Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 13, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | National Energy Services, Inc. | |
Entity Central Index Key | 1,415,998 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 61,311,447 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $ 29,144 | $ 72,165 |
Accounts receivable, net | 760,973 | 1,221,671 |
Other receivable | 30,000 | 60,000 |
Prepaid expenses | 439,435 | 1,353,033 |
Total current assets | 1,259,552 | 2,706,869 |
Property, plant and equipment, net | 15,400,161 | 16,683,881 |
Intangible assets, net | 283,000 | 283,000 |
Security deposit | 750 | 750 |
Deferred financing fees, net | 117,983 | 189,349 |
TOTAL ASSETS | 17,061,446 | 19,863,849 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 4,552,012 | $ 5,294,325 |
Deferred revenue | 201,799 | |
Current portion of loans, capital leases and line of credit | 3,843,796 | $ 4,507,322 |
Current portion of convertible debt, net of discount of $195,499 and $444,644 | 785,729 | 158,737 |
Debt conversion feature derivative liability | 1,578,715 | $ 1,189,718 |
Warrant derivative liability | 145,012 | |
Current portion of related party notes payable | 1,073,193 | $ 112,536 |
Mandatorily redeemable common stock | 100,000 | 100,000 |
Total current liabilities | 12,280,256 | 11,362,638 |
LONG TERM LIABILITIES | ||
Long term related party notes payable, net of discount of $96,688 and $0, net of Current portion | 2,350 | 984,667 |
Convertible debt, net of discount of $113,599 and $133,205, net of current portion | 327,161 | 406,914 |
Long term loans, capital leases, net of current portion | 8,320,269 | 8,666,493 |
Total liabilities | $ 20,930,036 | $ 21,420,712 |
Commitments and contingencies (notes 11 and 12) | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock $0.001 par value, 10,000,000 authorized, 0 and 0 shares issued outstanding | ||
Common stock $0.001 par value, 150,000,000 authorized, 32,039,180 and 4,019,738 shares issued outstanding | $ 32,039 | $ 4,020 |
Additional paid in capital | $ 18,427,029 | 14,924,999 |
Stock payable | 33,278 | |
Accumulated deficit | $ (22,327,658) | (16,519,160) |
Total stockholders' deficit | (3,868,590) | (1,556,863) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 17,061,446 | $ 19,863,849 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Convertible debt current, debt discount | $ 195,499 | $ 444,644 |
Related party payable net, discount | 96,688 | 0 |
Convertible debt noncurrent, debt discount | $ 113,599 | $ 133,205 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 32,039,180 | 4,019,738 |
Common stock, shares outstanding | 32,039,180 | 4,019,738 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
REVENUE | $ 3,615,779 | $ 5,466,073 | $ 11,535,486 | $ 11,887,589 |
COST OF REVENUE | 3,426,524 | 4,230,825 | 10,234,261 | 9,810,323 |
GROSS (LOSS) PROFIT | 189,255 | 1,235,248 | 1,301,225 | 2,077,266 |
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 485,875 | 641,676 | 1,438,431 | 1,349,136 |
Professional fees and stock based compensation | 453,910 | 149,752 | 2,813,926 | 297,287 |
TOTAL OPERATING EXPENSES | 939,785 | 791,428 | 4,252,357 | 1,646,423 |
OPERATING (LOSS) INCOME | (750,530) | 443,820 | (2,951,132) | 430,843 |
OTHER INCOME, non-operating | ||||
Other income, non-operating | $ (33,009) | $ (54,644) | (33,009) | $ (64,973) |
Change in fair value of derivative liabilities | (1,446,103) | |||
Gain on debt extinguishment | $ (225,732) | $ (225,732) | ||
Gain on bargain purchase acquisition of JD | $ (1,464,515) | |||
TOTAL OTHER INCOME, non-operating | $ (258,741) | $ (54,644) | $ (1,704,844) | $ (1,529,488) |
OTHER EXPENSE | ||||
Loss on disposal of fixed assets | 296,093 | $ 296,093 | ||
Change in fair value of derivative liabilities | 48,274 | |||
Interest expense, net | 1,861,931 | $ 306,504 | $ 4,266,118 | $ 720,281 |
TOTAL OTHER EXPENSE, non-operating | 2,206,298 | 306,504 | 4,562,211 | 720,281 |
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES | $ (2,698,087) | $ 191,960 | $ (5,808,499) | $ 1,240,050 |
PROVISION FOR INCOME TAXES | ||||
NET (LOSS) INCOME | $ (2,698,087) | $ 191,960 | $ (5,808,499) | $ 1,240,050 |
BASIC (LOSS) INCOME PER SHARE | $ (0.18) | $ 0.05 | $ (0.69) | $ 0.34 |
DILUTED (LOSS) INCOME PER SHARE | $ (0.18) | $ 0.04 | $ (0.69) | $ 0.28 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 15,314,493 | 3,931,604 | 8,412,062 | 3,620,766 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 15,314,493 | 4,699,258 | 8,412,062 | 4,388,420 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net (loss) income | $ (5,808,499) | $ 1,240,050 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,139,454 | 886,270 |
Provision for doubtful accounts | 100,000 | (224,715) |
Amortization of debt discount on notes payable | 1,109,189 | $ 920 |
Stock-based compensation expense | 739,639 | |
Change in fair value of derivative liabilities | (1,446,103) | |
Non-cash interest expense on issuance of derivative instruments | 2,293,088 | |
Stock issued to consultants | $ 430,806 | $ 41,400 |
Forgiveness of accrued officer compensation | (95,920) | |
Gain on bargain purchase of JD Field Services | (1,464,515) | |
Gain / loss on disposal of fixed assets | $ 296,093 | (15,144) |
Gain on extinguishment of debt | (225,732) | (10,329) |
Changes in assets | ||
Decrease accounts receivable | 360,698 | 1,426,419 |
Decrease (increase) other assets | 30,000 | (70,750) |
Decrease prepaid expenses | 1,709,331 | $ 301,342 |
Changes in liabilities | ||
Increase deferred revenue | 201,799 | |
Decrease accounts payable and accrued liabilities | (742,311) | $ (96,938) |
Cash (used in) provided by operating activities | 187,452 | $ 1,918,090 |
Investing Activities | ||
Proceeds from disposal of PP&E | $ 198,000 | |
Cash retained by subsidiary | $ 104,816 | |
Purchase of fixed assets | $ (144,329) | (92,107) |
Cash provided by investing activities | 53,671 | $ 12,709 |
Financing activities | ||
Proceeds from sale of stock, net of offering cost | 490,900 | |
Proceeds from line of credit | 5,454,475 | $ 5,440,630 |
Proceeds from related party debt | 185,990 | $ 78,000 |
Proceeds from convertible notes payable | 851,082 | |
Proceeds from notes payable | 1,130,203 | $ 630,000 |
Payments on note payable | $ (2,855,697) | (2,288,246) |
Payments on capital leases | (246,840) | |
Payments on related party debt | (41,000) | |
Payments on line of credit | $ (5,541,097) | (5,434,310) |
Cash used in financing activities | (284,144) | (1,861,766) |
Increase (decrease) in cash | (43,021) | 69,033 |
Cash at beginning of the year | 72,165 | 17,696 |
Cash at end of the period | 29,144 | 86,729 |
SUPPLEMENTAL CASH FLOW | ||
Cash paid for interest | $ 683,454 | $ 493,777 |
Cash paid for income taxes | ||
SUPPLEMENTAL DISCLOSURE OF NON CASH INVESTING AND FINANCING TRANSACTIONS | ||
Stock issued for acquisition of JD | $ 413,000 | |
Capitalized leases | 132,000 | |
Financed assets | $ 134,132 | 2,642,108 |
Financed insurance | 668,233 | 504,555 |
Stock granted for conversion of debt | $ 1,665,431 | 269,197 |
Stock issued for deferred financing fees | $ 50,000 |
Organization and basis of prese
Organization and basis of presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | NOTE 1: Organization and basis of presentation Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements of National Energy Services, Inc., a Nevada corporation (“NES” or the “Company”), have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. These financial statements have been presented in accordance with the rules governing a smaller reporting company. These condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K/A filed with the SEC on September 18, 2015, from which the balance sheet information as of December 31, 2014 was derived, as adjusted for the Company’s finalization of the JD Field Services (“JD”) acquisition. Management determined that under the guidance of Financial Accounting Standards Board Accounting Standards Codification (“FASB” “ASC”) 805, an adjustment to record additional purchase price allocation was necessary as a part of the acquisition of JD on February 24, 2014. The “measurement” period under ASC 805 allows for retrospective adjustment of the business combination for one year from the acquisition date, or when all necessary information for the adjustment is available. After the measurement period, there is no revision allowed for subsequent information that is unrelated to the facts and circumstances existing at the time of the acquisition, except for error correction. Management recognizes that it had this one year period to apply corrective changes from the bargain purchase to intangible and tangible asset value and, as such it has re-measured the intangible asset value, and recognized a gain on its bargain purchase which has been reflected in the fiscal year ended December 31, 2014, and for the nine months ended September 30, 2014 (See Note 13: Acquisition Business Overview NES is a public holding company with subsidiaries which provide services for the domestic oil and gas industry. The Company’s business plan takes action with expansion through carefully selected acquisitions. The Company’s services are needed by a wide variety of oil and natural gas industry providers in both private and public sectors. The Company’s focus is to increase shareholder value through these carefully selected companies with NES bringing oversight and resources to each, which is intended to allow them to maximize profitability and growth opportunities within their markets, and expanding their customer base. This strategy is intended to allow for rapid advancement in overall assets and revenue streams for the Company. On February 24, 2014, the Company entered into a purchase and sale agreement with JD. This is the first of several anticipated acquisitions that NES has as a part of its growth strategy. JD provides oilfield services to the oil and gas industry primarily focused around those activities that are related to the drilling, operation(s) and maintenance of the well-site. They are licensed in all states west of the Mississippi River including Alaska to do trucking, but are focused primarily in the Rocky Mountain Region. Oilfield services provided include heavy haul, water haul, and rig moving services as well as equipment, supplies, and specialty long hauling services. JD also provides oil and gas equipment rental services, hot shot, roustabout services and construction site development services. JD also operates a fabrication division that builds special-order oil and gas equipment and trucks for customers. Name Change and Increase of Authorized Share Capital On July 8, 2015, the Company filed with the Secretary of State of the State of Nevada a Certificate of Amendment to Articles of Incorporation to change its name to “National Energy Services, Inc.” and increase its authorized number of shares of common stock from 75,000,000 to 150,000,000. The Certificate of Amendment became effective on July 15, 2015. Reverse Stock Split On September 11, 2014, the Company amended its Certificate of Incorporation to implement a reverse stock split in the ratio of 1 share for every 200 shares of common stock. This amendment was approved and filed on record by the Nevada Secretary of State, effective September 11, 2014. On December 11, 2014, FINRA approved the reverse stock split for the Company. All the relevant information relating to numbers of shares and per share information contained in these consolidated financial statements has been retrospectively adjusted to reflect the reverse stock split for all periods presented. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the 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. Actual results could differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and generally limits the amount of credit exposure to the amount in excess of the Federal Deposit Insurance Corporation coverage limit of $250,000. As of September 30, 2015, the Company did not have cash in any one banking institution that exceeded this limit. Earnings (loss) per share basic and diluted Earnings per share is calculated in accordance with the Earnings per Share Topic of the FASB ASC. The weighted-average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share is computed using the weighted average number of shares plus dilutive potential common shares outstanding. Potentially dilutive common shares consist of employee stock options, warrants, and other convertible securities in the amount of 71,261,660, and are excluded from the diluted earnings per share computation in periods where the Company has incurred net loss. During the nine months ended September 30, 2015, the Company recorded a net loss, resulting in no dilutive common shares. SEPT 30, 2015 SEPT 30, 2014 Net loss (income) $ (5,808,499 ) $ 1,240,050 Basic earnings (loss) per share $ (0.69 ) $ 0.34 Diluted earnings (loss) per share $ (0.69 ) $ 0.28 Weighted average common shares outstanding basic 8,412,062 3,620,766 Weighted average common shares outstanding diluted 8,412,062 4,388,420 SEPT 30, 2015 SEPT 30, 2014 Weighted average common shares outstanding basic 8,412,062 3,620,766 Add: Warrant exercise -- 140,000 Add: Options exercise -- 35,000 Add: Convertible notes -- 592,654 Total weighted average common shares outstanding diluted 8,412,062 4,388,420 Revenue Recognition As required by the Revenue Recognition Topic of FASB ASC, the Company is required to use predetermined contract methods in determining the current value for revenue. Service Contracts In all cases, revenue is recognized as earned by the Company. Revenues collected in advance of services are considered deferred revenue. As the client becomes liable to the Company for services provided, as defined in the agreement, the client is then invoiced and revenue is accordingly recognized and recorded. The Company does not recognize or record any revenues for which it does not have a legal basis for invoicing or legally collecting. Fair Value Accounting As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions (For additional information see Note 11: Fair value The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Recently adopted and recently i
Recently adopted and recently issued accounting guidance | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently adopted and recently issued accounting guidance | NOTE 2: Recently adopted and recently issued accounting guidance Adopted None Issued In November 2014, FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. In February 2015, FASB issued ASU No. 2015-02, Consolidation. In April 2015, FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |
Liquidity resources and future
Liquidity resources and future capital requirements | 9 Months Ended |
Sep. 30, 2015 | |
Liquidity resources and future capital requirements [Abstract] | |
Liquidity resources and future capital requirements | NOTE 3: Liquidity resources and future capital requirements For the nine months ended September 30, 2015, the Company had a working capital deficit of $11,020,704 and a stockholders’ deficit of $3,868,590, which raises substantial doubt regarding the Company’s ability to continue as a going concern. Our principal liquidity requirements are to finance current operations, fund capital expenditures, including any future acquisitions, and to service our debt. Since our acquisition of JD, our principal source of liquidity has been cash generated by JD’s operations. Our other sources of liquidity have been funds generated from debt and equity issuances of our securities. We believe that cash generated from these sources will be sufficient to meet our short-term working capital requirements and long-term capital expenditure requirements for at least the next twelve months from date of filing. With our acquisition of JD, our revenues were at $11,535,486 for the nine months ended September 30, 2015 compared to $11,887,589 during the same period in 2014. To help recapitalize the Company, we are pursuing a four-step approach that we expect to continue during 2015 that includes the following: • Applying to up-list to a national securities exchange; • Seeking out further of acquisition candidates; • Refinancing our balance sheet; Our ability to continue in our acquisition strategy and purchase established businesses with a proven track record is vital to the overall growth strategy of the Company. We continue to seek out established businesses with a proven operating track record strong financial performance, positive operating results, established or growing contract backlogs, and/or the potential for positive operating cash flow. SEPT 30, 2015 SEPT 30, 2014 Net cash (used in) provided by operating activities $ 187,452 $ 1,918,090 Net cash provided by investing activities $ 53,671 $ 12,709 Net cash provided by (used in) financing activities $ (284,144 ) $ (1,861,766 ) Total net (loss) income $ (5,808,499 ) $ 1,240,050 In connection with the preparation of the Company’s financial statements for the nine months ended September 30, 2015, the Company has analyzed its cash needs for the next twelve months. The Company believes that its current cash position and forecasted cash flow from operations is adequate to meet its cash requirements for at least the next twelve months. |
Accounts receivable, net
Accounts receivable, net | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Accounts receivable, net | NOTE 4: Accounts receivable, net SEPT 30, DEC 31, 2015 2014 Accounts receivable $ 927,120 $ 1,287,818 Less: allowance for doubtful accounts (166,147 ) (66,147 ) Total $ 760,973 $ 1,221,671 |
Property, plant & equipment, ne
Property, plant & equipment, net | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, plant & equipment, net | NOTE 5: Property, plant & equipment, net SEPT 30, DEC 31, 2015 2014 Buildings $ 78,927 $ 78,927 Furniture and fixtures 46,923 46,923 Vehicles 4,400,404 4,479,273 Machinery and equipment 12,304,577 13,234,926 16,830,831 17,840,049 Less: Accumulated depreciation (1,430,670 ) (1,156,168 ) Total $ 15,400,161 $ 16,683,881 Depreciation expense for the nine months ended September 30, 2015, was $1,068,088 and for the nine months ended September 30, 2014, was $858,588. |
Intangible assets, net
