other outstanding shares our Preferred Stock. Should we receive such additional redemption demands, we will need to raise additional funds to meet such additional redemption demands.

The continuation of the Company as a going concern is dependent on our ability to develop revenues and finance our business plan, including among other possibilities, by obtaining financing from outside sources and/or entering into strategic partnerships. From November 2007 through July 2008, we sold $6,165,000 of securities through a private placement of securities. During 2009 and 2010 we received $8,222,000 from the sale of convertible promissory notes and in February 2009 we received $1,929,600 from the sale of preferred shares in a Dutch subsidiary. On June 4, 2010, we entered into a Participation Agreement (the “Participation Agreement”) with an investor, pursuant to which we sold and issued to the investor a 15% equity stake in our Dutch subsidiary, PPT Holding B.V. (“PPT”). In connection with such sale, a “put” right was granted whereby the investor has the right to exchange the equity stake he received in PPT under the Participation Agreement for such number of shares of our Common Stock equivalent to 15% of our Common Stock, on a fully-diluted basis, in the event that the Reorganization (described above) does not take place. An additional 0.93% interest in PPT was sold in July 2010 to several individual investors for $375,000. As a result of the June 4, 2010 Participation Agreement, during June 2010, we received net proceeds of approximately $5,656,662 (4,625,000 Euros). On October 30, 2009, Plastinum Polymer Technologies Corp. BV, an indirect, majority-owned subsidiary of the Company, signed a bank loan agreement with ABN-AMRO Bank for approximately $3,320,000 (2,250,000 Euros). During 2009 we signed our first contracts for commercial delivery of products and began production and sales of products to customers in the Netherlands. We will need to generate additional funds, through increased revenue, additional debt or equity financing, or a combination of revenue, equity or debt, in order to execute our business plan, namely, expansion through the set-up of two additional recycling plants, of which one will be in the E.U. and one will be in the U.S., as well as further expanding our current plant in Emmen, The Netherlands. We are currently in the process of evaluating our financing needs and exploring all available financing options in order to fully implement our business plan, including, among others, strategic partnerships with other business entities and debt financing. Management is also attempting to secure additional ongoing revenue relationships for our products.

Should we be unable to develop additional revenues or obtain additional necessary financing, we may have to curtail our operations, which may have a material adverse effect on our financial position and results of operations and our ability to continue as a going concern.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on management's best knowledge of current events and actions the Company may undertake in the future, actual results may differ from those estimates.

Revenue Recognition

The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605 “Revenue Recognition”. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable and collectibility is reasonably assured.

Product Development Costs

Product development costs include expenses incurred by the Company for research, design and development of our proprietary technology and are charged to operations as incurred.

Plastinum incurred research and development expenses of $112,039 and $455,817 for the three month periods ended June 30, 2010 and 2009, respectively, and $304,959 and $932,331 for the six month periods ended June 30, 2010 and 2009, respectively.

Major Customers

Two customers accounted for 93% of our revenues for the six months ended June 30, 2010 and for 93% of our accounts receivable at June 30, 2010.

Loss Per Share

We utilize ASC Topic 260, “Earnings Per Share” for calculating the basic and diluted loss per share. We compute basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. There were 85,796,127 common share equivalents at June 30, 2010 and 59,307,748 at June 30, 2009. For the three and six months ended June 30, 2010 and 2009, these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Stock-Based Compensation

We account for our stock based compensation under ASC 718 “Compensation – Stock Compensation” using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments.

We use the fair value method for equity instruments granted to non-employees (if any) and will use the Black-Scholes model for measuring the fair value of options, if issued. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods.

Fair value of financial instruments

In April 2009, we adopted accounting guidance which requires disclosures about fair value of financial instruments in interim financial statements as well as in annual financial statements.

Our short-term financial instruments, including cash accounts receivable, inventory, prepaid expenses and other assets, accounts payable and other liabilities, consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of long term convertible notes is based on management estimates and reasonably approximates their book value after comparison to obligations with similar interest rates and maturities. The fair value of the Company’s redeemable preferred stock is estimated to be its liquidation value, which includes accumulated and unpaid dividends. The fair value of the Company’s derivative instruments is determined using option pricing models.

Fair value measurements

Effective November 1, 2008, we adopted new accounting guidance pursuant to ASC 820 which established a framework for measuring fair value and expands disclosure about fair value measurements. The Company did not elect fair value accounting for any assets and liabilities allowed by previous guidance. Effective January 1, 2009, the Company adopted the provisions accounting guidance that relate to non-financial assets and liabilities that are not required or permitted to be recognized or disclosed at fair value on a recurring basis. Effective April 1, 2009, the Company adopted new accounting guidance which provides additional guidance for estimating fair value in accordance with ASC 820, when the volume and level of activity for the asset or liability have significantly decreased. The adoptions of the provisions of ASC 820 did not have a material impact on our financial position or results of operations.

ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The table below summarizes the fair values of our financial liabilities that are measured on a recurring basis at fair value as of March 31, 2010:

	Fair Value at June 30,		Fair Value Measurement Using
	2010		Level 1	Level 2		Level 3

Embedded derivatives		909,980					909,980

	$	909,980	$	$	—	$	909,980

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities (conversion liability) for the six months ended June 30, 2010 and 2009.

	2010			2009
Balance at beginning of year	$	1,790,660		$	-
Additions to derivative instruments		-			1,987,557
Change in fair value of conversion liability		(880,680	)		430,417

Balance at end of period	$	909,980		$	2,417,974

The following is a description of the valuation methodologies used for these items:

Embedded derivatives — these instruments consist of the embedded conversion feature of our preferred stock. These instruments were valued using pricing models which incorporate the Company’s stock price, volatility, U.S. risk free rate, dividend rate and estimated life.

