Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information | |
Entity Registrant Name | Blue Earth, Inc. |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Entity Central Index Key | 1,422,109 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 94,531,461 |
Entity Filer Category | Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | bblu |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,005,330 | $ 2,883,621 |
Restricted cash | 20,027 | 632,102 |
Accounts receivable, net | 3,857,138 | 1,739,822 |
Costs and revenues in excess of billings | 903,117 | 3,967,207 |
Inventory, net | 475,714 | 352,862 |
Construction in progress | 71,128 | 68,212 |
Other receivables | 114,030 | 78,926 |
Prepaid expenses and deposits | 2,345,219 | 1,639,531 |
Assets of discontinued operations | 1,591,200 | 1,817,247 |
Total Current Assets | 11,382,903 | 13,179,530 |
PROPERTY AND EQUIPMENT, net | 65,654,593 | 56,815,626 |
OTHER ASSETS | ||
Deposits | 51,544 | 80,455 |
Natural gas futures | 2,251,711 | 2,426,266 |
Long term receivables | 1,293,987 | 1,587,548 |
Equity method investment | 8,461,352 | 9,353,402 |
Contracts and technology, net | 17,198,441 | 19,296,534 |
Total Other Assets | 29,257,035 | 32,744,205 |
TOTAL ASSETS | 106,294,531 | 102,739,361 |
CURRENT LIABILITIES | ||
Accounts payable | 4,653,696 | 3,933,969 |
Current portion of notes payable | 427,869 | 121,466 |
Related party payables | 1,333,147 | 1,333,147 |
Line of credit payable | 3,000,000 | |
Convertible note payable | 9,084,120 | |
Accrued expenses | 1,684,741 | 419,978 |
Payroll expenses payable | 261,338 | 167,780 |
Liabilities of discontinued operations | 937,134 | 354,664 |
Total Current Liabilities | 21,382,045 | 6,331,004 |
LONG TERM LIABILITIES | ||
Total Liabilities | $ 21,382,045 | $ 6,331,004 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock value | $ 400 | |
Common stock value | 94,532 | $ 94,259 |
Additional paid-in capital | 193,046,894 | 188,159,932 |
Stock subscription receivable | 2,000,000 | |
Accumulated deficit | (106,229,340) | (91,845,834) |
Total Stockholders' Equity | 84,912,486 | 96,408,357 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 106,294,531 | $ 102,739,361 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Balance Sheet | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 400,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 94,531,461 | 94,258,713 |
Common stock, shares outstanding | 94,531,461 | 94,258,713 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement | ||||
REVENUES | $ 3,576,400 | $ 1,850,038 | $ 7,328,414 | $ 3,768,352 |
COST OF SALES | 3,208,867 | 1,569,616 | 6,631,211 | 2,821,242 |
GROSS PROFIT | 367,533 | 280,422 | 697,203 | 947,110 |
OPERATING EXPENSES | ||||
Depreciation and amortization | 952,233 | 1,076,938 | 2,156,725 | 2,025,758 |
General and administrative | 5,213,526 | 3,729,968 | 10,296,243 | 8,794,021 |
Total Operating Expenses | 6,165,759 | 4,806,906 | 12,452,968 | 10,819,779 |
LOSS FROM OPERATIONS | (5,798,226) | (4,526,484) | (11,755,765) | (9,872,669) |
OTHER INCOME (EXPENSE) | ||||
Other income | 2,198 | 4,158 | 3,138 | 16,333 |
Income (loss) from equity investment | (1,064,490) | (1,292,050) | ||
Interest expense | 248,017 | 95,463 | 669,334 | 325,470 |
Mark futures to market | 8,284 | 174,555 | ||
Gain (loss) on sale of assets | 1,483 | 9,470 | 11,235 | |
Gain (loss) on settlement of litigation | (582,361) | 1,978,658 | ||
Total Other Income (Expense) | (1,899,471) | (91,305) | (1,715,914) | (309,137) |
LOSS BEFORE INCOME TAXES | $ (7,697,697) | $ (4,617,789) | $ (13,471,679) | $ (10,818,806) |
INCOME TAX EXPENSE | ||||
LOSS FROM CONTINUING OPERATIONS | $ (7,697,697) | $ (4,617,789) | $ (13,471,679) | $ (10,818,806) |
Gain (Loss) on Disposal of Discontinued Operations | (207,473) | (207,473) | ||
Other loss from discontinued operations | (164,390) | (94,052) | (704,354) | (216,495) |
Income (Loss) from Discontinued Operations | (371,863) | (94,052) | (911,827) | (216,495) |
NET LOSS | (8,069,560) | (4,711,841) | (14,383,506) | (10,398,301) |
PREFERRED DIVIDENDS | (1,096,815) | (1,489,703) | ||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (8,069,560) | $ (5,808,656) | $ (14,383,506) | $ (11,888,004) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.08) | $ (0.07) | $ (0.15) | $ (0.16) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 93,238,604 | (65,782,587) | 93,772,326 | 63,866,054 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
NET LOSS | $ (14,383,506) | $ (10,398,301) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock option and stock warrants issued for services | 2,152,498 | 2,010,037 |
Income (loss) from equity investment | (1,292,050) | |
Impairment of inventory | 369,039 | |
Mark gas futures to market | 174,555 | |
Gain (loss) on settlement of litigation | 1,978,658 | |
Gain (loss) on sale of assets | 9,470 | 11,235 |
Stock issued for services | 567,104 | 1,327,034 |
Depreciation and amortization | 2,402,550 | 282,386 |
Amortization of debt discount | 1,512,953 | |
Changes in operating assets and liabilities: | ||
Accounts receivable and billings in excess | 2,016,286 | 1,173,880 |
Inventory | (122,852) | 40,037 |
Restricted cash | 612,075 | |
Construction in progress | (371,955) | (171,226) |
Prepaid expenses and deposits | (936,977) | 328,657 |
Accounts payable and accrued expenses | 1,830,750 | (1,227,546) |
Net Cash Used in Operating Activities | (4,873,558) | (6,994,037) |
Net Cash Provided by Discontinued Operating Activities | 218,365 | 1,168,444 |
INVESTING ACTIVITIES | ||
Collection of other receivables | 90,831 | |
Proceeds from sale of equipment | 9,470 | |
Purchase of equity method investment | 400,000 | |
Lending of other receivables | 61,795 | |
Purchase of property and equipment | 8,730,449 | 2,688,446 |
Net Cash Used in Investing Activities | (9,030,148) | (2,626,651) |
Net Cash Provided by (Used in) Discontinued Investing Activities | 278,591 | (997,654) |
FINANCING ACTIVITIES | ||
Proceeds from warrants and options exercised | 5,568,957 | |
Cash received on stock subscriptions | 1,145,880 | |
Proceeds from line of credit, net | 2,911,700 | |
Proceeds from notes payable, net | 9,953,068 | 311,407 |
Repayment of notes payable and line of credit | 228,941 | 1,398,039 |
Repayment of related party loans | 4,004 | |
Net Cash Provided by Financing Activities | 12,635,827 | 5,624,201 |
Net Cash Used in Discontinued Financing Activities | (107,368) | (157,253) |
NET INCREASE (DECREASE) IN CASH | (878,291) | (3,982,950) |
CASH AT BEGINNING OF PERIOD | 2,883,621 | 8,403,731 |
CASH AT END OF PERIOD | 2,005,330 | 4,420,781 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for Interest | 96,438 | 136,447 |
NON CASH FINANCING ACTIVITIES: | ||
Common stock issued for conversion of preferred stock | 1,884,095 | |
Common stock cancelled for settlement litigation | (2,028,658) | |
Common stock issued for acquisition of subsidiary | 4,602,500 | |
Preferred stock issued as collateral for loan | 400 | |
Debt discount and conversion feature | 2,152,498 | |