Intangible assets, net | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | NOTE 6: Intangible assets, net With the purchase of JD on February 24, 2014, the Company, under guidance of FASB ASC 805, determined that an adjustment to record additional purchase price allocation was necessary. The “measurement” period under ASC 805 allows for retrospective adjustment of the business combination for adjustment one year from the acquisition date, or when all necessary information for the adjustment is available. After the measurement period, there is no adjustment allowed for subsequent information that is unrelated to the facts and circumstances existing at the time of the acquisition, except for error correction. Management recognizes that it had this one year period to retrospectively adjust values from the bargain purchase to intangible and tangible asset value and, as such the Company has re-measured the intangible asset value and recognized a gain on its bargain purchase which has been reflected retrospectively as of February 24, 2014. The Company recognized additional intangible assets which contributed to the overall value of JD (See Note 13: Acquisitions SEPT 30, DEC 31, 2015 2014 Brand name $ 277,000 $ 277,000 Domain name / website 6,000 6,000 283,000 283,000 Less: Accumulated amortization — — Total $ 283,000 $ 283,000 The following is the proforma information that discloses the results of operations as though the business combination was completed as of the beginning of the period being reported on. NAS SEPT 30, 2014 JD SEPT 30, 2014 Adjustments MAR 01, 2014 SEPT 30, 2014 REVENUE $ — $ 11,887,589 $ 3,323,970 $ 15,211,559 Less: allowance for bad debt add recovery 188,460 188,460 NET REVENUE — 12,076,049 — 15,400,019 COST OF REVENUE — 9,998,783 2,866,011 12,864,794 GROSS PROFIT — 2,077,266 — 2,535,225 OPERATING EXPENSES Selling, general and administrative expenses 180,643 1,142,179 329,287 1,652,109 Professional fees and related expenses 282,251 9,187 2,570 294,008 Consulting fees 5,850 — — 5,850 Forgiveness of accrued officer compensation (95,921 ) — — (95,921 ) TOTAL OPERATING EXPENSES 372,823 1,154,366 — 1,856,046 OPERATING INCOME (LOSS) $ (372,823 ) $ 922,900 $ — $ 679,179 OTHER EXPENSE (INCOME), non-operating Other income 33,320 (39,500 ) 33,320 27,140 Gain on acquisition, bargain purchase of JD — (1,464,515 ) 39,208 (1,425,307 ) Gain on extinguishment of debt (10,329 ) — — (10,329 ) Loss on disposal of assets — (15,144 ) — (15,144 ) Interest expense, net 270,317 449,964 131,989 852,270 TOTAL OTHER EXPENSE (INCOME), non-operating 293,308 (1,069,195 ) — (571,370 ) INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (666,130 ) 1,992,095 — 1,250,549 PROVISION FOR INCOME TAXES — — — — NET (LOSS) INCOME $ (666,130 ) $ 1,992,095 — $ 1,250,549 BASIC (LOSS) INCOME PER SHARE $ (0.18 ) — — $ 0.31 DILUTED (LOSS) INCOME PER SHARE $ (0.18 ) $ 0.26 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC 3,620,766 — — 3,620,766 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED 3,620,766 — — 4,388,420 |
Loans, capital lease and lines
Loans, capital lease and lines of credit | 9 Months Ended |
Sep. 30, 2015 | |
Debt and Capital Lease Obligations [Abstract] | |
Loans, capital lease and lines of credit | NOTE 7: Loans, capital lease and lines of credit The following table represents the outstanding principal balance of loans, capital leases and lines of credit (“LOC”) and accrued interest for the Company as of September 30, 2015. Description Loan date Maturity date Original amount of loan Interest rate Balance as of SEPT 30, 2015 Balance as of DEC 31, 2014 Ally 02/24/2014 02/10/2019 $ 43,395 4.01 % $ 25,442 $ 31,284 Commercial Credit Group 12/19/2014 12/19/2019 1,940,969 10.00 % 1,431,837 1,552,775 Cat Financial 02/24/2014 11/09/2016 186,549 5.95 % 59,417 95,262 Equify 04/08/2014 05/01/2019 1,480,412 7.10 % 1,177,740 1,331,116 Phil Timothy 02/24/2014 03/28/2023 2,650,000 6.00 % 2,146,705 2,274,936 Ford credit 02/24/2014 03/16/2016 23,700 4.34 % — 10,129 Ford credit 02/24/2014 09/28/2015 28,700 6.54 % — 10,268 Ford credit 02/24/2014 09/28/2016 44,576 3.74 % — 2,903 Ford credit 02/24/2014 06/05/2016 88,575 7.89 % — 37,253 Ford credit 02/24/2014 02/28/2015 56,372 6.49 % — 9,858 Ford credit 02/24/2014 03/29/2017 73,005 7.89 % — 37,946 Ford credit 02/24/2014 10/29/2015 36,700 6.54 % — 3,829 Ford credit 02/24/2014 10/29/2015 34,400 6.54 % — 3,589 Ford credit 02/24/2014 09/30/2015 94,000 5.74 % — 16,050 Ford credit 02/24/2014 09/16/2016 45,994 8.29 % — 23,049 Ford credit 02/24/2014 08/01/2017 43,110 5.04 % — 33,693 Jimmy B Trucking 08/11/2014 06/11/2015 600,000 10.00 % — 372,109 Rick Gurr/ Gosling Service 08/11/2014 06/11/2015 210,000 10.00 % — 130,238 Mack Financial Services 02/24/2014 03/12/2016 326,746 6.00 % — 98,478 GE Capital 09/01/2014 07/01/2019 213,600 6.96 % 170,234 202,093 GE Capital 09/01/2014 12/21/2018 203,789 6.93 % 170,518 194,574 GE Capital 09/01/2014 08/01/2016 48,000 9.11 % 19,082 42,669 GE Capital 02/24/2014 09/09/2018 189,151 6.42 % 103,719 129,135 GE Capital 02/24/2014 07/01/2018 153,944 7.20 % 79,100 100,047 John Deere Financial 02/24/2014 09/26/2017 262,350 4.00 % 115,783 155,136 Axis Capital 02/20/2015 02/20/2020 600,000 8.62 % 525,580 — Utica Financial 06/25/2015 06/25/2020 840,406 — 788,453 — Mack Financial Services 02/24/2014 11/09/2016 347,520 6.00 % 119,197 159,427 MACU 02/24/2014 10/26/2018 41,540 2.99 % 26,941 33,069 Zion’s Bank 02/24/2014 10/15/2026 150,000 4.86 % 118,686 125,108 Zion’s Bank 02/24/2014 10/10/2016 101,091 4.57 % 15,489 31,998 Zion’s Bank 02/24/2014 09/30/2017 7,680,000 4.57 % 3,699,035 4,622,482 Zion’s Bank – LOC — — — — 500,000 586,621 Gale Rasmussen 07/01/2015 * 94,000 10.0 % 94,000 — WD Martin 07/01/2015 * 80,000 10.0 % 80,000 — Alliance funding 07/01/2015 * 43,159 10.0 % 43,159 — H&E Equipment 02/24/2014 05/01/2017 176,234 12.00 % — 117,799 National Insurance 06/01/2015 05/31/2016 668,233 6.0 % 338,064 217,128 Capital lease 01/15/2009 — 33,591 — 33,591 33,591 Goss 09/19/2013 09/19/2016 20,000 12.00 % 20,000 20,000 Kinney2 11/01/2013 11/01/2015 50,000 12.00 % 50,000 50,000 O’Connor 04/01/2009 * 71,000 10.00 % 71,000 71,000 Hanley 04/01/2009 * 79,913 10.00 % 79,913 79,913 Spiker 12/31/2010 * 9,500 10.00 % 9,500 9,500 Jesse 12/31/2010 * 9,760 10.00 % 9,760 9,760 Marlow 12/31/2010 * 13,000 10.00 % 13,000 13,000 Goss2 02/28/2014 03/09/2016 50,000 10.00 % 29,120 50,000 Krochak 07/25/2014 01/25/2015 30,000 10.00 % — 30,000 Krueger 12/09/2014 06/06/2015 15,000 10.00 % — 15,000 Total debt liabilities 12,164,065 13,173,815 Less: current portion (3,843,796 ) (4,507,322 ) Total long term liabilities $ 8,320,269 $ 8,666,493 * Line of credit The Company has a $500,000 unsecured line of credit with Zion’s First National Bank. At September 30, 2015, interest was charged at LIBOR + 3.85% (4.04%). The line of credit has been renewed through January 2016. The line of credit balance as of September 30, 2015 was $500,000. Mandatorily redeemable common stock On June 6, 2014, the Company entered into a settlement and release agreement providing for the grant of an aggregate of 53,837 shares of restricted stock in consideration for the settlement of outstanding debt due under a convertible note April 11, 2011, valued at $269,186. In connection with the agreement, the Company agreed to repurchase 20,000 shares of the shares issued for $100,000 within 30 days following the completion of a planned secondary offering. No secondary offering has been commenced as of the date of this report. The agreement further provides that if the Company does not timely purchase the shares in accordance with the agreement then if the said shares have a value of less than $100,000, the holder is entitled to additional shares to compensate up to the $100,000 in value. As such as of September 30, 2015, the Company recognized a mandatorily redeemable common stock to reflect the fair value of the obligation of the $100,000. |
Convertible notes
Convertible notes | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Convertible notes | NOTE 8: Convertible notes As of September 30, 2015, the following convertible notes payable are outstanding (see Note 11: Fair Value for information relating to convertible notes Description Balance as of Sept 30, 2015 Balance as of December 31, 2014 Convertible note issued on October 1, 2014, at a 12% interest rate per annum for three (3) years, convertible to shares of common stock at a 30% discount to market price of Company common stock. $ 250,000 $ 250,000 Convertible note issued on October 1, 2014, at a 12% interest rate per annum for three (3) years, convertible to shares of common stock at a 30% discount to market price of Company common stock. 223,000 245,000 Convertible note issued on October 20, 2014, at a 12% interest rate per annum for three (3) years, convertible to shares of common stock at a 30% discount to market price of Company common stock. -- 45,000 Convertible note issued on December 16, 2014, at a 12% interest rate per annum for one (1) year, convertible to shares of common stock at $2.00 per share or if the Company’s common stock falls below a certain price, at a 40% discount to market price of Company common stock, subject to further adjustments in certain cases. 250,000 250,000 Convertible note issued on December 16, 2014, at a 10% interest rate per annum for one (1) year, convertible to shares of common stock at 40% discount to market price of Company common stock, subject to further adjustment in certain cases. 28,000 249,500 Convertible note issued on December 16, 2014, at a 8% interest rate per annum for nine (9) months, convertible to shares of common stock at a 42% discount to market price of Company common stock, subject to further adjustment in certain cases. -- 104,000 Convertible note originally issued on January 30, 2015 and amended on June 30, 2015, at a 9% interest rate per annum maturing on January 1, 2016, convertible to shares of common stock at a 20% discount to market price of Company common stock, subject to further adjustment in certain cases. 205,082 -- Convertible note issued on February 12, 2015, at a 12% interest rate per annum for six (6) months, convertible to shares of common stock at a 30% discount to market price of Company common stock, subject to further adjustments in certain cases. 144,471 -- Convertible debenture issued on February 20, 2015, at a 10% interest rate per annum for five (5) years, convertible into shares of common stock using the average of the lowest intraday trading price and the closing price during any 20 day window, surrounding the conversion of the note. 89,000 -- Convertible note issued on March 11, 2015, at a 8% interest rate per annum for one (1) year, convertible to shares of common stock at a 40% discount to market price of Company common stock, subject to further adjustments in certain cases. 25,435 -- Convertible note issued on March 12, 2015, at a 8% interest rate per annum for one (1) year, convertible to shares of common stock at a 40% discount to market price of Company common stock, subject to further adjustments in certain cases. 5,000 -- Convertible note issued on June 3, 2015, at a 6% interest rate per annum for one (1) year, convertible to shares of common stock at a 47% discount to market price of Company common stock, subject to further adjustment in certain cases. 46,000 -- Convertible note issued on July 15, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share. 10,000 -- Convertible note issued on August 5, 2015, at a 12% interest rate per annum for one (1) year (deferred for first 3 months), convertible to shares of common stock at the lesser of $0.10 or a 40% discount to market price of Company common stock, subject to further adjustment in some cases. 55,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 5,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 5,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 10,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 5,000 -- Convertible note issued on September 9, 2015, at a 6% interest rate per annum for one (1) year, convertible to shares of common stock at a 47% discount to market price of Company common stock, subject to further adjustment in certain cases. 36,000 -- Convertible note issued on September 30, 2015, at a 8% interest rate per annum for nine (9) month, convertible to shares of common stock at a 42% discount to market price of Company common stock, subject to further adjustment in certain cases. 30,000 -- Total 1,421,988 1,143,500 Less: Debt discount (309,098 ) (577,849 ) Total Current portion convertible debt (785,729 ) (158,737 ) Total Long-term portion of convertible debt $ 327,161 $ 406,914 During the nine months ended September 30, 2015, the Company issued the following convertible notes: On February 12, 2015, the Company issued a convertible promissory note in the principal amount of $180,000 for a purchase price of $125,000 reflecting a $55,000 Original Issue Discount (“OID”). The note matures six-months from the date of issuance and bears interest at the rate of 12% per annum. The note may be converted into shares of common stock at a 30% discount to market price of the Company’s common stock, subject to further adjustment in certain cases. On February 27, 2015, the Company issued a convertible promissory note in the principal amount of $110,250 for a purchase price of $105,000 reflecting a 5% OID. The note matures one-year from the date of issuance and bears interest at the rate of 8% per annum. The note may be converted into shares of common stock at a 30% discount to market price of Company common stock, subject to further adjustment in certain cases. On March 11, 2015, the Company issued a convertible promissory note in the principal amount of $35,000 in exchange for a convertible promissory note issued to a related party originally issued on July 25, 2014. The note matures one-year from the date of issuance and bears interest at the rate of 8% per annum. The note may be converted into shares of common stock at a 40% discount to market price of Company common stock, subject to further adjustment in certain cases. On March 12, 2015, the Company issued a convertible promissory note in the principal amount of $55,000 for a purchase price of $50,000, reflecting a 10% OID. The note matures one-year from the date of issuance and bears interest at the rate of 8% per annum. The note may be converted into shares of common stock at a 40% discount to market price of Company common stock, subject to further adjustment in certain cases. On March 20, 2015, the Company issued a convertible promissory note to a related party in the principal amount of $35,000. The note matures one-year from the date of issuance and bears interest at the rate of 8% per annum. The note may be converted into shares of common stock at a 40% discount to market price of Company common stock, subject to further adjustment in certain cases. As of September 30, 2015 this note has been fully converted. On June 2, 2015, the Company issued a convertible promissory note in the principal amount of $45,000 to an assignee of a note in like principal amount issued on October 20, 2014. The note matures one-year from the date of issuance and bears interest at the rate of 5% per annum. The note may be converted into shares of common stock at a 40% discount to market price of Company common stock, subject to certain anti-dilution protection. As of June 30, 2015 this note has been fully converted. On June 3, 2015, the Company issued a convertible promissory note in the principal amount of $46,000 for a purchase price of $40,000. The note matures one year from the date of issuance and bears interest at the rate of 6% per annum. The note may be converted into shares of common stock at a 47% discount to market price of the Company’s common stock subject to further adjustment in certain cases. On June 30, 2015, the Company issued a convertible promissory note in the principal amount of $205,082 to a then related party. The note replaces a convertible promissory note dated January 31, 2015 in the principal amount of $159,000 that matured on March 31, 2015 and for which there were unpaid fees and interest. The note matures on January 1, 2016 subject to extension of the note at the issuer’s until June 30, 2018 provided that certain additional consideration is paid in an amount not less than 108% of the principal outstanding at the issue date. The note bears an interest rate of 9% per annum and interest is payable quarterly within five business days of the end of each quarter. The note may be converted into shares of common stock at a 20% discount to the market price of the Company’s common stock subject to further adjustment in certain cases. On July 15, 2015, the Company issued a convertible promissory note in the principal amount of $10,000 to a related party. The note matures six months from the date of issuance and bears interest at the rate of 10% per annum. The note may be converted into shares of common stock at a fixed price of $0.05 per share. On August 4, 2015, the Company issued a convertible promissory note in the principal sum of up to $250,000 The note contains a 10% OID, and is to be funded in the aggregate amount of $225,000 in tranches at the sole discretion of the holder. The first tranche funded was $50,000, with an OID of $5,000. The note has a maturity date of two years from the funding of each tranche and is convertible at the lesser of $0.10 or at a 40% discount market price of the Company’s common stock, subject to further adjustment in certain cases. On September 2, 2015, the Company issued convertible promissory notes in the aggregate principal amount of $25,000, of which a note in the principal amount of $5,000 was issued to a related party. The notes mature nine months from the date of issuance and bear interest at the rate of 10% per annum. Notes in the principal amount of $20,000 may be converted into shares of common stock at a fixed rate of $0.05 per share, subject to adjustment in certain cases and a note in the principal amount of $5,000 may be converted into shares of common stock at a fixed rate of $0.05 per share, subject to adjustment in certain cases On September 9, 2015, the Company issued a convertible promissory note in the principal amount of $36,000 reflecting an OID of $5,500. The note matures one year from the date of issuance and bears interest at the rate of 6% per annum. The note may be converted into shares of common stock at a 47% discount to the market price of the Company’s common stock subject to further adjustment in certain cases. On September 30, 2015, the Company issued a convertible promissory note in the principal amount of $30,000. The note matures nine months from the date of issuance and bears interest at the rate of 8% per annum. The note may be converted into shares of common stock at a 42% discount to market price of Company common stock, subject to further adjustment in certain cases. |
Operating lease agreement
Operating lease agreement | 9 Months Ended |
Sep. 30, 2015 | |
Leases, Operating [Abstract] | |