Recent Accounting Pronouncements

In June 2009, the FASB issued new accounting guidance which will require more information about the transfer of financial assets where companies have continuing exposure to the risks related to transferred financial assets. This guidance is effective at the start of a company’s first fiscal year beginning after November 15, 2009, or January 1, 2010 for companies reporting earnings on a calendar-year basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows.

In June 2009, the FASB issued new accounting guidance which will change how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. Under this guidance, determining whether a company is required to consolidate an entity will be based on, among other things, an entity's purpose and design and a company's ability to direct the activities of the entity that most significantly impact the entity's economic performance. This guidance is effective at the start of a company’s first fiscal year beginning after November 15, 2009, or January 1, 2010 for companies reporting earnings on a calendar-year basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows.

In February 2010, the FASB issued FASB ASU 2010-09, “Subsequent Events, Amendments to Certain Recognition and Disclosure Requirements,” which clarifies certain existing evaluation and disclosure requirements in ASC 855 “Subsequent Events” related to subsequent events. FASB ASU 2010-09 requires SEC filers to evaluate subsequent events through the date in which the financial statements are issued and is effectively immediately. The new guidance does not have an effect on it’s the Company’s results of operations and financial condition.

In January 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-06, “Improving Disclosures about Fair Value Measurements,” which clarifies certain existing disclosure requirements in ASC 820 “Fair Value Measurements and Disclosures,” and requires disclosures related to significant transfers between each level and additional information about Level 3 activity. FASB ASU 2010-06 begins phasing in the first fiscal period after December 15, 2009. The Company is currently assessing the impact on its consolidated results of operations and financial condition.

Other recent accounting pronouncements issued by the FASB and the SEC did not have, or are not believed by management to have, a material impact on the Company's present or future consolidated financial statements.

NOTE B - CAPITAL STOCK AND STOCKHOLDER’S EQUITY

We are authorized to issue 250,000,000 shares of common stock with a par value of $.01 per share and 10,000,000 shares of preferred stock with a par value of $.01 per share.

During the six months ended June 30, 2010, we issued 1,297,658 shares of common stock as payment of $245,924 of accrued preferred dividends.

During the three months ended June 30, 2010, we issued 989,620 shares of common stock as payment of $235,215 of accrued consulting fees.

During June 2010, we received net proceeds of approximately $5,656,662 (4,625,000 Euros) from the sale of a 15% interest (representing newly issued shares) in our previously wholly owned subsidiary, PPT Holding B.V.This amount is included as a part of the noncontrolling interest in the financial statements.

NOTE C - REDEEMABLE PREFERRED STOCK AND WARRANT UNIT OFFERING

We have designated 120,000 shares of preferred stock as Series B Convertible Preferred Stock, which may be issued in one or more sub-series, and have authorized the issuance of 80,000 shares of a sub-series designated as Series B-1 Convertible Preferred Stock. The Series B-1 Preferred Stock is convertible into shares of our Common Stock at an initial conversion price of $0.38 per share ($0.35 adjusted conversion price at December 31, 2009), subject to adjustment for customary anti-dilution provisions. The conversion price was adjusted to $0.34 per share during the three months ended March 31, 2010 as a result of the 2010 sale of the convertible note described in Note F. Plastinum may, on or after November 1, 2010 and upon at least 30 days notice, redeem the Series B-1 Preferred Stock in full at the purchase price plus any accrued but unpaid dividends, subject to the holder’s conversion rights. Conversely, in the event of a change of control (as defined in the purchase agreement with respect to the Series B-1 Preferred Stock), or at the holder’s option at any time on or after November 1, 2010 and upon 45 days notice from a holder to Plastinum, we are required to redeem the Series B-1 Preferred Stock for the purchase price plus any accrued but unpaid dividends. The Series B-1 Preferred Stock accrues dividends at an annual rate of the Wall Street Journal Prime Rate then in effect, but not less than 8% or greater than 10% per annum, payable quarterly, either in cash or, at our election, shares of our common stock.

We have reclassified the carrying value of the redeemable preferred stock for which we have received a redemption notification as a current liability. We have charged the amortization of discount and costs and accretion of dividends on these shares to interest expense, commencing with the date of the redemption notification and reclassification to current liability. The charge to interest expense was $41,313.

The charge to additional paid-in capital for amortization of discount and costs for the three months ended June 30, 2010 and 2009 was $292,371 and $320,853, respectively. The charge to additional paid-in capital for amortization of discount and costs for the six months ended June 30, 2010 and 2009 was $609,698 and $638,180, respectively. The amortization has been charged to additional paid-in capital since there is a deficit in retained earnings.

For the three months ended June 30, 2010 and 2009, we have accrued dividends in the amount of $122,962 for each period. For the six months ended June 30, 2010 and 2009, we have accrued dividends in the amount of $244,573 for each period. The charge to additional paid-in capital for the three months ended June 30, 2010 and 2009 was $110,131 and $122,962, respectively. The charge to additional paid-in capital for the six months ended June 30, 2010 and 2009 was $231,742 and $244,573, respectively. The accrued dividends have been charged to additional paid-in capital (since there is a deficit in retained earnings) and the net unpaid accrued dividends have been added to the carrying value of the preferred stock. During 2010, we issued 1,297,658 shares of common stock as payment of $245,924 of accrued preferred dividends. Accrued and unpaid dividends included in the carrying value of the preferred stock at June 30, 2010 and December 31, 2009 total $102,188 and $103,539, respectively.

