Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015shares | |
Document and Entity Information | |
Entity Registrant Name | Blue Earth, Inc. |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2015 |
Amendment Flag | false |
Entity Central Index Key | 1,422,109 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 93,404,858 |
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 | Q1 |
Trading Symbol | bblu |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 6,090,154 | $ 2,883,621 |
Restricted cash | 632,258 | 632,102 |
Accounts receivable, net | 3,438,804 | 1,739,822 |
Costs and revenues in excess of billings | 552,930 | 3,967,207 |
Inventory, net | 521,858 | 352,862 |
Construction in progress | 71,128 | 68,213 |
Other receivables | 76,194 | 78,926 |
Prepaid expenses and deposits | 1,742,954 | 1,639,531 |
Total Current Assets | 13,126,280 | 11,362,284 |
PROPERTY AND EQUIPMENT, net | 63,881,481 | 56,815,626 |
OTHER ASSETS | ||
Deposits | 71,544 | 80,455 |
Natural gas futures | 2,259,995 | 2,426,266 |
Long term receivables | 1,417,901 | 1,587,548 |
Equity method investment | 9,525,841 | 9,353,402 |
Assets of discontinued operations | 1,103,059 | 1,221,631 |
Contracts and technology, net | 18,247,487 | 19,296,534 |
Total Other Assets | 32,625,827 | 33,965,836 |
TOTAL ASSETS | 109,633,588 | 102,143,746 |
CURRENT LIABILITIES | ||
Accounts payable | 4,243,128 | 3,933,969 |
Current portion of notes payable | 22,505 | 121,466 |
Related party payables | 1,333,147 | 1,333,147 |
Line of credit payable | 3,000,000 | |
Convertible note payable | 8,026,072 | |
Accrued expenses | 2,546,721 | 2,857,597 |
Payroll expenses payable | 261,243 | 167,780 |
Liabilities of discontinued operations | 495,629 | 354,665 |
Total Current Liabilities | 19,928,445 | 8,768,624 |
LONG TERM LIABILITIES | ||
Total Liabilities | $ 19,928,445 | $ 8,768,624 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock value | $ 400 | |
Common stock value | 93,405 | $ 94,259 |
Additional paid-in capital | 190,797,290 | 188,159,932 |
Accumulated deficit | (101,185,952) | (94,879,069) |
Total Stockholders' Equity | 89,705,143 | 93,375,122 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 109,633,588 | $ 102,143,746 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 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 | 93,404,858 | 94,258,713 |
Common stock, shares outstanding | 93,404,858 | 94,258,713 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement | ||
REVENUES | $ 3,752,014 | $ 1,879,168 |
COST OF SALES | 3,422,344 | 1,251,626 |
GROSS PROFIT | 329,670 | 627,542 |
OPERATING EXPENSES | ||
Depreciation and amortization | 1,081,579 | 948,820 |
General and administrative | 5,076,380 | 5,024,908 |
Total Operating Expenses | 6,157,959 | 5,973,728 |
LOSS FROM OPERATIONS | (5,828,289) | (5,346,186) |
OTHER INCOME (EXPENSE) | ||
Other income | 940 | 940 |
(Loss) from equity investment | (227,560) | |
Interest expense | 421,341 | 230,007 |
Mark futures to market | (166,271) | |
Gain (loss) on sale of assets | 7,987 | 11,235 |
Gain on settlement of litigation | 989,778 | |
Total Other Income (Expense) | 183,533 | (217,832) |
LOSS BEFORE INCOME TAXES | $ (5,644,756) | $ (5,564,018) |
INCOME TAX EXPENSE | ||
GAIN (LOSS) FROM DISCONTINUED OPERATIONS | $ (662,127) | $ (122,442) |
NET LOSS | (6,306,884) | (5,686,460) |
PREFERRED DIVIDENDS | (392,888) | |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (6,306,883) | $ (6,079,348) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.06) | $ (0.09) |
Continuing operations loss per share | (0.01) | 0 |
Disontinued operations loss per share | $ (0.07) | $ (0.10) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 94,311,979 | 61,928,226 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | ||
NET LOSS | $ (6,306,884) | $ (5,686,460) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock option and stock warrants issued for services | 1,385,338 | 1,189,727 |
(Loss) from equity investment | (227,560) | |
Impairment of inventory | 369,039 | |
Mark gas futures to market | 166,271 | |
Gain on settlement of litigation | 989,778 | |
Gain (loss) on sale of assets | 7,987 | 11,235 |
Stock issued for services | 320,653 | 670,542 |
Depreciation and amortization | 1,081,579 | 948,820 |
Amortization of debt discount | 279,254 | |
Changes in operating assets and liabilities: | ||
Accounts receivable and billings in excess | 1,884,942 | 427,138 |
Inventory | (168,996) | (9,689) |
Restricted cash | (156) | |