Debt issued for equipment | $ 137,693 | |
Debt issuance costs paid by stock | $ 226,000 |
Condensed Financial Statements
Condensed Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Condensed Financial Statements | NOTE 1 - CONDENSED FINANCIAL STATEMENTS The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2015 and 2014, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Companys December 31, 2014 audited financial statements. The results of operations for the periods ended June 30, 2015 and 2014 are not necessarily indicative of the operating results for the full year. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Significant Accounting Policies | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Inventory Inventory is recorded at the lower of cost or market (net realizable value) using the average cost method. The inventory on hand as of June 30, 2015 consists of battery components, motors, controllers, and miscellaneous refrigeration parts of $475,714. The inventory is valued net of an allowance of $6,188 as of June 30, 2015. The Company does not have any work in progress. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company generates revenues from professional services contracts. Customers are billed, according to individual agreements. Revenues from professional services are recognized on a completed-contract basis, in accordance with ASC Topic 605-35, Construction-Type and Production-Type Contracts. Under the completed-contract basis, contract costs are recorded to a deferred asset account and billings and/or cash received are recorded to a deferred revenue liability account during the periods of construction. Costs include direct material, direct labor and subcontract labor. All revenues, costs, and profits are recognized in operations upon completion of the contract. A contract is considered completed when all costs except insignificant items have been incurred and final acceptance has been received from the customer. Corporate general and administrative expenses are charged to the periods as incurred. However, in the event a loss on a contract is foreseen, the Company will recognize the loss as incurred. For uncompleted contracts, the deferred asset (accumulated contract costs) in excess of the deferred liability (billings and/or cash received) is classified under current assets as costs in excess of billings on uncompleted contracts. The deferred liability (billings and/or cash received) in excess of the deferred asset (accumulated contract costs) is classified under current liabilities as billings in excess of costs on uncompleted contracts. Contract retentions are included in accounts receivable. The Company generates revenues from sales of products. Revenues are recognized when the products are delivered to and accepted by the customer. The Company generates revenues from sales of heat and power. Heat and power sales are metered to the customer. Metered sales are billed to customers at contractual rates. Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had, nor is expected to have a material impact on the Companys financial position, or statements. Capitalization of Construction Period Interest The Company capitalizes construction period interest as required under ASC 835-20. Both directly attributable borrowing costs and borrowing costs from a general fund are required to be capitalized. Until March 2015, the Company had no material interest expense. During March 2015, the Company borrowed $13,000,000 in part to fund the construction of its CHP projects. The convertible note payable and the credit line payable accrue interest at 12% per annum. The Company will capitalize the appropriate interest cost in accordance with ASC 835-20-25-8 through the completion of the construction of each project. The Company capitalized interest of $1,420,890 during the six months ended June 30, 2015. |
Significant Events Disclosure
Significant Events Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Significant Events Disclosure | NOTE 3 - SIGNIFICANT EVENTS Settlement of Litigation and Disputes During the six month period ended June 30, 2015, the Company received 2,190,484 shares of its common stock in settlement of two separate litigations and disputes valued at $0.926 per share resulting in a net gain on settlement of litigation of $1,978,658. In a separate legal proceeding, the Company and two consultants filed demands for arbitration with the American Arbitration Association. On August 8, 2015, the Company and the two consultants received the award from the arbitrator in the Company's arbitration with two of its consultants/former employees, who had voluntarily resigned. The arbitrator awarded the two consultants damages of $1,270,000; $101,243 for breach of contract; certain declaratory relief upholding the validity of the consulting agreement; and reimbursement of the consultants' attorney's fees and costs incurred in the arbitration in an amount to be determined at a later date. Common Stock Transactions During the six months ended June 30, 2015, the Company issued 596,565 common shares for services valued at $567,104. The Company also issued 200,000 common shares for debt issuance costs valued at $226,000. The Company cancelled the 2,190,484 shares of its common stock it received in settlement of litigation. The Company issued a stock subscription of $2,000,000 for 1,666,667 shares of its common stock and for warrants to purchase an additional 833,334 shares of common stock for $1.60 per share. The warrants are exercisable beginning six months from the issuance date and ending 5 years after they become exercisable. Credit Line Payable During the six months ended June 30, 2015, the Company borrowed $3,000,000 on the line of credit. The line of credit is for up to $4,000,000 subject to approval of the use of proceeds by the lender. The line of credit accrues interest at 12% per annum and is secured by one of the Companys CHP projects and one solar project. The Company received net proceeds of $2,911,700 after closing costs. The Company has issued 400,000 shares of Class D convertible preferred stock as tertiary collateral for the line of credit. The $88,300 of fees withheld from the proceeds of the line of credit are included in prepaid expenses and are being amortized over the term of the line of credit. CHP Plant Energized On March 30, 2015 the Company energized its initial combined heat and power (CHP) energy plant at a poultry processing facility in Sumter, South Carolina. The Company owns and operates the energy plant which provides combined heat and power (CHP) solutions. Electricity is generated and the thermal heat from the generator is captured and utilized for processes in the poultry facility, lowering energy costs, reducing greenhouse gas emissions and improving energy efficiency. The Company realized the first revenues from CHP during June 2015. Series D Preferred Stock The Company has issued 400,000 shares of its $10.00 per share Series D preferred stock as