NOTE D - INVENTORY

Inventory at June 30, 2010 and December 31, 2009 consists of the following:

	2010		2009
Raw materials	$	25,787	$	38,395
Finished goods		11,000		12,547
	$	36,787	$	50,942

NOTE E - PROPERTY AND EQUIPMENT

Property and equipment at June 30, 2010 and December 31, 2009 is summarized as follows:

	2010			2009
Furniture, Office Equipment, Website and Improvements	$	154,020		$	154,714
Equipment		7,233,743			5,597,929
		7,387,763			5,752,643
Accumulated depreciation		(277,304	)		(108,304	)
	$	7,110,459		$	5,644,339

Depreciation expense recorded in the statement of operations for the three months ended June 30, 2010 and 2009 is $183,060 and $102,662, respectively. For the three months ended June 30, 2010 and 2009 ($4,092) and $90,693, respectively, of depreciation expense is included in research and development expense.

Depreciation expense recorded in the statement of operations for the six months ended June 30, 2010 and 2009 is $198,861 and $163,391, respectively. For the six months ended June 30, 2010 and 2009 $3,063 and $141,865, respectively, of depreciation expense is included in research and development expense.

During the third quarter of 2009 we revised our estimate of the useful lives of our property and equipment.

During the three months ended March 31, 2010 and the year ended December 31, 2009, the Company capitalized equipment totaling $1,495,095 and 5,280,487 respectively. Capitalized equipment costs are depreciated on a straight-line basis over the estimated economic lives, beginning when the equipment is placed into service. As of March 31, 2010, the Company had equipment that was not placed in service totaling $6,351,997. All of this equipment was placed in service during the second quarter of 2010.

NOTE F - CONVERTIBLE NOTES PAYABLE

On January 19, 2010, we entered into a Note Purchase Agreement with an investor pursuant to which we sold and issued a convertible promissory note in the principal amount of $2,172,000 (the “Note”). The Note accrues interest at a rate of 10% per annum and matures on January 19, 2013. The Note is convertible into shares of common stock at an initial conversion price of $0.20 per share or a total of 10,860,000 shares, subject to adjustment as contained in the Note. In addition, the investor received a warrant to purchase an aggregate of 3,620,000 shares of our common stock at an exercise price of $0.20 per share. In accordance with ASC Topic 470 - 20, “Debt with Conversions and Other Options”, a portion of the proceeds was allocated to the warrant based on its relative fair value, which totaled $402,340 using the Black-Scholes option pricing model. The remaining balance was allocated to the convertible note. The assumptions used in the Black-Scholes model are as follows: (1) dividend yield of 0%; (2) expected volatility of 137%, (3) risk-free interest rate of 0.875%, (4) expected life of 1.5 years and (5) estimated fair value of Plastinum common stock of $0.22 per share. Since the effective conversion price was less than the fair value of our common stock on the date of issue we have recorded a beneficial conversion feature in the amount of $619,540. The aggregate discount of $1,021,880 will be amortized over the life of the Note. During the three and six months ended June 30, 2010 amortization as interest expense amounted to $84,846 and $151,044, respectively.

During the three and six months ended June 30, 2010 amortization as interest expense related to notes sold in 2009 and 2006 amounted to $81,212 and $169,405, respectively.

NOTE G – DERIVATIVE LIABILITY

At June 30, 2010 we recalculated the fair value of the conversion feature of our preferred stock subject to derivative accounting and have determined that the fair value at June 30, 2010 is $909,980. The fair value of the conversion features was determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.625%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 134%; (4) an expected life of the conversion feature of 1.5 years and (5) estimated fair value of Plastinum common stock of $0.13 per share.

We have recorded a gain of $963,039 during the three months ended June 30, 2010 and a charge of $458,566 during the three months ended June 30, 2009, respectively, related to the change in fair value during those periods.

We have recorded a gain of $880,680 during the six months ended June 30, 2010 and a charge of $430,417 during the six months ended June 30, 2009, respectively, related to the change in fair value during those periods.

NOTE H – NONCONTROLLING INTEREST

On June 4, 2010, we entered into a Participation Agreement (the “Participation Agreement”) with an investor, pursuant to which we sold and issued to the investor a 15% equity stake in our Dutch subsidiary, PPT Holding B.V. (“PPT”). In connection with such sale, a “put” right was granted whereby the investor has the right to exchange the equity stake he received in PPT under the Participation Agreement for such number of shares of our Common Stock equivalent to 15% of the our Common Stock, on a fully-diluted basis, or 32,675,608 shares of Common Stock, in the event that the Reorganization (described under “Management’s Plan of Operation – Proposed Reorganization”) does not take place. An additional 0.93% interest in PPT was sold in July to several individual investors for $375,000. As a result of the June 4, 2010 Participation Agreement, during June 2010, we received net proceeds of approximately $5,656,662 (4,625,000 Euros).

The 49% third party ownership of Polymer Technologies Corp. B.V. and the 15% third party ownership of PPT Holding B.V.at June 30, 2010 are recorded as a noncontrolling interest in the consolidated financial statements.

For the six months ended June 30, 2010 the noncontrolling interest is summarized as follows:

	Amount
Balance at December 31, 2009	$	43,057
Third party investment		5,656,662
Accretion of noncontrolling interest preferred dividend		99,814
Noncontrolling interest’s share of losses		(1,624,107	)
Balance at June 30, 2010	$	4,175,426

During the three and six months ended June 30, 2010, we have recorded $47,854 and $99,814, respectively, of dividends related to the Polymer Technologies Corp. B.V. noncontrolling interest’s preferred stock. The dividends have not been paid. These dividends have been credited to the noncontrolling interest with a corresponding charge to additional paid-in capital since there is a deficit in retained earnings.

NOTE I – EMPLOYEE STOCK OPTIONS

During the three months ended June 30, 2010 and 2009, we recognized $181,530 and $325,409, respectively, in compensation cost related to stock options.

During the six months ended June 30, 2010 and 2009, we recognized $363,060 and $650,819, respectively, in compensation cost related to stock options.

NOTE J - COMMITMENTS

Rent expense for the three months ended June 30, 2010 and 2009 was $97,329 and $77,502, respectively. Rent expense for the six months ended June 30, 2010 and 2009 was $210,435 and $124,513, respectively.

