Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 13, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | FRONTIER OILFIELD SERVICES INC | |
Entity Central Index Key | 1,108,645 | |
Document Type | 10-Q | |
Trading Symbol | FOSI | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,760,178 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash | $ 2,275 | $ 17,156 |
Accounts receivable, net | 82,738 | 69,962 |
Advance to shareholder | 29,413 | |
Total current assets | 85,013 | 116,531 |
Property and equipment, at cost | 7,616,948 | 7,616,948 |
Less: accumulated depreciation | (4,685,303) | (4,309,031) |
Property and equipment, net | 2,931,645 | 3,307,917 |
Intangibles, net | 280,484 | 335,366 |
Deposits | 2,302 | 2,302 |
Total other assets | 282,786 | 337,668 |
Total Assets | 3,299,444 | 3,762,116 |
Current Liabilities: | ||
Current maturities of long-term debt, primarily stockholders, net of deferred loan fees | 7,961,002 | 7,961,002 |
Accounts payable | 1,371,029 | 1,521,948 |
Accrued liabilities | 1,663,593 | 1,273,942 |
Total current liabilities | 10,995,624 | 10,756,892 |
Long-term debt, less current maturities | ||
Total Liabilities | 10,995,624 | 10,756,892 |
Commitments and Contingencies (Note 7) | ||
Stockholders' Deficit: | ||
Common stock- $.01 par value; authorized 100,000,000 shares; 14,760,178 shares and 13,868,788 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 147,603 | 138,689 |
Additional paid-in capital | 35,266,295 | 34,918,653 |
Accumulated deficit | (43,110,078) | (42,052,118) |
Total stockholders' deficit | (7,696,180) | (6,994,776) |
Total Liabilities and Stockholders' Deficit | $ 3,299,444 | $ 3,762,116 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ .01 | $ .01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 14,760,178 | 13,868,788 |
Common stock, shares outstanding | 14,760,178 | 13,868,788 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue, net of discounts | $ 298,728 | $ 321,863 | $ 884,413 | $ 885,719 |
Costs and expenses: | ||||
Operating costs | 169,919 | 198,360 | 518,259 | 678,814 |
General and administrative | 474,336 | 92,117 | 700,893 | 302,875 |
Depreciation and amortization | 143,718 | 115,321 | 431,154 | 345,965 |
Total costs and expenses | 787,973 | 405,798 | 1,650,306 | 1,327,654 |
Operating loss | (489,245) | (83,935) | (765,893) | (441,935) |
Other (income) expense: | ||||
Interest expense | 110,644 | 168,516 | 329,751 | 723,578 |
Loss before provision for income taxes | (599,889) | (252,451) | (1,095,644) | (1,165,513) |
Gain on extinguishment of debt | 37,684 | 37,684 | ||
Net loss | $ (562,205) | $ (252,451) | $ (1,057,960) | $ (1,165,513) |
Net loss per common share - Basic (in dollars per share) | $ (0.04) | $ (0.02) | $ (0.07) | $ (0.10) |
Basic Weighted Average Common Shares Outstanding | 14,750,274 | 12,533,742 | 14,162,617 | 12,083,917 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (1,057,960) | $ (1,165,513) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 431,154 | 345,965 |
Stock compensation | 356,556 | |
Gain on extinguishment of debt | (37,684) | |
Amortization of deferred loan fees to interest expense | 0 | 156,546 |
(Increase) decrease in operating assets: | ||
Accounts receivable | (12,776) | (8,981) |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (113,235) | (27,535) |
Accrued liabilities | 389,651 | 580,759 |
Net cash used in operating activities | (44,294) | (118,759) |
Cash Flows from Investing Activities: | ||
Repayment of advance to shareholder | 29,413 | 102,777 |
Net cash provided by investing activities | 29,413 | 102,777 |
Cash Flows from Financing Activities: | 0 | 0 |
Net decrease in cash | (14,881) | (15,982) |
Cash at beginning of the period | 17,156 | 20,253 |
Cash at end of the period | 2,275 | 4,271 |
Supplemental Cash Flow Disclosures | ||
Interest paid | $ 33,637 | |
Settlement of liabilities through common stock issuance | $ 2,013,546 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The consolidated financial statements included herein have been prepared by Frontier Oilfield Services, Inc. (“the Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted. However, in the opinion of management, all adjustments (which include only normal recurring adjustments, unless otherwise indicated) necessary to present fairly the financial position and results of operations for the periods presented have been made. The results for interim periods are not necessarily indicative of trends or of results to be expected for the full year. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2017 (including the notes thereto) set forth in Form 10-K. |
BUSINESS ACTIVITIES
BUSINESS ACTIVITIES | 9 Months Ended |
Sep. 30, 2018 | |
Business Activities | |
