Summer Energy (SUME) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 10, 2016
Document and Entity Information:
Entity Registrant Name	SUMMER ENERGY HOLDINGS INC
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Entity Central Index Key	1,396,633
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,074,737
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	sume

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Cash	$ 471,679	$ 382,490
Restricted cash	715,551	632,868
Accounts receivable, net	13,454,274	12,737,133
Prepaid and other current assets	139,710	107,364
Total current assets	14,781,214	13,859,855
Property and Equipment, net	357,129	372,512
Total assets	15,138,343	14,232,367
Current Liabilities
Accounts payable	347,124	357,501
Accrued wholesale power purchased	5,004,912	4,730,703
Accrued expenses	3,346,689	3,894,748
Advance to loan amount note		111,057
Short-term debt, net of debt discount	3,000,000	3,000,000
Total current liabilities	$ 11,698,725	$ 12,094,009
Long-Term Liabilities
Long-term debt, net of debt discount and current portion
Total long-term liabilities
Total liabilities	$ 11,698,725	$ 12,094,009
Stockholders' Equity
Series B Preferred Stock - $.001 par value, 3,000,000 authorized, 1,900,000 shares issued and outstanding at March 31, 2016 and December 31, 2015 respectively	1,900	1,900
Common Stock - $.001 par value, 100,000,000 shares authorized, 16,525,772 and 16,216,619 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	16,526	16,216
Subscription receivable	(52,000)	(52,000)
Additional paid in capital	9,809,618	9,492,454
Accumulated deficit	(6,336,426)	(7,320,212)
Total stockholders' equity	3,439,618	2,138,358
Total liabilities and stockholders' equity	$ 15,138,343	$ 14,232,367

CONDENSED BALANCE SHEETS (PAREN

CONDENSED BALANCE SHEETS (PARENTHETICAL) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position
Preferred Stock, par or stated value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	3,000,000	3,000,000
Preferred Stock, shares issued	1,900,000	1,900,000
Preferred Stock, shares outstanding	1,900,000	1,900,000
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	16,525,772	16,216,619
Common Stock, shares outstanding	16,525,772	16,216,619

CONSOLIDATED STATEMENT OF OPERA

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement
Electricity Revenue	$ 19,656,709	$ 16,720,503
Cost of Goods Sold
Power purchases and balancing/ancillary	7,880,444	6,958,126
Transportation and distribution providers charge	7,375,825	6,344,211
Total cost of goods sold	15,256,269	13,302,337
Gross Profit	4,400,440	3,418,166
General and Administrative	2,910,856	2,670,998
Operating Income/(Loss)	1,489,584	747,168
Other Income (Expense)
Financing costs	(298,006)	(262,365)
Interest expense	(151,006)	(134,023)
Interest income	61	63
Total other income (expense)	(448,951)	(396,325)
Net Income/(Loss) Before Income Taxes	$ 1,040,633	$ 350,843
Income Taxes
Net Income/(Loss)	$ 1,040,633	$ 350,843
Series B Preferred shares dividend	(56,847)	(56,221)
Net Income/(Loss) applicable to common shareholders	$ 983,786	$ 294,622
Net income(Loss) per common share:
Basic	$ 0.06	$ 0.02
Dilutive	$ 0.06	$ 0.02
Weighted average number of shares:
Basic	16,332,573	15,051,718
Dilutive	16,477,333	15,051,718

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities
Net Income/(Loss)	$ 1,040,633	$ 350,843
Adjustments to reconcile net income/(loss) to net cash provided by (used in) operating activities:
Common stock for services	7,500	11,373
Common stock for financing cost	298,006	237,915
Interest earned on restricted certificate of deposit		(15)
Depreciation of property and equipment	65,995	70,583
Amortization of debt discount		24,480
Bad debt expense	433,134	334,410
Changes in operating assets and liabilities:
Accounts receivable	(1,150,275)	(1,909,323)
Prepaid and other current assets	(32,346)	172,422
Accounts payable	(10,377)	83,467
Accrued wholesale power purchases	274,209	(2,837,131)
Accrued expenses	(548,059)	474,921
Net cash provided by (used in) operating activities	378,420	(2,986,055)
Cash Flows from Investing Activities
Sale (Purchase) of restricted cash	(82,683)	(27,188)
Purchase of property and equipment	(50,612)	(10,175)
Net cash provided by (used in) investing activities	(133,295)	(37,363)
Cash Flows from Financing
Proceeds from note payable		3,075,550
Repayment on note payable	(111,057)	(25,000)
Dividends on Series B preferred stock	(44,879)	(47,343)
Proceeds from issuance of common shares in a private placement		100,000
Net cash provided by (used in) financing activities	(155,936)	3,103,207
Net Change in Cash	89,189	79,789
Cash at Beginning of Period	382,490	550,342
Cash at End of Period	$ 471,679	$ 630,131
Supplemental Disclosure of Cash Flow Information:
Income taxes paid
Interest paid	$ 151,006	$ 134,023
Non-Cash Transactions:
Issuance of common stock for dividend payable on Series B preferred stock	$ 11,968	$ 8,878