Construction in progress | (371,955) | 184,302 |
Prepaid expenses and deposits | (291,770) | 162,507 |
Accounts payable and accrued expenses | 91,747 | 444,207 |
Net Cash Used in Operating Activities | (2,331,142) | (1,680,141) |
Net Cash Provided by Discontinued Operating Activities | 264,448 | (1,072,270) |
INVESTING ACTIVITIES | ||
Collection of other receivables | 2,732 | |
Proceeds from sale of equipment | 7,987 | |
Purchase of equity method investment | 400,000 | |
Lending of other receivables | 887 | |
Purchase of property and equipment | 7,098,388 | 1,353,588 |
Net Cash Used in Investing Activities | (7,487,669) | (1,354,475) |
Net Cash Used in Discontinued Investing Activities | (17,882) | |
FINANCING ACTIVITIES | ||
Proceeds from warrants and options exercised | 100,857 | |
Cash received on stock subscriptions | 1,000,000 | |
Proceeds from line of credit, net | 2,911,700 | |
Proceeds from notes payable, net | 9,953,068 | |
Repayment of notes payable and line of credit | 98,962 | 435,498 |
Repayment of related party loans | 4,004 | |
Net Cash Provided by Financing Activities | 12,765,806 | 661,355 |
Net Cash Used in Discontinued Financing Activities | (4,910) | (3,212) |
NET INCREASE (DECREASE) IN CASH | 3,206,533 | (3,466,625) |
CASH AT BEGINNING OF PERIOD | 2,883,621 | 8,373,380 |
CASH AT END OF PERIOD | 6,090,154 | 4,906,755 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for Interest | 68,871 | 97,292 |
NON CASH FINANCING ACTIVITIES: | ||
Common stock issued for conversion of preferred stock | 333,128 | |
Common stock issued for settlement of litigation | (989,778) | |
Common stock issued for acquisition of subsidiary | $ 4,602,500 | |
Preferred stock issued as collateral for loan | 400 | |
Debt discount and conversion feature | $ 1,385,338 |
Condensed Financial Statements
Condensed Financial Statements | 3 Months Ended |
Mar. 31, 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 March 31, 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, as amended. The results of operations for the periods ended March 31, 2015 and 2014 are not necessarily indicative of the operating results for the full year. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 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 March 31, 2015 consists of battery and battery components, at costs of $521,858. The inventory is valued net of an allowance of $6,188 as of March 31, 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. 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 Events
Significant Events | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Significant Events | NOTE 3 - SIGNIFICANT EVENTS Settlement of Litigation The Company received 1,127,742 shares of its common stock in settlement of litigation valued at $0.922 per share. As part of the settlement the Company forgave a $50,000 note receivable resulting in a gain on settlement of litigation of $989,778 . Common Stock Transactions During the three months ended March 31, 2015, the Company issued 73,887 common shares for services valued at $94,653. The Company also issued 200,000 common shares for debt issuance costs valued at $226,000. The Company cancelled the 1,127,742 shares of its common stock it received in settlement of litigation. Credit Line Payable During the three months ended March 31, 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 the Sumter Heat and Power CHP plant and the Melga 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. 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. 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. Convertible Note Payable During the three months ended March 31, 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 $1.02 per share, as amended. The convertible note payable accrued interest at 12% per annum and was due on September 10, 2015. The convertible note payable is secured by all the assets of the company except for the Sumter Heat and Power CHP plant and the Melga Solar Project and is also guaranteed by each of the Companys Subsidiaries, other than the two just mentioned. 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 as consideration for making the loan valued at $226,000. The lender also received 2,000,000 warrants to purchase shares of the Companys common stock at $1.02 per share, as amended. 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, as amended, 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 $222,763 of interest expense from the amortization of the discount during the quarter ended March 31, 2015. The following is a summary of convertible note payable the period ended March 31, 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 222,763 Balance at March 31, 2015 $ 8,026,072 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 |
