Sunworks (SUNWQ) 10-Q 10 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 08, 2016
Document And Entity Information
Entity Registrant Name	Sunworks, Inc.
Entity Central Index Key	1,172,631
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		20,853,921
Trading Symbol	SUNW
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 6,661	$ 12,040
Restricted cash	37	37
Accounts receivable, net	15,303	7,023
Inventory	3,226	1,269
Costs in excess of billings	8,108	2,130
Other current assets	524	220
Total Current Assets	33,859	22,719
Property and Equipment, net	1,509	745
Other Assets
Other deposits	41	36
Goodwill	10,864	10,864
Other intangible assets	500	500
Total Other Assets	11,405	11,400
Total Assets	46,773	34,864
Current Liabilities:
Accounts payable and accrued liabilities	16,352	5,033
Billings in excess of costs	3,800	1,990
Customer deposits	67	394
Loan payable, current portion	161	2,028
Convertible promissory notes		850
Acquisition convertible promissory notes, net of beneficial conversion feature of $1,074 and $1,767, respectively	693	750
Total Current Liabilities	21,073	11,045
Long Term Liabilities
Loan payable	409	232
Warranty liability	58	45
Convertible promissory notes	653
Total Long Term Liabilities	1,120	277
Total Liabilities	22,193	11,322
Stockholders’ Equity
Preferred stock Series B, $.001 par value; 5,000,000 authorized shares; 1,506,024 shares issued and outstanding, respectively	2	2
Common stock, $.001 par value; 200,000,000 authorized shares; 20,853,921 and 18,320,535 shares issued and outstanding, respectively	21	18
Additional paid in capital	70,040	63,285
Accumulated Deficit	(45,483)	(39,763)
Total Stockholders’ Equity	24,580	23,542
Total Liabilities and Stockholders’ Equity	$ 46,773	$ 34,864

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Convertible promissory notes, beneficial conversion feature (in Dollars)	$ 1,074	$ 1,767
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	1,506,024	1,506,024
Preferred stock, shares outstanding	1,506,024	1,506,024
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	20,853,921	18,320,535
Common stock, shares outstanding	20,853,921	18,320,535

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Sales	$ 17,563	$ 19,730	$ 67,981	$ 36,394
Cost of Goods Sold	12,827	14,400	48,156	25,670
Gross Profit	4,736	5,330	19,825	10,724
Operating Expenses
Selling and marketing expenses	2,145	1,835	7,932	5,179
General and administrative expenses	4,250	1,744	10,322	4,534
Stock based compensation	3,902	32	5,764	107
Research and development cost		6		53
Depreciation and amortization	101	10	215	26
Total Operating Expenses	10,398	3,627	24,233	9,899
(Loss) Income before Other Income/(Expenses)	(5,662)	1,703	(4,408)	825
Other Income/(Expenses)
Other income (expense)	(214)		(549)	7
Gain on change in fair value of derivative liability				68
Interest expense	(209)	(301)	(763)	(1,023)
Total Other Income/(Expenses)	(423)	(301)	(1,312)	(948)
(Loss) Income before Income Taxes	(6,085)	1,402	(5,720)	(123)
Income Tax Expense
Net (Loss) Income	$ (6,085)	$ 1,402	$ (5,720)	$ (123)
EARNINGS PER SHARE:
Basic	$ (0.29)	$ 0.08	$ (0.29)	$ (0.01)
Diluted	$ (0.29)	$ 0.06	$ (0.29)	$ (0.01)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic	20,853,921	17,756,967	20,009,862	16,670,146
Diluted	20,853,921	22,477,526	20,009,862	16,670,146

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Series B Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2015	$ 2	$ 18	$ 63,285	$ (39,763)	$ 23,542
Balance, shares at Dec. 31, 2015	1,506,024	18,320,535
Issuance of common stock for conversion of promissory notes, plus accrued interest		$ 2	992		994
Issuance of common stock for conversion of promissory notes, plus accrued interest, shares		2,153,895
Stock based compensation		$ 1	5,763		5,764
Stock based compensation, shares		379,491
Net loss				(5,720)	(5,720)
Balance at Sep. 30, 2016	$ 2	$ 21	$ 70,040	$ (45,483)	$ 24,580
Balance, shares at Sep. 30, 2016	1,506,024	20,853,921

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	$ (5,720)	$ (123)
Adjustments to reconcile net (loss) to net cash used in operating activities
Depreciation and amortization	215	26
Stock based compensation	5,764	107
Common stock issued for services		242
Gain on change in derivative liability		(68)
Amortization of debt discount	693	868
Changes in Assets and Liabilities (Increase) Decrease in:
Accounts receivable	(8,280)	(3,752)
Inventory	(1,956)	(379)
Other current assets		18
Cost in excess of billings	(5,978)	(640)
Other asset	(310)	(48)
Accounts payable and accrued liabilities	11,364	1,373
Billings in excess of cost	1,810	459
Deposits		98
Other liabilities	(313)	25
NET CASH USED IN OPERATING ACTIVITIES	(2,711)	(1,794)
NET CASH FLOWS USED IN INVESTING ACTIVITIES:
Net cash paid for acquisitions,		(921)
Purchase of property and equipment	(644)	(61)
NET CASH USED IN INVESTING ACTIVITIES	(644)	(982)
CASH FLOWS FROM FINANCING ACTIVITIES:
Loans payable repayments net of proceeds	(2,024)	(9)
Proceeds from conversion of warrants		12
Capital contribution		39
Proceeds from issuance of common stock, net of cost		11,579
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(2,024)	11,621
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(5,379)	8,845
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	12,040	414
CASH AND CASH EQUIVALENTS, END OF PERIOD	6,661	9,259
Cash paid during the period for:
Cash paid interest	55	87
Cash paid taxes	110	88
Non-cash investing and financing transactions:
Convertible promissory notes issued for acquisitions		2,650
Loans payable issued for equipment	356
Issuance of common stock upon conversion of debt	$ 994	$ 317