Note 1 - Organization

Note 1 - Organization	3 Months Ended
	Mar. 31, 2016
Notes
Note 1 - Organization	NOTE 1 – ORGANIZATION The unaudited consolidated financial statements include the accounts of Summer Energy Holdings, Inc. and its wholly-owned subsidiaries Summer Energy, LLC ("Summer LLC"), Summer EM Marketing, LLC ("Marketing LLC") and Summer Energy of Ohio, LLC ("Summer Ohio) (collectively referred to as the "Company," "we," "us," or "our"). All significant intercompany transactions and balances have been eliminated in these consolidated financial statements. Summer LLC is a retail electric provider in the State of Texas under a license with the Public Utility Commission of Texas ("PUCT"). Summer LLC procures wholesale energy and resells it to commercial and residential customers. Summer LLC was organized on April 6, 2011, under the laws of the state of Texas. The operations of Summer LLC are the Company's sole line of business. Marketing LLC was formed in the State of Texas on November 6, 2012, to provide certain marketing services to Summer LLC. Summer Ohio was formed in the State of Ohio on December 16, 2013 to procure and sell electricity in the state of Ohio. The Public Utilities Commission of Ohio ("PUCO") issued a certificate as a Retail Electric Service Provider to Summer Ohio on June 16, 2015. At this time, there is no business activity in the State of Ohio.

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Notes
Note 2 - Basis of Presentation	NOTE 2 - BASIS OF PRESENTATION The accompanying financial statements have been prepared in accordance with generally accepted accounting principles of the United States of America ("GAAP") for interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed with the Securities and Exchange Commission ("SEC") on March 30, 2016. The preparation of financial statements in conformity with GAAP 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 as well as the reported amount of revenues and expenses during the reporting period. Actual results may differ from these estimates.

Note 3 - Significant Accounting

Note 3 - Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Notes
Note 3 - Significant Accounting Policies	NOTE 3 SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Our electricity revenue is recognized by our Company upon delivery of electricity to a customer's meter. This method of revenue recognition is commonly referred to as the flow method. The flow method of revenue relies upon Electric Reliability Council of Texas ("ERCOT") settlement statements to determine the estimated revenue for a given month. Supply delivered to customers for the month, measured on a daily basis, provides the basis for revenues. Electricity revenue consists of proceeds from energy sales, including, pass through charges from the Transmission and Distribution Providers ("TDSPs") billed to the customer at cost. Unbilled Revenue and Accounts Receivable Electric services not billed by month-end are accrued based upon estimated deliveries to customers as tracked and recorded by ERCOT multiplied by our average billing rate per kilowatt hour ("kWh") in effect at the time. At the end of each calendar month, revenue is accrued to unbilled receivables based on the estimated amount of power delivered to customers using the flow technique. Unbilled revenue also includes accruals for estimated TDSP charges and monthly service charges applicable to the estimated electricity usage for the period. All charges that were physically billed to customers in the calendar month are recorded from the unbilled account to the customer receivable account. Unbilled accounts as of March 31, 2016, were estimated at $9,723,193. Accounts receivable are customer obligations billed at the customer's monthly meter read date for that period's electricity usage and due within 16 days of the date of the invoice. Balances past due are subject to a late fee that is assessed on that billing. Cost Recognition Direct energy costs are recorded when the electricity is delivered to the customer's meter. Cost of Goods Sold ("COGS") include electric power purchased and pass through charges from the TDSP's in the areas serviced by the Company. TDSP charges are costs for metering services and maintenance of the electric grid. TDSP charges are established by regulation of the PUCT. The energy portion of our COGS is comprised of two components: bilateral wholesale costs and balancing/ancillary costs. These two cost components are incurred and recognized differently as follows: Bilateral wholesale costs are incurred through contractual arrangements with wholesale power suppliers for firm delivery of power at a fixed volume and fixed price. We are invoiced for these wholesale volumes at the end of each calendar month for the volumes purchased for delivery during the month, with payment due 20 days after the end of the month. Balancing/ancillary costs are based on the customer load and are determined by ERCOT through a multiple step settlement process. Balancing costs/revenues are related to the differential between supply that we provided through our bilateral wholesale supply and the supply required to serve our customer load. The Company endeavors to minimize the amount of balancing/ancillary costs through our load forecasting and forward purchasing programs.