Stock Purchase Warrants and Opt
Stock Purchase Warrants and Options | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Stock Purchase Warrants and Options | NOTE 4 - STOCK PURCHASE WARRANTS AND OPTIONS A summary of the Companys warrant activity during the periods ended March 31, 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 Balance Outstanding, March 31, 2015 18,631,918 $ 3.26 4.66 $ 60,727,862 Exercisable, March 31, 2015 16,474,775 $ 3.41 4.19 $ 56,203,004 A summary of the Companys option activity during the periods ended March 31, 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 Forfeited (53,513) $ 2.56 -- Balance Outstanding, March 31, 2015 2,685,854 $ 2.07 8.66 $ 5,562,931 Exercisable, March 31, 2015 1,377,944 $ 1.96 8.26 $ 2,606,233 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Disclosure | 3 Months Ended |
Mar. 31, 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 March 31, 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 $166,271 and $-0- for the three months ended March 31, 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 March 31, 2015: Liabilities: Total Carrying Value at March 31, 2015 (Level 1) (Level 2) (Level 3) Natural gas futures $ 2,259,995 $ 2,259,995 $ - $ - The following is a summary of activity of Level 1 assets for the periods ended March 31, 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 (166,271) Balance at March 31, 2015 $ 2,259,995 |
Property and Equipment Disclosu
Property and Equipment Disclosure | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Property and Equipment Disclosure | NOTE 6 - PROPERTY AND EQUIPMENT The major classes of assets as of March 31, 2015 and December 31, 2014 are as follows: March 31, 2015 December 31, 2014 Office and computer equipment $ 343,915 $ 327,023 Software 91,256 91,256 Manufacturing and installation equipment 455,150 442,450 Leasehold improvements 759,304 759,304 Cogeneration plants (under construction) 63,091,360 56,022,580 Sub Total 64,740,985 57,642,613 Accumulated Depreciation (859,504) (826,987) Net $ 63,881,481 $ 56,815,626 Depreciation expense was $32,543 and $27,622, for the three months ended March 31, 2015 and 2014, respectively. Approximately $64,740,985 of the Companys property and equipment serves as security against its long-term debt. Depreciation of the cogeneration plants will commence when the plants are placed in service during the second quarter of 2015. |
Commitments and Contingencies D
Commitments and Contingencies Disclosure | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Commitments and Contingencies Disclosure | NOTE 7 - COMMITMENTS AND CONTINGENCIES Equipment Purchase Commitments The Company has entered into equipment purchase agreements whereby it has committed to paying approximately $19,629,081 for electrical co-generation equipment. The Company has made deposits of approximately $8,079,699 (41% 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. Arbitrations During 2014, 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' attorney's fees and costs incurred in the arbitration of $341,375. The award is a Type 1 subsequent event accordingly the Companys financial statements are restated to reflect the award on a retroactive basis. During 2014 the Company filed a demand for arbitration with the American Arbitration Association and National Energy Partners LLC (NEP) and its subsidiary, Hawaii Solar LLC (HS) counterclaimed. The Company subsequently initiated two actions in the First Circuit Court of the State of Hawaii, the first titled Xnergy and Blue Earth, Inc. vs. Hawaii Solar, LLC. National Energy Partners, LLC, et al., Civil No. M-1-1694-08 (JHC) (the Xnergy Action) and the second titled Blue Earth Solar, Inc. vs. State of Hawaii, Department of Education, et al.