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2015.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Sunworks and its wholly owned operating Subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Actual results could materially differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, inventory valuation, valuations of non-cash capital stock issuances and the valuation allowance on deferred tax assets. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Reclassifications Certain reclassifications have been made to prior period financial statements to conform to the current period presentation Revenue Recognition Revenues and related costs on construction contracts are recognized using the “percentage of completion method” of accounting in accordance with Accounting for Performance of Construction-Type and Certain Production Type Contracts (“ASC 605-35”). Under this method, contract revenues and related expenses are recognized over the performance period of the contract in direct proportion to the costs incurred as a percentage of total estimated costs for the entirety of the contract. Costs include direct material, direct labor, subcontract labor and any allocable indirect costs. All un-allocable indirect costs and corporate general and administrative costs are charged to the periods as incurred. However, in the event a loss on a contract is foreseen, the Company recognizes the loss, as it is determined. The Asset, “Costs in excess of billings”, represents revenues recognized in excess of amounts billed on contracts in progress. The Liability, “Billings in excess of costs”, represents billings in excess of revenues recognized on contracts in progress. At September 30, 2016 and December 31, 2015, the costs in excess of billings balance were $8,108,000 and $2,130,000 and the billings in excess of costs balance were $3,800,000 and $1,990,000 respectively. Cash and Cash Equivalent The Company considers all liquid investments with an original maturity of three months or less to be cash equivalents. The Company had $37,000 of restricted cash at September 30, 2016. Concentration Risk The Company maintains several bank accounts at multiple financial institutions for its operations. These accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per institution. Management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which these deposits are held. As of September 30, 2016, the cash balance in excess of the FDIC limits was $6,258,000. Contracts Receivable The Company performs ongoing credit evaluation of its customers. Management closely monitors outstanding receivables based on factors surrounding the credit risk of specific customers, historical trends, age of receivables and other information, and records bad debts using the allowance method. Accounts receivable are presented net of an allowance for doubtful accounts of $50,000 at September 30, 2016, and $0 at December 31, 2015. Inventory Inventory is valued at the lower of cost or market and is determined by the first-in, first-out method. Inventory consists primarily of solar panels and other materials. Property and Equipment Property and equipment is recorded at cost. Depreciation of property and equipment is recorded on the straight-line method over the respective useful lives of the assets ranging from 3 to 7 years. Leasehold improvements are amortized over the initial term of the leases. Machinery & equipment 5 Years Furniture & fixtures 5-7 Years Computer equipment 3-5 Years Vehicles 5-7 Years Leasehold improvements 3-5 Years Depreciation expense for the nine months ended September 30, 2016 and 2015 was $215,000 and $26,000 respectively. Long-Lived Assets The Company reviews its property and equipment and any identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The test for impairment is required to be performed by management at least annually. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. Indefinite Lived Intangibles and Goodwill Assets The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. The Company tests for indefinite lived intangibles and goodwill impairment in the fourth quarter of each year and whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, the Company performed a qualitative assessment of indefinite lived intangibles and goodwill at December 31, 2015 and determined there was no impairment of indefinite lived intangibles and goodwill. Fair Value of Financial Instruments Disclosures about fair value of financial instruments, requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of September 30, 2016, the amounts reported for cash, accrued interest and other expenses, and notes payable approximate the fair value because of their short maturities. We adopted ASC Topic 820 as of January 1, 2008 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Warranty Liability The Company establishes warranty liability reserves to provide for estimated future expenses as a result of installation and product defects, product recalls and litigation incidental to the Company’s business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases. Solar panel manufacturers currently provide substantial warranties between ten to twenty-five years with full reimbursement to replace and install replacement panels while inverter manufacturers currently provide warranties covering ten to fifteen-year replacement and installation. Warranty costs and associated liabilities for the three months ended September 30, 2016 and 2015 were $0 and $0, respectively, and for the nine months ended September 30, 2016 and 2015 were $13,000 and $0, respectively. Selling and Marketing The Company expenses selling and marketing costs as incurred. Selling and marketing costs include printed material, direct mail, radio, telemarketing, tradeshow costs, magazine and catalog advertisements. Selling and marketing costs for the three months ended September 30, 2016 and 2015 were $2,145,000 and $1,835,000 respectively, and for the nine months ended September 30, 2016 and 2015 were $7,932,000 and $5,179,000 respectively. Research and Development Costs Research and development costs are expensed as incurred. These costs consist primarily of consulting fees, salaries and direct payroll related costs. The costs for the three months ended September 30, 2016 and 2015 were $0 and $6,000 respectively, and for the nine months ended September 30, 2016 and 2015 were $0 and $53,000 respectively. Stock-Based Compensation The Company accounts for share-based compensation arrangements in accordance with FASB ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards to be based on estimated fair values. The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options at the date of grant. The Black-Scholes option valuation model requires the input of subjective assumptions to calculate the value of stock options. For restricted stock units, the value of the award is based on the Company’s stock price at the grant date. For performance-based restricted stock unit awards, the value of the award is based on the Company’s stock price at the grant date, with consideration given to the probability of the performance condition being achieved. The Company uses historical data and other information to estimate the expected price volatility for stock option awards and the expected forfeiture rate for all awards. Expense is recognized over the vesting period for all awards, and commences at the grant date for time-based awards and upon the Company’s determination that the achievement of such performance conditions is probable for performance-based awards. This determination requires significant judgment by management. Basic and Diluted Net (Loss) Income per Share Calculations (Loss) Income per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The shares for employee options, warrants and convertible notes were used in the calculation of the income per share. For the period ended September 30, 2016, the Company has excluded 938,188 options and 2,997,000 warrants outstanding because they are below the period ending stock price. The Company has also excluded Series B preferred stock convertible into 1,506,024 shares of common stock due to trading restrictions. For the prior period ended September 30, 2015, the Company excluded 899,574 options, 2,997,000 warrants outstanding, and notes convertible into 5,168,639 shares of common stock because their impact on the loss per share is anti-dilutive. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision making group, in deciding the method to allocate resources and assess performance. The Company currently has one reportable segment for financial reporting purposes, which represents the Company’s core business. Recently adopted pronouncements In January 2016, FASB issued ASU No. 2016-1 which amended the guidance for recognition and measurement of financial assets and liabilities. These amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The adoption of this guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption of certain provisions of this guidance is permitted as of the beginning of the fiscal year of adoption. Entities should apply these amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair value should be applied prospectively to equity investments that exist as of the date of adoption. The Company does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows. In February 2016, the FASB issued ASU No. 2016-2, which creates ASC Topic 842, “Leases.” This update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In March 2016, the FASB issued ASU No. 2016-9, which amends ASC Topic 718, “Compensation – Stock Compensation.” This amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In August 2016, the FASB issued ASU No. 2016-15 which amends ASC Topic 230, “Classification of Certain Cash Receipts and Cash Payments.” The amendments in this Update address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The update outlines the classification of specific transactions as either cash inflows or outflows from financing activities, operating activities, investing activities or non-cash activities. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. Management reviewed currently issued pronouncements during the three months ended September 30, 2016, and does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying condensed financial statements.

Business Acquisition

Business Acquisition	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Acquisition	3. BUSINESS ACQUISITION MD Energy, LLC (MD ENERGY) On March 2, 2015, the Company acquired 100% of the tangible and intangible assets of MD Energy, LLC (MD Energy), for cash in the amount of $850,000 a convertible promissory note in the principal amount of $2,650,000 and payment of working capital surplus in the amount of $437,000. The acquisition was accounted for under ASC 805. MD Energy designs, monitors and maintains solar systems, but outsources the physical construction of the systems. MD Energy is now a wholly-owned subsidiary of the Company. Under the purchase method of accounting, the transactions were valued for accounting purposes at $3,937,000 which was the fair value of MD Energy at the time of the acquisition. Since the Company determined there were no other separately identifiable intangible assets, any difference between the cost of the acquired entity and the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The acquisition date estimated fair value of the consideration transferred consisted of the following: Closing cash payment $ 850, 000 Working capital surplus 437,000 Convertible promissory notes 2,650,000 Total purchase price $ 3,937,000 Tangible assets acquired $ 1,442,000 Liabilities assumed (799,000 ) Net tangible assets 643,000 Goodwill 3,294,000 Total purchase price $ 3,937,000 Plan B Enterprises, Inc. (Plan B) On December 1, 2015, the Company acquired 100% of the issued and outstanding stock of Plan B Enterprises, Inc., a California corporation and d/b/a Elite Solar, Universal Racking Solutions (collectively, “Plan B”) whereby Plan B was merged with and into Elite Solar Acquisition Sub, Inc., a wholly owned subsidiary of the Company (“Acquisition Sub”) for $2,500,000 cash, net of recoverable of $137,000 and by issuance of 1,506,024 shares of convertible preferred stock in the principal amount of $4,500,000. The acquisition was accounted for under ASC 805. Plan B provides solar photovoltaic installation and consulting services for residential, commercial and agricultural properties. Under the purchase method of accounting, the transactions were valued for accounting purposes at $7,000,000 which was the fair value of Plan B at the time of the acquisition. The assets and liabilities of Plan B were recorded at their respective fair values as of the date of acquisition. Since the Company determined there were no other separately identifiable intangible assets, any difference between the cost of the acquired entity and the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The acquisition date estimated fair value of the consideration transferred consisted of the following: Closing cash payment, net of recoverable of $137,000. $ 2,363,000 Preferred share value / Series B 4,500,000 Total purchase price 6,863,000 Tangible assets acquired 5,203,000 Liabilities assumed (3,674,000 ) Net tangible assets 1,529,000 Goodwill 4,834,000 Other intangible assets 500,000 Total purchase price $ 6,863,000 The above estimated fair value of the intangible assets of MD Energy and Plan B is based on final and preliminary purchase price allocations prepared by management, respectively. During the preliminary purchase price allocation period, which may be up to one year from the business combination date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price allocation period, we record adjustments to assets acquired or liabilities assumed, subsequent to the purchase price allocation period, in our operating results in the period in which the adjustments were determined. Pro forma results The following tables set forth the unaudited pro forma results of the Company as if the acquisition of MD Energy and Plan B had taken place on the first day of the periods presented. These combined results are not necessarily indicative of the results that may have been achieved had the companies been combined as of the first day of the periods presented. Nine months ended, September 30, 2015 Total revenues $ 46,245 Net income 613 Basic and diluted net loss per common share $ 0.04