tertiary collateral against the line of credit. The Series D preferred shares are issued, but not presently outstanding. The Series D preferred shares certificate is held by a third party and the lender does not have access to the certificate without the consent and cooperation of the Company. Solely in the event of a default by the Company of its payment obligations under the terms of the line of credit, a block of the Series D preferred shares would be released and converted into common shares in accordance the formula provided in the line of credit agreement. The sufficient common shares would be sold by the lender to cure the default. Upon the repayment of the line of credit the Series D preferred stock will be returned to the Company and cancelled. The Series D preferred shares are convertible into the Companys common stock by dividing the amount of any payment under a monetary default by the average closing price of the Companys common stock for 10 business days immediately prior to a conversion, but in no event to exceed 2,500,000 shares until first obtaining shareholder approval. Related Party Notes Payable The related party notes payable, totaling $1,333,147, are due on demand, accrue interest at 12% per annum and are unsecured. Convertible Note Payable During the six months ended June 30, 2015, the Company borrowed $10,000,000 on a convertible note payable. The note payable was convertible into shares of the Companys common stock at $1.00 per share. However, on May 13, 2015, the convertible note payable was amended to increase the conversion price to $1.02 per share. The convertible note payable accrues interest at 12% per annum and is due on September 10, 2015. The convertible note payable is secured by 1 of the Companys CHP projects and the Companys assets. The Company received net proceeds of $9,953,068 after closing costs. The $46,932 in legal fees withheld from the loan proceeds are included in prepaid expenses and are being amortized over the 6 month term of the convertible note payable. The lender received 200,000 shares of common stock valued at $226,000 as consideration for making the loan. The lender also received 2,000,000 warrants to purchase shares of the Companys common stock at $1.02 per share (amended from $1.00 per share). The value of the warrants measured by the Company was $1,321,600. The value was computed using the Black-Scholes formula with a 5 year maturity, 1.62% risk free rate and a 94.46% volatility. The lender also received the right to purchase shares of the Companys common stock at $1.02 per share (amended from $1.00 per share) upon the Companys repayment of all or part of the convertible note payable. The value of the right to purchase common shares measured by the Company was $649,091. The value was computed using the Black-Scholes formula with a 1 year maturity, .25% risk free rate, a 87.06% volatility and a 5% probability of exercise. The total discount on the convertible note payable of $2,196,691 is being amortized over the 6 month term of the debt. The Company recorded $1,280,811 of capitalized interest expense from the amortization of the discount during the six months ended June 30, 2015. The following is a summary of convertible note payable the period ended June 30, 2015: Balance at December 31, 2014 $ -- Borrowing of convertible note payable 10,000,000 Discount on convertible note payable (2,196,691) Amortization of discount 1,280,811 Balance at June 30, 2015 $ 9,084,120 |
Stock Purchase Warrants and Opt
Stock Purchase Warrants and Options Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Stock Purchase Warrants and Options Disclosure | NOTE 4 - STOCK PURCHASE, WARRANTS AND OPTIONS A summary of the Companys warrant activity during the periods ended June 30, 2015 and December 31, 2014 is presented below: Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Warrants Price Term Value Balance Outstanding, December 31, 2013 22,660,668 $ 1.90 6.52 $ 43,055,269 Granted 200,000 $ 0.00 10.00 Granted 100,000 $ 1.00 10.00 Granted 8,521,654 $ 6.00 3.00 Cancelled (3,600,000) $ (1.18) -- Forfeited (1,472,060) $ (1.90) -- Exercised (9,778,344) $ (1.60) -- Balance Outstanding, December 31, 2014 16,631,918 $ 3.80 5.29 $ 53,353,862 Granted 2,000,000 $ 1.00 5.00 Granted 300,000 1.08 5.00 Granted 833,334 1.60 5.00 Balance Outstanding, June 30, 2015 19,765,252 $ 3.16 4.41 $ 62,385,196 Exercisable, June 30, 2015 16,724,775 $ 3.38 3.94 $ 56,467,004 A summary of the Companys option activity during the periods ended June 30, 2015 and December 31, 2014 is presented below: Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Options Price Term Value Balance Outstanding, December 31, 2013 1,011,290 $ 1.85 8.22 $ 1,851,695 Granted 1,500,000 $ 2.00 10 Granted 150,000 $ 3.00 10 Granted 120,000 $ 2.45 10 Granted 60,000 $ 2.27 10 Granted 105,000 $ 3.10 10 Granted 60,000 $ 2.45 10 Granted 100,000 $ 2.54 10 Granted 10,000 $ 1.29 10 Granted 52,720 $ 1.37 10 Granted 5,000 $ 0.75 10 Forfeited (492,119) $ (3.37) -- Exercised (85,024) $ (1.36) -- Balance Outstanding, December 31, 2014 2,596,867 $ 2.54 8.82 6,596,037 Granted 30,000 $ 1.20 10 Granted 100,000 $ 1.01 10 Granted 12,500 $ 1.21 10 Granted 5,000 $ 0.98 10 Granted 15,000 $ 0.97 10 Granted 7,500 $ 0.90 10 Granted 5,000 $ 0.92 10 Granted 35,000 $ 1.11 10 Granted 74,000 $ 1.15 10 Forfeited (68,513) $ (2.24) -- Balance Outstanding, June 30, 2015 2,812,354 $ 2.42 8.41 $ 6,804,139 Exercisable, June 30, 2015 1,379,194 $ 1.96 8.01 $ 2,697,170 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Fair Value of Financial Instruments Disclosure | NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows the provisions of ASC 820 for fair value measurements of all nonfinancial assets and nonfinancial liabilities not recognized or disclosed at fair value in the financial statements on a recurring basis. The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Companys own assumptions used to measure assets and liabilities at fair value. An asset or liabilitys classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. There were no changes in the valuation techniques during the periods ended June 30, 2015 and December 31, 2014. The estimated fair value of certain financial instruments, including cash and cash equivalents and current liabilities, are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Assets: On December 15, 2014, the Company purchased 639.25 natural gas option contracts for $2,429,150, to mitigate its exposure to fluctuations in natural gas price in connection with its CHP facility in Alberta, Canada. The gas delivery dates range from January 1, 2016 to December 31, 2022. At each reporting date the Company revalues the options to the NYMEX-NG last trade value. The Company recorded a loss of $174,555 and $-0- for the six months ended June 30, 2015 and 2014, respectively, on the value of contracts. Assets measured at fair value on a recurring and non-recurring basis consisted of the following at June 30, 2015: Liabilities: Total Carrying Value at June 30, 2015 (Level 1) (Level 2) (Level 3) Natural gas futures $ 2,251,712 $ 2,251,712 $ - $ - The following is a summary of activity of Level 1 assets for the periods ended June 30, 2015 and December 31, 2014: Balance at December 31, 2013 $ -- Purchases of futures contracts 2,429,150 Change in fair value 2014 (2,884) Balance at December 31, 2014 2,426,266 Purchases of futures contracts -- Change in fair value 2015 (174,555) Balance at June 30, 2015 $ 2,251,711 |