Operating lease agreement | NOTE 9: Operating lease agreement On June 21, 2014, the Company entered into an operating lease agreement for our corporate offices located in Las Vegas, Nevada. The operating lease runs from July 1, 2014 for 12 months to June 30, 2015 with a non-related third party for $750 per month with no annual increase. The CompanyÂ’s subsidiary JD rents its facility from a related party (see Note 10: Related party transactions |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | NOTE 10: Related party transactions On February 24, 2014, the Company assumed a 6% promissory note in the principal amount of $474,667 issued to a director and a beneficial owner of 5% or more of our common stock, in connection with the acquisition of JD. In May 2015, the director added an additional $78,765. As of September 30, 2015, the Company owes an additional $54,120, as expenses that were paid by the director on behalf of the Company. As of September 30, 2015, $607,552 of principal and $47,130 of interest was outstanding. On February 24, 2014, the Company assumed a 7.05% promissory note in the principal amount of $500,000 issued to a beneficial owner of 5% or more of our common stock, in connection with the acquisition of JD. As of September 30, 2015, $468,000 of the principal and $9,597 of interest was outstanding. On February 27, 2015, the Company amended loans to the Company made by a related party dated April 2, 2014, and April 22, 2014, in the original principal amounts of $50,000 and $28,000, respectively such that the remaining principal was combined into one convertible debenture in the principal amount of $110,000. The debenture matures on January 30, 2020, and bears interest at the rate of 10% per annum. The Company incurred interest expense of $63,167 and $20,714 during the nine-month periods ended September 30, 2015 and 2014, respectively, in connection with these promissory notes and convertible debenture. The CompanyÂ’s subsidiary JD also rents its facility; the lease is with a related party for $10,500 per month. For the nine months ended September 30, 2015, rent expense was $94,500. This lease is on a month-to-month basis. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 11: Fair Value In accordance with authoritative guidance, the table below sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s financial liabilities that were subject to fair value measurements consist of a debt conversion feature that has been recorded as a liability based on Level 3 unobservable inputs. Alternate probabilities would have resulted in increases or decreases in the fair value of the debt conversion feature liability: Fair value Measurements at September 30, 2015 Total Level 1 Level 2 Level 3 Derivative liability Debt conversion feature $ 1,578,715 — — $ 1,578,715 Warrant liability 145,012 145,012 Total financial liabilities $ 1,723,727 — — $ 1,723,727 Fair value Measurements at December 31, 2014 Total Level 1 Level 2 Level 3 Derivative liability Debt conversion feature $ 1,189,718 — — $ 1,189,718 Total financial liabilities $ 1,189,718 — — $ 1,189,718 The table below presents a summary of changes in the Company’s debt conversion feature liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and nine months ended September 30, 2015 and September 30, 2014: Three Months Ended SEPT 30, 2015 SEPT 30, 2014 Debt conversion feature: Beginning balance $ (1,060,961 ) $ — Additions (829,483 ) — Adjustments resulting from changes in fair value recognized in earnings (267,023 ) — Settlement through conversion of debt 578,750 — Ending balance $ (1,578,715 ) $ — Nine Months Ended SEPT 30, 2015 SEPT 30, 2014 Debt conversion feature: Beginning balance $ (1,189,718 ) $ — Additions (2,557,188 ) — Adjustments resulting from changes in fair value recognized in earnings 1,227,354 — Settlement through conversion of debt 940,837 — Ending balance $ (1,578,715 ) $ — The table below presents a summary of changes in the Company’s warrant liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and nine months ended September 30, 2015 and September 30, 2014: Three Months Ended SEPT 30, 2015 SEPT 30, 2014 Warrant liability feature: Beginning balance $ — $ — Additions (363,761 ) — Adjustments resulting from changes in fair value recognized in earnings 218,749 — Ending balance $ (145,012 ) $ — Nine Months Ended SEPT 30, 2015 SEPT 30, 2014 Warrant liability feature: Beginning balance $ — $ — Additions (363,761 ) — Adjustments resulting from changes in fair value recognized in earnings 218,749 — Ending balance $ (145,012 ) $ — The following table sets forth the Company’s valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 liabilities: Fair Value Assets Liabilities Valuation Technique(s) Significant Unobservable Input Range Debt conversion feature liability September 30, 2015 $ — $ 1,578,715 Binomial option pricing model Expected term (years) 0.09 – 2.11 Volatility 303.94% December 31, 2014 $ — $ 1,189,718 Binomial option pricing model Expected term (years) 0.71 – 2.58 Volatility 271.84% Warrant derivative liability September 30, 2015 $ — $ 145,012 Binomial option pricing model Expected term (years) 0.01 – 2.00 Volatility 738.29% Debt conversion feature liability The fair value of the debt conversion feature liability includes the estimated timing of the events as well as the related probabilities of occurrence. The shorter/longer the period estimated to the event, the higher/lower the value of the debt conversion feature liability. The higher/lower the probability of occurrence, the higher/lower the value of the debt conversion feature liability. Warrant liability The fair value of the warrant liability includes the estimated timing of the events as well as the related probabilities of occurrence. The shorter/longer the period estimated to the event, the higher/lower the value of the warrant liability. The higher/lower the probability of occurrence, the higher/lower the value of the warrant liability. |
Stockholders' deficit
Stockholders' deficit | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' deficit | NOTE 12: StockholdersÂ’ deficit Authorized share increase On July 8, 2015, the Company filed with the Secretary of State of the State of Nevada a Certificate of Amendment to Articles of Incorporation to increase its authorized number of shares of common stock from 75,000,000 to 150,000,000. The Certificate of Amendment became effective on July 15, 2015 Common Stock On December 31, 2014, the Company amended its employment contract with an executive officer of the Company. Per the agreement the Company granted 110,000 shares at a value of $1.65 per share or $181,500. These shares were issued on January 9, 2015. On December 31, 2014, the Company granted 160,890 shares as a part of conversion of debt. The shares were valued based on the conversion price of $0.20 or $32,178 total value consideration of both principal and interest. These shares were issued on January 9, 2015. On February 20, 2015, the Company entered into a consulting agreement. Per the terms of the agreement the Company issued 128,720 shares of the CompanyÂ’s common stock at a fair value of $0.15 or $19,308. On March 2, 2015, a holder of a note converted a portion of the note. The Company issued 12,077 shares at a value of $0.82 or $10,000. On March 16, 2015, a holder of a note converted a portion of the note. The Company issued 13,889 shares at a value of $0.72 or $10,000. On March 23, 2015, a holder of a note converted principal and interest of a note. The Company issued 15,500 shares at a value of $1.00 or $15,500. On March 27, 2015, a holder of a note converted a portion of the note. The Company issued 14,620 shares at a value of $0.68 or $10,000. On March 31, 2015, a holder of a note converted remaining interest on a note entered into on July 25, 2014. The Company issued 8,750 shares at a value of $0.20 or $1,750. On April 9, 2015, the Company entered into four consulting agreements. Per the terms of the agreements the Company is to issue 10,000 shares, per agreement for a total issuance of 40,000 shares of the CompanyÂ’s common stock at a fair value of $0.85 or $34,000. On April 15, 2015, a holder of a note converted a portion of the note. The Company issued 33,333 shares at a value of $0.45 or $15,000. On April 17, 2015, the Company entered into two consulting agreements. Per the terms of the agreements the Company is to issue 25,000 shares, per agreement for a total issuance of 50,000 shares of the CompanyÂ’s common stock at a value of $1.01 or $50,500. On April 23, 2015, a holder of a note converted a portion of the note. The Company issued 16,502 shares at a value of $0.606 or $10,000. On April 27, 2015, the Company entered into a consulting agreement. Per the terms of the agreement the Company is to issue 150,000 shares of the CompanyÂ’s common stock at a fair value of $0.85 or $127,500. On May 1, 2015, the Company entered into a consulting agreement. Per the terms of the agreement the Company is to issue 30,000 shares of the CompanyÂ’s common stock at a fair value of $0.55 or $16,500. On May 5, 2015, a holder of a note converted a portion of the note. The Company issued 45,045 shares at a value of $0.222 or $10,000. On May 19, 2015, a holder of a note converted a portion of the note. The Company issued 37,879 shares at a value of $0.132 or $5,000. On May 21, 2015, a holder of a note converted a portion of the note. The Company issued 75,758 shares at a value of $0.132 or $10,000. On May 22, 2015, the Company issued to members of the board of directors 1,200,000 shares of the CompanyÂ’s common stock at a value of $0.45 or $540,000. On June 1, 2015, a holder of a note converted a portion of the note. The Company issued 50,505 shares at a value of $0.198 or $10,000. On June 4, 2015, the Company issued to two newly appointed members of the board of directors an aggregate of 200,000 shares, of the CompanyÂ’s common stock at a value of $0.45 or $90,000, shares were issued on June 16, 2015. On June 15, 2015, a holder of a note converted a portion of the note. The Company issued 79,366 shares at a value of $0.126 or $10,000. On June 16, 2015, a holder of a note converted a portion of the note. The Company issued 380,952 shares at a value of $0.105 or $40,000. On June 19, 2015, a holder of a note converted a portion of the note. The Company issued 47,620 shares at a value of $0.21 or $10,000. On June 22, 2015, a holder of a note converted a portion of the note. The Company issued 65,873 shares at a value of $0.126 or $8,300. On June 22, 2015, the Company entered into two consulting agreements. Per the terms of the agreements the Company is to issue one at 25,000 shares and one at 461,539, for the two agreements a total issuance of 486,539 shares of the CompanyÂ’s common stock at a fair value of $0.28 or $136,231. On June 25, 2015, a holder of a note converted a portion of the note. The Company issued 127,011 shares at a value of $0.1181 or $15,000. On June 26, 2015, a holder of a note converted a portion of the note. The Company issued 180,181 shares at a value of $0.1181 or $20,000. On June 29, 2015, a holder of a note converted a portion of the note. The Company issued 219,106 shares at a value of $0.1141 or $25,000. Between May 27, 2015 and June 29, 2015, the Company entered into stock purchase agreements providing for the issuance of an aggregate of 3,776,153 shares of common stock plus warrants to purchase an aggregate of 3,776,153 shares of common stock for aggregate consideration of $490,900. The warrants are exercisable for two years from issuance at a 40% discount to the average closing price of our common stock in the 30 trading days prior to exercise. On August 20, 2015 the Company issued 3,776,153 shares of common stock from stock payable. On July 6, 2015, a holder of a note converted a portion of the note. The Company issued 184,729 shares at a value of $0.0812 or $15,000. On July 6, 2015, a holder of a note claimed a deficit. The Company issued 288,601 shares at a value of $0.066 or $19,048. On July 6, 2015, a holder of a note claimed a deficit. The Company issued 59,885 shares at a value of $0.066 or $3,952. On July 9, 2015, a holder of a note converted a portion of the note. The Company issued 333,334 shares at a value of $0.06 or $20,000. On July 10, 2015, a holder of a note converted a portion of the note. The Company issued 307,468 shares at a value of $0.0549 or $16,880. On July 11, 2015, a holder of a note converted the entire principal and interest. The Company issued 447,892 shares at a value of $0.13 or $58,226. On July 17, 2015, the Company entered into an agreement with a service provider providing for the issuance of 150,000 shares of the CompanyÂ’s common stock in consideration for the settlement of a dispute over a failure to pay $10,000 to the service provider. On July 20, 2015, a holder of a note converted a portion of the note. The Company issued 367,884 shares at a value of $0.0398 or $15,000. On July 21, 2015, a holder of a note converted a portion of the note. The Company issued 360,577 shares at a value of $0.0416 or $15,000. On July 23, 2015, a holder of a note converted a portion of the note. The Company issued 177,401 shares at a value of $0.0354 or $6,280. On July 23, 2015, a holder of a note claimed a deficit. The Company issued 1,060,606 shares at a value of $0.024 or $25,455. On July 28, 2015, a holder of a note converted a portion of the note. The Company issued 416,667 shares at a value of $0.024 or $10,000. On August 4, 2015, a holder of a note claimed a deficit. The Company issued 220,075 shares at a value of $0.024 or $5,282. On August 5, 2015, a holder of a note converted a portion of the note. The Company issued 584,167 shares at a value of $0.024 or $14,020. On August 10, 2015, a holder of a note converted a portion of the note. The Company issued 423,566 shares at a value of $0.0244 or $10,337. On August 11, 2015, a holder of a note converted a portion of the note. The Company issued 423,566 shares at a value of $0.0244 or $10,335. On August 12, 2015, the Company entered into a consulting agreement. Per the terms of the agreement the Company issued 120,000 shares of the CompanyÂ’s common stock at a fair value of $0.11 or $13,200. On September 8, 2015, a holder of a note converted a portion of the note. The Company issued 510,204 shares at a value of $0.0392 or $20,000. On September 8, 2015, a holder of a note converted a portion of the note. The Company issued 1,333,333 shares at a value of $0.0273 or $36,400. On September 9, 2015, a holder of a note converted a portion of the note. The Company issued 604,907 shares at a value of $0.0428 or $25,890. On September 9, 2015, a holder of a note converted a portion of the note. The Company issued 340,380 shares at a value of $0.02526 or $8,598. On September 9, 2015, a holder of a note converted a portion of the note. The Company issued 428,571 shares at a value of $0.07 or $30,000. On September 10, 2015, the Company issued shares per consulting agreement entered into June 4, 2015. Per the terms of the agreement the Company issued 66,000 shares of the CompanyÂ’s common stock at a fair value of $0.45 or $29,700. On September 11, 2015, a holder of a note converted a portion of the note. The Company issued 701,347 shares at a value of $0.0312 or $21,882. On September 14, 2015, a holder of a note converted a portion of the note. The Company issued 365,853 shares at a value of $0.0410 or $15,000. On September 14, 2015, a holder of a note converted a portion of interest on note. The Company issued 121,951 shares at a value of $0.041 or $5,000. On September 16, 2015, a holder of a note converted a portion of the note. The Company issued 827,815 shares at a value of $0.01812 or $15,000. On September 16, 2015, a holder of a note converted a portion of the note. The Company issued 506,223 shares at a value of $0.02114 or $10,250. On September 17, 2015, a holder of a note converted a portion of the note. The Company issued 1,100,994 shares at a value of $0.01812 or $19,950. On September 21, 2015, a holder of a note converted all principal and interest on a note. The Company issued 919,375 shares at a value of $0.04 or $36,775. On September 22, 2015, a holder of a note converted a portion of the note. The Company issued 1,213,768 shares at a value of $0.0138 or $16,750. On September 22, 2015, a holder of a note converted a portion of the note. The Company issued 714,227 shares at a value of $0.0161 or $11,000. On September 23, 2015, a holder of a note converted a portion of the note. The Company issued 731,422 shares at a value of $0.0273 or $17,198.32. On September 24, 2015, a holder of a note converted a portion of the note. The Company issued 560,000 shares at a value of $0.025 or $14,000. On September 24, 2015, a holder of a note converted a portion of the note. The Company issued 1,231,885 shares at a value of $0.0138 or $17,000. On September 25, 2015, a holder of a note converted a portion of the note. The Company issued 750,000 shares at a value of $0.02 or $15,000. On September 25, 2015, a holder of a note converted a portion of the note. The Company issued 471,000 shares at a value of $0.017 or $8,000. On September 28, 2015, a holder of a note converted a portion of the note. The Company issued 837,500 shares at a value of $0.012 or $10,050. Warrants The fair value of each award discussed below is estimated on the date of grant using the Black-Scholes valuation model that uses the assumptions noted in the following table. Expected volatilities are based on volatilities from the CompanyÂ’s traded common stock. The risk-free rate for the periods within the contractual life of the option is based on the U.S. Treasury bond rate in effect at the time of the grant for bonds with maturity dates at the estimated term of the options. September 30, 2015 Expected volatility 675.65 % Weighted-average volatility 675.65 % Expected dividends 0 Expected term (in years) 4.0 Risk-free rate 0.06 % Warrants Weighted average price of warrants Granted, at September 30, 2015 184,000 $ 0.50 Total granted, at September 30, 2015 184,000 $ 0.50 On June 3, 2015, the Company issued a convertible promissory note in the principal amount of $46,000 to a related party bearing interest at the rate of 6% per annum plus warrants to purchase an aggregate of 184,000 shares of common stock. September 30, 2015 Expected volatility 738.29 % Weighted-average volatility 736.29 % Expected dividends 0 Expected term (in years) 2.0 Risk-free rate 0.64 % Warrants Weighted average price of warrants Granted, at September 30, 2015 700,000 $ 0.15 Total granted, at September 30, 2015 700,000 $ 0.15 Warrants Weighted average price of warrants Granted, at September 30, 2015 3,776,153 $ 0.14 Total granted, at September 30, 2015 3,776,153 $ 0.14 Between May 27, 2015 and June 29, 2015, the Company entered into stock purchase agreements providing for the issuance of an aggregate of 3,776,153 shares of common stock plus warrants to purchase an aggregate of 3,776,153 shares of common stock for aggregate consideration of $490,900. The warrants are exercisable for two years from issuance at a 40% discount to the average closing price of the CompanyÂ’s common stock in the 30 trading days prior to exercise. The Company has accounted for them as derivative instruments due to the variable strike price (see Note 11: Fair Value On July 15, 2015 and September 2, 2015, the Company entered into convertible promissory note agreements in the principal amount of $35,000 bearing interest at the rate of 12% per annum, Fair Value September 30, 2015 Expected volatility 709.54 % Weighted-average volatility 709.54 % Expected dividends 0 Expected term (in years) 5.0 Risk-free rate 0.06 % Warrants Weighted average price of warrants Granted, at September 30, 2015 108,850 $ 0.11 Total granted, at September 30, 2015 108,850 $ 0.11 On August 14, 2015, the Company issued warrants to purchase an aggregate of 108,850 shares of the CompanyÂ’s common stock. The warrants are exercisable on a cashless exercise basis for five years from the date of issuance. Based on the noted Black-Scholes calculation the Company estimated the weighted average price per warrants noted in the above table (108,850). As of September 30, 2015, the warrants have vested and we have expensed their value in the amount of $11,974. Options December 31, 2014 Expected volatility 297.60 % Weighted-average volatility 297.60 % Expected dividends 0 Expected term (in years) 1.5 Risk-free rate 0.06 % Non vested options Options Weighted average price of Options Granted, non-vested at December 31, 2014 35,000 $ 1.65 Total granted, non-vested at December 31, 2014 35,000 $ 1.65 On December 31, 2014, the Company entered into an amended employment agreement with its Chief Executive Officer providing for the grant of options to purchase 35,000 shares at an exercise price of $0.01 per share. The options have a term of 18 months (based on the terms of the agreement) and begin to vest on the first anniversary of the date of grant. As of September 30, 2015, the amount expensed is $28,860, and the unrecognized compensation cost is $28,860. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 13: Acquisitions Acquisition of JD Field Services, Inc. On February 24, 2014, the Company entered into a purchase and sale agreement with JD, its first acquisition in the oil and gas industry. JD provides oilfield services to the oil and gas industry primarily focused around those activities that are related to the drilling, operation(s) and maintenance of the well-site. They are licensed in all states west of the Mississippi River including Alaska to do trucking, but are focused primarily in the Rocky Mountain Region. Oilfield services provided include heavy haul, water haul, and rig moving services as well as equipment, supplies, and specialty long hauling services. JD also provides oil and gas equipment rental services, hot shot, roustabout services and construction site development services. JD also operates a fabrication division that builds special-order oil and gas equipment and trucks for customers. As this is the Company’s first acquisition in the oil and gas industry, management did not have the historical knowledge to be able to estimate its intangible or goodwill items properly and therefore it hired a valuation consultant to estimate and value any intangible assets that may have been in existence as of the date of acquisition. The valuation report provided to management detailed information as to the carrying value of certain intangible assets as a part of the purchase of JD in February 2014. Management has accepted the valuation report and has determined in accordance with FASB ASC 805 there is an additional adjustment to record the additional purchase price allocation at February 24, 2014. The “measurement” period under FASB ASC 805 allows for retrospective adjustment of the business combination for one year from the acquisition date, or when all necessary information for the adjustment is available. After the measurement period, there is no revision allowed for subsequent information that is unrelated to the facts and circumstances existing at the time of the acquisition, except for error correction. Based on the measurement period the Company re-calculated the fair value of the business acquisition as follows: FEB 24, 2014 ASSETS Cash $ 104,816 Accounts receivable 1,887,074 Prepaid expense 152,892 Fixed Assets 14,138,387 Intangible assets, net 283,000 Deferred financing fees, net 29,402 LIABILITIES A/P, accrued, loans and LOC (14,718,056 ) Fair Market Value of Net Identifiable Assets on 2/24/2014 $ 1,877,515 Purchase Price Less: stock for consideration (413,000 ) Bargain purchase option $ 1,464,515 Less: Bargain purchase option value previously recognized (1,620,071 ) Re-measurement balance of bargain purchase option as of February 24, 2014 $ 155,556 The Company has retrospectively adjusted the previously reported fair values to reflect these amounts as follows: As originally reported at SEPT 30, 2014 Measurement Period Adjustments Retrospectively Adjusted SEPT 30, 2014 TOTAL OPERATING INCOME $ 430,843 $ — $ 430,843 OTHER (INCOME) / EXPENSE Interest expense, net 720,281 — 720,281 Gain on extinguishment of debt (10,329 ) — (10,329 ) Gain on sale of fixed assets (15,144 ) (15,144 ) Other (income) expense (39,500 ) (39,500 ) Gain on bargain purchase of JD (1,620,071 ) 155,556 (1) (1,464,515 ) TOTAL OTHER (INCOME) / EXPENSE (964,763 ) 155,556 (809,207 ) NET INCOME $ 1,395,606 $ 155,556 $ 1,240,050 BASIC (LOSS) INCOME PER SHARE $ 0.39 $ — $ 0.34 DILUTED (LOSS) INCOME PER SHARE $ 0.32 $ — $ 0.28 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC 3,620,766 — 3,620,766 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC 4,388,420 — 4,388,420 (1) Adjustment reflects reduction in gain on bargain purchase under re-measurement as per guidance of FASB ASC 805. |
Subsequent events
Subsequent events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent events | NOTE 14: Subsequent events The Company has evaluated all subsequent events through the filing date of this Quarterly Report on Form 10-Q with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of September 30, 2015, and events which occurred subsequent to September 30, 2015 but were not recognized in the financial statements. Except as discussed below, the Company has determined that there were no subsequent events which required recognition, adjustment to or disclosure in the financial statements. On October 5, 2015, a holder of a note converted a portion of the note. The Company issued 1,315,790 shares at a value of $0.0114 or $15,000. On October 6, 2015, a holder of a note converted a portion of the note. The Company issued 1,561,890 shares at a value of $0.0128 or $20,000. On October 7, 2015, a holder of a note converted a portion of the note. The Company issued 998,721 shares at a value of $0.0105 or $10,487. On October 7, 2015, a holder of a note converted a portion of the note. The Company issued 1,601,667 shares at a value of $0.009 or $14,415. On October 9, 2015, a holder of a note converted a portion of the note. The Company issued 1,500,000 shares at a value of $0.009 or $6,750. On October 12, 2015, a holder of a note converted the remaining portion of the note. The Company issued 1,713,309 shares at a value of $0.009 or $15,419. On October 12, 2015, the Company entered into a consulting agreement. Per the terms of the agreement the Company issued 200,000 shares of the CompanyÂ’s common stock at a fair value of $0.02 or $4,000. On October 13, 2015, a holder of a note converted a portion of the note. The Company issued 647,418 shares at a value of $0.009 or $5,827. On October 13, 2015, a holder of a note converted a portion of the note. The Company issued 1,399,963 shares at a value of $0.0105 or $14,700. On October 13, 2015, a holder of a note converted a portion of the note. The Company issued 1,616,684 shares at a value of $0.0124 or $20,000. On October 19, 2015, a holder of a note converted a portion of the note. The Company issued 1,702,084 shares at a value of $0.0105 or $17,872. On October 21, 2015, a holder of a note converted a portion of the note. The Company issued 1,697,518 shares at a value of $0.0124 or $21,000. On October 21, 2015, a holder of a note converted a portion of the note. The Company issued 899,688 shares at a value of $0.012 or $10,796. On October 26, 2015, a holder of a note converted a portion of the note. The Company issued 1,504,031 shares at a value of $0.0105 or $15,792. On October 28, 2015, a holder of a note converted a portion of the note. The Company issued 1,700,681 shares at a value of $0.006 or $10,000. On November 3, 2015, a holder of a note converted a portion of the note. The Company issued 1,925,019 shares at a value of $0.006 or $12,128. On November 5, 2015, a holder of a note converted a portion of the note. The Company issued 2,347,418 shares at a value of $0.004 or $10,000. On November 6, 2015, a holder of a note converted a portion of the note. The Company issued 3,007,067 shares at a value of $0.007 or $20,000. On November 9, 2015, a holder of a note converted a portion of the note. The Company issued 1,933,319 shares at a value of $0.005 or $9,609. |
Organization and basis of pre20
Organization and basis of presentation (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements of National Energy Services, Inc., a Nevada corporation (“NES” or the “Company”), have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. These financial statements have been presented in accordance with the rules governing a smaller reporting company. These condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K/A filed with the SEC on September 18, 2015, from which the balance sheet information as of December 31, 2014 was derived, as adjusted for the Company’s finalization of the JD Field Services (“JD”) acquisition. Management determined that under the guidance of Financial Accounting Standards Board Accounting Standards Codification (“FASB” “ASC”) 805, an adjustment to record additional purchase price allocation was necessary as a part of the acquisition of JD on February 24, 2014. The “measurement” period under ASC 805 allows for retrospective adjustment of the business combination for one year from the acquisition date, or when all necessary information for the adjustment is available. After the measurement period, there is no revision allowed for subsequent information that is unrelated to the facts and circumstances existing at the time of the acquisition, except for error correction. Management recognizes that it had this one year period to apply corrective changes from the bargain purchase to intangible and tangible asset value and, as such it has re-measured the intangible asset value, and recognized a gain on its bargain purchase which has been reflected in the fiscal year ended December 31, 2014, and for the nine months ended September 30, 2014 (See Note 13: Acquisition |
Business Overview | Business Overview NES is a public holding company with subsidiaries which provide services for the domestic oil and gas industry. The CompanyÂ’s business plan takes action with expansion through carefully selected acquisitions. The CompanyÂ’s services are needed by a wide variety of oil and natural gas industry providers in both private and public sectors. The CompanyÂ’s focus is to increase shareholder value through these carefully selected companies with NES bringing oversight and resources to each, which is intended to allow them to maximize profitability and growth opportunities within their markets, and expanding their customer base. This strategy is intended to allow for rapid advancement in overall assets and revenue streams for the Company. On February 24, 2014, the Company entered into a purchase and sale agreement with JD. This is the first of several anticipated acquisitions that NES has as a part of its growth strategy. JD provides oilfield services to the oil and gas industry primarily focused around those activities that are related to the drilling, operation(s) and maintenance of the well-site. They are licensed in all states west of the Mississippi River including Alaska to do trucking, but are focused primarily in the Rocky Mountain Region. Oilfield services provided include heavy haul, water haul, and rig moving services as well as equipment, supplies, and specialty long hauling services. JD also provides oil and gas equipment rental services, hot shot, roustabout services and construction site development services. JD also operates a fabrication division that builds special-order oil and gas equipment and trucks for customers. |
Name Change and Increase of Authorized Share Capital | Name Change and Increase of Authorized Share Capital On July 8, 2015, the Company filed with the Secretary of State of the State of Nevada a Certificate of Amendment to Articles of Incorporation to change its name to “National Energy Services, Inc.” and increase its authorized number of shares of common stock from 75,000,000 to 150,000,000. The Certificate of Amendment became effective on July 15, 2015. |
Reverse Stock Split | Reverse Stock Split On September 11, 2014, the Company amended its Certificate of Incorporation to implement a reverse stock split in the ratio of 1 share for every 200 shares of common stock. This amendment was approved and filed on record by the Nevada Secretary of State, effective September 11, 2014. On December 11, 2014, FINRA approved the reverse stock split for the Company. All the relevant information relating to numbers of shares and per share information contained in these consolidated financial statements has been retrospectively adjusted to reflect the reverse stock split for all periods presented. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the 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. Actual results could differ from those estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and generally limits the amount of credit exposure to the amount in excess of the Federal Deposit Insurance Corporation coverage limit of $250,000. As of September 30, 2015, the Company did not have cash in any one banking institution that exceeded this limit. |
Earnings (loss) per share basic and diluted | Earnings (loss) per share basic and diluted Earnings per share is calculated in accordance with the Earnings per Share Topic of the FASB ASC. The weighted-average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share is computed using the weighted average number of shares plus dilutive potential common shares outstanding. Potentially dilutive common shares consist of employee stock options, warrants, and other convertible securities in the amount of 71,261,660, and are excluded from the diluted earnings per share computation in periods where the Company has incurred net loss. During the nine months ended September 30, 2015, the Company recorded a net loss, resulting in no dilutive common shares. SEPT 30, 2015 SEPT 30, 2014 Net loss (income) $ (5,808,499 ) $ 1,240,050 Basic earnings (loss) per share $ (0.69 ) $ 0.34 Diluted earnings (loss) per share $ (0.69 ) $ 0.28 Weighted average common shares outstanding basic 8,412,062 3,620,766 Weighted average common shares outstanding diluted 8,412,062 4,388,420 SEPT 30, 2015 SEPT 30, 2014 Weighted average common shares outstanding basic 8,412,062 3,620,766 Add: Warrant exercise -- 140,000 Add: Options exercise -- 35,000 Add: Convertible notes -- 592,654 Total weighted average common shares outstanding diluted 8,412,062 4,388,420 |
Revenue Recognition | Revenue Recognition As required by the Revenue Recognition Topic of FASB ASC, the Company is required to use predetermined contract methods in determining the current value for revenue. Service Contracts In all cases, revenue is recognized as earned by the Company. Revenues collected in advance of services are considered deferred revenue. As the client becomes liable to the Company for services provided, as defined in the agreement, the client is then invoiced and revenue is accordingly recognized and recorded. The Company does not recognize or record any revenues for which it does not have a legal basis for invoicing or legally collecting. |
Fair Value Accounting | Fair Value Accounting As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions (For additional information see Note 11: Fair value The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Organization and basis of pre21
Organization and basis of presentation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of recorded net loss | During the nine months ended September 30, 2015, the Company recorded a net loss, resulting in no dilutive common shares. SEPT 30, 2015 SEPT 30, 2014 Net loss (income) $ (5,808,499 ) $ 1,240,050 Basic earnings (loss) per share $ (0.69 ) $ 0.34 Diluted earnings (loss) per share $ (0.69 ) $ 0.28 Weighted average common shares outstanding basic 8,412,062 3,620,766 Weighted average common shares outstanding diluted 8,412,062 4,388,420 SEPT 30, 2015 SEPT 30, 2014 Weighted average common shares outstanding basic 8,412,062 3,620,766 Add: Warrant exercise -- 140,000 Add: Options exercise -- 35,000 Add: Convertible notes -- 592,654 Total weighted average common shares outstanding diluted 8,412,062 4,388,420 |
Liquidity resources and futur22
Liquidity resources and future capital requirements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Liquidity resources and future capital requirements [Abstract] | |
Schedule of consolidated cash flows and total operating income | We continue to seek out established businesses with a proven operating track record strong financial performance, positive operating results, established or growing contract backlogs, and/or the potential for positive operating cash flow. SEPT 30, 2015 SEPT 30, 2014 Net cash (used in) provided by operating activities $ 187,452 $ 1,918,090 Net cash provided by investing activities $ 53,671 $ 12,709 Net cash provided by (used in) financing activities $ (284,144 ) $ (1,861,766 ) Total net (loss) income $ (5,808,499 ) $ 1,240,050 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | SEPT 30, DEC 31, 2015 2014 Accounts receivable $ 927,120 $ 1,287,818 Less: allowance for doubtful accounts (166,147 ) (66,147 ) Total $ 760,973 $ 1,221,671 |
Property, plant & equipment, 24