(the DOE Action). The parties agreed to attempt to resolve their dispute through arbitration administered by Dispute Prevention and Resolution (DPR Arbitration). On August 30, 2015, the parties to the above Xnergy Action, DOE Action and DPR Arbitration entered into a Settlement Agreement and Release and a Lock-Up/Leak-Out Agreement conditioned upon subsequent Board of Directors approval by the Company which was obtained on September 3, 2015. The Settlement Agreement provides for the Company to: (a) pay $500,000 to HS (a portion of which will be paid by the Companys insurance carrier), and (b) issue shares valued at $325,000 at a price of $0.88 per share to be registered with the SEC within sixty (60) days of the issuance of the shares. Pursuant to the terms and conditions of the Lock-Up/Leak-Out Agreement, all shares will be restricted for six (6) months, unless registered sooner and upon registration or expiration of the six-month period, seller may sell up to 10,000 shares per day and 50,000 shares per week on a non-cumulative basis. The parties exchanged mutual releases and will dismiss all claims upon payment to HS. The settlement is a Type 1 subsequent event accordingly the Companys financial statements are restated to reflect the award on a retroactive basis. 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 Plaintiffs 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, 2105, 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 Companys stock during the period from October 7, 2013 through October 21, 2014. Defendants responded and filed a motion to dismiss FAC. Plaintiffs opposition to the motion has been submitted and Defendants have submitted a reply to the opposition. Oral arguments regarding the motion to dismiss are scheduled for October 2015. The Company believes the claims contained in the FAC are without merit and is vigorously defending the matter. On August 31, 2015, a derivative lawsuit was filed in Nevada state court, captioned Powell v. Cagan, et al., No. A-15-723839-C (8th Judicial District Court, Clark County, Nevada). It names as defendants Brett Woodard, Johnny R. Thomas, John C. Francis, and the entire Board of Directors. It also names the Company as a nominal defendant. The complaint brings claims for breaches of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets, from October 2013 to the present based on directors and management allegedly allowing the company to make false and misleading statements to the public, thereby resulting in a class action lawsuit and exposing the Company to damages. The defendants have not yet been served. The Company believes the claims contained in the complaint are without merit and will vigorously defend this matter. |
Operating Segments Disclosure
Operating Segments Disclosure | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Operating Segments Disclosure | NOTE 8 - 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 has 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 will be introduced when energy is 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. No restatement of prior period operating segments is necessary. The following tables show the operations of the Companys reportable segments for the three months ended March 31, 2015 and 2014: Technology Construction Corporate Consolidated March 31, 2015 Revenues $ 53,853 $ 3,698,161 $ -- $ 3,752,014 Cost of sales 43,760 3,378,584 -- 3,422,334 Depreciation and amortization 347,587 472,079 261,913 1,081,579 General and administrative 662,887 1,504,472 2,909,020 5,076,380 Other income (expense) -- 7,537 175,996 183,533 (Loss) continued operations $ (1,000,381) $ (1,649,438) $ (2,994,937) $ (5,644,756) Total assets $ 2,278,206 $ 93,966,137 $ 13,984,245 $ 109,633,588 Technology Construction Corporate Consolidated March 31, 2014 Revenues $ 52,859 $ 1,826,309 $ -- $ 1,879,168 Cost of sales 50,218 1,201,408 -- 1,251,626 Depreciation and amortization 127,206 469,065 352,549 948,820 General and administrative 295,049 972,515 3,757,344 5,024,908 Other income (expense) (53,563) 61,309 (225,578) (217,832) (Loss) continued operations $ (473,177) $ (755,370) $ (4,335,471) $ (5,564,018) Total assets $ 1,033,867 $ 7,216,209 $ 79,942,616 $ 88,192,692 |
Restated Financial Statements D
Restated Financial Statements Disclosure | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Restated Financial Statements Disclosure | NOTE 9 - RESTATED FINANCIAL STATEMENTS The Company has restated its financial statements to present on a retroactive basis the effect of several Type 1 subsequent events including the resolution of certain litigation and the discontinuance of a significant component of its operations. This restatement is prepared in accordance with Topic 13 of the Financial Reporting Manual of the Securities and Exchange Commission due to Companys outstanding Form S-3. The restated financial statements reflect the accrual of $2,437,618 of losses associated with