BUSINESS ACTIVITIES | 2. BUSINESS ACTIVITIES Frontier Oilfield Services, Inc. a Texas corporation (and collectively with its subsidiaries, “we”, “our”, “Frontier”, “FOSI”, or the “Company”), was organized on March 24, 1995. The accompanying consolidated financial statements include the accounts of the Company and Frontier Acquisition I, Inc., and its subsidiary Chico Coffman Tank Trucks, Inc. (CTT) and its subsidiary Coffman Disposal, LLC, and Frontier Income and Growth, LLC (FIG) and its subsidiaries Trinity Disposal & Trucking, LLC and Trinity Disposal Wells, LLC. Frontier operates its business in the oilfield service industry and is primarily involved in the disposal of saltwater and other oilfield fluids in Texas. The Company currently owns and operates five disposal wells in Texas, three within the Barnett Shale in North Texas and two in east Texas near the Louisiana state line. The Company’s customers include national, integrated, and independent oil and gas exploration companies. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2018 | |
Going Concern | |
GOING CONCERN | 3. GOING CONCERN The Company’s financial statements are prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of the date of the financial statements, the Company has generated losses from operations, has an accumulated deficit and working capital deficiency. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. To continue as a going concern and achieve a profitable level of operations, the Company will need, among other things, to increase its business volume and grow revenues, reduce its operating expenses, raise additional capital resources and develop new and stable sources of revenue sufficient to meet its operating expenses. The Company’s ability to continue as a going concern will be dependent upon management’s ability to successfully implement management’s plans to pursue additional business volumes from new and existing customers, reduce indebtedness through sales of non-performing assets and conversions of debt to equity, and rationalize the Company’s cost structure to achieve profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company’s continued existence will ultimately be dependent on its ability to generate sufficient cash flows to support its operations as well as provide sufficient resources to retire existing liabilities on a timely basis. The Company faces significant risk in implementing its business plan and there can be no assurance that financing for its operations and business plan will be available or, if available, such financing will be on satisfactory terms. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4. SUMMARY OF SELECTED ACCOUNTING POLICIES New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers This amendment also clarifies that each indicator may be relevant to the assessment depending on the terms and conditions of the contract. In April 2016, the FASB also issued ASU 2016-10, which clarifies the implementation guidance on identifying promised goods or services and on determining whether an entity’s promise to grant a license with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). This accounting guidance has been adopted by the Company as of January1, 2018. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases, Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. Fair Value of Financial Instruments In accordance with the reporting requirements of ASC Topic 825, Financial Instruments Earnings (Loss) Per Share (EPS) Basic earnings per common share are calculated by dividing net income or loss by the weighted average number of shares outstanding during the period. Diluted earnings per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an anti-dilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are no stock options in 2018 or 2017 which have been excluded from EPS that could potentially have a dilutive effect on EPS in the future. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | 5. STOCK BASED COMPENSATION On July 2, 2018, the Company issued an aggregate of 891,390 shares of common stock to the members of the Board of Directors and outside consultants. Two members of the Board of Directors received 250,000 shares each. One member of the Board of Directors received 100,000 shares. Outside consultants to the Company received an aggregate of 291,390 shares in exchange for their services to the Company. The Company recorded stock compensation expense of $356,556 for the three months ended September 30, 2018 associated with the stock issuance. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 6. BORROWINGS Borrowings as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2018 2017 Revolving credit facility and term loan (a) $ 747,757 $ 747,757 Term note (b) 4,330,820 4,330,820 Loans from stockholders (c) (d) 2,870,484 2,870,484 Installment notes (e) 11,941 11,941 Total debt 7,961,002 7,961,002 Less current portion (7,961,002 ) (7,961,002 ) Total long-term debt $ — $ — a. The Revolving Credit Facility and Term Loan (Senior Loan Facility) have a maturity date of July 23, 2017 and a default interest rate which is the base rate plus the applicable margin plus 2% (6.92% at September 30, 2018, and December 31, 2017). The term loan portion of the Senior Loan Facility requires monthly payments of $100,000 plus interest. The loans are secured by all of the Company’s properties and assets except for its disposal wells. The Senior Loan Facility has a subordinated secured position in the disposal wells. The Senior Loan Facility is owned by an