Note 4 - Private Placement of S

Note 4 - Private Placement of Series B Preferred Shares	3 Months Ended
	Mar. 31, 2016
Notes
Note 4 - Private Placement of Series B Preferred Shares	NOTE 4 – PRIVATE PLACEMENT OF SERIES B PREFERRED SHARES On February 19, 2014, the Company filed a Certificate of Designation of Rights, Preferences, Privileges and Restrictions (the "Series B Designation") with respect to a class of preferred stock designated as Series B Preferred Stock (the "Series B Preferred"). The Series B Preferred entitles holders thereof to receive a dividend payable in cash or common stock, at the election of the holder, at an annual rate of 12% of the Deemed Original Issue Price. The "Deemed Original Issue Price" of the Series B Preferred for purposes of calculating the Series B Preferred dividend is $1.00 per share, which the board of directors of the Company determined represents the estimated fair market value as of the date of grant. The Series B Preferred dividends are payable in cash or by the issuance of common stock ten (10) days following the end of each month, or portion thereof. The number of shares to be paid as a dividend shall be determined based on the fair market value of the shares of common stock on the record date for the dividend. On February 21, 2014, the Company entered into Series B Preferred Stock Purchase Agreements (each an "Agreement" and collectively the "Agreements") with several investors. Pursuant to the Agreements, the Company sold an aggregate of 1,900,000 shares of the Series B Preferred, for an aggregate purchase price of $1,900,000. Several members of the Company's board of directors directly or indirectly participated in the offering. Additional terms, conditions, rights, and privileges of the Series B Preferred include: Voting Conversion Optional Conversion Mandatory Conversion Liquidation Redemption The foregoing is only a brief description of the material terms of the Series B Designation and the offering of the Series B Preferred, and does not purport to be a complete description of the rights and obligations of the parties thereunder and such descriptions are qualified in their entirety by reference to the full text of the Certificate of Designation which was filed as Exhibit 3.1 to our Form 8-K filed on February 24, 2014. In accordance with the Series B Designation, dividends due to holders of Series B Preferred may be paid at the option of the holder in shares of the Company's $0.001 par value common stock valued at the fair market value of such shares of common stock as determined in good faith by the Board of Directors on the record date of the dividend. The holders of outstanding shares of Series B Preferred are entitled to receive, out of funds legally available for the payment of dividends, cumulative monthly dividends at the annual rate of 12% of the Deemed Original Issue Price per share, in preference to and in priority over any dividends with respect to Common Stock. At the option of the holders of Series B Preferred Stock, dividends may be paid to holders of Series B Preferred Stock in shares of the Company's common stock valued at fair market value of such shares of common stock as determined in good faith by the board of directors. During the quarter ended March 31, 2016, the Company had paid $56,847 of cumulative monthly dividends on Series B Preferred Stock. Certain shareholders elected to be paid in shares of the Company's common stock shares valued at $11,968 and the remaining holders were paid a total of $44,879 in cash.

Note 5 - Letters of Credit

Note 5 - Letters of Credit	3 Months Ended
	Mar. 31, 2016
Notes
Note 5 - Letters of Credit	NOTE 5 - LETTERS OF CREDIT As of March 31, 2016, the Company secured eleven irrevocable stand-by letters of credit totaling $1,343,400 with a financial institution for the benefit of the Transmission and Distribution Providers ("TDSPs") that provide transition services to the Company. The eleven letters of credit will expire during the second quarter of 2016 and are subject to automatic extension and renewal provisions. The eleven letters of credit are secured by the Advance to Loan Amount Note in the amount of $1,343,000 (See Footnote 6). As of March 31, 2016, none of the letters of credit issued on behalf of the Company were drawn upon.