Property, plant & equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | SEPT 30, DEC 31, 2015 2014 Buildings $ 78,927 $ 78,927 Furniture and fixtures 46,923 46,923 Vehicles 4,400,404 4,479,273 Machinery and equipment 12,304,577 13,234,926 16,830,831 17,840,049 Less: Accumulated depreciation (1,430,670 ) (1,156,168 ) Total $ 15,400,161 $ 16,683,881 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The following table represents the intangible assets: SEPT 30, DEC 31, 2015 2014 Brand name $ 277,000 $ 277,000 Domain name / website 6,000 6,000 283,000 283,000 Less: Accumulated amortization — — Total $ 283,000 $ 283,000 The following is the proforma information that discloses the results of operations as though the business combination was completed as of the beginning of the period being reported on. NAS SEPT 30, 2014 JD SEPT 30, 2014 Adjustments MAR 01, 2014 SEPT 30, 2014 REVENUE $ — $ 11,887,589 $ 3,323,970 $ 15,211,559 Less: allowance for bad debt add recovery 188,460 188,460 NET REVENUE — 12,076,049 — 15,400,019 COST OF REVENUE — 9,998,783 2,866,011 12,864,794 GROSS PROFIT — 2,077,266 — 2,535,225 OPERATING EXPENSES Selling, general and administrative expenses 180,643 1,142,179 329,287 1,652,109 Professional fees and related expenses 282,251 9,187 2,570 294,008 Consulting fees 5,850 — — 5,850 Forgiveness of accrued officer compensation (95,921 ) — — (95,921 ) TOTAL OPERATING EXPENSES 372,823 1,154,366 — 1,856,046 OPERATING INCOME (LOSS) $ (372,823 ) $ 922,900 $ — $ 679,179 OTHER EXPENSE (INCOME), non-operating Other income 33,320 (39,500 ) 33,320 27,140 Gain on acquisition, bargain purchase of JD — (1,464,515 ) 39,208 (1,425,307 ) Gain on extinguishment of debt (10,329 ) — — (10,329 ) Loss on disposal of assets — (15,144 ) — (15,144 ) Interest expense, net 270,317 449,964 131,989 852,270 TOTAL OTHER EXPENSE (INCOME), non-operating 293,308 (1,069,195 ) — (571,370 ) INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (666,130 ) 1,992,095 — 1,250,549 PROVISION FOR INCOME TAXES — — — — NET (LOSS) INCOME $ (666,130 ) $ 1,992,095 — $ 1,250,549 BASIC (LOSS) INCOME PER SHARE $ (0.18 ) — — $ 0.31 DILUTED (LOSS) INCOME PER SHARE $ (0.18 ) $ 0.26 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC 3,620,766 — — 3,620,766 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED 3,620,766 — — 4,388,420 |
Loans, capital lease and line26
Loans, capital lease and lines of credit (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt and Capital Lease Obligations [Abstract] | |
Schedule of Loans, Capital leases and Lines of Credit | The following table represents the outstanding principal balance of loans, capital leases and lines of credit (“LOC”) and accrued interest for the Company as of September 30, 2015. Description Loan date Maturity date Original amount of loan Interest rate Balance as of SEPT 30, 2015 Balance as of DEC 31, 2014 Ally 02/24/2014 02/10/2019 $ 43,395 4.01 % $ 25,442 $ 31,284 Commercial Credit Group 12/19/2014 12/19/2019 1,940,969 10.00 % 1,431,837 1,552,775 Cat Financial 02/24/2014 11/09/2016 186,549 5.95 % 59,417 95,262 Equify 04/08/2014 05/01/2019 1,480,412 7.10 % 1,177,740 1,331,116 Phil Timothy 02/24/2014 03/28/2023 2,650,000 6.00 % 2,146,705 2,274,936 Ford credit 02/24/2014 03/16/2016 23,700 4.34 % — 10,129 Ford credit 02/24/2014 09/28/2015 28,700 6.54 % — 10,268 Ford credit 02/24/2014 09/28/2016 44,576 3.74 % — 2,903 Ford credit 02/24/2014 06/05/2016 88,575 7.89 % — 37,253 Ford credit 02/24/2014 02/28/2015 56,372 6.49 % — 9,858 Ford credit 02/24/2014 03/29/2017 73,005 7.89 % — 37,946 Ford credit 02/24/2014 10/29/2015 36,700 6.54 % — 3,829 Ford credit 02/24/2014 10/29/2015 34,400 6.54 % — 3,589 Ford credit 02/24/2014 09/30/2015 94,000 5.74 % — 16,050 Ford credit 02/24/2014 09/16/2016 45,994 8.29 % — 23,049 Ford credit 02/24/2014 08/01/2017 43,110 5.04 % — 33,693 Jimmy B Trucking 08/11/2014 06/11/2015 600,000 10.00 % — 372,109 Rick Gurr/ Gosling Service 08/11/2014 06/11/2015 210,000 10.00 % — 130,238 Mack Financial Services 02/24/2014 03/12/2016 326,746 6.00 % — 98,478 GE Capital 09/01/2014 07/01/2019 213,600 6.96 % 170,234 202,093 GE Capital 09/01/2014 12/21/2018 203,789 6.93 % 170,518 194,574 GE Capital 09/01/2014 08/01/2016 48,000 9.11 % 19,082 42,669 GE Capital 02/24/2014 09/09/2018 189,151 6.42 % 103,719 129,135 GE Capital 02/24/2014 07/01/2018 153,944 7.20 % 79,100 100,047 John Deere Financial 02/24/2014 09/26/2017 262,350 4.00 % 115,783 155,136 Axis Capital 02/20/2015 02/20/2020 600,000 8.62 % 525,580 — Utica Financial 06/25/2015 06/25/2020 840,406 — 788,453 — Mack Financial Services 02/24/2014 11/09/2016 347,520 6.00 % 119,197 159,427 MACU 02/24/2014 10/26/2018 41,540 2.99 % 26,941 33,069 Zion’s Bank 02/24/2014 10/15/2026 150,000 4.86 % 118,686 125,108 Zion’s Bank 02/24/2014 10/10/2016 101,091 4.57 % 15,489 31,998 Zion’s Bank 02/24/2014 09/30/2017 7,680,000 4.57 % 3,699,035 4,622,482 Zion’s Bank – LOC — — — — 500,000 586,621 Gale Rasmussen 07/01/2015 * 94,000 10.0 % 94,000 — WD Martin 07/01/2015 * 80,000 10.0 % 80,000 — Alliance funding 07/01/2015 * 43,159 10.0 % 43,159 — H&E Equipment 02/24/2014 05/01/2017 176,234 12.00 % — 117,799 National Insurance 06/01/2015 05/31/2016 668,233 6.0 % 338,064 217,128 Capital lease 01/15/2009 — 33,591 — 33,591 33,591 Goss 09/19/2013 09/19/2016 20,000 12.00 % 20,000 20,000 Kinney2 11/01/2013 11/01/2015 50,000 12.00 % 50,000 50,000 O’Connor 04/01/2009 * 71,000 10.00 % 71,000 71,000 Hanley 04/01/2009 * 79,913 10.00 % 79,913 79,913 Spiker 12/31/2010 * 9,500 10.00 % 9,500 9,500 Jesse 12/31/2010 * 9,760 10.00 % 9,760 9,760 Marlow 12/31/2010 * 13,000 10.00 % 13,000 13,000 Goss2 02/28/2014 03/09/2016 50,000 10.00 % 29,120 50,000 Krochak 07/25/2014 01/25/2015 30,000 10.00 % — 30,000 Krueger 12/09/2014 06/06/2015 15,000 10.00 % — 15,000 Total debt liabilities 12,164,065 13,173,815 Less: current portion (3,843,796 ) (4,507,322 ) Total long term liabilities $ 8,320,269 $ 8,666,493 |
Convertible notes (Tables)
Convertible notes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | As of September 30, 2015, the following convertible notes payable are outstanding (see Note 11: Fair Value for information relating to convertible notes Description Balance as of Sept 30, 2015 Balance as of December 31, 2014 Convertible note issued on October 1, 2014, at a 12% interest rate per annum for three (3) years, convertible to shares of common stock at a 30% discount to market price of Company common stock. $ 250,000 $ 250,000 Convertible note issued on October 1, 2014, at a 12% interest rate per annum for three (3) years, convertible to shares of common stock at a 30% discount to market price of Company common stock. 223,000 245,000 Convertible note issued on October 20, 2014, at a 12% interest rate per annum for three (3) years, convertible to shares of common stock at a 30% discount to market price of Company common stock. -- 45,000 Convertible note issued on December 16, 2014, at a 12% interest rate per annum for one (1) year, convertible to shares of common stock at $2.00 per share or if the CompanyÂ’s common stock falls below a certain price, at a 40% discount to market price of Company common stock, subject to further adjustments in certain cases. 250,000 250,000 Convertible note issued on December 16, 2014, at a 10% interest rate per annum for one (1) year, convertible to shares of common stock at 40% discount to market price of Company common stock, subject to further adjustment in certain cases. 28,000 249,500 Convertible note issued on December 16, 2014, at a 8% interest rate per annum for nine (9) months, convertible to shares of common stock at a 42% discount to market price of Company common stock, subject to further adjustment in certain cases. -- 104,000 Convertible note originally issued on January 30, 2015 and amended on June 30, 2015, at a 9% interest rate per annum maturing on January 1, 2016, convertible to shares of common stock at a 20% discount to market price of Company common stock, subject to further adjustment in certain cases. 205,082 -- Convertible note issued on February 12, 2015, at a 12% interest rate per annum for six (6) months, convertible to shares of common stock at a 30% discount to market price of Company common stock, subject to further adjustments in certain cases. 144,471 -- Convertible debenture issued on February 20, 2015, at a 10% interest rate per annum for five (5) years, convertible into shares of common stock using the average of the lowest intraday trading price and the closing price during any 20 day window, surrounding the conversion of the note. 89,000 -- Convertible note issued on March 11, 2015, at a 8% interest rate per annum for one (1) year, convertible to shares of common stock at a 40% discount to market price of Company common stock, subject to further adjustments in certain cases. 25,435 -- Convertible note issued on March 12, 2015, at a 8% interest rate per annum for one (1) year, convertible to shares of common stock at a 40% discount to market price of Company common stock, subject to further adjustments in certain cases. 5,000 -- Convertible note issued on June 3, 2015, at a 6% interest rate per annum for one (1) year, convertible to shares of common stock at a 47% discount to market price of Company common stock, subject to further adjustment in certain cases. 46,000 -- Convertible note issued on July 15, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share. 10,000 -- Convertible note issued on August 5, 2015, at a 12% interest rate per annum for one (1) year (deferred for first 3 months), convertible to shares of common stock at the lesser of $0.10 or a 40% discount to market price of Company common stock, subject to further adjustment in some cases. 55,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 5,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 5,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 10,000 -- Convertible note issued on September 2, 2015, at a 10% interest rate per annum for nine (9) months, convertible to shares of common stock at a fixed rate of $0.05 per share, subject to further adjustment in certain cases. 5,000 -- Convertible note issued on September 9, 2015, at a 6% interest rate per annum for one (1) year, convertible to shares of common stock at a 47% discount to market price of Company common stock, subject to further adjustment in certain cases. 36,000 -- Convertible note issued on September 30, 2015, at a 8% interest rate per annum for nine (9) month, convertible to shares of common stock at a 42% discount to market price of Company common stock, subject to further adjustment in certain cases. 30,000 -- Total 1,421,988 1,143,500 Less: Debt discount (309,098 ) (577,849 ) Total Current portion convertible debt (785,729 ) (158,737 ) Total Long-term portion of convertible debt $ 327,161 $ 406,914 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair value of the debt conversion feature liability | Alternate probabilities would have resulted in increases or decreases in the fair value of the debt conversion feature liability: Fair value Measurements at September 30, 2015 Total Level 1 Level 2 Level 3 Derivative liability Debt conversion feature $ 1,578,715 — — $ 1,578,715 Warrant liability 145,012 145,012 Total financial liabilities $ 1,723,727 — — $ 1,723,727 Fair value Measurements at December 31, 2014 Total Level 1 Level 2 Level 3 Derivative liability Debt conversion feature $ 1,189,718 — — $ 1,189,718 Total financial liabilities $ 1,189,718 — — $ 1,189,718 |
Debt conversion feature liabilities measured at fair value on a recurring basis using significant unobservable inputs | The table below presents a summary of changes in the Company’s debt conversion feature liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and nine months ended September 30, 2015 and September 30, 2014: Three Months Ended SEPT 30, 2015 SEPT 30, 2014 Debt conversion feature: Beginning balance $ (1,060,961 ) $ — Additions (829,483 ) — Adjustments resulting from changes in fair value recognized in earnings (267,023 ) — Settlement through conversion of debt 578,750 — Ending balance $ (1,578,715 ) $ — Nine Months Ended SEPT 30, 2015 SEPT 30, 2014 Debt conversion feature: Beginning balance $ (1,189,718 ) $ — Additions (2,557,188 ) — Adjustments resulting from changes in fair value recognized in earnings 1,227,354 — Settlement through conversion of debt 940,837 — Ending balance $ (1,578,715 ) $ — |
Valuation techniques and significant unobservable inputs used to determine fair value for significant liabilities | The following table sets forth the Company’s valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 liabilities: Fair Value Assets Liabilities Valuation Technique(s) Significant Unobservable Input Range Debt conversion feature liability September 30, 2015 $ — $ 1,578,715 Binomial option pricing model Expected term (years) 0.09 – 2.11 Volatility 303.94% December 31, 2014 $ — $ 1,189,718 Binomial option pricing model Expected term (years) 0.71 – 2.58 Volatility 271.84% Warrant derivative liability September 30, 2015 $ — $ 145,012 Binomial option pricing model Expected term (years) 0.01 – 2.00 Volatility 738.29% |
Warrant [Member] | |
Debt conversion feature liabilities measured at fair value on a recurring basis using significant unobservable inputs | The table below presents a summary of changes in the Company’s warrant liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and nine months ended September 30, 2015 and September 30, 2014: Three Months Ended SEPT 30, 2015 SEPT 30, 2014 Warrant liability feature: Beginning balance $ — $ — Additions (363,761 ) — Adjustments resulting from changes in fair value recognized in earnings 218,749 — Ending balance $ (145,012 ) $ — Nine Months Ended SEPT 30, 2015 SEPT 30, 2014 Warrant liability feature: Beginning balance $ — $ — Additions (363,761 ) — Adjustments resulting from changes in fair value recognized in earnings 218,749 — Ending balance $ (145,012 ) $ — |
Stockholders' deficit (Tables)
Stockholders' deficit (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The risk-free rate for the periods within the contractual life of the option is based on the U.S. Treasury bond rate in effect at the time of the grant for bonds with maturity dates at the estimated term of the options. September 30, 2015 Expected volatility 675.65 % Weighted-average volatility 675.65 % Expected dividends 0 Expected term (in years) 4.0 Risk-free rate 0.06 % September 30, 2015 Expected volatility 738.29 % Weighted-average volatility 736.29 % Expected dividends 0 Expected term (in years) 2.0 Risk-free rate 0.64 % September 30, 2015 Expected volatility 709.54 % Weighted-average volatility 709.54 % Expected dividends 0 Expected term (in years) 5.0 Risk-free rate 0.06 % December 31, 2014 Expected volatility 297.60 % Weighted-average volatility 297.60 % Expected dividends 0 Expected term (in years) 1.5 Risk-free rate 0.06 % |
Share-based Compensation, Performance Shares Award Unvested Activity | Warrants Weighted average Granted, at September 30, 2015 184,000 $ 0.50 Total granted, at September 30, 2015 184,000 $ 0.50 Warrants Weighted average Granted, at September 30, 2015 700,000 $ 0.15 Total granted, at September 30, 2015 700,000 $ 0.15 Warrants Weighted average Granted, at September 30, 2015 3,776,153 $ 0.14 Total granted, at September 30, 2015 3,776,153 $ 0.14 Warrants Weighted average Granted, at September 30, 2015 108,850 $ 0.11 Total granted, at September 30, 2015 108,850 $ 0.11 Non vested options Options Weighted average Granted, non-vested at December 31, 2014 35,000 $ 1.65 Total granted, non-vested at December 31, 2014 35,000 $ 1.65 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Business Acquisition | Based on the measurement period the Company re-calculated the fair value of the business acquisition as follows: FEB 24, 2014 ASSETS Cash $ 104,816 Accounts receivable 1,887,074 Prepaid expense 152,892 Fixed Assets 14,138,387 Intangible assets, net 283,000 Deferred financing fees, net 29,402 LIABILITIES A/P, accrued, loans and LOC (14,718,056 ) Fair Market Value of Net Identifiable Assets on 2/24/2014 $ 1,877,515 Purchase Price Less: stock for consideration (413,000 ) Bargain purchase option $ 1,464,515 Less: Bargain purchase option value previously recognized (1,620,071 ) Re-measurement balance of bargain purchase option as of February 24, 2014 $ 155,556 |
Condensed Income Statement | The Company has retrospectively adjusted the previously reported fair values to reflect these amounts as follows: As originally reported at SEPT 30, 2014 Measurement Period Adjustments Retrospectively Adjusted SEPT 30, 2014 TOTAL OPERATING INCOME $ 430,843 $ — $ 430,843 OTHER (INCOME) / EXPENSE Interest expense, net 720,281 — 720,281 Gain on extinguishment of debt (10,329 ) — (10,329 ) Gain on sale of fixed assets (15,144 ) (15,144 ) Other (income) expense (39,500 ) (39,500 ) Gain on bargain purchase of JD (1,620,071 ) 155,556 (1) (1,464,515 ) TOTAL OTHER (INCOME) / EXPENSE (964,763 ) 155,556 (809,207 ) NET INCOME $ 1,395,606 $ 155,556 $ 1,240,050 BASIC (LOSS) INCOME PER SHARE $ 0.39 $ — $ 0.34 DILUTED (LOSS) INCOME PER SHARE $ 0.32 $ — $ 0.28 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC 3,620,766 — 3,620,766 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC 4,388,420 — 4,388,420 (1) Adjustment reflects reduction in gain on bargain purchase under re-measurement as per guidance of FASB ASC 805. |
Organization and basis of pre31
Organization and basis of presentation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net (loss) income | $ (2,698,087) | $ 191,960 | $ (5,808,499) | $ 1,240,050 |
Basic earnings (loss) per share | $ (0.18) | $ 0.05 | $ (0.69) | $ 0.34 |
Diluted earnings (loss) per share | $ (0.18) | $ 0.04 | $ (0.69) | $ 0.28 |
Weighted average common shares outstanding basic | 15,314,493 | 3,931,604 | 8,412,062 | 3,620,766 |
Weighted average common shares outstanding diluted | 15,314,493 | 4,699,258 | 8,412,062 | 4,388,420 |
Organization and basis of pre32
Organization and basis of presentation (Details 1) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Weighted average common shares outstanding basic | 15,314,493 | 3,931,604 | 8,412,062 | 3,620,766 |
Add: Warrant exercise | 140,000 | |||
Add: Options exercise | 35,000 | |||
Add: Convertible notes | 592,654 | |||
Total weighted average common shares outstanding diluted | 15,314,493 | 4,699,258 | 8,412,062 | 4,388,420 |
Organization and basis of pre33
Organization and basis of presentation (Details Narrative) - USD ($) | Sep. 11, 2014 | Sep. 30, 2015 | Jul. 08, 2015 | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
FDIC insured limit | $ 250,000 | |||