the settlement of litigation subsequent to December 31, 2014 on a retroactive basis as of and for the year ended December 31, 2014. The restated financials also reflect the reclassification of the assets, liabilities and operations of BEEMS to discontinued operations. The following table presents a summarized comparison of the original consolidated balance sheets to the restated balance sheets: BLUE EARTH, INC. AND SUBSIDIARIES Consolidated Balance Sheets ASSETS March 31, March 31, December 31, December 31, 2015 2015 2014 2014 (restated) (original) (restated) (original) (unaudited) (unaudited) CURRENT ASSETS $ 13,126,280 $ 14,219,297 $ 11,362,284 $ 12,445,816 Total Current Assets 14,229,339 14,229,339 12,583,915 12,583,915 PROPERTY AND EQUIPMENT, net 63,881,481 64,038,057 56,815,626 56,982,778 ASSETS OF DISCONTINUED OPERATIONS 1,103,059 - 1,221,631 - OTHER ASSETS 31,522,768 31,971,848 32,744,205 33,310,767 Total Other Assets 31,522,768 31,522,768 32,744,205 32,744,205 TOTAL ASSETS $ 109,633,588 $ 110,229,202 $ 102,143,746 $ 102,739,361 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES $ 19,928,445 $ 17,429,348 $ 8,768,624 $ 6,264,617 LONG TERM LIABILITIES - 61,477 - 66,387 STOCKHOLDERS' EQUITY Preferred stock; 25,000,000 shares authorized at $0.001 par value, 400,000 and -0- shares issued and -0- and -0- shares outstanding, respectively 400 400 - - Common stock; 500,000,000 shares authorized at $0.001 par value, 93,404,858 and 94,258,713 shares issued and outstanding, respectively 93,405 93,405 94,259 94,259 Additional paid-in capital 190,797,290 190,797,290 188,159,932 188,159,932 Accumulated deficit (101,185,952) (98,152,718) (94,879,069) (91,845,834) Total Stockholders' Equity 89,705,143 92,738,377 93,375,122 96,408,357 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 109,633,588 $ 110,229,202 $ 102,143,746 $ 102,739,361 The following table presents a summarized comparison of the original consolidated balance sheets to the restated statements of Operations: BLUE EARTH, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) For the Three Months Ended March 31, 2015 2015 2014 2014 (restated) (original) (restated) (original) REVENUES $ 3,752,014 $ 5,132,664 $ 1,879,168 $ 3,234,217 COST OF SALES 3,422,344 3,976,307 1,251,626 1,788,309 GROSS PROFIT 329,670 1,156,357 627,542 1,445,908 OPERATNG EXPENSES 6,157,959 7,637,595 5,973,728 6,908,959 LOSS FROM OPERATIONS (5,828,289) (6,481,238) (5,346,186) (5,463,051) OTHER INCOME (EXPENSE) 183,533 174,354 (217,832) (223,409) LOSS BEFORE INCOME TAXES (5,644,756) (6,306,884) (5,564,018) (5,686,460) INCOME TAX EXPENSE - - - - LOSS FROM CONTINUING OPERATIONS (5,644,756) (6,306,884) (5,564,018) (5,686,460) GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS, net of income taxes of $0 - - - - GAIN (LOSS) FROM DISCONTINUED OPERATIONS, net of income taxes of $0 (662,127) (122,442) - NET LOSS (6,306,883) (6,306,884) (5,686,460) (5,686,460) PREFERRED DIVIDENDS - - (392,888) (392,888) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (6,306,883) $ (6,306,884) $ (6,079,348) $ (6,079,348) BASIC AND DILUTED LOSS PER SHARE $ (0.06) $ (0.07) $ (0.09) $ (0.09) Continuing Operations Discontinued Operations (0.01) - (0.00) - Net Loss Per Share $ (0.07) $ (0.07) $ (0.10) $ (0.10) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED 94,311,979 94,311,979 61,928,226 61,928,226 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Notes | |
Subsequent Events | NOTE 10 - SUBSEQUENT EVENTS On April 9, 2015, the Company issued 12,500 shares of its common stock for director fees. On April 20, 2015, the Company issued 168,700 shares of its common stock under a Mutual and General Release Agreement with the landlord of the former offices of Blue Earth Solar, Inc. On April 22, 2015 the Company issued 250,000 shares of its common stock for consulting services. 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 Polici16
Significant Accounting Policies: Inventory, Policy (Policies) | 3 Months Ended |
Mar. 31, 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 March 31, 2015 consists of battery and battery components, at costs of $521,858. The inventory is valued net of an allowance of $6,188 as of March 31, 2015. The Company does not have any work in progress. |
Significant Accounting Polici17
Significant Accounting Policies: Use of Estimates (Policies) | 3 Months Ended |
Mar. 31, 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 Polici18
Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 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 Events_ Convertible
Significant Events: Convertible Debt Table (Tables) | 3 Months Ended |
Mar. 31, 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 222,763 Balance at March 31, 2015 $ 8,026,072 |
Stock Purchase Warrants and O20
Stock Purchase Warrants and Options: Schedule of Stockholders' Equity Note, Warrants (Tables) | 3 Months Ended |
Mar. 31, 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 Balance Outstanding, March 31, 2015 18,631,918 $ 3.26 4.66 $ 60,727,862 Exercisable, March 31, 2015 16,474,775 $ 3.41 4.19 $ 56,203,004 |
Stock Purchase Warrants and O21
Stock Purchase Warrants and Options: Schedule of Stockholders' Equity, Options (Tables) | 3 Months Ended |
Mar. 31, 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 Forfeited (53,513) $ 2.56 -- Balance Outstanding, March 31, 2015 2,685,854 $ 2.07 8.66 $ 5,562,931 Exercisable, March 31, 2015 1,377,944 $ 1.96 8.26 $ 2,606,233 |
Fair Value of Financial Instr22
Fair Value of Financial Instruments Disclosure: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Liabilities: Total Carrying Value at March 31, 2015 (Level 1) (Level 2) (Level 3) Natural gas futures $ 2,259,995 $ 2,259,995 $ - $ - |
Fair Value of Financial Instr23
Fair Value of Financial Instruments Disclosure: Summary of Activity of Level 1 Assets (Tables) | 3 Months Ended |
Mar. 31, 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 (166,271) Balance at March 31, 2015 $ 2,259,995 |
Property and Equipment Disclo24
Property and Equipment Disclosure: Schedule of Major Classes of Assets (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Tables/Schedules | |
Schedule of Major Classes of Assets | March 31, 2015 December 31, 2014 Office and computer equipment $ 343,915 $ 327,023 Software 91,256 91,256 Manufacturing and installation equipment 455,150 442,450 Leasehold improvements 759,304 759,304 Cogeneration plants (under construction) 63,091,360 56,022,580 Sub Total 64,740,985 57,642,613 Accumulated Depreciation (859,504) (826,987) Net $ 63,881,481 $ 56,815,626 |
Operating Segments Disclosure_
Operating Segments Disclosure: Schedule of Segment Reporting Information, by Segment (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | Technology Construction Corporate Consolidated March 31, 2015 Revenues $ 53,853 $ 3,698,161 $ -- $ 3,752,014 Cost of sales 43,760 3,378,584 -- 3,422,334 Depreciation and amortization 347,587 472,079 261,913 1,081,579 General and administrative 662,887 1,504,472 2,909,020 5,076,380 Other income (expense) -- 7,537 175,996 183,533 (Loss) continued operations $ (1,000,381) $ (1,649,438) $ (2,994,937) $ (5,644,756) Total assets $ 2,278,206 $ 93,966,137 $ 13,984,245 $ 109,633,588 Technology Construction Corporate Consolidated March 31, 2014 Revenues $ 52,859 $ 1,826,309 $ -- $ 1,879,168 Cost of sales 50,218 1,201,408 -- 1,251,626 Depreciation and amortization 127,206 469,065 352,549 948,820 General and administrative 295,049 972,515 3,757,344 5,024,908 Other income (expense) (53,563) 61,309 (225,578) (217,832) (Loss) continued operations $ (473,177) $ (755,370) $ (4,335,471) $ (5,564,018) Total assets $ 1,033,867 $ 7,216,209 $ 79,942,616 $ 88,192,692 |
Restated Financial Statements26
Restated Financial Statements Disclosure: Restated Balance Sheets (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Tables/Schedules | |
Restated Balance Sheets | BLUE EARTH, INC. AND SUBSIDIARIES Consolidated Balance Sheets ASSETS March 31, March 31, December 31, December 31, 2015 2015 2014 2014 (restated) (original) (restated) (original) (unaudited) (unaudited) CURRENT ASSETS $ 13,126,280 $ 14,219,297 $ 11,362,284 $ 12,445,816 Total Current Assets 14,229,339 14,229,339 12,583,915 12,583,915 PROPERTY AND EQUIPMENT, net 63,881,481 64,038,057 56,815,626 56,982,778 ASSETS OF DISCONTINUED OPERATIONS 1,103,059 - 1,221,631 - OTHER ASSETS 31,522,768 31,971,848 32,744,205 33,310,767 Total Other Assets 31,522,768 31,522,768 32,744,205 32,744,205 TOTAL ASSETS $ 109,633,588 $ 110,229,202 $ 102,143,746 $ 102,739,361 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES $ 19,928,445 $ 17,429,348 $ 8,768,624 $ 6,264,617 LONG TERM LIABILITIES - 61,477 - 66,387 STOCKHOLDERS' EQUITY Preferred stock; 25,000,000 shares authorized at $0.001 par value, 400,000 and -0- shares issued and -0- and -0- shares outstanding, respectively 400 400 - - Common stock; 500,000,000 shares authorized at $0.001 par value, 93,404,858 and 94,258,713 shares issued and outstanding, respectively 93,405 93,405 94,259 94,259 Additional paid-in capital 190,797,290 190,797,290 188,159,932 188,159,932 Accumulated deficit (101,185,952) (98,152,718) (94,879,069) (91,845,834) Total Stockholders' Equity 89,705,143 92,738,377 93,375,122 96,408,357 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 109,633,588 $ 110,229,202 $ 102,143,746 $ 102,739,361 |