Loans Payable

Loans Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long term debt	4. LOANS PAYABLE Plan B, a subsidiary of the Company, prior to its acquisition by the Company, established a line of credit on March 10, 2014, with Tri Counties Bank to borrow up to $200,000 maturing on March 10, 2015. The maturity date was subsequently extended to March 10, 2016. The minimum monthly payment was dependent upon the outstanding balance due. This was a variable rate revolving line of credit with a minimum interest rate of 4.75%. The outstanding balance at December 31, 2015 was $137,000. The outstanding balance was paid in full before the maturity date. Plan B, a subsidiary of the Company, entered into a business loan agreement prior to the acquisition with Tri Counties Bank dated March 14, 2014, in the original amount of $131,000 bearing interest at 4.95%. The loan agreement called for monthly payments of $2,500 and was scheduled to mature on March 14, 2019. Proceeds from the loan were used to purchase a pile driver and related equipment and is secured by the equipment. The outstanding balance at September 30, 2016, is $69,000. Plan B, a subsidiary of the Company, entered into a business loan agreement prior to the acquisition with Tri Counties Bank dated April 9, 2014, in the original amount of $250,000 bearing interest at 4.95%. The loan agreement calls for monthly payments of $4,700 and is scheduled to mature on April 9, 2019. Proceeds from the loan were used to purchase racking inventory and related equipment. The loan is secured by the inventory and equipment. The outstanding balance at September 30, 2016, is $136,700. MD Energy, a subsidiary of the Company, entered into notes payable in October 2014, secured by transportation equipment, requiring combined monthly payments of $1,500 including principal and interest at various rates of interest per annum. Principal and any accrued interest are payable until September 2019. One note was cancelled with the disposition of the vehicle and another note was paid in full during the quarter ended June 30, 2016. On December 31, 2015, the Company entered into a $2.5 million Credit Facility or the Credit Agreement with JPMorgan Chase Bank, N.A. Availability under the Credit Facility is a Line of Credit with a Letter of Credit Sublimit up to $2.5 million. Upon execution, the Company accessed $1.8 million that was repaid in full on January 5, 2016. The Company had no borrowings under the Credit Agreement during the quarter ended September 30, 2016. The Credit Agreement matures on November 30, 2017, but may be cancelled at any time by the Company. Loans are secured by a security interest in the Company’s account held with the Lender. Interest on any unpaid balance accrues at the Prime Rate, as defined in the Credit Agreement; provided that, on any given day, shall not be less than the Adjusted One Month LIBOR rate. Until the maturity date, the Company shall pay monthly interest only on loans. The Credit Facility provides for the payment of certain fees, including fees applicable to each standby letter of credit and standard transaction fees with respect to any transactions occurring on account of any letter of credit. Subject to customary carve-outs, the Credit Agreement contains customary negative covenants and restrictions for agreements of this type on actions by the Company including, without limitation, restrictions on indebtedness, liens, investments, loans, consolidation, mergers, dissolution, asset dispositions outside the ordinary course of business, change in business and restriction on use of proceeds. In addition, the Credit Agreement requires compliance by the Company with covenants including, but not limited to, furnishing the lender with certain financial reports. The Credit Agreement contains customary events of default, including, without limitation, non-payment of principal or interest, violation of covenants, inaccuracy of representations in any material respect and cross defaults with certain other indebtedness and agreements. On January 5, 2016, the Company entered into a loan agreement for the acquisition of a pile driver in the principle amount of $182,000 bearing interest at 5.5%. The loan agreement calls for monthly payments of $4,200 and is scheduled to mature on January 15, 2020. The loan is secured by the equipment. The outstanding balance at September 30, 2016, is $157,600. On September 8, 2016, the Company entered into a loan agreement for the acquisition of a pile driver in the principle amount of $174,000 bearing interest at 5.5%. The loan agreement calls for monthly payments of $4,000 and is scheduled to mature on January 15, 2020. The loan is secured by the equipment. The outstanding balance at September 30, 2016, is $174,000.

Acquisition Convertible Promiss

Acquisition Convertible Promissory Notes	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Acquisition Convertible Promissory Notes	5. ACQUISITION CONVERTIBLE PROMISSORY NOTES On January 31, 2014, the Company issued 4% convertible promissory notes in the aggregate principal amount of $1,750,000 as part of the consideration paid to acquire 100% of the issued and outstanding stock of Sunworks United. The notes are convertible into shares of fully paid and non-assessable shares of common stock. The conversion price was $0.52 per share until March 30, 2015, which was amended to extend to March 31, 2016. The Notes were five (5) year notes and bore interest at the rate of 4% per annum. In February and March 2014, $625,000 of the notes was converted into 1,201,923 shares of common stock, leaving a remaining note balance of $1,125,000 as of December 31, 2014. During the twelve months ended December 31, 2015, the Company issued 721,154 shares of common stock upon conversion of principal in the amount of $375,000. The principal note balance remaining as of December 31, 2015 was $750,000. On February 29, 2016, the $750,000 balance remaining was fully converted into 1,442,308 shares of common stock. The Company recorded amortization of the beneficial conversion feature as interest expense in the amount of $0 and $234,000 during the nine months ended September 30, 2016 and 2015, respectively. On February 28, 2015, the Company issued a 4% convertible promissory note in the aggregate principal amount of $2,650,000 as part of the consideration paid to acquire 100% of the total outstanding stock of MD Energy. The note is convertible into shares of common stock on or after each of the following dates: November 30, 2015, November 30, 2016 and November 30, 2017. The conversion price is $2.60 per share. A beneficial conversion feature of $3,261,500 was calculated but capped at the $2,650,000 value of the note. The beneficial conversion feature was calculated by multiplying the difference between the fair value of stock at the date of the note $5.80 less the conversion price of $2.60 multiplied by the maximum number of share subject to conversion, 1,019,231. In November 2015, the Company issued 339,743 shares of common stock upon conversion of the principal amount of $883,000. Commencing on March 31, 2015, and each quarter thereafter during the first two (2) years of the note, the Company will make quarterly interest only payments to the shareholder for accrued interest on the Note during the quarter. Commencing with the quarter ending on June 30, 2017, the Company will make quarterly payments of interest accrued on the convertible note during the prior quarter plus $221,000 with the final payment of all outstanding principal and accrued but unpaid interest on the convertible note due and payable on February 28, 2020 (the maturity date). The Company recorded amortization of the beneficial conversion feature as interest expense in the amount of $210,000 and $240,000 during the three months ended September 30, 2016 and 2015, respectively, and $693,000 and $565,000 during the nine months ended September 30, 2016 and 2015, respectively. The debt discount will be amortized over the life of the convertible note, or until such time that the convertible note is converted, in full or in part, into shares of common stock of the Company with any unamortized debt discount continuing to be amortized in the event of any partial conversion thereof and any unamortized debt discount being expensed at such time of full conversion thereof. We evaluated the foregoing financing transactions in accordance with ASC Topic 470, Debt with Conversion and Other Options, and determined that the conversion feature of the convertible promissory note was afforded the exemption for conventional convertible instruments due to its fixed conversion rate. The convertible promissory notes have explicit limits on the number of shares issuable so they did meet the conditions set forth in current accounting standards for equity classification. The convertible promissory notes were issued with non-detachable conversion options that are beneficial to the investors at inception, because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. The accounting for the beneficial conversion feature requires that the beneficial conversion feature be recognized by allocating the intrinsic value of the conversion option to additional paid-in-capital, resulting in a discount on the convertible notes, which will be amortized and recognized as interest expense.