Common stock shares authorized | 150,000,000 | 75,000,000 | 150,000,000 | |
Increase number of authorized shares of common stock | 150,000,000 | |||
Reverse stock split | 1 share for every 200 shares of common stock. | |||
Potentially dilutive common shares consist of employee stock options, warrants, and other convertible securities | 71,261,660 |
Liquidity resources and futur34
Liquidity resources and future capital requirements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated cash flows and total operating income | ||||
Net cash (used in) provided by operating activities | $ 187,452 | $ 1,918,090 | ||
Net cash provided by investing activities | 53,671 | 12,709 | ||
Net cash provided by (used in) financing activities | (284,144) | (1,861,766) | ||
Total net (loss) income | $ (2,698,087) | $ 191,960 | $ (5,808,499) | $ 1,240,050 |
Liquidity resources and futur35
Liquidity resources and future capital requirements (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Liquidity Resources And Future Capital Requirements Details Narrative | |||
Working capital deficit | $ 11,020,704 | ||
Stockholders' deficit | 3,868,590 | $ 1,556,863 | |
Increased revenues | $ 11,535,486 | $ 11,887,589 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 927,120 | $ 1,287,818 |
Less: allowance for doubtful accounts | (166,147) | (66,147) |
Total | $ 760,973 | $ 1,221,671 |
Property, plant & equipment, 37
Property, plant & equipment, net (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 16,830,831 | $ 17,840,049 | |
Less: Accumulated depreciation | (1,430,670) | (1,156,168) | |
Total | 15,400,161 | 16,683,881 | |
Depreciation expense | 1,068,088 | $ 858,588 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 78,927 | 78,927 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 46,923 | 46,923 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 4,400,404 | 4,479,273 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 12,304,577 | $ 13,234,926 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Brand name | $ 277,000 | $ 277,000 |
Domain name / website | 6,000 | 6,000 |
Intangible assets, gross | $ 283,000 | $ 283,000 |
Less: Accumulated amortization | ||
Total | $ 283,000 | $ 283,000 |
Intangible assets, net (Detai39
Intangible assets, net (Details 1) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 01, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUE | $ 3,615,779 | $ 5,466,073 | $ 11,535,486 | $ 11,887,589 | |
COST OF REVENUE | 3,426,524 | 4,230,825 | 10,234,261 | 9,810,323 | |
GROSS PROFIT | 189,255 | 1,235,248 | 1,301,225 | 2,077,266 | |
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | 485,875 | 641,676 | 1,438,431 | 1,349,136 | |
Professional fees and related expenses | 453,910 | 149,752 | 2,813,926 | 297,287 | |
TOTAL OPERATING EXPENSES | 939,785 | 791,428 | 4,252,357 | 1,646,423 | |
OPERATING INCOME (LOSS) | (750,530) | $ 443,820 | $ (2,951,132) | 430,843 | |
OTHER EXPENSE (INCOME), non-operating | |||||
Gain on acquisition, bargain purchase of JD | 1,464,515 | ||||
Gain on extinguishment of debt | $ 225,732 | $ 10,329 | |||
Loss on disposal of assets | (296,093) | (296,093) | |||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | $ (2,698,087) | $ 191,960 | $ (5,808,499) | $ 1,240,050 | |
PROVISION FOR INCOME TAXES | |||||
NET (LOSS) INCOME | $ (2,698,087) | $ 191,960 | $ (5,808,499) | $ 1,240,050 | |
BASIC (LOSS) INCOME PER SHARE | $ (0.18) | $ 0.05 | $ (0.69) | $ 0.34 | |
DILUTED (LOSS) INCOME PER SHARE | $ (0.18) | $ 0.04 | $ (0.69) | $ 0.28 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 15,314,493 | 3,931,604 | 8,412,062 | 3,620,766 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 15,314,493 | 4,699,258 | 8,412,062 | 4,388,420 | |
Adjustments [Member] | |||||
REVENUE | $ 3,323,970 | ||||
NET REVENUE | |||||
COST OF REVENUE | $ 2,866,011 | ||||
GROSS PROFIT | |||||
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | $ 329,287 | ||||
Professional fees and related expenses | $ 2,570 | ||||
Consulting fees | |||||
Forgiveness of accrued officer compensation | |||||
TOTAL OPERATING EXPENSES | |||||
OPERATING INCOME (LOSS) | |||||
OTHER EXPENSE (INCOME), non-operating | |||||
Other income | $ 33,320 | ||||
Gain on acquisition, bargain purchase of JD | $ 39,208 | ||||
Gain on extinguishment of debt | |||||
Loss on disposal of assets | |||||
Interest expense, net | $ 131,989 | ||||
TOTAL OTHER EXPENSE (INCOME), non-operating | |||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | |||||
PROVISION FOR INCOME TAXES | |||||
NET (LOSS) INCOME | |||||
BASIC (LOSS) INCOME PER SHARE | |||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | |||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | |||||
Total [Member] | |||||
REVENUE | $ 15,211,559 | ||||
Less: allowance for bad debt add recovery | 188,460 | ||||
NET REVENUE | 15,400,019 | ||||
COST OF REVENUE | 12,864,794 | ||||
GROSS PROFIT | 2,535,225 | ||||
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | 1,652,109 | ||||
Professional fees and related expenses | 294,008 | ||||
Consulting fees | 5,850 | ||||
Forgiveness of accrued officer compensation | (95,921) | ||||
TOTAL OPERATING EXPENSES | 1,856,046 | ||||
OPERATING INCOME (LOSS) | 679,179 | ||||
OTHER EXPENSE (INCOME), non-operating | |||||
Other income | 27,140 | ||||
Gain on acquisition, bargain purchase of JD | (1,425,307) | ||||
Gain on extinguishment of debt | (10,329) | ||||
Loss on disposal of assets | (15,144) | ||||
Interest expense, net | 852,270 | ||||
TOTAL OTHER EXPENSE (INCOME), non-operating | (571,370) | ||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | $ 1,250,549 | ||||
PROVISION FOR INCOME TAXES | |||||
NET (LOSS) INCOME | $ 1,250,549 | ||||
BASIC (LOSS) INCOME PER SHARE | $ 0.31 | ||||
DILUTED (LOSS) INCOME PER SHARE | $ 0.26 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 3,620,766 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 4,388,420 | ||||
NAS [Member] | |||||
REVENUE | |||||
NET REVENUE | |||||
COST OF REVENUE | |||||
GROSS PROFIT | |||||
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | $ 180,643 | ||||
Professional fees and related expenses | 282,251 | ||||
Consulting fees | 5,850 | ||||
Forgiveness of accrued officer compensation | (95,921) | ||||
TOTAL OPERATING EXPENSES | 372,823 | ||||
OPERATING INCOME (LOSS) | (372,823) | ||||
OTHER EXPENSE (INCOME), non-operating | |||||
Other income | $ 33,320 | ||||
Gain on acquisition, bargain purchase of JD | |||||
Gain on extinguishment of debt | $ (10,329) | ||||
Loss on disposal of assets | |||||
Interest expense, net | $ 270,317 | ||||
TOTAL OTHER EXPENSE (INCOME), non-operating | 293,308 | ||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | $ (666,130) | ||||
PROVISION FOR INCOME TAXES | |||||
NET (LOSS) INCOME | $ (666,130) | ||||
BASIC (LOSS) INCOME PER SHARE | $ (0.18) | ||||
DILUTED (LOSS) INCOME PER SHARE | $ (0.18) | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 3,620,766 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 3,620,766 | ||||
JdMember | |||||
REVENUE | $ 11,887,589 | ||||
Less: allowance for bad debt add recovery | 188,460 | ||||
NET REVENUE | 12,076,049 | ||||
COST OF REVENUE | 9,998,783 | ||||
GROSS PROFIT | 2,077,266 | ||||
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | 1,142,179 | ||||
Professional fees and related expenses | $ 9,187 | ||||
Consulting fees | |||||
Forgiveness of accrued officer compensation | |||||
TOTAL OPERATING EXPENSES | $ 1,154,366 | ||||
OPERATING INCOME (LOSS) | 922,900 | ||||
OTHER EXPENSE (INCOME), non-operating | |||||
Other income | (39,500) | ||||
Gain on acquisition, bargain purchase of JD | $ (1,464,515) | ||||
Gain on extinguishment of debt | |||||
Loss on disposal of assets | $ (15,144) | ||||
Interest expense, net | 449,964 | ||||
TOTAL OTHER EXPENSE (INCOME), non-operating | (1,069,195) | ||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | $ 1,992,095 | ||||
PROVISION FOR INCOME TAXES | |||||
NET (LOSS) INCOME | $ 1,992,095 | ||||
BASIC (LOSS) INCOME PER SHARE | |||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | |||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED |
Loans, capital lease and line40
Loans, capital lease and lines of credit (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Apr. 22, 2014 | Apr. 02, 2014 | |
Debt Instrument [Line Items] | |||||
Original amount of loan | $ 28,000 | $ 50,000 | |||
Total debt liabilities | $ 12,164,065 | $ 13,173,815 | |||
Less: current portion | (3,843,796) | (4,507,322) | |||
Total long-term liabilities | 8,320,269 | 8,666,493 | |||
Mandatorily redeemable contingent liability | $ 100,000 | 100,000 | |||
Long Term Debt One [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Feb. 10, 2019 | ||||
Original amount of loan | $ 43,395 | ||||
Interest rate | 4.01% | ||||
Total debt liabilities | $ 25,442 | 31,284 | |||
Long Term Debt Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Dec. 19, 2014 | ||||
Maturity date | Dec. 19, 2019 | ||||
Original amount of loan | $ 1,940,969 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 1,431,837 | 1,552,775 | |||
Long Term Debt Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Nov. 9, 2016 | ||||
Original amount of loan | $ 186,549 | ||||
Interest rate | 5.95% | ||||
Total debt liabilities | $ 59,417 | 95,262 | |||
Long Term Debt Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Apr. 8, 2014 | ||||
Maturity date | May 1, 2019 | ||||
Original amount of loan | $ 1,480,412 | ||||
Interest rate | 7.10% | ||||
Total debt liabilities | $ 1,177,740 | 1,331,116 | |||
Long Term Debt Five [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Mar. 28, 2023 | ||||
Original amount of loan | $ 2,650,000 | ||||
Interest rate | 6.00% | ||||
Total debt liabilities | $ 2,146,705 | 2,274,936 | |||
Long Term Debt Six [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Mar. 16, 2016 | ||||
Original amount of loan | $ 23,700 | ||||
Interest rate | 4.34% | ||||
Total debt liabilities | 10,129 | ||||
Long Term Debt Seven [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Sep. 28, 2015 | ||||
Original amount of loan | $ 28,700 | ||||
Interest rate | 6.54% | ||||
Total debt liabilities | 10,268 | ||||
Long Term Debt Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Sep. 28, 2016 | ||||
Original amount of loan | $ 44,576 | ||||
Interest rate | 3.74% | ||||
Total debt liabilities | 2,903 | ||||
Long Term Debt Nine [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Jun. 5, 2016 | ||||
Original amount of loan | $ 88,575 | ||||
Interest rate | 7.89% | ||||
Total debt liabilities | 37,253 | ||||
Long Term Debt Ten [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Feb. 28, 2015 | ||||
Original amount of loan | $ 56,372 | ||||
Interest rate | 6.49% | ||||
Total debt liabilities | 9,858 | ||||
Long Term Debt Eleven [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Mar. 29, 2017 | ||||
Original amount of loan | $ 73,005 | ||||
Interest rate | 7.89% | ||||
Total debt liabilities | 37,946 | ||||
Long Term Debt Twelve [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Oct. 29, 2015 | ||||
Original amount of loan | $ 36,700 | ||||
Interest rate | 6.54% | ||||
Total debt liabilities | 3,829 | ||||
Long Term Debt Thirteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Oct. 29, 2015 | ||||
Original amount of loan | $ 34,400 | ||||
Interest rate | 6.54% | ||||
Total debt liabilities | 3,589 | ||||
Long Term Debt Fourteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Sep. 30, 2015 | ||||
Original amount of loan | $ 94,000 | ||||
Interest rate | 5.74% | ||||
Total debt liabilities | 16,050 | ||||
Long Term Debt Fifteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Sep. 16, 2016 | ||||
Original amount of loan | $ 45,994 | ||||
Interest rate | 8.29% | ||||
Total debt liabilities | 23,049 | ||||
Long Term Debt Sixteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Aug. 1, 2017 | ||||
Original amount of loan | $ 43,110 | ||||
Interest rate | 5.04% | ||||
Total debt liabilities | 33,693 | ||||
Long Term Debt Seventeen [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Aug. 11, 2014 | ||||
Maturity date | Jun. 11, 2015 | ||||
Original amount of loan | $ 600,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | 372,109 | ||||
Long Term Debt Eighteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Aug. 11, 2014 | ||||
Maturity date | Jun. 11, 2015 | ||||
Original amount of loan | $ 210,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | 130,238 | ||||
Long Term Debt Nineteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Mar. 12, 2016 | ||||
Original amount of loan | $ 326,746 | ||||
Interest rate | 6.00% | ||||
Total debt liabilities | 98,478 | ||||
Long Term Debt Twenty [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Sep. 1, 2014 | ||||
Maturity date | Jul. 1, 2019 | ||||
Original amount of loan | $ 213,600 | ||||
Interest rate | 6.96% | ||||
Total debt liabilities | $ 170,234 | 202,093 | |||
Long Term Debt Twenty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Sep. 1, 2014 | ||||
Maturity date | Dec. 21, 2018 | ||||
Original amount of loan | $ 203,789 | ||||
Interest rate | 6.93% | ||||
Total debt liabilities | $ 170,518 | 194,574 | |||
Long Term Debt Twenty Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Sep. 1, 2014 | ||||
Maturity date | Aug. 1, 2016 | ||||
Original amount of loan | $ 48,000 | ||||
Interest rate | 9.11% | ||||
Total debt liabilities | $ 19,082 | 42,669 | |||
Long Term Debt Twenty Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Sep. 9, 2018 | ||||
Original amount of loan | $ 189,151 | ||||
Interest rate | 6.42% | ||||
Total debt liabilities | $ 103,719 | 129,135 | |||
Long Term Debt Twenty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Jul. 1, 2018 | ||||
Original amount of loan | $ 153,944 | ||||
Interest rate | 7.20% | ||||
Total debt liabilities | $ 79,100 | 100,047 | |||
Long Term Debt Twenty Five [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Sep. 26, 2017 | ||||
Original amount of loan | $ 262,350 | ||||
Interest rate | 4.00% | ||||
Total debt liabilities | $ 115,783 | $ 155,136 | |||
Long Term Debt Twenty Six [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 20, 2015 | ||||
Maturity date | Feb. 20, 2020 | ||||
Original amount of loan | $ 600,000 | ||||
Interest rate | 8.62% | ||||
Total debt liabilities | $ 525,580 | ||||
Long Term Debt Twenty Seven [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Jun. 25, 2015 | ||||
Maturity date | Jun. 25, 2020 | ||||
Original amount of loan | $ 840,406 | ||||
Total debt liabilities | $ 788,453 | ||||
Long Term Debt Twenty Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Nov. 9, 2016 | ||||
Original amount of loan | $ 347,520 | ||||
Interest rate | 6.00% | ||||
Total debt liabilities | $ 119,197 | $ 159,427 | |||
Long Term Debt Twenty Nine [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Oct. 26, 2018 | ||||
Original amount of loan | $ 41,540 | ||||
Interest rate | 2.99% | ||||
Total debt liabilities | $ 26,941 | 33,069 | |||
Long Term Debt Thirty [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Oct. 15, 2026 | ||||
Original amount of loan | $ 150,000 | ||||
Interest rate | 4.86% | ||||
Total debt liabilities | $ 118,686 | 125,108 | |||
Long Term Debt Thirty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Oct. 10, 2016 | ||||
Original amount of loan | $ 101,091 | ||||
Interest rate | 4.57% | ||||
Total debt liabilities | $ 15,489 | 31,998 | |||
Long Term Debt Thirty Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | Sep. 30, 2017 | ||||
Original amount of loan | $ 7,680,000 | ||||
Interest rate | 4.57% | ||||
Total debt liabilities | $ 3,699,035 | $ 4,622,482 | |||
Long Term Debt Thirty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Jul. 1, 2015 | ||||
Original amount of loan | $ 94,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 94,000 | ||||
Long Term Debt Thirty Five [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Jul. 1, 2015 | ||||
Original amount of loan | $ 80,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 80,000 | ||||
Long Term Debt Thirty Six [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Jul. 1, 2015 | ||||
Original amount of loan | $ 43,159 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 43,159 | ||||
Long Term Debt Thirty Seven [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 24, 2014 | ||||
Maturity date | May 1, 2017 | ||||
Original amount of loan | $ 176,234 | ||||
Interest rate | 12.00% | ||||
Total debt liabilities | $ 117,799 | ||||
Long Term Debt Thirty Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Jun. 1, 2015 | ||||
Maturity date | May 31, 2016 | ||||
Original amount of loan | $ 668,233 | ||||
Interest rate | 6.00% | ||||
Total debt liabilities | $ 338,064 | 217,128 | |||
Long Term Debt Thirty Nine [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Jan. 15, 2009 | ||||
Original amount of loan | $ 33,591 | ||||
Total debt liabilities | $ 33,591 | 33,591 | |||
Long Term Debt Thirty Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Original amount of loan | |||||
Total debt liabilities | $ 500,000 | 586,621 | |||
Mandatorily redeemable common stock [Member] | Restricted Common Stock [Member] | |||||
Debt Instrument [Line Items] | |||||
Restricted common stock granted but unissued, shares | 53,837 | ||||
Restricted common stock granted but unissued | $ 269,186 | ||||
Number of shares repurchased | 20,000 | ||||
Value of shares repurchased | $ 100,000 | ||||
Threshold value of shares, the note holder is entitled to additional shares to compensate | 100,000 | ||||
Value of shares that if value falls below, the note holder will be awarded additional shares to compensate | $ 100,000 | ||||
Zions First National Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.04% | ||||
Unsecured line of credit | $ 500,000 | ||||
LIBOR spread | 3.85% | ||||
Line of credit balance | $ 500,000 | ||||
Long Term Debt Fourty [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Sep. 19, 2013 | ||||
Maturity date | Sep. 19, 2016 | ||||
Original amount of loan | $ 20,000 | ||||
Interest rate | 12.00% | ||||
Total debt liabilities | $ 20,000 | 20,000 | |||
Long Term Debt Fourty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Nov. 1, 2013 | ||||
Maturity date | Nov. 1, 2015 | ||||
Original amount of loan | $ 50,000 | ||||
Interest rate | 12.00% | ||||
Total debt liabilities | $ 50,000 | 50,000 | |||
Long Term Debt Fourty Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Apr. 1, 2009 | ||||
Original amount of loan | $ 71,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 71,000 | 71,000 | |||
Long Term Debt Fourty Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Apr. 1, 2009 | ||||