Note 6 - Advance To Loan Amount

Note 6 - Advance To Loan Amount Note	3 Months Ended
	Mar. 31, 2016
Notes
Note 6 - Advance To Loan Amount Note	NOTE 6 - ADVANCE TO LOAN AMOUNT NOTE On April 18, 2014, the Company signed an Advance to Loan Amount Note with Comerica Bank in the amount of $1,500,000. The Note had an original maturity date of December 22, 2014, which was extended through February 22, 2015. On February 22, 2015, the Advance to Loan Amount Note was increased from $1,500,000 to $1,700,000 and extended again to November 4, 2016, with interest thereon at a per annum rate equal to the "Prime Referenced Rate" plus the "Applicable Margin." The "Prime Referenced Rate" means, for any day, a per annum interest rate which is equal to the "Prime Rate" in effect on such day, but in no event and at no time shall the "Prime Reference Rate" be less than the sum of the Daily Adjusting LIBOR Rate for such day plus two and one-half percent (2.5%) per annum. "Prime Rate" means the per annum rate established by Comerica Bank as its prime rate for its borrowers at any such time. "Applicable Margin" means 2% per annum. Accrued and unpaid interest on the unpaid principal balance outstanding shall be payable monthly, in arrears, on the first Business Day of each month. Guaranty of the Advance to Loan Amount Note has been made by four members of the Company's board of directors ("Guarantors"). The Company agreed to issue the four Guarantors a total of 120,000 shares of the Company's common stock per month (30,000 shares of common stock per month per Guarantor) reduced accordingly as the loan is reduced for agreeing to act as a Guarantor of the Advance to Loan Amount. During the quarter ended March 31, 2016, the Company issued 298,004 shares of common stock to the Guarantors and recognized $298,006 in financing cost, and the balance of the Advance to Loan Amount was zero at March 31, 2016.

Note 7 - Financing From Black I

Note 7 - Financing From Black Ink Energy LLC	3 Months Ended
	Mar. 31, 2016
Notes
Note 7 - Financing From Black Ink Energy LLC	NOTE 7 - FINANCING FROM BLACK INK ENERGY LLC On March 2, 2015, Summer Energy, LLC (the "Borrower"), a wholly owned subsidiary of Summer Energy Holdings, Inc. ("SEH"), entered into a Second Lien Term Loan Agreement (the "Agreement") with Black Ink Energy, LLC ("BIE"). Pursuant to the Agreement, BIE agreed to provide a term loan (the "Term Loan") to the Borrower, and the Borrower agreed to borrow and repay funds loaned by BIE. The amount of the Term Loan is Three Million Dollars $3,000,000, and the loan is not revolving in nature. Pursuant to the Agreement, any amounts prepaid or repaid may not be re-borrowed by the Borrower. The maturity date of the loan is September 2, 2016. The Term Loan bears interest at a rate of 15% per annum, except in the occurrence of an event of default, at which point the default interest rate will be 18%. Interest is payable in arrears on the last day of each month and on the maturity date of the loan. The Term Loan was not evidenced by a promissory note. Pursuant to the Agreement, the Borrower has the option to prepay the loan amount in whole by providing prior notice to BIE and by paying a pre-payment premium of $300,000. Additionally, the Borrower agreed to pay to BIE a facility fee. The facility fee in the amount of $24,450 was expensed immediately as fees occurred to obtain financial resource. In connection with the March 2, 2015 Agreement, the Borrower and BIE also entered into a Second Lien Security Agreement (the "Security Agreement"), and SEH and BIE entered into a Second Lien Membership Interest Pledge Agreement (the "Pledge Agreement"). SEH also agreed to issue a warrant (the "Warrant") to purchase up to 800,000 shares of SEH's common stock. The Warrant has a term of ten (10) years, has an exercise price of $1.50 per share, and is subject to adjustment as set forth in the Warrant. The Warrant also contains a cashless or net exercise provision, pursuant to which the holder of the Warrant may elect to convert all or a portion of the Warrant without the payment of additional consideration, by receiving a net number of shares calculated pursuant to a formula set forth in the Warrant. SEH agreed to reserve 120% of the number of shares issuable upon the exercise of the Warrant so long as the Warrant is exercisable and outstanding. Additionally, SEH agreed to grant to the holder piggyback registration rights. The Term Loan has a relative fair value of $2,967,535 and the warrant has a relative fair value of $32,465 at the date of issuance determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.87% (ii) estimated volatility of 17% (iii) dividend yield of 0.00% and (iv) expected life of the options of five years. During the quarter ended March 31, 2016, the Company paid interest expense in the amount of $113,750 to BIE.