NOTE K - SUBSEQUENT EVENTS

During July 2010 we received $375,000 upon the sale of 0.93% of PPT newly issued common stock.

During July 2010 we issued 102,250 shares of our common stock as payment for services.

During August 2010 we received $562,500 from the sale of 2,500,000 shares of our common stock.

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Statements used in this Form 10-Q, in filings by the Company with the Securities and Exchange Commission (the "SEC"), in the Company's press releases or other public or stockholder communications, or made orally with the approval of an authorized executive officer of the Company that utilize the words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions speaking to anticipated actions, results or projections in the future speak only as of the date made, are based on certain assumptions and expectations which may or may not be valid or actually occur, and which involve various risks and uncertainties. The Company cautions readers not to place undue reliance on any such statements and that the Company's actual results for future periods could differ materially from those anticipated or projected.

Unless otherwise required by applicable law, the Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.

The following discussion should be read in conjunction with our consolidated financial statements and related notes included as part of this report.

Management's Plan of Operation

The following discussion and analysis provides information which our management believes to be relevant to an assessment and understanding of our results of operations and financial condition. This discussion should be read together with our financial statements and the notes to financial statements, which are included in this report.

Overview

At May 17, 2010, we were pursuing a business plan related to the Plastinum Process described below. We own and develop a patented proprietary plastic blending technology, whereby various kinds of immiscible plastics previously considered non-compatible can be mixed mechanically into a new polymer compound. The uniqueness of this blending technology stems from its potential cost-effective applications in many fields of the plastic industry, from the recycling of mixed post-consumer plastic scrap to the creation of new thermo plastic compounds (Infinymer TM ).

Through March 31, 2009 we were considered to be in the development stage as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915 “Development Stage Entities” . We began production and sales of products during the second quarter of 2009 and exited the development stage. As of the beginning of 2010, we have an operating capacity of 10,000 metric tons per year.

The Plastinum Process

We own and develop a patented and proprietary plastic blending technology (Blendymer TM ), whereby various kinds of immiscible plastics previously considered non-compatible can be mechanically mixed into a new polymer compound (Infinymer TM ). The uniqueness of this blending technology stems from its potential cost-effective applications in many fields of the plastic industry, from the recycling of mixed post-consumer plastic waste to the creation of new thermo plastic compounds (Infinymer TM ). With the Blendymer TM we are able to alter the physical properties of the Infinymer TM to meet the customer’s specifications.

Plastinum’s mission is to commercialize the technology through application in the virgin plastic markets (polymer alloys) and the plastic recycling sector (compounds made from post-consumer mixed plastic waste).

Plastinum believes its patented proprietary process, the Plastinum technology, is capable of producing homogeneous, commercially usable polymer products from mixed virgin plastic and/or mixed waste plastic.

During October 2006 we opened a pilot plant in the EMMTEC Industry & Business Park, Emmen, The Netherlands with a processing capacity of 1,500 metric tons annually. This plant is our showcase for the recycling of different streams of total post consumer mixed plastic waste, such as household waste). We have changed this pilot plant in Emmen into our first commercial plant through an increase in the workforce and commencement of production to fulfill our customer orders. Production and delivery in the Netherlands of our INFINYMER TM recycled plastic compounds began during the second quarter of 2009. Recent demand for INFINYMER TM has risen and as of December 31, 2009 exceeded the capacity of our Emmen plant. We have successfully increased the production capacity of our plant in Emmen to 10,000 metric tons per year. Due to the increasing demand of our Infinymer, we are furthering the expansion of our plant in Emmen to 30,000 metric tons per year, which we anticipate completing by May 2011.

The strategies for commercial implementation of the Plastinum technology range from stand-alone plants, such as the plant in Emmen, to units integrated within an existing plastic or waste processing facility. Plastinum anticipates achieving this through joint venture contracts with large parties in the waste material or the plastic processing industry, or through stand-alone plants with strategic contracts. In a later stage we anticipate that independent parties will approach us for licensing contracts, or machine leasing arrangements in order to enable them to make use of the Plastinum technology.

We have entered into multiple sales contracts and resulting orders have been, and continue to be, delivered and invoiced to clients from The Netherlands. Test materials have been shipped to parties in both the United States and Europe to enable various potential customers to continue testing our materials. Our Research and Development group is continuing to test alternative waste streams being generated and collected worldwide.

We are currently discussing various possibilities for the acquisition of source materials with interested parties in the EU as well as in the U.S. and Asia. The potential acquisition strategies would involve either profit sharing (joint-venture) collaboration or the straight purchase of source materials.

In the EU, it is anticipated that source materials will be obtained from various parties. We have reached an agreement with a Dutch company regarding household waste from The Netherlands and we recently signed a second supply agreement with Nedvang. Nedvang was founded by producers and importers and appointed by the Dutch Government to coordinate and finance the process of collection and processing of waste in the Netherlands.

Proposed Reorganization

We currently anticipate undertaking a reorganization, subject to stockholder approval, whereby shares of our Common Stock will no longer publicly trade in the United States, but instead our business operations, which are controlled by PPT Holding B.V., a Dutch company and currently a subsidiary of ours (“PPT”), will publicly trade under PPT on a European securities market and the holders of our securties will become holders of similar PPT securities (the “Reorganization”).

Plan of Operation

Our plan of operation for the twelve month period following June 30, 2010 is to:

¨	Increase the capacity of our plant in Emmen to meet the rising demand for the Infinymer TM . This includes enlarging our plant for the recycling of mixed plastic household waste from a processing capacity of 10,000 MT annually to 30,000 MT annually.

¨	Set up additional plants in the EU and the USA for the recycling of mixed plastic household waste to a processing capacity of 93,000 MT, planned for 2011.