Property and Equipment Disclosu
Property and Equipment Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Property and Equipment Disclosure | NOTE 6 - PROPERTY AND EQUIPMENT The major classes of assets as of June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 December 31, 2014 Office and computer equipment $ 350,609 $ 327,023 Software 91,256 91,256 Manufacturing and installation equipment 455,150 442,450 Leasehold improvements - 759,304 Cogeneration plants 65,334,429 56,022,580 Vehicles - - Sub Total 66,231,444 57,642,613 Accumulated depreciation (576,851) (826,987) Net $ 65,654,593 $ 56,815,626 Depreciation expense was $58,634 and $66,316, for the six months ended June 30, 2015 and 2014, respectively. Approximately $65,908,133 of the Companys property and equipment serves as security against its debt. Depreciation of the cogeneration plants commenced when the Sumter plant was placed in service during the second quarter of 2015. Depreciation on additional plants will commence when they are placed in service. |
Commitments and Contingencies D
Commitments and Contingencies Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Commitments and Contingencies Disclosure | NOTE 7 - COMMITMENTS AND CONTINGENCIES Pending Arbitrations The Company and two consultants filed demands for arbitration with the American Arbitration Association. On August 8, 2015, the Company and two consultants received the award from the arbitrator in the Company's arbitration with two of its consultants/former employees, who had voluntarily resigned. The arbitrator awarded the two consultants damages of $1,270,000; $101,243 for breach of contract; certain declaratory relief upholding the validity of the consulting agreement; and reimbursement of the consultants attorneys fees and costs incurred in the arbitration in an amount to be determined at a later date. The Company has filed a demand for arbitration with the AAA and National Energy Partners and its subsidiary, Hawaii Solar, LLC,(NEP) have counter-claimed. The Company alleged that NEP is in arrears on the payment of EPC services performed by the Company for construction work on the 24 schools in Hawaii contracted for between the parties. The Company further alleged that NEP provided deficient design drawings and interfered with the construction of the projects and engaged in negligence, fraud and/or willful misconduct. NEP alleged that the Company failed to perform the contracted EPC services in a timely, proper manner and desires to validate termination of the contract in the arbitration process. The Company expects to prevail in this dispute, which would result in no material adverse consequences to the Company, other than legal costs and a delay in the recognition of revenue. However, if NEP prevails, the Company is likely to lose about $1.9 million on the work performed to date, as well as a possibility of limited damage payments. The Company is defending against counter claims raised in the arbitration. On August 6, 2014, the Company commenced a civil action in Hawaii for declaratory and injunctive relief and damages against NEP in the circuit court of the First Circuit of Hawaii (CIV No. 14-1-1694-08). Subsequent to the Company commencing the above-described arbitration, it learned that NEP did not possess a Hawaii contractor license. The Company then withdrew its demand for arbitration without prejudice. The Company is seeking damages in excess of $1,300,000 and a declaratory judgment and injunctive relief that the subcontracts are invalid, void and unenforceable, the arbitration provision in the subcontracts is unenforceable and the pending arbitration should be terminated. Arbitration hearings began in May 2015 and are expected to continue through the third quarter of 2015. Equipment Purchase Commitments The Company has entered into equipment purchase agreements whereby it has committed to paying approximately $19,536,518 for electrical co-generation equipment. The Company has made deposits of approximately $16,183,490 (83% of the total commitment) toward the purchase of the equipment which is included in construction in progress-property and equipment. The balance of the purchase price will be due upon acceptance of the equipment by the Company in accordance with progress payments as set out in the purchase contracts. Pending Litigation On October 24, 2014, a purported class action lawsuit was filed against the Company, two executive officers, and one non-executive officer in the U.S. District Court for the Central District of California (Case No:2:14-cv-08263).On January 21, 2015, the court appointed a Lead Plaintiff and Lead Plaintiff's Counsel. The Court also re-captioned the case In re Blue Earth, Inc. Securities Litigation, File No. CV 14-8263 DSF (JEMx). On March 13, 2015, plaintiff filed a First Amended Complaint ("FAC"). The FAC alleges claims under Sections 10(b) and 20(a) of the Exchange Act, and a purported class of purchasers of the Company's stock during the period from October 7, 2013 through October 21, 2014. Defendants' responded and filed a motion to dismiss FAC. Plaintiff's opposition to the motion has been submitted. Oral arguments regarding the motion to dismiss are scheduled for September 2015. The Company believes the claims contained in the complaint are without merit and is vigorously defending this matter. |
Discontinued Operations Disclos
Discontinued Operations Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Discontinued Operations Disclosure | NOTE 8 - DISCONTINUED OPERATIONS During April 2015, the Companys Board of Directors determined to focus the Companys financial resources on its business units that are scalable. Accordingly the Board of Directors decided to discontinue the Blue Earth Energy Management Services, Inc. (BEEMS) subsidiary. The decision was to sell any parts of BEEMS for which a buyer could be found and to shut down those parts that were not salable. On May 22, 2015, the Company entered into an Asset Purchase Agreement (the Agreement) for the website component of BEEMS. Pursuant to the Agreement, the buyers purchased from the Company, the website, the related inventory and certain intangible assets for cash of $450,000 and $125,000 in the form of a promissory note. Accordingly, the Companys financial statements have been retroactively restated for all periods presented to reflect the assets, liabilities and operations of BEEMS as discontinued. On July 31, 2015, the Company entered into an Asset Purchase Agreement (APA) for the service component of BEEMS. Pursuant to the APA, the buyers purchased the service vehicles, service assets and contracts and related inventory for cash of $216,711 plus a two-year earn-out agreement for up to an additional $250,000. The following is a summary of the transaction: Sales Price $ 575,000 Inventory (105,487) Intangible assets (245,825) Commission paid (40,250) Gain on sale of website 183,438 Impairment of net assets of BEEMS (390,911) Loss on Disposal of Discontinued Operations $ (207,473) Revenues of the discontinued operations were $3,227,539 and $3,026,437 during the six months ended June 30, 2015 and 2014, respectively. |