Note 8 - Warrants

Note 8 - Warrants	3 Months Ended
	Mar. 31, 2016
Notes
Note 8 - Warrants	NOTE 8 – WARRANTS The Company has issued warrants to purchase shares of the Company's common stock associated with certain agreements and has vested warrants from a previously terminated Master Marketing Agreement. No new warrants were issued or vested during the quarter ended March 31, 2016. As of March 31, 2016, the outstanding number of warrants to purchase the Company's common stock was 1,891,000

Note 9 - Wholesale Power Purcha

Note 9 - Wholesale Power Purchase Agreement	3 Months Ended
	Mar. 31, 2016
Notes
Note 9 - Wholesale Power Purchase Agreement	NOTE 9 - WHOLESALE POWER PURCHASE AGREEMENT On April 25, 2014, the Company closed a transaction with DTE Energy Trading, Inc. ("DTE"), with an effective date of April 1, 2014. As part of the transaction, the Company and DTE entered into an Energy Marketing Agreement for Electric Power (the "Energy Marketing Agreement"). Pursuant to the terms of the Energy Marketing Agreement, the Company agreed to purchase its electric power and associated services requirements from DTE, and DTE agreed to provide the Company with certain credit facilities to assist the Company in the purchase of its electric power and associated service requirements. The Company also agreed to pay DTE a fixed monthly fee, as well as certain fees based on megawatt hours purchased. The terms of the Energy Marketing Agreement are governed by the ISDA 2002 Master Agreement, as well as a Schedule and Power Annex thereto (the "2002 Master Agreement"). In conjunction therewith, the Company and DTE also entered into a Credit Agreement, a Security Agreement and a Membership Interest Pledge Agreement. Pursuant to the Credit Agreement, among other things DTE agreed to (i) provide a guaranty (a "Credit Guaranty") to the Electric Reliability Council of Texas ("ERCOT") for the benefit of the Company, and (ii) provide commodity loans for the purchase of electricity ("Commodity Loans"). Each Commodity Loan and any Credit Guaranty shall bear interest on the outstanding principal amount thereof, from the date such Commodity Loan or Credit Guaranty is issued until it becomes due or is revoked, respectively, at a rate per annum equal to the Prime Rate (as reported by the Wall Street Journal) plus two percent (2%). The Company covenanted not to, among other things, (a) merge or consolidate with any other person, (b) acquire all or substantially all of the capital stock or property of another person, (c) create, assume or suffer to exist any lien on any property now owned or hereafter acquired by the Company except for permitted liens (as set forth in the Credit Agreement) or (d) become liable for any indebtedness (other than permitted indebtedness, as set forth in the Credit Agreement). In consideration of the services and credit support provided by DTE to the Company, and pursuant to the Security Agreement, the Company is required to, among other things (i) grant a priority security interest to DTE in all of its assets, equipment and inventory; (ii) require its customers to remit monthly payments into a lockbox account over which DTE has a security interest; and (iii) deliver monthly and annual forecasted and audited statements to DTE. Pursuant to the Membership Interest Pledge Agreement, the Company pledged to DTE, and granted to DTE a security interest in all of the membership interests of Summer Energy, LLC owned by the Company, as well as all additional membership interests of Summer Energy, LLC from time to time acquired by the Company.

Note 10 - 2012 Stock Option and

Note 10 - 2012 Stock Option and Stock Award Plan	3 Months Ended
	Mar. 31, 2016
Notes
Note 10 - 2012 Stock Option and Stock Award Plan	NOTE 10 – 2012 STOCK OPTION AND STOCK AWARD PLAN As of March 31, 2016, 782,000 securities have been awarded, net of forfeitures, from the 2012 Stock Option and Stock Award Plan with a remaining unissued balance of 3,000 securities. No new securities have been awarded during the quarter ended March 31, 2016. The Company recorded stock compensation expense of $21 for vesting of prior year issued options during the quarter ended March 31, 2016, and there remains approximately $10 to be vested.