¨	Open a commercial recycling plant in the United States, planned for 2011 through a Joint Venture or Licensing operation.

¨	Proceed with research and development for virgin market applications and the development of new virgin compounds.

We currently have budgeted approximately $8,500,000 in cash expenditures for the twelve month period following June 30, 2010, including (1) approximately $3,000,000 to cover our projected general and administrative expense during this period; (2) approximately $500,000 for research and development activities; (3) approximately $3,500,000 for the necessary capital expenditure to further expand our Netherlands plant; and (4) approximately $1,500,000 for Working Capital needs at our Netherlands plant.

The actual start of the set up of a second plant in the EU and/or in the U.S. will require us to start ordering with suppliers and making down payments to those suppliers. These amounts are not included in above cash budget as both amounts and timing are uncertain and conditional of reaching agreement with potential joint-venture partners.

From November 2007 through July 2008, we sold $6,165,000 of securities through a private placement of securities. During 2009 and 2010, we sold and issued convertible promissory notes in the aggregate principal amount of $8,222,000. We also generated sales revenues of approximately $556,000 during the year ended December 31, 2009 and $310,000 in 2010.

On February 16, 2009, pursuant to a Participation and Shareholders’ Agreement (the “Participation Agreement”) among (i) Plastinum Polymer Technologies Corp. B.V., our indirect previously wholly-owned Dutch subsidiary (the “BV”), (ii) PPT Holding B.V., our direct, wholly-owned Dutch subsidiary and the owner of our interest in the BV, (iii) Jacques Mot, our Chief Executive Officer and (iv) N.V. NOM, Investerings- en ontwikkelingsmaatschappij voor Noord-Nederland, a Dutch public limited company (“NOM”) with the State of the Netherlands (Ministry of Economic Affairs) and the provinces of Groningen, Friesland and Drenthe as its shareholders, NOM invested € 1,500,000 in the BV and in return received preferential shares in the BV giving NOM a 49% share in the profits of the BV. Pursuant to the terms of the Participation Agreement, (i) the preferential shares received by NOM are entitled to cumulative annual 10% dividends, (ii) the preferential shares received by NOM may be repurchased from NOM by the BV at any time for 150% of the purchase price originally paid for the preferential shares by NOM and (iii) if not repurchased by the BV by January 1, 2013, the preferential shares received by NOM may be converted by NOM into 49% of the ordinary shares of the BV. The Participation Agreement also provides for, among other things, (i) anti-dilution protection for NOM in the event shares in the BV are sold at a lower valuation than that at which NOM made its investment , (ii) restrictions on transfer of shares in the BV, (iii) provisions regarding the operation of the board of directors of the BV, (iv) restrictions on dividend payments by the BV until the dividends payable on the preferential shares received by NOM are paid and (v) certain non-competition provisions governing the BV and Jacques Mot. Further, in the event of a conversion by NOM of its preferential shares in the BV, the following dividend policy will be in effect at the BV: (i) when the solvency of the BV is below 30%, no dividends will be paid; (ii) when the solvency of the BV is between 30% and 50%, 50% of the BV’s net income will be paid out as dividends; and (iii) when the solvency of the BV is over 50%, 100% of the BV’s net income will be paid out as dividends.

On October 30, 2009, Plastinum Polymer Technologies Corp. BV, an indirect, majority-owned subsidiary of the Company, signed a bank loan agreement with ABN-AMRO Bank for approximately $3,320,000 (2,250,000 Euros). Interest is payable quarterly based on a variable rate (currently 4.3%). Repayment of principal will begin on January 1, 2011. Both NOM, our joint venture partner in Plastinum Polymer Technologies Corp. BV, and PPT Holding B.V., a wholly-owned subsidiary of the Company, gave ABN-AMRO Bank irrevocable guarantees of EUR 250,000 regarding payment of principal and interest. The guarantee provided by PPT Holding B.V. is via a bank guarantee from Societé General S.A., which in turn is secured by a hold placed on EUR 250,000 deposited by the Company with Societé General S.A. The assets and receivables of Plastinum Polymer Technologies BV are pledged to ABN-AMRO Bank as collateral for the facility.

On June 4, 2010, we entered into a Participation Agreement (the “Participation Agreement”) with an investor, pursuant to which we sold and issued to the investor a 15% equity stake in our Dutch subsidiary, PPT Holding B.V. (“PPT”). In connection with such sale, a “put” right was granted whereby the investor has the right to exchange the equity stake he received in PPT under the Participation Agreement for such number of shares of our Common Stock equivalent to 15% of the our Common Stock, on a fully-diluted basis, in the event that the Reorganization (described under “Management’s Plan of Operation – Proposed Reorganization”) does not take place. An additional 0.93% interest in PPT was sold in July to several individual investors for $375,000. As a result of the June 4, 2010 Participation Agreement, during June 2010, we received net proceeds of approximately $5,656,662 (4,625,000 Euros).

We will need to generate additional funds in order to execute our business plan, namely, expansion through the set-up of additional recycling plants and expansion of our existing recycling plant. We are currently in the process of evaluating our financing needs and exploring all available financing options in order to fully implement our business plan, including, among others, strategic partnerships with other business entities and debt financing. Management is also attempting to secure additional ongoing revenue relationships for our products. Should we not be able to obtain suitable financing for our business plan, we may have to substantially curtail our proposed expansion.

Our anticipated costs and projected completion dates described above are estimates based upon our current business plan, known resources and market dynamics. Our actual costs or actual project completion dates could vary materially from those projected. Our management team is continually re-evaluating our core business plan as it relates to our monitoring products and identifying new applications and markets for our technology. We may at any time decide to terminate our ongoing development plans with respect to products and services if they are deemed to be impracticable or not to be commercially viable. Further changes to our current business plan could also result, such as the acquisition of new products or services or the decision to manufacture our own products, resulting in a change in our anticipated strategic direction, investments, and expenditures.