Operating Segments Disclosure
Operating Segments Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Operating Segments Disclosure | NOTE 9 - OPERATING SEGMENTS Operating segments are defined as components of an enterprise about which separate and discreet financial information is available and is evaluated regularly by the chief operating decision-maker in assessing performance and determining how to best allocate Company resources. The Companys chief operating decision makers direct the allocation of resources to operating segments based on the business plan, budgets, profitability and cash flows of each respective segment. The Company historically has had two principal operating segments: (1) technology and (2) construction of energy facilities owned by third parties. During the second quarter of 2015, a third segment was introduced when power and heat was produced from facilities built and owned by the Company. These operating segments were delineated based on the nature of the products and services offered. The Company evaluates the financial performance of the respective segments based on several factors, of which the primary measure is business segment income before taxes. All significant intercompany transactions and balances have been eliminated. The following tables show the operations of the Companys reportable segments for the six months ended June 30, 2015 and 2014: Heat and Power Technology Construction Production Corporate Consolidated June 30, 2015 Revenues $ 248,270 $ 7,078,545 $ 1,599 $ - $ 7,328,414 Cost of Sales 232,591 6,398,620 - - 6,631,211 Depreciation and amortization 449,315 937,210 549 769,651 2,156,725 General and administrative 1,268,165 3,479,360 13,893 5,534,825 10,296,243 Other income (expense) (43,131) 8,870 (174,554) (1,507,099) (1,715,914) Discontinued operations - - - (911,827) (911,827) Net income (loss) $ (1,744,932) $ (3,727,775) $ (187,397) $ (8,723,402) $ (14,383,506) Total assets $ 2,578,514 $ 30,026,314 $ 23,788,451 $ 49,901,252 $ 106,294,531 Heat and Power Technology Construction Production Corporate Consolidated June 30, 2014 Revenues $ 281,235 $ 3,487,117 $ - $ - $ 3,768,352 Cost of Sales 139,923 2,681,319 - - 2,821,242 Depreciation and amortization 685,683 943,686 - 396,209 2,025,578 General and administrative 1,325,794 1,961,396 - 5,507,011 8,794,201 Other income (expense) (26,800) 158,059 - (440,396) (309,137) Discontinued operations - - - (216,495) (216,495) Net income (loss) $ (1,896,965) $ (1,941,225) $ - $ (6,560,111) $ (10,398,301) Total assets $ 1,496,514 $ 7,619,491 $ - $ 79,072,866 $ 88,188,871 |
Investment in Equity Subsidiary
Investment in Equity Subsidiary Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Investment in Equity Subsidiary Disclosure | NOTE 10 - INVESTMENT IN EQUITY SUBSIDIARY On October 30, 2014, the Company closed on an agreement to acquire shares of PowerGenix common stock for $10 million payable through a combination of cash ($2 million) and Company restricted common shares (3,729,604) valued at $2.145 per share. The restricted shares are subject to a lock up/leak out agreement. Reciprocal equity ownership is designed to fund PowerGenix and maximize the working relationship between the two companies. The Companys ownership constitutes 24.4% of the equity of PowerGenix. The Company has been granted exclusive marketing rights to use the proprietary PowerGenix Nickel-Zinc (NiZn) batteries to produce intelligent digital NiZn energy storage systems using the Companys proprietary intellectual property for a number of market verticals including: Stationary UPS Systems in the Data Center, Military, Telecom, Utility, Renewable Energy, Motor Start-Up, Frequency Regulation, Peak Shaving/Shifting and Demand Shifting market segments. The marketing rights are global for most market verticals. During the six months ended June 30, 2015, PowerGenix realized a net loss of $5,622,397. Accordingly the Company recognized 24.4% of the net loss in the amount of $1,292,050. During the six months ended June 30, 2015, the Company completed its cash obligation by investing an additional $400,000 into PowerGenix. Summarized financial information as of June 30, 2015 and for the six months then ended of PowerGenix is presented as follows: Total Assets $ 3,295,020 Total Liabilities $ 4,337,921 Net Income (Loss) $(5,622,397) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Subsequent Events | NOTE 11 - SUBSEQUENT EVENTS On July 2, 2015, the Company collected the $2,000,000 stock subscription receivable. On July 13, 2015, the Company issued 13,158 shares of its common for consulting services. On July 17, 2015, the Company granted 250,000 common stock purchase warrants to consultants. The warrants have an exercise price of $1.02 per share and a term of 3 years. On July 27, 2015 the Company issued 12,500 shares of its common stock to a director for his services. On August 3, 2015, the Company granted 440,000 non-qualified stock option shares to an employee. The shares have an exercise price of $0.87 per share. 110,000 shares will vest immediately and 110,000 shares shall vest on first, second and third anniversary dates of employment. On July 17, 2015 the Companys shareholders approved an increase in the authorized shares of common stock under the 2009 Equity Incentive Plan from 4,542,000 to 8,542,000 shares. The current market value of such common stock was $1.51 per share, as of May 26, 2015. The 2009 Plan is intended to encourage stock ownership by the Companys directors, officers, employees and consultants, and of its subsidiaries, and thereby enhance their proprietary interest in the Company. The Company intends to amend its Registration Statement on Form S-8 to register the additional options and underlying common stock issuable under the 2009 Plan. On July 31, 2015, the Company sold the majority of the remaining BEEMS business assets for cash of $216,771 and the assumption of the liabilities for the BEEMS service vehicles. The insignificant remainder of the BEEMS operations will be liquidated or absorbed into other segments of the Companys operations. In accordance with ASC 855-10, the Companys management has reviewed all material events and there are no additional material subsequent events to report. |
Significant Accounting Polici17