Restated Financial Statements27
Restated Financial Statements Disclosure: Restated Statements of Operations (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Tables/Schedules | |
Restated Statements of Operations | BLUE EARTH, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) For the Three Months Ended March 31, 2015 2015 2014 2014 (restated) (original) (restated) (original) REVENUES $ 3,752,014 $ 5,132,664 $ 1,879,168 $ 3,234,217 COST OF SALES 3,422,344 3,976,307 1,251,626 1,788,309 GROSS PROFIT 329,670 1,156,357 627,542 1,445,908 OPERATNG EXPENSES 6,157,959 7,637,595 5,973,728 6,908,959 LOSS FROM OPERATIONS (5,828,289) (6,481,238) (5,346,186) (5,463,051) OTHER INCOME (EXPENSE) 183,533 174,354 (217,832) (223,409) LOSS BEFORE INCOME TAXES (5,644,756) (6,306,884) (5,564,018) (5,686,460) INCOME TAX EXPENSE - - - - LOSS FROM CONTINUING OPERATIONS (5,644,756) (6,306,884) (5,564,018) (5,686,460) GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS, net of income taxes of $0 - - - - GAIN (LOSS) FROM DISCONTINUED OPERATIONS, net of income taxes of $0 (662,127) (122,442) - NET LOSS (6,306,883) (6,306,884) (5,686,460) (5,686,460) PREFERRED DIVIDENDS - - (392,888) (392,888) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (6,306,883) $ (6,306,884) $ (6,079,348) $ (6,079,348) BASIC AND DILUTED LOSS PER SHARE $ (0.06) $ (0.07) $ (0.09) $ (0.09) Continuing Operations Discontinued Operations (0.01) - (0.00) - Net Loss Per Share $ (0.07) $ (0.07) $ (0.10) $ (0.10) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED 94,311,979 94,311,979 61,928,226 61,928,226 |
Significant Accounting Polici28
Significant Accounting Policies: Inventory, Policy (Details) - USD ($) | Mar. 31, 2015 | Dec. 31, 2014 |
Details | ||
Inventory on hand | $ 521,858 | $ 352,862 |
Significant Events (Details)
Significant Events (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt forgiven by the Company | $ 50,000 | |
Gain on settlement of litigation | $ 989,778 | |
Common stock issued for services | 73,887 | |
Common stock received and cancelled | 1,127,742 | |
Line of credit payable | $ 3,000,000 | |
Proceeds from line of credit | 2,911,700 | |
Related party notes payable | 1,333,147 | $ 1,333,147 |
Proceeds from notes payable | $ 9,953,068 | |
Stock issued for debt | 200,000 | |
Value of stock issued for debt | $ 226,000 | |
Warrants issued for debt | 2,000,000 | |
Value of the warrants issued | $ 1,321,600 | |
Amortization of discount on debt | $ 222,763 | |
Series D Preferred Stock issued | 400,000 | |
Line of credit fees | ||
Prepaid expenses | $ 88,300 | |
Convertible Note Payable legal fees | ||
Prepaid expenses | $ 46,932 |
Significant Events_ Convertib30
Significant Events: Convertible Debt Table (Details) | Mar. 31, 2015USD ($) |
Details | |
Convertible note payable | $ 8,026,072 |
Stock Purchase Warrants and O31
Stock Purchase Warrants and Options: Schedule of Stockholders' Equity Note, Warrants (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warrants outstanding | 18,631,918 | 16,631,918 | 22,660,668 |
Weighted average exercise price, warrants outstanding | $ 3.26 | $ 3.80 | $ 1.90 |
Aggregate intrinsic value, warrants outstanding | $ 60,727,862 | $ 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 | 16,474,775 | ||
Weighted average exercise price, warrants exercisable | $ 3.41 | ||
Aggregate intrinsic value, warrants exercisable | $ 56,203,004 | ||
Grant (1) | |||
Warrants granted | 2,000,000 | 200,000 | |
Weighted average exercise price, warrants granted | $ 1 | ||
Grant (2) | |||
Warrants granted | 100,000 | ||
Weighted average exercise price, warrants granted | $ 1 | ||
Grant (3) | |||
Warrants granted | 8,521,654 | ||
Weighted average exercise price, warrants granted | $ 6 |
Stock Purchase Warrants and O32
Stock Purchase Warrants and Options: Schedule of Stockholders' Equity, Options (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options outstanding | 2,685,854 | 2,596,867 | 2,596,867 | 1,011,290 |
Weighted average exercise price, options outstanding | $ 2.07 | $ 2.54 | $ 2.54 | $ 1.85 |
Aggregate intrinsic value, option outstanding | $ 5,562,931 | $ 6,596,037 | $ 6,596,037 | $ 1,851,695 |