Results of Operations

Three Months Ended June 30, 2010 Compared to the Three Months Ended June 30, 2009

Sales and cost of sales

We began commercial production and sales of our products during the second quarter of 2009. Sales for the three months ended June 30, 2010 totaled $200,573, with sales of $60,830 during the three months ended June 30, 2009. Cost of sales includes labor, raw materials, additives and energy cost. During the three month periods ended June 30, 2010 and 2009 we generated gross losses on sales of $221,165 and $75,056, respectively. The gross losses from current sales resulted from the transition from a pilot and testing facility to actual production plant. This is mainly due to lack of scale and start up problems with raw material delivery and pre-treatment. This also induced us to use alternative but more expensive raw materials.

Expenses and operating losses

Operating losses increased from $1,805,441 in 2009 to $2,258,256 in 2010. The increase of $452,815 was the result of the increase in gross loss on sales of $146,109 as described above, an increase of $675,240 in general and administrative expenses, from $1,306,274 in 2009 to $1,981,514 in 2010, partially offset by a decrease in research and development expenses of $343,778, from $455,817 in 2009 to $112,039 in 2010, and an increase in earned subsidies of $24,756, from $31,706 in 2009 to $56,462 in 2010. The primary components of our general and administrative expenses for each of the periods are compensation expense, consulting and professional fees, rent and travel expenses. The increase in general and administrative expenses from 2009 to 2010 results primarily from increases in compensation expense of approximately $155,000, professional fees of approximately $38,000 and depreciation of approximately $171,000. Aggregate research and development expenses decreased in 2010 as we became operational in late 2009 and have begun to streamline our research activities to new applications. Subsidy payments received are based on expenditures for compensation, capital investments and other disbursements. Our overall expenses have increased as we have raised capital, continued the development of the Plastinum technology and position ourselves to become a revenue generating company.

During 2008 and 2007 we received approximately $3,869,000 and $3,566,000, respectively, in proceeds from the sale of preferred stock and from the exercise of warrants. During 2009 and 2010 we received $8,222,000 from the sale of convertible promissory notes. During June 2010, we received net proceeds of approximately $5,656,662 (4,625,000 Euros) from the sale of a 15% interest (representing newly issued shares) in our previously wholly owned subsidiary, PPT Holding B.V. During February 2009 we received $1,929,600 from the sale of a non controlling interest in a Dutch subsidiary. On October 30, 2009, Plastinum Polymer Technologies Corp. BV signed a bank loan agreement with ABN-AMRO Bank for approximately $3,320,000 (2,250,000 Euros). We have drawn down 2,000,000 Euros against the facility. The additional working capital has enabled us to expand our operations, partially implement our business plan, improve our products for market and proceed to develop additional products and processes. This has resulted in the increases in expenses enumerated above. Specifically, in the research area, we have been able to increase our research and development personnel, engage research consultants and operate our pilot plant, changing over to a commercial plant. In the administrative area, we have increased personnel to build a corporate infrastructure and have incurred increased travel and marketing expenses as we have raised capital and promoted our planned future products. We have also increased our administrative equity based compensation during the period.

Six months ended June 30, 2010 Compared to the Six months ended June 30, 2009

Sales and cost of sales

We began commercial production and sales of our products during the second quarter of 2009. Sales for the six months ended June 30, 2010 and 2009 totaled $309,929 and $60,830, respectively. Cost of sales includes labor, raw materials, additives and energy cost. During the six month periods ended June 30, 2010 and 2009 we generated gross losses on sales of $720,057 and $75,056, respectively. The gross losses from current sales resulted from the transition from a pilot and testing facility to actual production plant. This is mainly due to lack of scale and start up problems with raw material delivery and pre-treatment. This also induced us to use alternative but more expensive raw materials.

Expenses and operating losses

Operating losses increased from $3,582,043 in 2009 to $4,452,319 in 2010. The increase of $870,276 was the result of the increase in gross loss on sales of $645,001 as described above, and an increase of $922,084 in general and administrative expenses, from $2,612,922 in 2009 to $3,535,006 in 2010, partially offset by a decrease in research and development expenses of $627,372, from $932,331 in 2009 to $304,959 in 2010, and an increase in earned subsidies of $69,437, from $38,266 in 2009 to $107,703 in 2010. The primary components of our general and administrative expenses for each of the periods are compensation expense, consulting and professional fees, rent and travel expenses. The increase in general and administrative expenses from 2009 to 2010 results primarily from increases in compensation expense of approximately $333,000, professional fees of approximately $86,000, rent of approximately $86,000 and depreciation of approximately $174,000. Aggregate research and development expenses decreased in 2010 as we became operational in late 2009 and have begun to streamline our research activities to new applications. Subsidy payments received are based on expenditures for compensation, capital investments and other disbursements. Our overall expenses have increased as we have raised capital, continued the development of the Plastinum technology and position ourselves to become a revenue generating company.

Liquidity and Capital Resources

As of June 30, 2010 we had a working capital deficit of $4,760,374. For the six months ended June 30, 2010, net cash used by operating activities was $5,326,010, resulting primarily from a loss of $4,432,458 and a decrease in accounts payable and accrued expenses of $1,369,600, partially offset by an increase in unearned subsidies of $449,568.

During 2010 we expended $2,417,172 for the acquisition of equipment, with $990,162 expended during the 2009 period.