Significant Accounting Policies: Inventory, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Inventory, Policy | Inventory Inventory is recorded at the lower of cost or market (net realizable value) using the average cost method. The inventory on hand as of June 30, 2015 consists of battery components, motors, controllers, and miscellaneous refrigeration parts of $475,714. The inventory is valued net of an allowance of $6,188 as of June 30, 2015. The Company does not have any work in progress. |
Significant Accounting Polici18
Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Significant Accounting Polici19
Significant Accounting Policies: Revenue Recognition Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Revenue Recognition Policy | Revenue Recognition The Company generates revenues from professional services contracts. Customers are billed, according to individual agreements. Revenues from professional services are recognized on a completed-contract basis, in accordance with ASC Topic 605-35, Construction-Type and Production-Type Contracts. Under the completed-contract basis, contract costs are recorded to a deferred asset account and billings and/or cash received are recorded to a deferred revenue liability account during the periods of construction. Costs include direct material, direct labor and subcontract labor. All revenues, costs, and profits are recognized in operations upon completion of the contract. A contract is considered completed when all costs except insignificant items have been incurred and final acceptance has been received from the customer. Corporate general and administrative expenses are charged to the periods as incurred. However, in the event a loss on a contract is foreseen, the Company will recognize the loss as incurred. For uncompleted contracts, the deferred asset (accumulated contract costs) in excess of the deferred liability (billings and/or cash received) is classified under current assets as costs in excess of billings on uncompleted contracts. The deferred liability (billings and/or cash received) in excess of the deferred asset (accumulated contract costs) is classified under current liabilities as billings in excess of costs on uncompleted contracts. Contract retentions are included in accounts receivable. The Company generates revenues from sales of products. Revenues are recognized when the products are delivered to and accepted by the customer. The Company generates revenues from sales of heat and power. Heat and power sales are metered to the customer. Metered sales are billed to customers at contractual rates. |
Significant Accounting Polici20
Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had, nor is expected to have a material impact on the Companys financial position, or statements. |
Significant Accounting Polici21
Significant Accounting Policies: Capitalization of Construction Period Interest Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Capitalization of Construction Period Interest Policy | Capitalization of Construction Period Interest The Company capitalizes construction period interest as required under ASC 835-20. Both directly attributable borrowing costs and borrowing costs from a general fund are required to be capitalized. Until March 2015, the Company had no material interest expense. During March 2015, the Company borrowed $13,000,000 in part to fund the construction of its CHP projects. The convertible note payable and the credit line payable accrue interest at 12% per annum. The Company will capitalize the appropriate interest cost in accordance with ASC 835-20-25-8 through the completion of the construction of each project. The Company capitalized interest of $1,420,890 during the six months ended June 30, 2015. |
Significant Events Disclosure_
Significant Events Disclosure: Convertible Debt Table (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Convertible Debt Table | Balance at December 31, 2014 $ -- Borrowing of convertible note payable 10,000,000 Discount on convertible note payable (2,196,691) Amortization of discount 1,280,811 Balance at June 30, 2015 $ 9,084,120 |
Stock Purchase Warrants and O23
Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity Note, Warrants (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants | Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Warrants Price Term Value Balance Outstanding, December 31, 2013 22,660,668 $ 1.90 6.52 $ 43,055,269 Granted 200,000 $ 0.00 10.00 Granted 100,000 $ 1.00 10.00 Granted 8,521,654 $ 6.00 3.00 Cancelled (3,600,000) $ (1.18) -- Forfeited (1,472,060) $ (1.90) -- Exercised (9,778,344) $ (1.60) -- Balance Outstanding, December 31, 2014 16,631,918 $ 3.80 5.29 $ 53,353,862 Granted 2,000,000 $ 1.00 5.00 Granted 300,000 1.08 5.00 Granted 833,334 1.60 5.00 Balance Outstanding, June 30, 2015 19,765,252 $ 3.16 4.41 $ 62,385,196 Exercisable, June 30, 2015 16,724,775 $ 3.38 3.94 $ 56,467,004 |
Stock Purchase Warrants and O24
Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity, Options (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Stockholders' Equity, Options | Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Options Price Term Value Balance Outstanding, December 31, 2013 1,011,290 $ 1.85 8.22 $ 1,851,695 Granted 1,500,000 $ 2.00 10 Granted 150,000 $ 3.00 10 Granted 120,000 $ 2.45 10 Granted 60,000 $ 2.27 10 Granted 105,000 $ 3.10 10 Granted 60,000 $ 2.45 10 Granted 100,000 $ 2.54 10 Granted 10,000 $ 1.29 10 Granted 52,720 $ 1.37 10 Granted 5,000 $ 0.75 10 Forfeited (492,119) $ (3.37) -- Exercised (85,024) $ (1.36) -- Balance Outstanding, December 31, 2014 2,596,867 $ 2.54 8.82 6,596,037 Granted 30,000 $ 1.20 10 Granted 100,000 $ 1.01 10 Granted 12,500 $ 1.21 10 Granted 5,000 $ 0.98 10 Granted 15,000 $ 0.97 10 Granted 7,500 $ 0.90 10 Granted 5,000 $ 0.92 10 Granted 35,000 $ 1.11 10 Granted 74,000 $ 1.15 10 Forfeited (68,513) $ (2.24) -- Balance Outstanding, June 30, 2015 2,812,354 $ 2.42 8.41 $ 6,804,139 Exercisable, June 30, 2015 1,379,194 $ 1.96 8.01 $ 2,697,170 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments Disclosure: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Liabilities: Total Carrying Value at June 30, 2015 (Level 1) (Level 2) (Level 3) Natural gas futures $ 2,251,712 $ 2,251,712 $ - $ - |
Fair Value of Financial Instr26
Fair Value of Financial Instruments Disclosure: Summary of Activity of Level 1 Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Summary of Activity of Level 1 Assets | Balance at December 31, 2013 $ -- Purchases of futures contracts 2,429,150 Change in fair value 2014 (2,884) Balance at December 31, 2014 2,426,266 Purchases of futures contracts -- Change in fair value 2015 (174,555) Balance at June 30, 2015 $ 2,251,711 |
Property and Equipment Disclo27
Property and Equipment Disclosure: Schedule of Major Classes of Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Major Classes of Assets | June 30, 2015 December 31, 2014 Office and computer equipment $ 350,609 $ 327,023 Software 91,256 91,256 Manufacturing and installation equipment 455,150 442,450 Leasehold improvements - 759,304 Cogeneration plants 65,334,429 56,022,580 Vehicles - - Sub Total 66,231,444 57,642,613 Accumulated depreciation (576,851) (826,987) Net $ 65,654,593 $ 56,815,626 |