accredited investor, who is also a significant stockholder in the Company. In September 2016, the holder of the Senior Loan Facility foreclosed on certain land and buildings owned by the Company in settlement of a portion of the outstanding amount of principal on the Senior Loan Facility. Consequently, the Company charged off the net book value of the land and buildings totaling $591,705 against the outstanding principal on the Senior Loan Facility, leaving a principal balance of $747,757 remaining. b. The Company and its subsidiaries entered a Term Loan, Guaranty and Security Agreement on July 23, 2012 with ICON for $5 million (the “Loan Agreement”). The Loan Agreement is owned by an accredited investor who assumed the terms and conditions of the Loan Agreement. The Loan Agreement provides for monthly payments of interest and with repayment of the principal and all accrued but unpaid interest due on February 1, 2018. The payment of principal and accrued interest due on February 1, 2018 was not made. The Loan Agreement provides the lender with a senior secured position on the Company’s disposal wells and a subordinated position to the Senior Loan Facility on all other Company properties and assets. As of September 30, 2018 and December 31, 2017, the Company was not in compliance with its debt covenants under the Loan Agreement and the lender had not exercised its rights under the Loan Agreement. The outstanding balance of the note pursuant to the Loan Agreement is included in current liabilities at September 30, 2018 and December 31, 2017 because the Company was not in compliance with its debt covenants, including the timely payment of interest. On June 30, 2017, the holder of the Loan Agreement agreed to exchange the outstanding accrued interest on the Loan Agreement for common stock in the company, and agreed to lower the interest rate on the Loan Agreement to 3% annually effective July 1, 2017. c. On May 27, 2014 an accredited investor, who is also a stockholder in the Company, entered a loan agreement with the Company for $2,783,484. As of September 30, 2018 and December 31, 2017 the principal balance of the note was $2,783,484. The note bears interest at 9% per annum. The terms of the note require the cash payment of one-half of the interest cost monthly (4.5% per annum), and the remaining half is accrued as payment in kind interest. The note and all accrued interest were due and payable in November 27, 2015. The principal and interest on the note payable is past due pursuant to its terms. d. On March 21, 2014 the CEO of the Company, who is also a stockholder in the Company entered a promissory note agreement whereby the CEO loaned the Company $87,000. The promissory note has an interest rate of 7% per annum. The note was to be paid in installments throughout the year ended December 31, 2014 with a portion of the repayment conditioned upon the sale of certain of the Company’s disposal wells. The principal and interest on the note payable to the CEO is past due pursuant to its terms. e. The Company has an installment loan with an outstanding principal balance of approximately $11,941 used to acquire property and equipment for use in the Company’s operations. The collateral for the loan was no longer in use in the Company’s operations and was returned to the lender May 2016. The reduction in principal from the surrender of the collateral was less than the total balance owed. The remaining principal balance of the loan is past due and is classified as a short-term liability. f. Unamortized debt issuance costs are amortized as interest expense over the terms of the related notes payable using the effective interest method and are classified as a discount to the related recorded debt balance. Total interest expense on debt discount for the nine months ended September 30, 2018 and 2017 was $0 and $156,546, respectively. On June 30, 2017, an affiliate of an accredited investor who is also a principal stockholder agreed to exchange approximately $2.0 million in accounts payable and accrued liabilities for 2,013,546 shares of common stock of the Company. The Board approved the exchange and issuance of the shares on June 30, 2017. The liabilities exchanged for common stock included the affiliates full interest in the accrued interest payable to the stockholder associated with the Loan Agreement and the Senior Loan Facility. The 2,013,546 shares of common stock were issued on August 31, 2017. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES a. The Company is obligated for approximately $1.3 million under long-term leases for the use of land where five of its disposal wells are located. Two of the leases are for extended periods. The first lease expires on February 7, 2023 (with two options to renew for an additional 10 years each). The second lease expires on December 1, 2034 with no option to renew. In April 2018, the company terminated a land lease on its expiration date of May 31, 2018. The aggregate monthly lease payment for the disposal well leases is $9,000. b. From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs and legal costs associated with these matters when they become probable and the amount can be reasonably estimated. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers This amendment also clarifies that each indicator may be relevant to the assessment depending on the terms and conditions of the contract. In April 2016, the FASB also issued ASU 2016-10, which clarifies the implementation guidance on identifying promised goods or services and on determining whether an entity’s promise to grant a license with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). This accounting guidance has been adopted by the Company as of January1, 2018. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases, |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with the reporting requirements of ASC Topic 825, Financial Instruments |
Earnings (Loss) Per Share (EPS) | Earnings (Loss) Per Share (EPS) Basic earnings per common share are calculated by dividing net income or loss by the weighted average number of shares outstanding during the period. Diluted earnings per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an anti-dilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are no stock options in 2018 or 2017 which have been excluded from EPS that could potentially have a dilutive effect on EPS in the future. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Borrowings as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2018 2017 Revolving credit facility and term loan (a) $ 747,757 $ 747,757 Term note (b) 4,330,820 4,330,820 Loans from stockholders (c) (d) 2,870,484 2,870,484 Installment notes (e) 11,941 11,941 Total debt 7,961,002 7,961,002 Less current portion (7,961,002 ) (7,961,002 ) Total long-term debt $ — $ — a. The Revolving Credit Facility and Term Loan (Senior Loan Facility) have a maturity date of July 23, 2017 and a default interest rate which is the base rate plus the applicable margin plus 2% (6.92% at September 30, 2018, and December 31, 2017). The term loan portion of the Senior Loan Facility requires monthly payments of $100,000 plus interest. The loans are secured by all of the Company’s properties and assets except for its disposal wells. The Senior Loan Facility has a subordinated secured position in the disposal wells. The Senior Loan Facility is owned by an accredited investor, who is also a significant stockholder in the Company. In September 2016, the holder of the Senior Loan Facility foreclosed on certain land and buildings owned by the Company in settlement of a portion of the outstanding amount of principal on the Senior Loan Facility. Consequently, the Company charged off the net book value of the land and buildings totaling $591,705 against the outstanding principal on the Senior Loan Facility, leaving a principal balance of $747,757 remaining. b. The Company and its subsidiaries entered a Term Loan, Guaranty and Security Agreement on July 23, 2012 with ICON for $5 million (the “Loan Agreement”). The Loan Agreement is owned by an accredited investor who assumed the terms and conditions of the Loan Agreement. The Loan Agreement provides for monthly payments of interest and with repayment of the principal and all accrued but unpaid interest due on February 1, 2018. The payment of principal and accrued interest due on February 1, 2018 was not made. The Loan Agreement provides the lender with a senior secured position on the Company’s disposal wells and a subordinated position to the Senior Loan Facility on all other Company properties and assets. As of September 30, 2018 and December 31, 2017, the Company was not in compliance with its debt covenants under the Loan Agreement and the lender had not exercised its rights under the Loan Agreement. The outstanding balance of the note pursuant to the Loan Agreement is included in current liabilities at September 30, 2018 and December 31, 2017 because the Company was not in compliance with its debt covenants, including the timely payment of interest. On June 30, 2017, the holder of the Loan Agreement agreed to exchange the outstanding accrued interest on the Loan Agreement for common stock in the company, and agreed to lower the interest rate on the Loan Agreement to 3% annually effective July 1, 2017. c. On May 27, 2014 an accredited investor, who is also a stockholder in the Company, entered a loan agreement with the Company for $2,783,484. As of September 30, 2018 and December 31, 2017 the principal balance of the note was $2,783,484. The note bears interest at 9% per annum. The terms of the note require the cash payment of one-half of the interest cost monthly (4.5% per annum), and the remaining half is accrued as payment in kind interest. The note and all accrued interest were due and payable in November 27, 2015. The principal and interest on the note payable is past due pursuant to its terms. d. On March 21, 2014 the CEO of the Company, who is also a stockholder in the Company entered a promissory note agreement whereby the CEO loaned the Company $87,000. The promissory note has an interest rate of 7% per annum. The note was to be paid in installments throughout the year ended December 31, 2014 with a portion of the repayment