On June 4, 2010, we entered into a Participation Agreement (the “PPT Participation Agreement”) with an investor, pursuant to which we sold and issued to the investor a 15% equity stake in our Dutch subsidiary, PPT Holding B.V. (“PPT”). In connection with such sale, a “put” right was granted whereby the investor has the right to exchange the equity stake he received in PPT under the PPT Participation Agreement for such number of shares of our Common Stock equivalent to 15% of the our Common Stock, on a fully-diluted basis, in the event that the Reorganization (described under “Management’s Plan of Operation – Proposed Reorganization”) does not take place. An additional 0.93% interest in PPT was sold in July to several individual investors for $375,000. As a result of the June 4, 2010 Participation Agreement, during June 2010, we received net proceeds of approximately $5,656,662 (4,625,000 Euros).

The third party investment in PPT is recorded as a non controlling interest in the financial statements.

On February 16, 2009, pursuant to a Participation and Shareholders’ Agreement (the “NOM Participation Agreement”) among (i) Plastinum Polymer Technologies Corp. B.V., an indirect previously wholly-owned Dutch subsidiary of the Company (the “BV”), (ii) PPT Holding B.V., our direct, wholly-owned Dutch subsidiary and owner of our interest in the BV, (iii) Jacques Mot, our Chief Executive Officer and (iv) N.V. NOM, Investerings- en ontwikkelingsmaatschappij voor Noord-Nederland, a Dutch public limited company (“NOM”) with the State of the Netherlands (Ministry of Economic Affairs) and the provinces of Groningen, Friesland and Drenthe as its shareholders, NOM invested € 1,500,000 ($1,929,600) in the BV and in return received preferential shares in the BV giving NOM a 49% share in the profits of the BV.

Pursuant to the terms of the NOM Participation Agreement, (i) the preferential shares received by NOM are entitled to cumulative annual 10% dividends, (ii) the preferential shares received by NOM may be repurchased from NOM by the BV at any time for 150% of the purchase price originally paid for the preferential shares by NOM and (iii) if not repurchased by the BV by January 1, 2013, the preferential shares received by NOM may be converted by NOM into 49% of the ordinary shares of the BV.

The NOM Participation Agreement also provides for, among other things, (i) anti-dilution protection for NOM in the event shares in the BV are sold at a lower valuation than that at which NOM made its investment , (ii) restrictions on transfer of shares in the BV, (iii) provisions regarding the operation of the board of directors of the BV, (iv) restrictions on dividend payments by the BV until the dividends payable on the preferential shares received by NOM are paid and (v) certain non-competition provisions governing the BV and Mr. Mot. Further, in the event of a conversion by NOM of its preferential shares in the BV, the following dividend policy will be in effect at the BV: (i) when the solvency of the BV is below 30%, no dividends will be paid; (ii) when the solvency of the BV is between 30% and 50%, 50% of the BV’s net income will be paid out as dividends; and (iii) when the solvency of the BV is over 50%, 100% of the BV’s net income will be paid out as dividends.

The investment by NOM is recorded as a non controlling interest in the financial statements.

For the six months ended June 30, 2009, net cash used by operating activities was $2,728,804, resulting primarily from a loss of $4,146,876 partially offset by a non-cash charges of $650,819 for stock based compensation, $488,710 for amortization of debt discount and change in fair value of derivative liability and $163,391 of depreciation and amortization..

In addition to the need for substantial capital in order to implement our business plan and expansion, we currently do not have sufficient capital resources to meet projected cash flow deficits for ongoing operations and we will need additional capital to continue our operations. We will endeavor to raise funds through the sale of equity shares, debt financing and revenues from operations. If we are unable to raise additional capital through debt or equity financings, on terms acceptable to us, and are not successful in generating sufficient liquidity from operations, then this lack of financing would have a material adverse effect on our business, results of operations, liquidity and financial condition.

There can be no assurance that we will generate revenues from operations or obtain sufficient capital on acceptable terms, if at all. Failure to obtain such capital or generate such operating revenues would have a material adverse effect on our financial position and results of operations and our ability to continue as a going concern. Our operating and capital requirements during the next fiscal year and thereafter will vary based on a number of factors, including the level of sales and marketing activities for our plastic services and products. There can be no assurance that additional private or public financings including debt or equity financing, will be available as needed, or, if available, on terms favorable to us. Furthermore, debt financing, if available, will require payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility. Our failure to successfully obtain additional future funding may jeopardize our ability to continue our business and operations. Any additional equity financing may be dilutive to stockholders and such additional equity securities may have rights, preferences or privileges that are senior to those of our existing common stock.

Our registered independent certified public accountants have stated in their report, dated April 14, 2010, that the Company's recurring losses raise substantial doubt about the Company's ability to continue as a going concern.

Off Balance Sheet Arrangements

We do not have any off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange traded contracts.

Inflation

We believe that inflation has not had a material effect on our operations to date.

Critical Accounting Policies and Estimates

Our Management’s Discussion and Analysis of Financial Condition and Results of Operation is based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While there are a number of significant accounting policies affecting our consolidated financial statements; we believe the following critical accounting policies and pronouncements involve the most complex, difficult and subjective estimates and judgments:

Use of Estimates

Stock Based Compensation

We account for our stock based compensation under ASC 718 “Compensation – Stock Compensation” which was adopted in 2006, using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments.

Foreign Currency Translation

The Company translates the foreign currency financial statements of its foreign subsidiaries in accordance with the requirements of ASC 830, "Foreign Currency Matters." Assets and liabilities are translated at current exchange rates, and related revenue and expenses are translated at average exchange rates in effect during the period. Resulting translation adjustments are recorded as a separate component in stockholders' equity. Foreign currency transaction gains and losses are included in the statement of income.

Derivatives

In June 2008, the FASB issued new accounting guidance which requires entities to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock by assessing the instrument’s contingent exercise provisions and settlement provisions. Instruments not indexed to their own stock fail to meet the scope exception of ASC 815 and should be classified as a liability and marked-to-market. The statement is effective for fiscal years beginning after December 15, 2008 and is to be applied to outstanding instruments upon adoption with the cumulative effect of the change in accounting principle recognized as an adjustment to the opening balance of retained earnings. The Company has assessed its outstanding equity-linked financial instruments and has concluded that, effective January 1, 2009, the conversion feature of our redeemable preferred stock will need to be recorded as a derivative liability due to the fact that the conversion price is subject to adjustment based on subsequent sales of securities.