Convertible Promissory Notes

Convertible Promissory Notes	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Convertible Promissory Notes	6. CONVERTIBLE PROMISSORY NOTES On March 1, 2013, the Company entered into a securities purchase agreement providing for the sale of a 5% convertible promissory note in the aggregate principal amount of $8,000 for consideration of $8,000. The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $0.52 per share or the lowest closing price after the effective date. The note matured on March 31, 2015 and the Company issued 16,987 shares of common stock for principal in the amount of $8,000 plus accrued interest of $800. On January 29, 2014, the Company entered into a securities purchase agreement providing for the sale of a 10% convertible promissory note in the principal amount of up to $100,000. Upon execution of the note, the Company received an initial advance of $90,000. On December 4, 2014, the Company issued 192,543 shares of common stock upon conversion of $60,000 in principal, plus interest of $5,000. As of December 31, 2014, the remaining balance was $30,000. The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $0.338 per share, or fifty percent (50%) of the lowest trading price after the effective date. The Company issued 97,633 shares of common stock upon conversion of principal in the amount of $30,000 plus accrued interest of $3,000 during the nine months ended September 30, 2015 On January 31, 2014, the Company entered into a securities purchase agreement providing for the sale of a 10% convertible promissory note in the principal amount of up to $750,000 for consideration of $750,000. The proceeds were restricted and were used for the purchase of Solar United Network, Inc. The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $1.30 per share, or fifty percent (50%) of the lowest trading price after the effective date. As of September 30, 2014, the note was exchanged for a new note with a fix price of $0.338, and convertible into shares of common stock. Per ASC 815, the derivative liability on the note was extinguished and the new note was re-valued per ASC 470 as a beneficial conversion feature, which was expensed in the statement of operations during the prior year. The note originally matured on October 28, 2014, was extended three months to January 31, 2015, was extended to September 30, 2016, and in March 2016 was subsequently extended to June 30, 2019 with zero interest. The Company recorded interest expense in the amount of $11,000 and $60,000 during the nine months ended September 30, 2016 and 2015, respectively. During the nine months ended September 30, 2016, the noteholder made a partial conversion of principal and accrued interest in the amount of $196,000 and $45,000 respectively with a remaining principal balance of $554,000. On February 11, 2014, the Company entered into a securities purchase agreement providing for the sale of a 10% convertible promissory note in the principal amount of up to $100,000. Upon execution of the note, the Company received an initial advance of $20,000. In February and March, the Company received additional advances in an aggregate amount of $80,000 for an aggregate total of $100,000. The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $1.30 per share, or fifty percent (50%) of the lowest trading price after the effective date. As of September 30, 2014, the note was exchanged for a new note with a fixed price of $0.338, and convertible into shares of common stock. Per ASC 815, the derivative liability on the note was extinguished and the new note was re-valued per ASC 470 as a beneficial conversion feature. The note matured on various dates from the effective date of each advance with respect to each advance. At the sole discretion of the lender, the lender was able to modify the maturity date to be twelve (12) months from the effective date of each advance. The note matured on various dates in 2014, and was extended to September 30, 2016, and in March 2016 was subsequently extended to June 30, 2019 with zero interest. The Company recorded interest expense in the amount of $0 and $8,000 during the nine months ended September 30, 2016 and 2015, respectively. At the time of issuance, the Company evaluated the financing transactions in accordance with ASC Topic 815, Derivatives and Hedging, and determined that the conversion feature of the convertible promissory note was not afforded the exemption for conventional convertible instruments due to its variable conversion rate. The notes had no explicit limit on the number of shares issuable so they did not meet the conditions set forth in current accounting standards for equity classification. The Company elected to recognize the note under paragraph 815-15-25-4, whereby, there would be a separation into a host contract and derivative instrument. The Company elected to initially and subsequently measure the note in its entirety at fair value, with changes in fair value recognized in earnings. The derivative liability was adjusted periodically according to the stock price fluctuations.

Capital Stock

Capital Stock	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Capital Stock	7. CAPITAL STOCK Reverse Stock Split On February 25, 2015, the Company effected a 26:1 reverse stock split on its issued and outstanding shares of common stock. All share and per share dollar amounts have been retrospectively revised to reflect the twenty- six-for-one (26:1) reverse stock split. Common Stock During the nine months ended September 30, 2016, the Company issued 1,442,309 shares of common stock at a price of $0.52 per share for conversion of principal for three convertible promissory notes in the aggregate amount of $750,000. During the nine months ended September 30, 2016, the Company issued 711,586 shares of common stock at a price of $0.338 per share for partial conversion of principal and interest for a convertible promissory note in the aggregate amount of $241,000. During the nine months ended September 30, 2016, the Company issued 379,491 shares of restricted common stock per terms of the performance-based RSGA awards and another 746,157 vested shares of restricted common stock that remain to be issued. The Company recorded stock based compensation costs at fair value as of the date of grant of $5,541,000 related to the vesting of these awards. Preferred Stock On November 25, 2015, the Company designated 1,700,000 shares, of its authorized preferred stock, as Series B Preferred Stock, $0.001 par value per share. The Certificate of Designation was filed with the Secretary of State of the State of Delaware. Pursuant to the Certificate of Designation and subject to the rights of any other series of preferred stock that may be established by the Board of Directors, holders of Series B Preferred Stock (the “Holders”) will have liquidation preference over the holders of the Company’s Common Stock in any distribution upon winding up, dissolution, or liquidation. Holders will also be entitled to receive dividends, if, when and as declared by the Board of Directors, which dividends shall be payable in preference and priority to any payment of any dividend to holders of Common Stock. Holders will be entitled to convert each share of Series B Preferred Stock into one (1) share of Common Stock, and will also be entitled to vote together with the holders Common Stock on all matters submitted to shareholders at a rate of one (1) vote for each share of Series B Preferred Stock. In addition, so long as at least 100,000 shares of Series B Preferred Stock are outstanding, the Company may not, without the consent of the Holders of at least a majority of the shares of Series B Preferred Stock then outstanding: (i) amend, alter or repeal any provision of the Certificate of Incorporation or bylaws of the Company or the Certificate of Designation so as to adversely affect any of the rights, preferences, privileges, limitations or restrictions provided for the benefit of the Holders or (ii) issue or sell, or obligate itself to issue or sell, any additional shares of Series B Preferred Stock, or any securities that are convertible into or exchangeable for shares of Series B Preferred Stock. 1,506,024 shares of Series B Preferred stock, at a fair value of $4,500,000 were issued in December 2015 in connection with the acquisition of Plan B.