Note 11 - 2015 Stock Option and

Note 11 - 2015 Stock Option and Stock Award Plan	3 Months Ended
	Mar. 31, 2016
Notes
Note 11 - 2015 Stock Option and Stock Award Plan	NOTE 11 – 2015 STOCK OPTION AND STOCK AWARD PLAN As of March 31, 2016, 669,750 securities have been awarded, net of forfeitures, from the 2015 Stock Option and Stock Award Plan with a remaining unissued balance of 830,250 securities. On March 31, 2016, the Company granted a total of 31,250 stock options to non-employee members of the Company's Board of Directors under the 2015 Stock Option and Stock Award Plan as compensation for service on the Company's Board. The director stock options were fully vested on the date of grant, have an exercise price of $1.50 per share, will expire ten (10) years from the date of the grant and are estimated to have a fair value of approximately $6,533 on the date of grant determined using the Black-Scholes option-pricing model. The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.87% (ii) estimated volatility of 17% (iii) dividend yield of 0.00% and (iv) expected life of the options of ten years. The Company recorded stock compensation expense of $946 for vesting of prior year issued options during the quarter ended March 31, 2016, and there remains approximately $4,700 to be vested.

Note 12 - Subsequent Events

Note 12 - Subsequent Events	3 Months Ended
	Mar. 31, 2016
Notes
Note 12 - Subsequent Events	NOTE 12 – SUBSEQUENT EVENTS Dividends of Series B Preferred Shares On April 28, 2016, the Company issued 3,587 shares of common stock and paid $14,795 in cash as dividend payments on Series B Preferred Shares relating to the month of April, 2016 (See Footnote 4). Common Shares Issued as Interest on Personal Guaranty On April 28, 2016, the Company issued 90,832 shares of common stock to the Guarantors of the Advance to Loan Amount (See Footnote 6) as interest due relating to the month of April 2016. Advance to Loan Amount Note On April 20, 2016, the Company drew $356,600 on the Advance to Loan Note and has subsequently repaid $70,000. The outstanding balance of the Advance to Loan Note is currently $286,600. Securities Purchase Agreements On April 25, 2016, the Company entered into a Securities Purchase Agreement with an investor for such investor to purchase from the Company 227,273 shares of the Company's common stock for an aggregate purchase price of $250,000. On May 4, 2016, the Company entered into a Securities Purchase Agreement with an investor for such investor to purchase from the Company 227,273 shares of the Company's common stock for an aggregate purchase price of $250,000.

Note 3 - Significant Accounti18

Note 3 - Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Revenue Recognition	Revenue Recognition Our electricity revenue is recognized by our Company upon delivery of electricity to a customer's meter. This method of revenue recognition is commonly referred to as the flow method. The flow method of revenue relies upon Electric Reliability Council of Texas ("ERCOT") settlement statements to determine the estimated revenue for a given month. Supply delivered to customers for the month, measured on a daily basis, provides the basis for revenues. Electricity revenue consists of proceeds from energy sales, including, pass through charges from the Transmission and Distribution Providers ("TDSPs") billed to the customer at cost.
Unbilled Revenue and Accounts Receivable	Unbilled Revenue and Accounts Receivable Electric services not billed by month-end are accrued based upon estimated deliveries to customers as tracked and recorded by ERCOT multiplied by our average billing rate per kilowatt hour ("kWh") in effect at the time. At the end of each calendar month, revenue is accrued to unbilled receivables based on the estimated amount of power delivered to customers using the flow technique. Unbilled revenue also includes accruals for estimated TDSP charges and monthly service charges applicable to the estimated electricity usage for the period. All charges that were physically billed to customers in the calendar month are recorded from the unbilled account to the customer receivable account. Unbilled accounts as of March 31, 2016, were estimated at $9,723,193. Accounts receivable are customer obligations billed at the customer's monthly meter read date for that period's electricity usage and due within 16 days of the date of the invoice. Balances past due are subject to a late fee that is assessed on that billing.
Cost Recognition	Cost Recognition Direct energy costs are recorded when the electricity is delivered to the customer's meter. Cost of Goods Sold ("COGS") include electric power purchased and pass through charges from the TDSP's in the areas serviced by the Company. TDSP charges are costs for metering services and maintenance of the electric grid. TDSP charges are established by regulation of the PUCT. The energy portion of our COGS is comprised of two components: bilateral wholesale costs and balancing/ancillary costs. These two cost components are incurred and recognized differently as follows: Bilateral wholesale costs are incurred through contractual arrangements with wholesale power suppliers for firm delivery of power at a fixed volume and fixed price. We are invoiced for these wholesale volumes at the end of each calendar month for the volumes purchased for delivery during the month, with payment due 20 days after the end of the month. Balancing/ancillary costs are based on the customer load and are determined by ERCOT through a multiple step settlement process. Balancing costs/revenues are related to the differential between supply that we provided through our bilateral wholesale supply and the supply required to serve our customer load. The Company endeavors to minimize the amount of balancing/ancillary costs through our load forecasting and forward purchasing programs.