Original amount of loan | $ 79,913 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 79,913 | 79,913 | |||
Long Term Debt Fourty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Dec. 31, 2010 | ||||
Original amount of loan | $ 9,500 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 9,500 | 9,500 | |||
Long Term Debt Fourty Five [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Dec. 31, 2010 | ||||
Original amount of loan | $ 9,760 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 9,760 | 9,760 | |||
Long Term Debt Fourty Six [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Dec. 31, 2010 | ||||
Original amount of loan | $ 13,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 13,000 | 13,000 | |||
Long Term Debt Fourty Seven [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Feb. 28, 2014 | ||||
Maturity date | Mar. 9, 2016 | ||||
Original amount of loan | $ 50,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 29,120 | 50,000 | |||
Long Term Debt Fourty Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Jul. 25, 2014 | ||||
Maturity date | Jan. 25, 2015 | ||||
Original amount of loan | $ 30,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | 30,000 | ||||
Long Term Debt Fourty Nine [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan date | Dec. 9, 2014 | ||||
Maturity date | Jun. 6, 2015 | ||||
Original amount of loan | $ 15,000 | ||||
Interest rate | 10.00% | ||||
Total debt liabilities | $ 15,000 |
Convertible notes (Details)
Convertible notes (Details) - USD ($) | Aug. 04, 2015 | Jul. 15, 2015 | Jun. 04, 2015 | Jun. 02, 2015 | Mar. 12, 2015 | Mar. 11, 2015 | Feb. 12, 2015 | Jun. 30, 2015 | Mar. 20, 2015 | Feb. 27, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Apr. 22, 2014 | Apr. 02, 2014 |
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 1,421,988 | $ 1,143,500 | ||||||||||||
Less: Debt discount | (309,098) | (577,849) | ||||||||||||
Less: Current portion convertible debt | (785,729) | (158,737) | ||||||||||||
Total Long-term portion of convertible debt | 327,161 | 406,914 | ||||||||||||
Principal amount of debt | $ 28,000 | $ 50,000 | ||||||||||||
Convertible Notes Issued October 1, 2014 One [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 250,000 | 250,000 | ||||||||||||
Loan date | Oct. 1, 2014 | |||||||||||||
Interest rate | 12.00% | |||||||||||||
Debt term | 3 years | |||||||||||||
Convertible Notes Issued October 1, 2014 Two [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 223,000 | 245,000 | ||||||||||||
Loan date | Oct. 1, 2014 | |||||||||||||
Interest rate | 12.00% | |||||||||||||
Debt term | 3 years | |||||||||||||
Convertible Notes Issued October 20, 2014 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | 45,000 | |||||||||||||
Loan date | Oct. 20, 2014 | |||||||||||||
Interest rate | 12.00% | |||||||||||||
Debt term | 3 years | |||||||||||||
Convertible Notes Issued December 16, 2014 One [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 250,000 | 250,000 | ||||||||||||
Loan date | Dec. 16, 2014 | |||||||||||||
Interest rate | 12.00% | |||||||||||||
Debt term | 1 year | |||||||||||||
Conversion price per share | $ 2 | |||||||||||||
Convertible Notes Issued December 16, 2014 Two [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 28,000 | 249,500 | ||||||||||||
Loan date | Dec. 16, 2014 | |||||||||||||
Interest rate | 10.00% | |||||||||||||
Debt term | 1 year | |||||||||||||
Convertible Notes Issued December 16, 2014 Three [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 104,000 | |||||||||||||
Loan date | Dec. 16, 2014 | |||||||||||||
Interest rate | 8.00% | |||||||||||||
Debt term | 9 months | |||||||||||||
Convertible note issued on January 30, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 205,082 | |||||||||||||
Loan date | Jan. 30, 2015 | |||||||||||||
Interest rate | 9.00% | |||||||||||||
Convertible note issued on February 12, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 144,471 | |||||||||||||
Loan date | Feb. 12, 2015 | |||||||||||||
Interest rate | 12.00% | |||||||||||||
Debt term | 6 months | |||||||||||||
Convertible note issued on February 20, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 89,000 | |||||||||||||
Loan date | Feb. 20, 2015 | |||||||||||||
Interest rate | 10.00% | |||||||||||||
Debt term | 5 years | |||||||||||||
Convertible note issued on March 11, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 25,435 | |||||||||||||
Loan date | Mar. 11, 2015 | |||||||||||||
Interest rate | 8.00% | |||||||||||||
Debt term | 1 year | |||||||||||||
Convertible note issued on March 12, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 5,000 | |||||||||||||
Loan date | Mar. 12, 2015 | |||||||||||||
Interest rate | 8.00% | |||||||||||||
Debt term | 1 year | |||||||||||||
Convertible note issued on June 3, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 46,000 | |||||||||||||
Loan date | Jun. 3, 2015 | |||||||||||||
Interest rate | 6.00% | |||||||||||||
Debt term | 1 year | |||||||||||||
Convertible note issued on July 15, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 10,000 | |||||||||||||
Loan date | Jul. 15, 2015 | |||||||||||||
Interest rate | 10.00% | |||||||||||||
Debt term | 9 months | |||||||||||||
Convertible note issued on August 5, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 55,000 | |||||||||||||
Loan date | Aug. 5, 2015 | |||||||||||||
Interest rate | 12.00% | |||||||||||||
Debt term | 1 year | |||||||||||||
Convertible note issued on September 2, 2015 One [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 5,000 | |||||||||||||
Loan date | Sep. 2, 2015 | |||||||||||||
Interest rate | 10.00% | |||||||||||||
Debt term | 9 months | |||||||||||||
Convertible note issued on September 2, 2015 Two [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 5,000 | |||||||||||||
Loan date | Sep. 2, 2015 | |||||||||||||
Interest rate | 10.00% | |||||||||||||
Debt term | 9 months | |||||||||||||
Convertible note issued on September 2, 2015 Three [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 10,000 | |||||||||||||
Loan date | Sep. 2, 2015 | |||||||||||||
Interest rate | 10.00% | |||||||||||||
Debt term | 9 months | |||||||||||||
Convertible note issued on September 2, 2015 Four [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 5,000 | |||||||||||||
Loan date | Sep. 2, 2015 | |||||||||||||
Interest rate | 10.00% | |||||||||||||
Debt term | 9 months | |||||||||||||
Convertible note issued on September 9, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 36,000 | |||||||||||||
Loan date | Sep. 9, 2015 | |||||||||||||
Interest rate | 6.00% | |||||||||||||
Debt term | 1 year | |||||||||||||
Convertible note issued on September 30, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 30,000 | |||||||||||||
Loan date | Sep. 30, 2015 | |||||||||||||
Interest rate | 8.00% | |||||||||||||
Debt term | 9 months | |||||||||||||
Convertible promissory note [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | $ 225,000 | $ 159,000 | ||||||||||||
Interest rate | 10.00% | 6.00% | 5.00% | 8.00% | 8.00% | 12.00% | 9.00% | 8.00% | 8.00% | 9.00% | ||||
Debt term | 1 year | 6 months | ||||||||||||
Conversion price per share | $ 0.05 | |||||||||||||
Principal amount of debt | $ 250,000 | $ 10,000 | $ 46,000 | $ 45,000 | $ 55,000 | $ 35,000 | $ 180,000 | $ 205,082 | $ 35,000 | $ 110,250 | $ 30,000 | |||
Maturity date | Jan. 15, 2016 | Jun. 3, 2016 | Jun. 2, 2016 | Jul. 25, 2014 | Mar. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2016 | |||||||
Purchase price of debt | $ 50,000 | 125,000 | $ 105,000 | |||||||||||
Original issue discount | $ 55,000 | |||||||||||||
Original issue discount rate | 10.00% | 108.00% | 10.00% | 5.00% | ||||||||||
Convertible promissory note [Member] | First tranche funded [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 12.00% | |||||||||||||
Debt term | 2 years | |||||||||||||
Conversion price per share | $ 0.10 | |||||||||||||
Principal amount of debt | $ 50,000 | |||||||||||||
Original issue discount | $ 5,000 | |||||||||||||
Original issue discount rate | 40.00% | |||||||||||||
Convertible note issued on March 20, 2015 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total | ||||||||||||||
Interest rate | 10.00% |
Convertible notes (Details Narr
Convertible notes (Details Narrative) - USD ($) | Jul. 15, 2015 | Jun. 04, 2015 | Jun. 02, 2015 | Mar. 11, 2015 | Jun. 30, 2015 | Mar. 20, 2015 | Sep. 30, 2015 | Aug. 04, 2015 | Mar. 12, 2015 | Feb. 27, 2015 | Feb. 12, 2015 | Apr. 22, 2014 | Apr. 02, 2014 |
Convertible promissory note, principal amount | $ 28,000 | $ 50,000 | |||||||||||
Convertible promissory note [Member] | |||||||||||||
Convertible promissory note, principal amount | $ 10,000 | $ 46,000 | $ 45,000 | $ 35,000 | $ 205,082 | $ 35,000 | $ 30,000 | $ 250,000 | $ 55,000 | $ 110,250 | $ 180,000 | ||
Interest rate | 10.00% | 6.00% | 5.00% | 8.00% | 9.00% | 8.00% | 9.00% | 8.00% | 8.00% | 12.00% | |||
Maturity date | Jan. 15, 2016 | Jun. 3, 2016 | Jun. 2, 2016 | Jul. 25, 2014 | Mar. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2016 | ||||||
Discount on conversion of note to common stock | 47.00% |
Operating lease agreement (Deta
Operating lease agreement (Details) - Operating Lease Corporate Offices Las Vegas Nevada [Member] | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Operating Leased Assets [Line Items] | |
Lease inception date | Jul. 1, 2014 |
Lease expiration date | Jun. 30, 2015 |
Monthly rent expense | $ 750 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | May. 31, 2015 | Dec. 31, 2014 | Apr. 22, 2014 | Apr. 02, 2014 | Feb. 24, 2014 | |
Related Party Transaction [Line Items] | |||||||||
Original amount of loan | $ 28,000 | $ 50,000 | |||||||
Convertible Debt | $ 1,421,988 | $ 1,421,988 | $ 1,143,500 | ||||||
Interest expense | 1,861,931 | $ 306,504 | 4,266,118 | $ 720,281 | |||||
JD [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Lease rent expense per month | 10,500 | ||||||||
Rent expense | 94,500 | ||||||||
Jd Field Services Inc [Member] | Independent Director One [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Original amount of loan | $ 474,667 | ||||||||
Interest rate | 5.00% | 6.00% | |||||||
Additional amount owed | $ 78,765 | ||||||||
Jd Field Services Inc [Member] | Director and Beneficial Owner of Five Percent or More Equity [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Balance due to related party | 607,552 | 607,552 | |||||||
Accrued interest payable | 47,130 | 47,130 | |||||||
Additional amount owed | 54,120 | 54,120 | |||||||
Jd Field Services Inc [Member] | Beneficial Owner of Five Percent or More Equity [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Original amount of loan | $ 500,000 | ||||||||
Interest rate | 7.05% | ||||||||
Balance due to related party | 468,000 | 468,000 | |||||||
Accrued interest payable | $ 9,597 | $ 9,597 |
Fair Value (Fair value of debt
Fair Value (Fair value of debt conversion feature liability) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative liability | ||
Debt conversion feature | $ 1,578,715 | $ 1,189,718 |
Warrant liability | 145,012 | |
Total financial liabilities | $ 145,012 | |
Level 1 [Member] | ||
Derivative liability | ||
Debt conversion feature | ||
Total financial liabilities | ||
Level 2 [Member] | ||
Derivative liability | ||
Debt conversion feature | ||
Total financial liabilities | ||
Debt Conversion [Member] | Level 3 [Member] | ||
Derivative liability | ||
Debt conversion feature | $ 1,578,715 | $ 1,189,718 |
Warrant liability | 145,012 | |
Total financial liabilities | $ 1,723,727 | $ 1,189,718 |
Fair Value (Debt conversion fea
Fair Value (Debt conversion feature liabilities measured at fair value on a recurring basis) (Details) - Fair Value, Measurements, Recurring [Member] - Debt Conversion [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Beginning balance | $ (1,060,961) | $ (1,189,718) | ||
Additions | (829,483) | (1,727,705) | ||
Adjustments resulting from changes in fair value recognized in earnings | (267,023) | 1,494,377 | ||
Settlement through conversion of debt | 578,750 | 362,085 | ||
Ending balance | $ (1,578,715) | $ (1,578,715) |
Fair Value (Debt conversion f47
Fair Value (Debt conversion feature liabilities measured at fair value on a recurring basis warrants) (Details) - Warrant [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Beginning balance | |||
Additions | $ (363,761) | $ (363,761) | |
Adjustments resulting from changes in fair value recognized in earnings | 218,749 | 218,749 | |
Settlement through conversion of debt | |||
Ending balance | $ (145,012) | $ (145,012) |
Fair Value (Valuation technique
Fair Value (Valuation techniques and significant unobservable inputs fair value for significant Level 3 liabilities) (Details) - Level 3 [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Warrant [Member] | ||
Fair Value, Assets | ||
Fair Value, Liabilities | $ 145,012 | |
Valuation Technique | Binomial option pricing model | |
Volatility | 738.29% | |
Warrant [Member] | Minimum [Member] | ||
Expected term (years) | 4 days | |
Warrant [Member] | Maximum [Member] | ||
Expected term (years) | 2 years | |
Debt Conversion [Member] | ||
Fair Value, Assets | ||
Fair Value, Liabilities | $ 1,578,715 | $ 1,189,718 |
Valuation Technique | Binomial option pricing model | Binomial option pricing model |
Volatility | 303.94% | 271.84% |
Debt Conversion [Member] | Minimum [Member] | ||
Expected term (years) | 1 month 2 days | 8 months 16 days |
Debt Conversion [Member] | Maximum [Member] | ||
Expected term (years) | 2 years 1 month 10 days | 2 years 6 months 29 days |
Stockholders' deficit (Schedule
Stockholders' deficit (Schedule of Assumptions) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Warrant [Member] | ||
Expected volatility | 675.65% | |
Weighted-average volatility | 675.65% | |
Expected dividends | $ 0 | |
Expected term (in years) | 4 years | |
Risk-free rate | 0.06% | |
Warrant [Member] | Convertible note issued on June 3, 2015 [Member] | ||
Expected volatility | 738.29% | |
Weighted-average volatility | 736.29% | |
Expected dividends | $ 0 | |
Expected term (in years) | 2 years | |
Risk-free rate | 0.64% | |
Warrant [Member] | Convertible note issued on July 15, 2015 and September 2, 2015 [Member] | ||
Expected volatility | 709.54% | |
Weighted-average volatility | 709.54% | |
Expected dividends | $ 0 | |
Expected term (in years) | 5 years | |
Risk-free rate | 0.06% | |
Options [Member] | ||
Expected volatility | 297.60% | |
Weighted-average volatility | 297.60% | |
Expected dividends | $ 0 | |
Expected term (in years) | 1 year 6 months | |
Risk-free rate | 0.06% |
Stockholders' deficit (Schedu50
Stockholders' deficit (Schedule of Warrant and Options) (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 184,000 | |
Granted, Weighted average price | $ 0.50 | |
Warrant [Member] | Convertible note issued on June 3, 2015 [Member] | Transaction One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 700,000 | |
Granted, Weighted average price | $ 0.15 | |
Warrant [Member] | Convertible note issued on June 3, 2015 [Member] | Transaction Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 3,776,153 | |
Granted, Weighted average price | $ 0.14 | |
Warrant [Member] | Convertible note issued on July 15, 2015 and September 2, 2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 108,850 | |
Granted, Weighted average price | $ 0.11 | |
Non Vested Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, non-vested | 35,000 | |
Granted, non-vested, Weighted average price | $ 1.65 |
Stockholders' deficit (Narrativ
Stockholders' deficit (Narrative) (Details) - USD ($) | Sep. 14, 2015 | Sep. 11, 2015 | Sep. 10, 2015 | Sep. 09, 2015 | Sep. 08, 2015 | Aug. 12, 2015 | Aug. 11, 2015 | Aug. 10, 2015 | Aug. 06, 2015 | Aug. 04, 2015 | Jul. 11, 2015 | Jul. 10, 2015 | Jul. 09, 2015 | Jul. 06, 2015 | Jun. 04, 2015 | Jun. 04, 2015 | May. 05, 2015 | Apr. 09, 2015 | Sep. 28, 2015 | Sep. 25, 2015 | Sep. 24, 2015 | Sep. 23, 2015 | Sep. 22, 2015 | Sep. 21, 2015 | Sep. 17, 2015 | Sep. 16, 2015 | Jul. 28, 2015 | Jul. 23, 2015 | Jul. 21, 2015 | Jul. 17, 2015 | Jun. 29, 2015 | Jun. 26, 2015 | Jun. 25, 2015 | Jun. 22, 2015 | Jun. 19, 2015 | Jun. 16, 2015 | Jun. 15, 2015 | May. 31, 2015 | May. 22, 2015 | May. 21, 2015 | May. 19, 2015 | Apr. 23, 2015 | Apr. 17, 2015 | Apr. 15, 2015 | Mar. 31, 2015 | Feb. 20, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Jul. 20, 2015 | Jul. 08, 2015 | Jun. 03, 2015 | Sep. 11, 2014 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 75,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase number of authorized shares of common stock | 150,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non vested options amount expensed | $ 28,860 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Expense | $ 28,860 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consulting Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 40,000 | 128,720 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, value | $ 34,000 | $ 19,308 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued price per share | $ 0.85 | $ 0.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Purchase Agreements [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares granted | 3,776,154 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Value of shares granted | $ 490,900 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Option term | 2 years | |||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Issued January 9, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issued date | Jan. 9, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 160,890 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 32,178 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.20 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 1, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 50,505 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.198 | |||||||||||||||||||||||||||||||||||||||||||||||||||
May 5, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 45,045 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.222 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 15, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 79,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.126 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 16, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 380,952 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 40,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
April 15, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 33,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