Stock Option, Restricted Stock

Stock Option, Restricted Stock and Warrants	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option, Restricted Stock And Warrants	8. STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS Options As of September 30, 2016, the Company has 1,534,574 non-qualified stock options outstanding to purchase 1,534,574 shares of common stock, per the terms set forth in the option agreements. The stock options vest at various times, and are exercisable for a period of seven years from the date of grant at exercise prices ranging from $0.26 to $4.42 per share, the market value of the Company’s common stock on the date of each grant. The Company determined the fair market value of these options by using the Black Scholes option valuation model. September 30, 2016 Weighted Number average of exercise Options price Outstanding, beginning January 1, 2016 899,574 $ 1.30 Granted 635,000 2.69 Exercised - - Expired - - Outstanding, end of September 30, 2016 1,534,574 1.87 Exercisable at the end of September 30, 2016 938,188 1.30 During the nine months ended September 30, 2016 and 2015, the Company charged a total of $222,000 and $75,000 respectively, to operations related to recognized stock based compensation expense for stock options. Restricted Stock CEO During the year ended December 31, 2013, the Company entered into a restricted stock grant agreement or RSGA with its Chief Executive Officer, James B. Nelson, intended to provide and incentivize Mr. Nelson to improve the economic performance of the Company and to increase its value and stock price. All shares issuable under the RSGA are performance-based shares and are valued as of the grant date at $0.47 per share. The RSGA provides for the issuance of up to 769,230 shares of the Company’s common stock to Mr. Nelson provided certain milestones are met in certain stages. As of September 30, 2014, two of the milestones were met, when the Company’s market capitalization exceeded $10 million and the consolidated gross revenue, calculated in accordance with GAAP, equaled or exceeded $10 million for the trailing twelve-month period. The Company issued 384,615 shares of common stock to Mr. Nelson at fair value of $786,000 during the year ended December 31, 2014. If the Company’s consolidated net profit, calculated in accordance to GAAP, equals or exceeds $2 million for a trailing twelve-month period and the sooner of Mr. Nelson’s retirement, change of control, or January 2019, the Company will issue an additional 384,615 shares of the Company’s common stock to Mr. Nelson. We have not recognized any cost associated with the third milestone due to the inability to estimate the probability of it being achieved. As the final performance goal is achieved, the shares shall become eligible for vesting and issuance. In recognition of the efforts of James B. Nelson, the Company’s Chief Executive Officer, in leading the Company through the uplisting and financing transaction consummated by the Company in 2015, on August 31, 2016, the Company granted Mr. Nelson a restricted stock grant of 250,000 shares of the Company’s common stock pursuant to the terms of the Company’s 2016 Equity Incentive Plan (the “2016 Plan”). All shares issuable under the RSGA are valued as of the grant date at $2.90 per share. The restricted stock grant to Mr. Nelson will vest upon the earlier of (i) January 1, 2021, (ii) a Change of Control as defined in the 2016 Plan (iii) upon Mr. Nelson’s retirement or (iv) upon Mr. Nelson’s death. “Change of Control” as defined in the 2016 Plan means (i) a sale of all or substantially all of the Company’s assets or (ii) a merger with another entity or an acquisition of the Company that results in the existing shareholders of the Company owning less than fifty percent (50%) of the outstanding shares of capital stock of the surviving entity following such transaction. In the 3 months ended September 30, 2016, one month’s or $14,000 of stock based compensation expense was recognized for the August 31, 2016 RSGA. Restricted Shares to Shareholders During the year ended December 31, 2014, the Company entered into RSGAs with the three Shareholders of Sunworks United (Sunworks United Shareholders), intended to provide incentive to the recipients to ensure economic performance of the Company. All shares issuable under the RSGAs are performance based shares and are valued as of the grant date at $5.12 per share. Each of the RSGAs provide for the issuance of up to 276,924 shares of the Company’s common stock in the aggregate to the Sunworks United Shareholders provided certain milestones are met in certain stages as follows: a) If the Company’s aggregate net income from operations, for any trailing four (4) quarters equals or exceeds $2 million, the Company will issue each Sunworks United Shareholder 92,308 shares of common stock and 276,924 shares in the aggregate; b) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $3 million, the Company will issue each Sunworks United Shareholder 92,308 shares and 276,924 shares of common stock in the aggregate; c) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $4 million, the Company will issue each Sunworks United Shareholder 92,307 and 276,924 shares in the aggregate. Based on the probability that the first milestone would be achieved the Company recognized $100,000 in stock compensation expense during the year 2015. As of September 30, 2016 the Company achieved each of the three milestones. During the quarter ended June 30, 2016 the Company issued 276,924 shares in aggregate associated with the first milestone. The issuance of the remaining 553,845 shares will be completed during the fourth quarter of 2016. The stock based compensation expense associated with the achievement of the second and third milestones totaled $2,837,000 and was recognized in the quarter ended September 30, 2016. No additional compensation expense will be required with the issuance of the 553,845 shares. Restricted Shares to Employees During the year ended December 31, 2014, the Company entered into RSGAs with certain employees of Sunworks United, intended to provide incentive to the recipients to ensure certain economic performance of the Company. All shares issuable under the RSGA are performance based shares and are valued as of the grant date at $5.12 per share. Each of the RSGAs provides for the issuance of up to 38,462 shares of the Company’s common stock to each employee provided certain milestones are met in certain stages as follows: a) If the Company’s aggregate net income from operations, for any trailing four (4) quarters equals or exceeds $2 million, the Company will issue to each employee 12,821 shares of common stock and 64,105 shares in the aggregate; b) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $3 million, the Company will issue each employee 12,821 shares of common stock and 64,105 shares in the aggregate; c) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $4 million, the Company will issue each employee 12,820 and 51,280 shares in the aggregate. Based on the probability that the first milestone would be achieved the Company recognized $33,000 in stock compensation expense during the year 2015. As of September 30, 2016 the Company achieved each of the three milestones. During the quarter ended June 30, 2016 the Company issued 64,105 shares in aggregate associated with the first milestone. The issuance of the remaining 115,385 shares will be completed during the fourth quarter of 2016. The stock based compensation expense associated with the achievement of the second and third milestones totaled $591,000 and was recognized in the quarter ended September 30, 2016. No additional compensation expense will be required with the issuance of the 115,385 shares. Restricted Shares to Former CFO On February 1, 2015, the Company entered into a RSGA with its former Chief Financial Officer, intended to provide incentive to the former CFO to ensure certain economic performance of the Company. All shares issuable under the RSGA are performance-based shares and are valued as of the grant date at $4.21 per share. The RSGA provides for the issuance of up to 115,385 shares of the Company’s common stock provided certain milestones are met in certain stages as follows: a) If the Company’s aggregate net income from operations, for any trailing four (4) quarters equals or exceeds $2 million, the Company will issue 38,462 shares of common stock; b) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $3 million, the Company will issued 38,462 shares of common stock; c) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $4 million, the Company will issue 38,461. As of September 30, 2016 the Company achieved each of the three milestones. During the quarter ended June 30, 2016 the Company issued 38,462 shares associated with the first milestone. The issuance of the remaining 76,723 shares will be completed during the fourth quarter of 2016. The stock based compensation expense associated with the achievement of the second and third milestones totaled $324,000 and was recognized in the quarter ended September 30, 2016. No additional compensation expense will be required with the issuance of the 76,723 shares. Under the terms of the RSGA, the Company issued 379,491 shares of restricted common stock in the nine months ended September 30, 2016. Another 746,157 shares of restricted common stock vested and remain to be issued. The total combined option and restricted stock compensation expense recognized, in the statement of operations, during the nine months ended September 30, 2016 and 2015 was $5,764,000 and $107,000 respectively. Warrants As of September 30, 2016, the Company had 2,997,000 common stock purchase warrants outstanding with an exercise price of $4.15 per share.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	9. SUBSEQUENT EVENTS None.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Sunworks and its wholly owned operating Subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Actual results could materially differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, inventory valuation, valuations of non-cash capital stock issuances and the valuation allowance on deferred tax assets. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Reclassifications	Reclassifications Certain reclassifications have been made to prior period financial statements to conform to the current period presentation
Revenue Recognition	Revenue Recognition Revenues and related costs on construction contracts are recognized using the “percentage of completion method” of accounting in accordance with Accounting for Performance of Construction-Type and Certain Production Type Contracts (“ASC 605-35”). Under this method, contract revenues and related expenses are recognized over the performance period of the contract in direct proportion to the costs incurred as a percentage of total estimated costs for the entirety of the contract. Costs include direct material, direct labor, subcontract labor and any allocable indirect costs. All un-allocable indirect costs and corporate general and administrative costs are charged to the periods as incurred. However, in the event a loss on a contract is foreseen, the Company recognizes the loss, as it is determined. The Asset, “Costs in excess of billings”, represents revenues recognized in excess of amounts billed on contracts in progress. The Liability, “Billings in excess of costs”, represents billings in excess of revenues recognized on contracts in progress. At September 30, 2016 and December 31, 2015, the costs in excess of billings balance were $8,108,000 and $2,130,000 and the billings in excess of costs balance were $3,800,000 and $1,990,000 respectively.
Cash and Cash Equivalent	Cash and Cash Equivalent The Company considers all liquid investments with an original maturity of three months or less to be cash equivalents. The Company had $37,000 of restricted cash at September 30, 2016.
Concentration Risk	Concentration Risk The Company maintains several bank accounts at multiple financial institutions for its operations. These accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per institution. Management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which these deposits are held. As of September 30, 2016, the cash balance in excess of the FDIC limits was $6,258,000.
Contracts Receivable	Contracts Receivable The Company performs ongoing credit evaluation of its customers. Management closely monitors outstanding receivables based on factors surrounding the credit risk of specific customers, historical trends, age of receivables and other information, and records bad debts using the allowance method. Accounts receivable are presented net of an allowance for doubtful accounts of $50,000 at September 30, 2016, and $0 at December 31, 2015.
Inventory	Inventory Inventory is valued at the lower of cost or market and is determined by the first-in, first-out method. Inventory consists primarily of solar panels and other materials.
Property and Equipment	Property and Equipment Property and equipment is recorded at cost. Depreciation of property and equipment is recorded on the straight-line method over the respective useful lives of the assets ranging from 3 to 7 years. Leasehold improvements are amortized over the initial term of the leases. Machinery & equipment 5 Years Furniture & fixtures 5-7 Years Computer equipment 3-5 Years Vehicles 5-7 Years Leasehold improvements 3-5 Years Depreciation expense for the nine months ended September 30, 2016 and 2015 was $215,000 and $26,000 respectively.
Long-Lived Assets	Long-Lived Assets The Company reviews its property and equipment and any identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The test for impairment is required to be performed by management at least annually. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.
Indefinite Lived Intangibles and Goodwill Assets	Indefinite Lived Intangibles and Goodwill Assets The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. The Company tests for indefinite lived intangibles and goodwill impairment in the fourth quarter of each year and whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, the Company performed a qualitative assessment of indefinite lived intangibles and goodwill at December 31, 2015 and determined there was no impairment of indefinite lived intangibles and goodwill.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Disclosures about fair value of financial instruments, requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of September 30, 2016, the amounts reported for cash, accrued interest and other expenses, and notes payable approximate the fair value because of their short maturities. We adopted ASC Topic 820 as of January 1, 2008 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Warranty Liability	Warranty Liability The Company establishes warranty liability reserves to provide for estimated future expenses as a result of installation and product defects, product recalls and litigation incidental to the Company’s business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases. Solar panel manufacturers currently provide substantial warranties between ten to twenty-five years with full reimbursement to replace and install replacement panels while inverter manufacturers currently provide warranties covering ten to fifteen-year replacement and installation. Warranty costs and associated liabilities for the three months ended September 30, 2016 and 2015 were $0 and $0, respectively, and for the nine months ended September 30, 2016 and 2015 were $13,000 and $0, respectively.
Selling and Marketing	Selling and Marketing The Company expenses selling and marketing costs as incurred. Selling and marketing costs include printed material, direct mail, radio, telemarketing, tradeshow costs, magazine and catalog advertisements. Selling and marketing costs for the three months ended September 30, 2016 and 2015 were $2,145,000 and $1,835,000 respectively, and for the nine months ended September 30, 2016 and 2015 were $7,932,000 and $5,179,000 respectively.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred. These costs consist primarily of consulting fees, salaries and direct payroll related costs. The costs for the three months ended September 30, 2016 and 2015 were $0 and $6,000 respectively, and for the nine months ended September 30, 2016 and 2015 were $0 and $53,000 respectively.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for share-based compensation arrangements in accordance with FASB ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards to be based on estimated fair values. The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options at the date of grant. The Black-Scholes option valuation model requires the input of subjective assumptions to calculate the value of stock options. For restricted stock units, the value of the award is based on the Company’s stock price at the grant date. For performance-based restricted stock unit awards, the value of the award is based on the Company’s stock price at the grant date, with consideration given to the probability of the performance condition being achieved. The Company uses historical data and other information to estimate the expected price volatility for stock option awards and the expected forfeiture rate for all awards. Expense is recognized over the vesting period for all awards, and commences at the grant date for time-based awards and upon the Company’s determination that the achievement of such performance conditions is probable for performance-based awards. This determination requires significant judgment by management.
Basic and Diluted Net (Loss) Income per Share Calculations	Basic and Diluted Net (Loss) Income per Share Calculations (Loss) Income per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The shares for employee options, warrants and convertible notes were used in the calculation of the income per share. For the period ended September 30, 2016, the Company has excluded 938,188 options and 2,997,000 warrants outstanding because they are below the period ending stock price. The Company has also excluded Series B preferred stock convertible into 1,506,024 shares of common stock due to trading restrictions. For the prior period ended September 30, 2015, the Company excluded 899,574 options, 2,997,000 warrants outstanding, and notes convertible into 5,168,639 shares of common stock because their impact on the loss per share is anti-dilutive.
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision making group, in deciding the method to allocate resources and assess performance. The Company currently has one reportable segment for financial reporting purposes, which represents the Company’s core business.
Recently adopted pronouncements	Recently adopted pronouncements In January 2016, FASB issued ASU No. 2016-1 which amended the guidance for recognition and measurement of financial assets and liabilities. These amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The adoption of this guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption of certain provisions of this guidance is permitted as of the beginning of the fiscal year of adoption. Entities should apply these amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair value should be applied prospectively to equity investments that exist as of the date of adoption. The Company does not expect this guidance to have a significant impact on the results of operations, financial condition, or cash flows. In February 2016, the FASB issued ASU No. 2016-2, which creates ASC Topic 842, “Leases.” This update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In March 2016, the FASB issued ASU No. 2016-9, which amends ASC Topic 718, “Compensation – Stock Compensation.” This amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In August 2016, the FASB issued ASU No. 2016-15 which amends ASC Topic 230, “Classification of Certain Cash Receipts and Cash Payments.” The amendments in this Update address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The update outlines the classification of specific transactions as either cash inflows or outflows from financing activities, operating activities, investing activities or non-cash activities. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017. We are evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. Management reviewed currently issued pronouncements during the three months ended September 30, 2016, and does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying condensed financial statements.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of Property, Plant and Equipment	Machinery & equipment 5 Years Furniture & fixtures 5-7 Years Computer equipment 3-5 Years Vehicles 5-7 Years Leasehold improvements 3-5 Years