Discontinued Operations Discl28
Discontinued Operations Disclosure: Schedule of Disposal, Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Disposal, Discontinued Operations | Sales Price $ 575,000 Inventory (105,487) Intangible assets (245,825) Commission paid (40,250) Gain on sale of website 183,438 Impairment of net assets of BEEMS (390,911) Loss on Disposal of Discontinued Operations $ (207,473) |
Operating Segments Disclosure_
Operating Segments Disclosure: Schedule of Segment Reporting Information, by Segment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | Heat and Power Technology Construction Production Corporate Consolidated June 30, 2015 Revenues $ 248,270 $ 7,078,545 $ 1,599 $ - $ 7,328,414 Cost of Sales 232,591 6,398,620 - - 6,631,211 Depreciation and amortization 449,315 937,210 549 769,651 2,156,725 General and administrative 1,268,165 3,479,360 13,893 5,534,825 10,296,243 Other income (expense) (43,131) 8,870 (174,554) (1,507,099) (1,715,914) Discontinued operations - - - (911,827) (911,827) Net income (loss) $ (1,744,932) $ (3,727,775) $ (187,397) $ (8,723,402) $ (14,383,506) Total assets $ 2,578,514 $ 30,026,314 $ 23,788,451 $ 49,901,252 $ 106,294,531 Heat and Power Technology Construction Production Corporate Consolidated June 30, 2014 Revenues $ 281,235 $ 3,487,117 $ - $ - $ 3,768,352 Cost of Sales 139,923 2,681,319 - - 2,821,242 Depreciation and amortization 685,683 943,686 - 396,209 2,025,578 General and administrative 1,325,794 1,961,396 - 5,507,011 8,794,201 Other income (expense) (26,800) 158,059 - (440,396) (309,137) Discontinued operations - - - (216,495) (216,495) Net income (loss) $ (1,896,965) $ (1,941,225) $ - $ (6,560,111) $ (10,398,301) Total assets $ 1,496,514 $ 7,619,491 $ - $ 79,072,866 $ 88,188,871 |
Investment in Equity Subsidia30
Investment in Equity Subsidiary Disclosure: Summarized financial information, Equity Method Investment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Summarized financial information, Equity Method Investment | Total Assets $ 3,295,020 Total Liabilities $ 4,337,921 Net Income (Loss) $(5,622,397) |
Significant Accounting Polici31
Significant Accounting Policies: Inventory, Policy (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Details | ||
Inventory on hand | $ 475,714 | $ 352,862 |
Inventory is valued net of an allowance of | $ 6,188 |
Significant Accounting Polici32
Significant Accounting Policies: Capitalization of Construction Period Interest Policy (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Details | |
Capitalized interest | $ 1,420,890 |
Significant Events Disclosure (
Significant Events Disclosure (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Gain (loss) on settlement of litigation | $ (582,361) | $ 1,978,658 | |||
Line of credit payable | $ 3,000,000 | 3,000,000 | |||
Proceeds from line of credit | $ 2,911,700 | ||||
Series D Preferred Stock issued | 400,000 | 400,000 | |||
Related party notes payable | $ 1,333,147 | $ 1,333,147 | $ 1,333,147 | ||
Proceeds from notes payable | 9,953,068 | $ 311,407 | |||
Capitalized interest | 1,420,890 | ||||
Line of credit fees | |||||
Prepaid expenses | 88,300 | 88,300 | |||
Convertible Note Payable legal fees | |||||
Prepaid expenses | $ 46,932 | $ 46,932 | |||
Common shares for services | |||||
Common stock issued | 13,158 | 596,565 | |||
Proceeds from or value of stock issued | $ 567,104 | ||||
Common shares for debt issuance costs | |||||
Common stock issued | 200,000 | ||||
Proceeds from or value of stock issued | $ 226,000 | ||||
Common stock from settlement of litigation | |||||
Common stock cancelled | 2,190,484 | ||||
Common stock for subscription agreement | |||||
Common stock issued | 1,666,667 | ||||
Proceeds from or value of stock issued | $ 2,000,000 | ||||
As consideration for a loan | |||||
Common stock issued | 200,000 | ||||
Proceeds from or value of stock issued | $ 226,000 | ||||
Warrants issued for debt | 2,000,000 | ||||
Value of the warrants issued | $ 1,321,600 | ||||
Capitalized interest | $ 1,280,811 |
Significant Events Disclosure34
Significant Events Disclosure: Convertible Debt Table (Details) | Jun. 30, 2015USD ($) |
Details | |
Convertible note payable | $ 9,084,120 |
Stock Purchase Warrants and O35
Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity Note, Warrants (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warrants outstanding | 19,765,252 | 16,631,918 | 22,660,668 |
Weighted average exercise price, warrants outstanding | $ 3.16 | $ 3.80 | $ 1.90 |
Aggregate intrinsic value, warrants outstanding | $ 62,385,196 | $ 53,353,862 | $ 43,055,269 |
Warrants cancelled | (3,600,000) | ||
Weighted average exercise price, warrants cancelled | $ (1.18) | ||
Warrants forfeited | (1,472,060) | ||
Weighted average exercise price, warrants forfeited | $ (1.90) | ||
Warrants exercised | (9,778,344) | ||
Weighted average exercise price, warrants exercised | $ (1.60) | ||
Warrants exercisable | 16,724,775 | ||
Weighted average exercise price, warrants exercisable | $ 3.38 | ||
Aggregate intrinsic value, warrants exercisable | $ 56,467,004 | ||
Grant (1) | |||
Warrants granted | 2,000,000 | 200,000 | |
Weighted average exercise price, warrants granted | $ 1 | ||
Grant (2) | |||
Warrants granted | 300,000 | 100,000 | |
Weighted average exercise price, warrants granted | $ 1.08 | $ 1 | |
Grant (3) | |||
Warrants granted | 833,334 | 8,521,654 | |
Weighted average exercise price, warrants granted | $ 1.60 | $ 6 |
Stock Purchase Warrants and O36
Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity, Options (Details) - USD ($) | 6 Months Ended | 12 Months Ended | 24 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options outstanding | 2,812,354 | 2,596,867 | 2,596,867 | 1,011,290 |
Weighted average exercise price, options outstanding | $ 2.42 | $ 2.54 | $ 2.54 | $ 1.85 |
Aggregate intrinsic value, option outstanding | $ 6,804,139 | $ 6,596,037 | $ 6,596,037 | $ 1,851,695 |
Stock options forfeited | (68,513) | (492,119) | ||
Weighted average exercise price, options forfeited | $ (2.24) | $ (3.37) | ||
Stock options exercised | (85,024) | |||
Weighted average exercise price, options exercised | $ (1.36) | |||
Stock options exercisable | 1,379,194 | |||
Weighted average exercise price, options exercisable | $ 1.96 | |||
Aggregate intrinsic value, options exercisable | $ 2,697,170 | |||
Grant (1) | ||||
Stock options granted | 30,000 | 1,500,000 | ||
Weighted average exercise price, options granted | $ 1.20 | $ 2 | ||
Grant (2) | ||||
Stock options granted | 100,000 | 150,000 | ||
Weighted average exercise price, options granted | $ 1.01 | $ 3 | ||
Grant (3) | ||||
Stock options granted | 12,500 | 120,000 | ||
Weighted average exercise price, options granted | $ 1.21 | $ 2.45 | ||
Grant (4) | ||||
Stock options granted | 5,000 | 60,000 | ||
Weighted average exercise price, options granted | $ 0.98 | $ 2.27 | ||
Grant (5) | ||||