Note 1 - Organization (Details)

Note 1 - Organization (Details)	3 Months Ended
	Mar. 31, 2016
Summer Ohio
Entity Incorporation, Date of Incorporation	Dec. 16, 2013
Summer LLC
Entity Incorporation, Date of Incorporation	Apr. 6, 2011
Marketing LLC
Entity Incorporation, Date of Incorporation	Nov. 6, 2012

Note 3 - Significant Accounti20

Note 3 - Significant Accounting Policies: Unbilled Revenue and Accounts Receivable (Details)	Mar. 31, 2016USD ($)
Details
Unbilled accounts	$ 9,723,193

Note 4 - Private Placement of21

Note 4 - Private Placement of Series B Preferred Shares (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Feb. 19, 2014
Preferred Stock, Dividend Rate, Percentage	12.00%
Common Stock, par or stated value	$ 0.001	$ 0.001
Series B Preferred Stock
Dividends, Preferred Stock, Cash	$ 44,879
Series B Preferred Stock
Preferred Stock, Dividend Rate, Percentage	12.00%
Share Price			$ 1
Preferred Stock, Dividend Payment Terms	The Series B Preferred dividends are payable in cash or by the issuance of common stock ten (10) days following the end of each month, or portion thereof. The number of shares to be paid as a dividend shall be determined based on the fair market value of the shares of common stock on the record date for the dividend.
Shares Sold Pursuant to Stock Purchase Agreements	1,900,000
Proceeds from issuance of Series B Preferred stock	$ 1,900,000
Preferred Stock, Voting Rights	Each holder of Series B Preferred is entitled to the number of votes equal to the number of shares of the Company's common stock into which such shares of Series B Preferred held by such holder could then be converted.
Preferred Stock Conversion Price	$ 1
Convertible Preferred Stock, Shares Issued upon Conversion	1
Convertible Preferred Stock, Terms of Conversion	The Series B Preferred is convertible into common stock at the election of the holder, with an initial conversion price of $1.00 per share. The Certificate of Designation provides certain adjustments to the conversion price to adjust for stock splits, adjustments, and issuance of additional shares of stock. Mandatory Conversion. Additionally, the Series B Preferred will automatically be converted upon the earlier to occur of (A) the affirmative election of the holders of fifty percent (50%) of the outstanding shares of Series B Preferred, voting as a separate class, or (B) the affirmative vote of the board of directors upon the closing of a firmly underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, which values the Company at least $50 million and in which the gross proceeds to the Company (after underwriting discounts, commissions and fees) are at least $10 million.
Preferred Stock, Redemption Terms	The Company may, at any time, redeem all or a portion of the Series B Preferred upon 20 days' notice
Preferred Stock, Redemption Price Per Share	$ 1.20
Dividends, Preferred Stock	$ 56,847
Common Stock
Dividends, Preferred Stock, Stock	$ 11,968

Note 5 - Letters of Credit (Det

Note 5 - Letters of Credit (Details) - Letter of Credit	3 Months Ended
	Mar. 31, 2016USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,343,400
Line of Credit Facility, Collateral	The eleven letters of credit are secured by the Advance to Loan Amount Note in the amount of $1,343,000 (See Footnote 6).
Letters of Credit Outstanding, Amount	$ 0