Business Acqusition (Tables)

Business Acqusition (Tables)	9 Months Ended
	Sep. 30, 2016
Business Acquisition, Pro Forma Information	The following tables set forth the unaudited pro forma results of the Company as if the acquisition of MD Energy and Plan B had taken place on the first day of the periods presented. These combined results are not necessarily indicative of the results that may have been achieved had the companies been combined as of the first day of the periods presented. Nine months ended, September 30, 2015 Total revenues $ 46,245 Net income 613 Basic and diluted net loss per common share $ 0.04
MD Energy LLC [Member]
Schedule of Business Acquisitions, by Acquisition	The acquisition date estimated fair value of the consideration transferred consisted of the following: Closing cash payment $ 850, 000 Working capital surplus 437,000 Convertible promissory notes 2,650,000 Total purchase price $ 3,937,000 Tangible assets acquired $ 1,442,000 Liabilities assumed (799,000 ) Net tangible assets 643,000 Goodwill 3,294,000 Total purchase price $ 3,937,000
Plan B Enterprises Inc [Member]
Schedule of Business Acquisitions, by Acquisition	The acquisition date estimated fair value of the consideration transferred consisted of the following: Closing cash payment, net of recoverable of $137,000. $ 2,363,000 Preferred share value / Series B 4,500,000 Total purchase price 6,863,000 Tangible assets acquired 5,203,000 Liabilities assumed (3,674,000 ) Net tangible assets 1,529,000 Goodwill 4,834,000 Other intangible assets 500,000 Total purchase price $ 6,863,000

Stock Options, Restricted Stock

Stock Options, Restricted Stock and Waarrants (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options	The Company determined the fair market value of these options by using the Black Scholes option valuation model. September 30, 2016 Weighted Number average of exercise Options price Outstanding, beginning January 1, 2016 899,574 $ 1.30 Granted 635,000 2.69 Exercised - - Expired - - Outstanding, end of September 30, 2016 1,534,574 1.87 Exercisable at the end of September 30, 2016 938,188 1.30

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details Narrative) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Segmentshares	Sep. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)
Costs in Excess of Billings, Current	$ 8,108		$ 8,108		$ 2,130
Billings in Excess of Cost, Current	3,800		3,800		1,990
Restricted cash	37		37
FDIC limits	6,258		6,258
Selling and Marketing	2,145	$ 1,835	7,932	$ 5,179
Research and Development Expense		6		53
Warrant costs and associated liabilities	0	$ 0	13	0
Allowance for Doubtful Accounts Receivable	50		50		$ 0
Depreciation expense			$ 215	$ 26
Number of Reportable Segments | Segment			1
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares			2,997,000
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares			938,188
Series B Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares			1,506,024	5,168,639
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares				899,574
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares				2,997,000
Maximum [Member]
FDIC limits	$ 250		$ 250
Standard product warranty, term			25 years
Currently provide warranty, term			15 years
Property and equipment, estimated useful lives			7 years
Minimum [Member]
Standard product warranty, term			10 years
Currently provide warranty, term			10 years
Property and equipment, estimated useful lives			3 years

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Details)	9 Months Ended
	Sep. 30, 2016
Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	7 years
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	5 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	7 years
Computer Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	3 years
Computer Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	5 years
Vehicles [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	5 years
Vehicles [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	7 years
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	3 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	5 years

Business Acquisition (Details N

Business Acquisition (Details Narrative) - USD ($) $ in Thousands	Dec. 01, 2015	Dec. 01, 2015	Mar. 02, 2015	Feb. 28, 2015
MD Energy LLC [Member]
Business acquisition, percentage of voting interests acquired			100.00%	100.00%
Payments to acquire businesses, gross			$ 850
Business combination, consideration transferred, liabilities incurred			2,650
Business combination, consideration transferred, other			437
Business combination, recognized identifiable assets acquired, goodwill, and liabilities assumed, net			3,937
Business combination, consideration transferred			$ 3,937
Plan B Enterprises Inc [Member]
Business acquisition, percentage of voting interests acquired	100.00%	100.00%
Business combination, recognized identifiable assets acquired, goodwill, and liabilities assumed, net	$ 6,863	$ 6,863
Owned subsidiary for cash	2,500	$ 2,500
Plan B Enterprises Inc [Member]
Payments to acquire businesses, gross	2,363
Business combination, consideration transferred, equity interests issued and issuable	4,500
Business combination, consideration transferred	6,863
Business combination, consideration transferred, recoverable	137
Transaction value for accounting purposes fair value	$ 7,000
Plan B Enterprises Inc [Member] | Convertible Preferred Stock [Member]
Business acquisition, equity interest issued or issuable, number of shares		1,506,024