Going Concern

We have not generated significant revenue since the date of our inception and, at present, we have insufficient capital on hand to fund our planned operations and expansion through 2010.

The foregoing matters raise substantial doubt about our ability to continue as a going concern.

Recent Accounting Pronouncements

For information regarding other recent accounting pronouncements and their effect on the Company, see “Recent Accounting Pronouncements” in Note A of the Notes to Unaudited Condensed Consolidated Financial Statements contained herein.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This item is not applicable.

ITEM 4. CONTROLS AND PROCEDURES

This item is not applicable.

ITEM 4T. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “ SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure.

As of the end of the period covered by this Quarterly Report, our management, under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial (and principal accounting) Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act). Based upon that evaluation and the identification of the material weakness in the Company’s internal control over financial reporting as of December 31, 2009 (described below) which has not been remediated as of of the end of the period covered by this Quarterly Report, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were ineffective as of the end of the period covered by this Quarterly Report.

Because of the Company’s limited resources and limited number of employees, management concluded that, as of December 31, 2009, our internal control over financial reporting is not effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of legal and accounting professionals. As we grow, we expect to increase our number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Limitations on Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Changes in Internal Control over Financial Reporting

There has not been any change in our internal control over financial reporting during the three months ended June 30, 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

This item is not applicable.

ITEM 1A.

RISK FACTORS

An investment in shares of our common stock is very speculative and involves a very high degree of risk. An investment in our company is suitable only for the persons who can afford the loss of their entire investment. Accordingly, in addition to the Risk Factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2009, filed on April 15, 2010, as well as other information set forth therein, in making an investment decision with respect to our securities, investors should carefully consider the following risk factor.

We have Received a Demand for Redemption of a Substantial Portion of our Outstanding Series B-1 Convertible Preferred Stock

We do not currently have sufficient cash on hand to make the Demanded Redemption. Therefore, we will need to raise such funds prior to November 1, 2010 in order to comply with the Demanded Redemption. In the event such funds are raised through equity investments in the Company, current investors in the Company may incur significant dilution. Should we be unable to raise the cash necessary to make the Demanded Redemption by November 1, 2010, such holder would become a creditor of the Company and as a creditor, could seek to obtain a judgment against the Company for the amount of the Demanded Redemption. In the event such holder obtains a judgment against the Company and seeks to enforce such judgment against the Company, we may be forced into seeking protection under bankruptcy laws, which could result in the stockholders' equity in the Company being rendered worthless.

Additionally, though no additional redemption demands have been received to date, other holders of shares of our Preferred Stock may also make redemption demands effective November 1, 2010 for an aggregate additional redemption price of $2,305,000 plus any accrued and unpaid dividends for all other outstanding shares our Preferred Stock. Should we receive such additional redemption demands, we will need to raise additional funds to meet such additional redemption demands.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On June 4, 2010, Plastinum Polymer Technologies Corp. (the “Company”) entered into a Participation Agreement (the “Participation Agreement”) with Richard von Tscharner (the “Investor”), pursuant to which the Company sold and issued to the Investor a 15% equity stake in the Company’s Dutch subsidiary, PPT Holding B.V. (“PPT”), for 5 million Euros. The payment of the 5 million Euros was made in two installments, whereby a first installment of 3 million Euros was paid by RT to PPT, out of which funds PPT repaid a Bridge Loan previously made by RT to PPT on April 16, 2010 (including accrued interest thereon), and a second installment of 2 million Euros was paid by the Investor to PPT.

The Participation Agreement was entered into between the parties with the understanding that the Company is contemplating a reorganization which would result in the Company’s securities no longer being traded in the United States, but instead the Company’s business operations, which are controlled by its subsidiary PPT Holding B.V. (“PPT”), will be publicly traded under PPT on a European securities market and the Company security holders will become PPT security holders (the “Reorganization”). Pursuant to the Participation Agreement, among other things, the Investor received a “put” right to exchange the equity stake it received in PPT thereunder for such number of shares of the Company’s Common Stock equivalent to 15% of the Company’s Common Stock, on a fully-diluted basis, or 32,675,608 shares of Common Stock, in the event that the Reorganization does not take place. Such “put” right was granted without registration under the Securities Act of 1933, as amended, in reliance on Regulation S thereunder (“Regulation S”).

On July 20, 2010, in reliance on Section 4(2) under the Securities Act, we issued 102,250 shares of Common Stock to Robert C. Scherne in partial consideration for services provided by Mr. Scherne as Interim Chief Financial Officer.

On August 10, 2010, the Company sold 2,500,000 shares of its Common Stock to Mr. Georges Bindschedler for a purchase price of $0.225 per share, or an aggregate of $562,500, in reliance on Regulation S.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

This item is not applicable.

ITEM 4.

(REMOVED AND RESERVED)

This item is not applicable.

ITEM 5.

OTHER INFORMATION

This item is not applicable.

ITEM 6.

EXHIBITS

The following exhibits are being filed as part of this quarterly report:

Exhibit No.		Description

31.1		Certificate pursuant to section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

31.2		Certificate pursuant to section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.1		Certificate pursuant to section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.2		Certificate pursuant to section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PLASTINUM POLYMER TECHNOLOGIES CORP. (Registrant)

Date: August 23, 2010	By:	/s/ Jacques Mot
		Name: Jacques Mot Title: President and Chief Executive Officer

Date: August 23, 2010	By:	/s/ Robert Scherne
		Name: Robert Scherne Title: Interim Chief Financial Officer

Plastinum Polymer Technologies Corp. 10-Q