Note 6 - Advance To Loan Amou23

Note 6 - Advance To Loan Amount Note (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Feb. 22, 2015	Apr. 18, 2014
Financing costs	$ 298,006	$ 262,365
Advance to Loan Amount	$ 0
Common Stock
Shares to be issued to Guarantors per month	120,000
Shares to be issued to each Guarantor per month	30,000
Advance to Loan Amount Note
Debt Instrument, Face Amount				$ 1,700,000	$ 1,500,000
Debt Instrument, Maturity Date			Feb. 22, 2015
Debt Instrument, Interest Rate Terms	The 'Prime Referenced Rate' means, for any day, a per annum interest rate which is equal to the 'Prime Rate' in effect on such day, but in no event and at no time shall the 'Prime Reference Rate' be less than the sum of the Daily Adjusting LIBOR Rate for such day plus two and one-half percent (2.5%) per annum. 'Prime Rate' means the per annum rate established by Comerica Bank as its prime rate for its borrowers at any such time. 'Applicable Margin' means 2% per annum.
Financing costs	$ 298,006
Advance to Loan Amount Note | Common Stock
Stock issued to guarantors	298,004

Note 7 - Financing From Black24

Note 7 - Financing From Black Ink Energy LLC (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Mar. 02, 2015
Interest expense, net	$ 151,006	$ 134,023
Black Ink Energy, LLC | Second Lien Term Loan Agreement
Debt Instrument, Face Amount				$ 3,000,000
Debt Instrument, Maturity Date	Sep. 2, 2016
Debt Instrument, Interest Rate, Stated Percentage				15.00%
Description of Terms in Event of Debt Default	except in the occurrence of an event of default, at which point the default interest rate will be 18%
Payment of Pre-Payment Premium	$ 300,000
Facility Fee			$ 24,450
Class of Warrant or Right, Outstanding	800,000
Term of the warrant	10 years
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.50
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 2,967,535
Risk Free Interest Rate	0.87%
Estimated Volatility Rate	17.00%
Dividend Yield	0.00%
Fair Value Assumptions, Expected Term	5 years
Interest expense, net	$ 113,750
Black Ink Energy, LLC | Second Lien Term Loan Agreement | Warrant
Shareholders' Equity, Fair Value Disclosure	$ 32,465

Note 8 - Warrants (Details)

Note 8 - Warrants (Details)	Mar. 31, 2016shares
Details
Warrants, Outstanding, Ending Balance	1,891,000
Warrants, Exercisable	1,625,763

Note 10 - 2012 Stock Option a26

Note 10 - 2012 Stock Option and Stock Award Plan (Details) - 2012 Stock Option and Stock Award Plan	3 Months Ended
	Mar. 31, 2016USD ($)shares
Options, Outstanding, Number	782,000
Number of Shares Available for Grant	3,000
Shares issued	0
Stock Compensation Expense | $	$ 21
Stock Compensation Expense, To Be Vested | $	$ 10

Note 11 - 2015 Stock Option a27

Note 11 - 2015 Stock Option and Stock Award Plan (Details) - 2015 Stock Option and Stock Award Plan	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Options, Outstanding, Number | shares	669,750
Number of Shares Available for Grant | shares	830,250
Stock Compensation Expense | $	$ 946
Stock Compensation Expense, To Be Vested | $	$ 4,700
Employee Stock Option | March 31, 2016
Shares issued | shares	31,250
Exercise price | $ / shares	$ 1.50
Maximum contractual term	10 years
Fair value of shares issued | $	$ 6,533
Risk free interest rate	0.87%
Expected volatility rate	17.00%
Expected dividend rate	0.00%
Expected term	10 years

Note 12 - Subsequent Events (De

Note 12 - Subsequent Events (Details) - USD ($)	May. 04, 2016	Apr. 28, 2016	Apr. 25, 2016	Apr. 30, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Proceeds from note payable						$ 3,075,550
Repayment on note payable					$ 111,057	$ 25,000
Advance to loan amount note							$ 111,057
Common Stock | Advance to Loan Amount Note
Stock issued to guarantors					298,004
Series B Preferred Stock
Shares Sold Pursuant to Stock Purchase Agreements					1,900,000
Subsequent Event | Investor
Stock value issued during the period	$ 250,000		$ 250,000
Subsequent Event | Advance to Loan Amount Note
Proceeds from note payable				$ 356,600
Repayment on note payable				70,000
Advance to loan amount note				$ 286,600
Subsequent Event | Common Stock
Stock Dividends, Shares				3,587
Stock issued to guarantors		90,832
Subsequent Event | Common Stock | Investor
Shares Sold Pursuant to Stock Purchase Agreements	227,273		227,273
Subsequent Event | Series B Preferred Stock
Dividend paid in cash				$ 14,795