Business Acqusition - Schedule

Business Acqusition - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands	Dec. 01, 2015	Mar. 02, 2015	Sep. 30, 2016	Dec. 31, 2015
Goodwill			$ 10,864	$ 10,864
MD Energy LLC [Member]
Closing cash payment		$ 850
Working capital surplus		437
Convertible promissory notes		2,650
Total purchase price		3,937
Tangible assets acquired		1,442
Liabilities assumed		(799)
Net tangible assets		643
Goodwill		3,294
Total purchase price		$ 3,937
Plan B Enterprises Inc [Member]
Closing cash payment	$ 2,363
Preferred share value / Series B	4,500
Total purchase price	6,863
Plan B Enterprises Inc [Member]
Tangible assets acquired	5,203
Liabilities assumed	(3,674)
Net tangible assets	1,529
Goodwill	4,834
Other intangible assets	500
Total purchase price	$ 6,863

Business Acqusition - Schedul24

Business Acqusition - Schedule of Business Acquisitions, by Acquisition (Details) (Parenthetical) $ in Thousands	Dec. 01, 2015USD ($)
Plan B Enterprises Inc [Member]
Business combination, consideration transferred, recoverable	$ 137

Business Acquisition - Business

Business Acquisition - Business Acquisition, Pro Forma Information (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)$ / shares
Business Combinations [Abstract]
Total revenues	$ 46,245
Net loss	$ 613
Basic and diluted net loss per common share | $ / shares	$ 0.04

Loans Payable (Details Narrativ

Loans Payable (Details Narrative) - USD ($)	Sep. 08, 2016	Jan. 05, 2016	Apr. 09, 2014	Mar. 14, 2014	Mar. 10, 2014	Oct. 31, 2014	Dec. 31, 2015	Sep. 30, 2016
Loans payable, current							$ 2,028,000	$ 161,000
Loan Agreement [Member]
Debt instrument, face amount	$ 174,000	$ 182,000
Debt instrument, interest rate, stated percentage	5.50%	5.50%
Debt instrument, periodic payment	$ 4,000	$ 4,200
Debt instrument, maturity date	Jan. 15, 2020	Jan. 15, 2020
Loans payable, current	$ 174,000	$ 157,600
Notes Payable to Banks [Member]
Debt instrument, face amount			$ 250,000	$ 131,000
Debt instrument, interest rate, stated percentage			4.95%	4.95%
Debt instrument, periodic payment			$ 4,700	$ 2,500
Debt instrument, maturity date			Apr. 9, 2019	Mar. 14, 2019
Debt instrument, collateral			The loan is secured by the inventory and equipment	secured by the equipment
Notes Payable, Other Payables [Member]
Debt instrument, periodic payment						$ 1,500
Debt instrument, collateral						secured by transportation equipment
Note Dated March 14, 2014 [Member] | Notes Payable to Banks [Member]
Loans payable, current								69,000
Note Dated April 9, 2014 [Member] | Notes Payable to Banks [Member]
Loans payable, current								$ 136,700
Line of Credit [Member]
Line of credit facility, maximum borrowing capacity					$ 200,000		$ 2,500,000
Line of credit facility, expiration date					Mar. 10, 2016		Nov. 30, 2017
Proceeds from lines of credit							$ 1,800,000
Line of credit facility, collateral							Loans are secured by a security interest in the Company's account held with the Lender
Line of Credit [Member] | Letter of Credit [Member]
Line of credit facility, maximum borrowing capacity							$ 2,500,000
Line of Credit [Member] | Line Of Credit March 14, 2014 [Member]
Line of credit, current							$ 137,000
Line of Credit [Member] | Minimum [Member]
Short-term debt, percentage bearing variable interest rate					4.75%

Acquisition Convertible Promis

Acquisition Convertible Promissory Notes (Details Narrative) - USD ($)	Feb. 29, 2016	Feb. 28, 2015	Jan. 31, 2014	Nov. 30, 2015	Mar. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Mar. 02, 2015	Dec. 31, 2014
Amortization of debt discount (premium)								$ 693,000	$ 868,000
Solar United Network Inc [Member]
Business acquisition, percentage of voting interests acquired			100.00%
Solar United Network Inc [Member] | Convertible Debt [Member]
Debt instrument, face amount			$ 1,750,000							$ 750,000		$ 1,125,000
Debt instrument, interest rate, stated percentage			4.00%
Debt instrument, convertible, terms of conversion feature			The conversion price is $0.52 per share until March 30, 2015, which was amended to extend to March 31, 2016.
Debt instrument, term			5 years
Debt conversion, original debt, amount	$ 750,000				$ 625,000					$ 375,000
Debt conversion, converted instrument, shares issued (in shares)	1,442,308				1,201,923					721,154
Amortization of debt discount (premium)								0	234,000
MD Energy LLC [Member]
Business acquisition, percentage of voting interests acquired		100.00%									100.00%
MD Energy LLC [Member] | Convertible Debt [Member]
Debt instrument, face amount		$ 2,650,000				$ 3,261,500		$ 3,261,500
Debt instrument, interest rate, stated percentage		4.00%				580.00%		580.00%
Debt instrument, convertible, terms of conversion feature		The note is convertible into shares of common stock on or after each of the following dates: November 30, 2015, November 30, 2016 and November 30, 2017. The conversion price is $2.60 per share.
Debt instrument, term				2 years
Debt instrument, payment terms		Commencing with the quarter ending on June 30, 2017, the Company will make quarterly payments of interest accrued on the convertible note during the prior quarter plus $221,000 with the final payment of all outstanding principal and accrued but unpaid interest on the convertible note due and payable on February 28, 2020 (the maturity date).
Debt conversion, original debt, amount				$ 883,000
Debt conversion, converted instrument, shares issued (in shares)				339,743
Amortization of debt discount (premium)						$ 210,000	$ 240,000	$ 693,000	$ 565,000
Debt instrument, convertible, conversion price (in dollars per share)		$ 2.60
Debt instrument, convertible, beneficial conversion feature		$ 221,000
Debt instrument, maturity date		Feb. 28, 2020
MD Energy LLC [Member] | Convertible Debt [Member] | Maximum [Member]
Debt conversion, converted instrument, shares issued (in shares)								1,019,231
Debt instrument, convertible, conversion price (in dollars per share)						$ 2.60		$ 2.60

Convertible Promissory Notes (D

Convertible Promissory Notes (Details Narrative) - USD ($)	Dec. 04, 2014	Feb. 11, 2014	Jan. 31, 2014	Jan. 29, 2014	Mar. 01, 2013	Sep. 30, 2014	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2014
Amortization of debt discount							$ 693,000	$ 868,000
Debt Issued On March 1, 2013 [Member] | Convertible Notes Payable [Member]
Debt instrument, interest rate, stated percentage					5.00%
Debt instrument, face amount					$ 8,000
Proceeds from convertible debt					$ 8,000
Debt instrument, convertible, terms of conversion feature					The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $0.52 per share or the lowest closing price after the effective date.
Debt instrument, maturity date					Mar. 31, 2015
Debt conversion, converted instrument, shares issued							16,987
Accrued interest					$ 800
Debt Issued On January 29, 2014 [Member] | Convertible Notes Payable [Member]
Debt instrument, interest rate, stated percentage				10.00%
Debt instrument, face amount				$ 100,000
Debt conversion, converted instrument, shares issued	192,543							97,633
Convertible notes payable								$ 30,000
Debt instrument, convertible, conversion price								$ 0.338
Accrued interest								$ 3,000
Debt Issued On January 29, 2014 [Member] | Convertible Notes Payable [Member] | Principal [Member]
Debt conversion, original debt, amount	$ 60,000								$ 30,000
Debt Issued On January 29, 2014 [Member] | Convertible Notes Payable [Member] | Interest [Member]
Debt conversion, original debt, amount	$ 5,000
Debt Issued On January 29_ 2014 [Member] | Convertible Notes Payable [Member]
Proceeds from convertible debt				$ 90,000
Debt instrument, convertible, terms of conversion feature				The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $0.338 per share, or fifty percent (50%) of the lowest trading price after the effective date.
Debt Issued On January 31, 2014 [Member] | Convertible Notes Payable [Member]
Debt instrument, interest rate, stated percentage			10.00%
Debt instrument, face amount			$ 750,000
Proceeds from convertible debt			$ 750,000
Debt instrument, convertible, terms of conversion feature			The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $1.30 per share, or fifty percent (50%) of the lowest trading price after the effective date.
Debt instrument, maturity date			Oct. 28, 2014				Jun. 30, 2019
Convertible notes payable							$ 196,000
Debt instrument, convertible, conversion price						$ 0.338
Debt instrument, maturity date, description			The note matured on October 28, 2014, with an extension of three months. The note matured on January 31, 2015, and was extended to June 30, 2016, and in March 2016 was subsequently extended to June 30, 2019 with zero interest.
Interest expense, debt							11,000	60,000
Accrued interest							45,000
Remaining principal balance							554,000
Debt Issued On February 11, 2014 [Member] | Convertible Notes Payable [Member]
Debt instrument, interest rate, stated percentage		10.00%
Debt instrument, face amount		$ 100,000
Proceeds from convertible debt		$ 20,000				$ 80,000	$ 100,000	100,000
Debt instrument, convertible, terms of conversion feature		The note was convertible into shares of common stock of the Company at a price equal to a variable conversion price equal to the lesser of $1.30 per share, or fifty percent (50%) of the lowest trading price after the effective date.
Debt instrument, maturity date							Jun. 30, 2019
Debt instrument, convertible, conversion price						$ 0.338
Debt instrument, maturity date, description		At the sole discretion of the lender, the lender was able to modify the maturity date to be twelve (12) months from the effective date of each advance. The note matured on various dates in 2014, and was extended to June 30, 2016, and in March 2016 was subsequently extended to June 30, 2019 with zero interest.
Interest expense, debt							$ 0	$ 8,000