April 17, 2015 [Member] | Consulting Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, value | $ 50,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued price per share | $ 1.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 19, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 47,620 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||
May 19, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 37,879 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.132 | |||||||||||||||||||||||||||||||||||||||||||||||||||
May 21, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 75,758 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.132 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 22, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 65,873 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 8,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.126 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 22, 2015 [Member] | Consulting Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 486,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, value | $ 136,231 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued price per share | $ 0.28 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 22, 2015 [Member] | Consulting Agreement One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 22, 2015 [Member] | Consulting Agreement Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 461,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||
April 23, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 16,502 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.606 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 25, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 127,011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.1181 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 26, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 180,181 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 20,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.1181 | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 219,106 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.1141 | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 27, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 14,620 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.68 | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 23, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 15,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 2, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 12,077 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.82 | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 16, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 13,889 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.72 | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 8,750 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 1,750 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.20 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 6, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 184,729 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0812 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 6, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 150,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 6, 2015 [Member] | Transaction Three [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 288,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 19,048 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.066 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 6, 2015 [Member] | Transaction Four [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 59,885 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 3,952 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.066 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 9, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 333,334 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 20,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.06 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 10, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 307,468 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 16,880 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0549 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 11, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 447,892 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 58,226 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 17, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 150,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 21, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 360,577 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0416 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 23, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 177,401 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 6,280 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0354 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 23, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 1,060,606 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 25,455 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 28, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 416,667 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
August 4, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 220,075 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 5,282 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
August 6, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 584,167 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 14,020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
August 10, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 423,566 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,337 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0244 | |||||||||||||||||||||||||||||||||||||||||||||||||||
August 11, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 423,566 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,335 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0244 | |||||||||||||||||||||||||||||||||||||||||||||||||||
August 12, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 120,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 13,200 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 8, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 510,204 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 20,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0392 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 8, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 1,333,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 36,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0273 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 9, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 604,907 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 25,890 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0428 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 9, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 340,380 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 8,598 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.02526 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 9, 2015 [Member] | Transaction Three [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 428,571 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 30,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.07 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 10, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 66,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 29,700 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 11, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 701,347 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 21,882 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 11, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0312 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 14, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 365,853 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0410 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 14, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 121,951 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.041 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 16, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 827,815 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.01812 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 16, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 506,223 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.02114 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 17, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 1,100,994 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 19,950 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.01812 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 21, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.04 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 21, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 1,100,994 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 19,950 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 21, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 919,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 36,775 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 22, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0138 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 22, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 714,227 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 11,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0161 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 23, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 731,422 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 17,198 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0273 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 24, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 560,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 14,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.025 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 24, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 1,231,885 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 17,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0138 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 25, 2015 [Member] | Transaction One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 750,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 25, 2015 [Member] | Transaction Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 471,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 8,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 28, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for notes payable conversion | 837,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt amount converted into common stock | $ 10,050 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 20, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price per share | $ 0.0398 | |||||||||||||||||||||||||||||||||||||||||||||||||||
May 1, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 30,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, value | $ 16,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued price per share | $ 0.55 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Board of Directors [Member] | June 4, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares granted | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Price per share granted | $ 0.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Value of shares granted | $ 90,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issued date | Jun. 16, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Board of Directors [Member] | May 22, 2015 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 1,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, value | $ 540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued price per share | $ 0.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares granted | 110,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Price per share granted | $ 1.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Value of shares granted | $ 181,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issued date | Jan. 9, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Chief Executive Officer [Member] | Amended Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares granted | 35,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Price per share granted | $ 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Option term | 18 months | |||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation model | Black-Scholes |
Acquisitions (Fair Value of Bus
Acquisitions (Fair Value of Business Acquisition) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Feb. 24, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Purchase Price | |||
Less: Stock for consideration | $ (413,000) | ||
Bargain purchase option | $ 1,464,515 | ||
Jd Field Services Inc [Member] | |||
ASSETS | |||
Cash | $ 104,816 | ||
Accounts receivable | 1,887,074 | ||
Prepaid expense | 152,892 | ||
Fixed Assets | 14,138,387 | ||
Intangible assets, net | 283,000 | ||
Deferred financing fees, net | 29,402 | ||
LIABILITIES | |||
A/P, accrued, loans and LOC | (14,718,056) | ||
Fair Market Value of Net Identifiable Assets on 2/24/2014 | 1,877,515 | ||
Purchase Price | |||
Less: Stock for consideration | (413,000) | ||
Bargain purchase option | 1,464,515 | ||
Less: Bargain purchase option value previously recognized | (1,620,071) | ||
Re-measurement balance of bargain purchase option as of February 24, 2014 | $ 155,556 |
Acquisitions (Income Statement)
Acquisitions (Income Statement) (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Condensed Income Statements, Captions [Line Items] | |||||
TOTAL OPERATING INCOME | $ (750,530) | $ 443,820 | $ (2,951,132) | $ 430,843 | |
OTHER (INCOME) / EXPENSE | |||||
Gain on sale of fixed assets | $ (296,093) | 15,144 | |||
Gain on bargain purchase of JD | (1,464,515) | ||||
NET (LOSS) INCOME | $ (2,698,087) | $ 191,960 | $ (5,808,499) | $ 1,240,050 | |
BASIC (LOSS) INCOME PER SHARE | $ (0.18) | $ 0.05 | $ (0.69) | $ 0.34 | |
DILUTED (LOSS) INCOME PER SHARE | $ (0.18) | $ 0.04 | $ (0.69) | $ 0.28 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 15,314,493 | 3,931,604 | 8,412,062 | 3,620,766 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 15,314,493 | 4,699,258 | 8,412,062 | 4,388,420 | |
As originally reported [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
TOTAL OPERATING INCOME | $ 430,843 | ||||
OTHER (INCOME) / EXPENSE | |||||
Interest expense, net | 720,281 | ||||
Gain on extinguishment of debt | (10,329) | ||||
Gain on sale of fixed assets | (15,144) | ||||
Other (income) expense | (39,500) | ||||
Gain on bargain purchase of JD | (1,620,071) | ||||
TOTAL OTHER (INCOME) / EXPENSE | (964,763) | ||||
NET (LOSS) INCOME | $ 1,395,606 | ||||
BASIC (LOSS) INCOME PER SHARE | $ 0.39 | ||||
DILUTED (LOSS) INCOME PER SHARE | $ 0.32 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 3,620,766 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 4,388,420 | ||||
Measurement Period Adjustment [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
TOTAL OPERATING INCOME | |||||
OTHER (INCOME) / EXPENSE | |||||
Interest expense, net | |||||
Gain on extinguishment of debt | |||||
Gain on bargain purchase of JD | [1] | $ 155,556 | |||
TOTAL OTHER (INCOME) / EXPENSE | 155,556 | ||||
NET (LOSS) INCOME | $ 155,556 | ||||
BASIC (LOSS) INCOME PER SHARE | |||||
DILUTED (LOSS) INCOME PER SHARE | |||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | |||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | |||||
As Retrospectively Adjusted [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
TOTAL OPERATING INCOME | $ 430,843 | ||||
OTHER (INCOME) / EXPENSE | |||||
Interest expense, net | 720,281 | ||||
Gain on extinguishment of debt | (10,329) | ||||
Gain on sale of fixed assets | (15,144) | ||||
Other (income) expense | (39,500) | ||||
Gain on bargain purchase of JD | (1,464,515) | ||||
TOTAL OTHER (INCOME) / EXPENSE | (809,207) | ||||
NET (LOSS) INCOME | $ 1,240,050 | ||||
BASIC (LOSS) INCOME PER SHARE | $ 0.34 | ||||
DILUTED (LOSS) INCOME PER SHARE | $ 0.28 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 3,620,766 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 4,388,420 | ||||
[1] | Adjustment reflects reduction in gain on bargain purchase under re-measurement as per guidance of FASB ASC 805. |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - USD ($) | Nov. 09, 2015 | Nov. 06, 2015 | Nov. 05, 2015 | Nov. 03, 2015 | Oct. 13, 2015 | Oct. 12, 2015 | Oct. 09, 2015 | Oct. 07, 2015 | Oct. 06, 2015 | Oct. 05, 2015 | Oct. 28, 2015 | Oct. 26, 2015 | Oct. 21, 2015 | Oct. 19, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Shares issued, shares | 32,039,180 | 4,019,738 | ||||||||||||||
Par value of shares issued | $ 0.001 | $ 0.001 | ||||||||||||||
Shares Issued, Value | $ 32,039 | $ 4,020 | ||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Shares issued for notes payable conversion | 1,933,319 | 3,007,067 | 2,347,418 | 1,925,019 | 1,500,000 | 1,561,890 | 1,315,790 | 1,700,681 | 1,504,031 | 1,702,084 | ||||||
Conversion price per share | $ 0.005 | $ 0.007 | $ 0.004 | $ 0.006 | $ 0.009 | $ 0.0128 | $ 0.0114 | $ 0.006 | $ 0.0105 | $ 0.0105 | ||||||
Debt amount converted into common stock | $ 9,609 | $ 20,000 | $ 10,000 | $ 12,128 | $ 6,750 | $ 20,000 | $ 15,000 | $ 10,000 | $ 15,792 | $ 17,872 | ||||||
Subsequent Event [Member] | Transaction One [Member] | ||||||||||||||||
Shares issued for notes payable conversion | 647,418 | 1,713,309 | 998,721 | 1,697,518 | ||||||||||||
Conversion price per share | $ 0.009 | $ 0.009 | $ 0.0105 | $ 0.0124 | ||||||||||||
Debt amount converted into common stock | $ 5,827 | $ 15,419 | $ 10,487 | $ 21,000 | ||||||||||||
Subsequent Event [Member] | Transaction Two [Member] | ||||||||||||||||
Shares issued, shares | 200,000 | |||||||||||||||
Par value of shares issued | $ 0.02 | |||||||||||||||
Shares Issued, Value | $ 4,000 | |||||||||||||||
Shares issued for notes payable conversion | 1,399,963 | 1,601,667 | 899,688 | |||||||||||||
Conversion price per share | $ 0.0105 | $ 0.009 | $ 0.012 | |||||||||||||
Debt amount converted into common stock | $ 14,700 | $ 14,415 | $ 10,796 | |||||||||||||
Subsequent Event [Member] | Transaction Three [Member] | ||||||||||||||||
Shares issued for notes payable conversion | 1,616,684 | |||||||||||||||
Conversion price per share | $ 0.0124 | |||||||||||||||
Debt amount converted into common stock | $ 20,000 |