Stock options granted | 15,000 | 105,000 | ||
Weighted average exercise price, options granted | $ 0.97 | $ 3.10 | ||
Grant (6) | ||||
Stock options granted | 7,500 | 60,000 | ||
Weighted average exercise price, options granted | $ 0.90 | $ 2.45 | ||
Grant (7) | ||||
Stock options granted | 5,000 | 100,000 | ||
Weighted average exercise price, options granted | $ 0.92 | $ 2.54 | ||
Grant (8) | ||||
Stock options granted | 35,000 | 10,000 | ||
Weighted average exercise price, options granted | $ 1.11 | $ 1.29 | ||
Grant (9) | ||||
Stock options granted | 74,000 | 52,720 | ||
Weighted average exercise price, options granted | $ 1.15 | $ 1.37 | ||
Grant (10) | ||||
Stock options granted | 5,000 | |||
Weighted average exercise price, options granted | $ 0.75 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments Disclosure: Summary of Activity of Level 1 Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Details | ||
Purchases of futures contracts | $ 2,429,150 | |
Change in fair value, assets | $ (174,555) | (2,884) |
Fair Value, Level 1 Assets | $ 2,251,711 | $ 2,426,266 |
Property and Equipment Disclo38
Property and Equipment Disclosure: Schedule of Major Classes of Assets (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Property and Equipment, asset value | $ 66,231,444 | $ 57,642,613 |
Accumulated depreciation on property and equipment assets | (576,851) | (826,987) |
Property and equipment, asset value, Net | 65,654,593 | 56,815,626 |
Computer Equipment | ||
Property and Equipment, asset value | 350,609 | 327,023 |
Software and Software Development Costs | ||
Property and Equipment, asset value | 91,256 | 91,256 |
Other Machinery and Equipment | ||
Property and Equipment, asset value | 455,150 | 442,450 |
Leasehold Improvements | ||
Property and Equipment, asset value | 759,304 | |
Cogeneration plants | ||
Property and Equipment, asset value | $ 65,334,429 | $ 56,022,580 |
Commitments and Contingencies39
Commitments and Contingencies Disclosure (Details) - Jun. 30, 2015 - USD ($) | Total |
Litigation settlement to be paid | $ 1,270,000 |
Equipment Purchase Agreements | |
Commitment to pay | 19,536,518 |
Deposits made toward purchase | $ 16,183,490 |
Discontinued Operations Discl40
Discontinued Operations Disclosure: Schedule of Disposal, Discontinued Operations (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Jul. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | |
Gain (Loss) on Disposal of Discontinued Operations | $ 216,771 | $ (207,473) | $ (207,473) |
Sales Price | |||
Gain (Loss) on Disposal of Discontinued Operations | 575,000 | ||
Inventories | |||
Gain (Loss) on Disposal of Discontinued Operations | (105,487) | ||
Intangible assets: | |||
Gain (Loss) on Disposal of Discontinued Operations | (245,825) | ||
Commission paid | |||
Gain (Loss) on Disposal of Discontinued Operations | (40,250) | ||
Gain on sale of website | |||
Gain (Loss) on Disposal of Discontinued Operations | $ 183,438 |
Discontinued Operations Discl41
Discontinued Operations Disclosure (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Revenues of the discontinued operations | $ 3,227,539 | $ 3,026,437 |
Operating Segments Disclosure42
Operating Segments Disclosure: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
REVENUES | $ 3,576,400 | $ 1,850,038 | $ 7,328,414 | $ 3,768,352 | |
COST OF SALES | 3,208,867 | 1,569,616 | 6,631,211 | 2,821,242 | |
Depreciation and amortization | 952,233 | 1,076,938 | 2,156,725 | 2,025,758 | |
General and administrative | 5,213,526 | 3,729,968 | 10,296,243 | 8,794,021 | |
Total Other Income (Expense) | (1,899,471) | (91,305) | (1,715,914) | (309,137) | |
Income (Loss) from Discontinued Operations | (371,863) | (94,052) | (911,827) | (216,495) | |
Net income (loss) | (8,069,560) | (4,711,841) | (14,383,506) | (10,398,301) | |
Total Assets | 106,294,531 | 88,188,871 | 106,294,531 | 88,188,871 | $ 102,739,361 |
Technology Segment | |||||
REVENUES | 248,270 | 281,235 | |||
COST OF SALES | 232,591 | 139,923 | |||
Depreciation and amortization | 449,315 | 685,683 | |||
General and administrative | 1,268,165 | 1,325,794 | |||
Total Other Income (Expense) | (43,131) | (26,800) | |||
Net income (loss) | (1,744,932) | (1,896,965) | |||
Total Assets | 2,578,514 | 1,496,514 | 2,578,514 | 1,496,514 | |
Construction Segment | |||||
REVENUES | 7,078,545 | 3,487,117 | |||
COST OF SALES | 6,398,620 | 2,681,319 | |||
Depreciation and amortization | 937,210 | 943,686 | |||
General and administrative | 3,479,360 | 1,961,396 | |||
Total Other Income (Expense) | 8,870 | 158,059 | |||
Net income (loss) | (3,727,775) | (1,941,225) | |||
Total Assets | 30,026,314 | 7,619,491 | 30,026,314 | 7,619,491 | |
Heat and Power Production Segment | |||||
REVENUES | 1,599 | ||||
Depreciation and amortization | 549 | ||||
General and administrative | 13,893 | ||||
Total Other Income (Expense) | (174,554) | ||||
Net income (loss) | (187,397) | ||||
Total Assets | 23,788,451 | 23,788,451 | |||
Corporate Segment | |||||
Depreciation and amortization | 769,651 | 396,209 | |||
General and administrative | 5,534,825 | 5,507,011 | |||
Total Other Income (Expense) | (1,507,099) | (440,396) | |||
Income (Loss) from Discontinued Operations | (911,827) | (216,495) | |||
Net income (loss) | (8,723,402) | (6,560,111) | |||
Total Assets | $ 49,901,252 | $ 79,072,866 | $ 49,901,252 | $ 79,072,866 |
Investment in Equity Subsidia43
Investment in Equity Subsidiary Disclosure: Summarized financial information, Equity Method Investment (Details) - Jun. 30, 2015 - USD ($) | Total |
Details | |
PowerGenix assets | $ 3,295,020 |
PwerGenix liabilities | 4,337,921 |
PowerGenix net income (loss) | $ (5,622,397) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Aug. 03, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Jul. 17, 2015 |
Increase in the authorized shares of common stock under the 2009 Equity Incentive Plan | 8,542,000 | ||||
Gain (Loss) on Disposal of Discontinued Operations | $ 216,771 | $ (207,473) | $ (207,473) | ||
Common stock for subscription agreement | |||||
Proceeds from or value of stock issued | $ 2,000,000 | ||||
Common stock issued | 1,666,667 | ||||
Common shares for services | |||||
Proceeds from or value of stock issued | $ 567,104 | ||||
Common stock issued | 13,158 | 596,565 | |||
Common stock purchase warrants to consultants | |||||
Common stock issued | 250,000 | ||||
Common shares for services - director | |||||
Common stock issued | 12,500 | ||||
Non-qualified stock option shares | |||||
Common stock issued | 440,000 |
Property and Equipment Disclo45
Property and Equipment Disclosure (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Depreciation expense on property and equipment | $ 58,634 | $ 66,316 |
Value of property and equipment serving as security against debt | $ 65,908,133 |
Uncategorized Items - bblu-2015
Label | Element | Value |
Gain (loss) on sale of assets | us-gaap_GainsLossesOnSalesOfAssets | $ 1,483 |
Income (loss) from equity investment | us-gaap_IncomeLossFromEquityMethodInvestments | $ (1,064,490) |