Capital Stock (Details Narrativ

Capital Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Nov. 25, 2015	Feb. 25, 2015	Sep. 30, 2016	Dec. 31, 2015
Stockholders' equity, reverse stock split		26:1 reverse stock split
Preferred stock, par or stated value per share			$ 0.001	$ 0.001
Preferred stock, shares authorized			5,000,000	5,000,000
Common Stock [Member]
Number of share of common stock issued			379,491
Stock compensation costs			$ 5,541
Restricted common stock, shares			746,157
Series B Preferred Stock [Member]
Preferred stock, par or stated value per share	$ 0.001
Preferred stock, shares authorized	1,700,000
Preferred stock, voting rights	In addition, so long as at least 100,000 shares of Series B Preferred Stock are outstanding, the Company may not, without the consent of the Holders of at least a majority of the shares of Series B Preferred Stock then outstanding
Stock issued during period, shares, acquisitions, shares	1,506,024
Stock issued during period, value, acquisitions	$ 4,500
Convertible Promissory Notes One [Member]
Number of common stock issued during period			1,442,309
Price per share			$ 0.52
Convertible promissory notes aggregate amount			$ 750
Convertible Promissory Notes Two [Member]
Number of common stock issued during period			711,586
Price per share			$ 0.338
Convertible promissory notes aggregate amount			$ 241

Stock Option, Restricted Stoc30

Stock Option, Restricted Stock Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Aug. 31, 2016	Feb. 01, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of non-qualified stock options outstanding to purchase shares of common stock			1,534,574		1,534,574		899,574
Share-based Compensation			$ 3,902	$ 32	$ 5,764	$ 107
Warrants [Member]
Number of common stock purchase warrants outstanding					2,997,000
Warrant exercise price per share			$ 4.15		$ 4.15
Stock Option [Member]
Number of non-qualified stock options outstanding to purchase shares of common stock			1,534,574		1,534,574
Stock options vest at verious time and exercisable period					7 years
Share-based Compensation					$ 222	$ 75
Stock Option [Member] | Minimum [Member]
Exercise price per share			$ 0.26		$ 0.26
Stock Option [Member] | Maximum [Member]
Exercise price per share			$ 4.42		$ 4.42
Restricted Stock [Member] | James B. Nelson [Member]
Exercise price per share									$ 0.47
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized									769,230
Market capitalization exceeded									$ 10,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares									384,615
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures									$ 786
Restricted Stock [Member] | James B. Nelson [Member] | Trailing Twelve Month Period [Member]
Market capitalization exceeded									$ 10,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares									384,615
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures									$ 2,000
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award									Exceeds $2 million for a trailing twelve-month period and the sooner of Mr. Nelson’s retirement, change of control, or January 2019, the Company will issue an additional 384,615 shares of the Company’s common stock to Mr. Nelson.
Restricted Stock [Member] | Chief Executive Officer [Member] | 2016 Equity Incentive Plan [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares	250,000
Share-based Compensation			$ 14
Warrant exercise price per share	$ 2.90
Ownership percent	50.00%
Restricted Stock [Member] | Shareholders [Member]
Exercise price per share								$ 5.12
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			276,924		276,924			276,924
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares							276,924
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award								a) If the Company’s aggregate net income from operations, for any trailing four (4) quarters equals or exceeds $2 million, the Company will issue each Sunworks United Shareholder 92,308 shares of common stock and 276,924 shares in the aggregate; b) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $3 million, the Company will issue each Sunworks United Shareholder 92,308 shares and 276,924 shares of common stock in the aggregate.
Share-based Compensation							$ 100
Restricted Stock [Member] | Shareholders [Member] | Fourth Quarter 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			553,845		553,845
Share-based Compensation					$ 2,837,000
Restricted Stock [Member] | Shareholders [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares								92,308
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures								$ 2,000
Restricted Stock [Member] | Shareholders [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares								92,308
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures								$ 3,000
Restricted Stock [Member] | Shareholders [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares								92,307
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures								$ 4,000
Restricted Stock [Member] | Employees [Member]
Exercise price per share								$ 5.12
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			51,280		51,280			38,462
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares								64,105
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award								a) If the Company’s aggregate net income from operations, for any trailing four (4) quarters equals or exceeds $2 million, the Company will issue to each employee 12,821 shares of common stock and 64,105 shares in the aggregate; b) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $3 million, the Company will issue each employee 12,821 shares of common stock and 64,105 shares in the aggregate; c) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $4 million, the Company will issue each employee 12,820 and 51,280 shares in the aggregate.
Share-based Compensation					$ 553,845			$ 33
Restricted Stock [Member] | Employees [Member] | Fourth Quarter 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			115,385		115,385
Share-based Compensation					$ 591,000
Restricted Stock [Member] | Employees [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares								12,821
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures								$ 2,000
Restricted Stock [Member] | Employees [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares								12,821
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures								$ 3,000
Restricted Stock [Member] | Employees [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares								12,820
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures								$ 4,000
Restricted Stock [Member] | Chief Financial Officer [Member]
Exercise price per share		$ 4.21
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		115,385	379,491		379,491
Market capitalization exceeded					$ 746,157
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award		a) If the Company’s aggregate net income from operations, for any trailing four (4) quarters equals or exceeds $2 million, the Company will issue 38,462 shares of common stock; b) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $3 million, the Company will issued 38,462 shares of common stock; c) If the Company’s aggregate net income from operations, for any trailing four (4) quarters exceeds $4 million, the Company will issue 38,461.
Share-based Compensation					76,723
Restricted Stock [Member] | Chief Financial Officer [Member] | Dec 12, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		76,723
Share-based Compensation					$ 324,000
Restricted Stock [Member] | Chief Financial Officer [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares		38,462
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 2,000
Restricted Stock [Member] | Chief Financial Officer [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares		38,462
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 3,000
Restricted Stock [Member] | Chief Financial Officer [Member] | Trailing Four Quarters Equals [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, shares		38,461
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 4,000

Stock Option, Restricted Stoc31

Stock Option, Restricted Stock Warrants - Schedule of Share-based Compensation, Stock Options (Details)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Options, Outstanding, beginning | shares	899,574
Number of Options, Granted | shares	635,000
Number of Options, Exercised | shares
Number of Options, Expired | shares
Number of Options, Outstanding, ending | shares	1,534,574
Number of Options, Exercisable at the end | shares	938,188
Weighted Average Exercise Price, Outstanding, beginning | $ / shares	$ 1.30
Weighted Average Exercise Price, Granted | $ / shares	2.69
Weighted Average Exercise Price, Exercised | $ / shares
Weighted Average Exercise Price, Expired | $ / shares
Weighted Average Exercise Price, Outstanding, ending | $ / shares	1.87
Weighted Average Exercise Price, Exercisable at the end | $ / shares	$ 1.30