conditioned upon the sale of certain of the Company’s disposal wells. The principal and interest on the note payable to the CEO is past due pursuant to its terms. e. The Company has an installment loan with an outstanding principal balance of approximately $11,941 used to acquire property and equipment for use in the Company’s operations. The collateral for the loan was no longer in use in the Company’s operations and was returned to the lender May 2016. The reduction in principal from the surrender of the collateral was less than the total balance owed. The remaining principal balance of the loan is past due and is classified as a short-term liability. f. Unamortized debt issuance costs are amortized as interest expense over the terms of the related notes payable using the effective interest method and are classified as a discount to the related recorded debt balance. Total interest expense on debt discount for the nine months ended September 30, 2018 and 2017 was $0 and $156,546, respectively. On June 30, 2017, an affiliate of an accredited investor who is also a principal stockholder agreed to exchange approximately $2.0 million in accounts payable and accrued liabilities for 2,013,546 shares of common stock of the Company. The Board approved the exchange and issuance of the shares on June 30, 2017. The liabilities exchanged for common stock included the affiliates full interest in the accrued interest payable to the stockholder associated with the Loan Agreement and the Senior Loan Facility. The 2,013,546 shares of common stock were issued on August 31, 2017. |
BUSINESS ACTIVITIES (Details Na
BUSINESS ACTIVITIES (Details Narrative) | Sep. 30, 2018 |
Texas [Member] | |
Number of disposal wells | 5 |
North Texas [Member] | |
Number of disposal wells | 3 |
East Texas [Member] | |
Number of disposal wells | 2 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details Narrative) | 1 Months Ended | 3 Months Ended |
Jul. 31, 2018shares | Sep. 30, 2018USD ($) | |
Stock compensation expense | $ | $ 356,556 | |
Outside consultants company [Member] | ||
Directors stock grant | 291,390 | |
Board of Directors Members [Member] | ||
Number of directors received stock | 2 | |
Directors stock grant | 891,390 | |
Board of Directors Members (Each) [Member] | ||
Directors stock grant | 250,000 | |
Board of Directors Members [Member] | ||
Number of directors received stock | 1 | |
Directors stock grant | 100,000 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Long-term debt, net | ||
Total debt | $ 7,961,002 | $ 7,961,002 |
Less current portion | (7,961,002) | (7,961,002) |
Total long-term debt | ||
Term Note [Member] | ||
Long-term debt, net | ||
Total debt | 4,330,820 | 4,330,820 |
Loans From Stockholders [Member] | ||
Long-term debt, net | ||
Total debt | 2,870,484 | 2,870,484 |
Installment Notes [Member] | ||
Long-term debt, net | ||
Total debt | 11,941 | 11,941 |
Revolving Credit Facility And Term Loan [Member] | ||
Long-term debt, net | ||
Total debt | $ 747,757 | $ 747,757 |
BORROWINGS (Details Narrative)
BORROWINGS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Aug. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | May 27, 2014 | Mar. 21, 2014 | Jul. 23, 2012 | |
Long-term debt | $ 7,961,002 | $ 7,961,002 | ||||||
Amortization of capitalized loan fees | $ 0 | $ 156,546 | ||||||
Revolving Credit Facility And Term Loan [Member] | ||||||||
Maturity Date | Jul. 23, 2017 | |||||||
Variable rate description | Base Rate Plus Applicable Margin Plus 2% | |||||||
Spread on variable rate basis | 2.00% | |||||||
Default interest rate | 6.92% | |||||||
Loan payment amount - principal | $ 100,000 | |||||||
Loan payment frequency | Monthly | |||||||
Long-term debt | $ 747,757 | 747,757 | ||||||
Extinguishment of debt | $ 591,705 | |||||||
Promissory Note Agreement With CEO [Member] | ||||||||
Debt face amount | $ 87,000 | |||||||
Debt Interest Rate | 7.00% | |||||||
Accredited Investor Loan [Member] | ||||||||
Issuance of common stock for debt (shares) | 2,013,546 | |||||||
Amount of debt extinguished for common stock for debt (shares) | $ 2,000,000 | |||||||
Term Note [Member] | ||||||||
Long-term debt | $ 4,330,820 | 4,330,820 | ||||||
Debt face amount | $ 5,000,000 | |||||||
Debt Interest Rate | 3.00% | |||||||
Loans From Stockholders [Member] | ||||||||
Maturity Date | Nov. 27, 2015 | |||||||
Loan payment percent | 4.50% | |||||||
Loan payment frequency | Monthly | |||||||
Long-term debt | $ 2,870,484 | 2,870,484 | ||||||
Debt face amount | $ 2,783,484 | $ 2,783,484 | ||||||
Debt Interest Rate | 9.00% | |||||||
One-half of interest rate to be paid in cash (per annum) | 4.50% | |||||||
Installment Notes [Member] | ||||||||
Long-term debt | $ 11,941 | $ 11,941 | ||||||
Debt face amount | $ 11,941 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Use of Land Leases [Member] | |
Total lease obligation | $ 1,300,000 |
Monthly lease payment for leases | $ 9,000 |
Number of wells on land leases | 5 |
Use of Land Leases 1 [Member] | |
Lease renewal term | 10 years |
Lease expiration dates | Feb. 7, 2023 |
Use of Land Leases #2 [Member] | |
Lease expiration dates | Dec. 1, 2034 |