Stock options forfeited | (53,513) | (492,119) | ||
Weighted average exercise price, options forfeited | $ 2.56 | $ 3.37 | ||
Stock options exercised | (85,024) | |||
Weighted average exercise price, options exercised | $ 1.36 | |||
Stock options exercisable | 1,377,944 | |||
Weighted average exercise price, options exercisable | $ 1.96 | |||
Aggregate intrinsic value, options exercisable | $ 2,606,233 | |||
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 | 60,000 | |||
Weighted average exercise price, options granted | $ 2.27 | |||
Grant (5) | ||||
Stock options granted | 105,000 | |||
Weighted average exercise price, options granted | $ 3.10 | |||
Grant (6) | ||||
Stock options granted | 60,000 | |||
Weighted average exercise price, options granted | $ 2.45 | |||
Grant (7) | ||||
Stock options granted | 100,000 | |||
Weighted average exercise price, options granted | $ 2.54 | |||
Grant (8) | ||||
Stock options granted | 10,000 | |||
Weighted average exercise price, options granted | $ 1.29 | |||
Grant (9) | ||||
Stock options granted | 52,720 | |||
Weighted average exercise price, options granted | $ 1.37 | |||
Grant (10) | ||||
Stock options granted | 5,000 | |||
Weighted average exercise price, options granted | $ 0.75 |
Fair Value of Financial Instr33
Fair Value of Financial Instruments Disclosure: Summary of Activity of Level 1 Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Fair Value, Level 1 Assets | $ 2,259,995 | $ 2,426,266 | $ 2,429,150 |
Change in fair value, assets | $ (166,271) | $ (2,884) |
Property and Equipment Disclo34
Property and Equipment Disclosure: Schedule of Major Classes of Assets (Details) - USD ($) | Mar. 31, 2015 | Dec. 31, 2014 |
Property and Equipment, asset value | $ 64,740,985 | $ 57,642,613 |
Accumulated depreciation on property and equipment assets | (859,504) | (826,987) |
Property and equipment, asset value, Net | 63,881,481 | 56,815,626 |
Computer Equipment | ||
Property and Equipment, asset value | 343,915 | 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 | 759,304 |
Cogeneration plants | ||
Property and Equipment, asset value | $ 63,091,360 | $ 56,022,580 |
Property and Equipment Disclo35
Property and Equipment Disclosure (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Details | ||
Depreciation expense on property and equipment | $ 32,543 | $ 27,622 |
Value of property and equipment serving as security against debt | $ 64,740,985 |
Commitments and Contingencies36
Commitments and Contingencies Disclosure (Details) - EquipmentPurchaseAgreementsMember | Mar. 31, 2015USD ($) |
Commitment to pay | $ 19,629,081 |
Deposits made toward purchase | $ 8,079,699 |
Operating Segments Disclosure37
Operating Segments Disclosure: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
REVENUES | $ 3,752,014 | $ 1,879,168 | |
Segment cost of sales | 3,422,334 | 1,251,626 | |
Segment Depreciation and Amortization | 1,081,579 | 948,820 | |
Segment General and Administrative Expense | 5,076,380 | 5,024,908 | |
Segment other income (expense) | 183,533 | (217,832) | |
Segment Net Income (loss) | (5,644,756) | (5,564,018) | |
TOTAL ASSETS | 109,633,588 | 88,192,692 | $ 102,143,746 |
Technology | |||
REVENUES | 53,853 | 52,859 | |
Segment cost of sales | 43,760 | 50,218 | |
Segment Depreciation and Amortization | 347,587 | 127,206 | |
Segment General and Administrative Expense | 662,887 | 295,049 | |
Segment other income (expense) | (53,563) | ||
Segment Net Income (loss) | (1,000,381) | (473,177) | |
TOTAL ASSETS | 2,278,206 | 1,033,867 | |
Construction | |||
REVENUES | 3,698,161 | 1,826,309 | |
Segment cost of sales | 3,378,584 | 1,201,408 | |
Segment Depreciation and Amortization | 472,079 | 469,065 | |
Segment General and Administrative Expense | 1,504,472 | 972,515 | |
Segment other income (expense) | 7,537 | 61,309 | |
Segment Net Income (loss) | (1,649,438) | (755,370) | |
TOTAL ASSETS | 93,966,137 | 7,216,209 | |
Corporate Segment | |||
Segment Depreciation and Amortization | 261,913 | 352,549 | |
Segment General and Administrative Expense | 2,909,020 | 3,757,344 | |
Segment other income (expense) | 175,996 | (225,578) | |
Segment Net Income (loss) | (2,994,937) | (4,335,471) | |
TOTAL ASSETS | $ 13,984,245 | $ 79,942,616 |
Subsequent Events (Details)
Subsequent Events (Details) - shares | Apr. 22, 2015 | Apr. 20, 2015 | Apr. 09, 2015 |
Director fees | |||
Shares issued | 12,500 | ||
Mutual and General Release Agreement | |||
Shares issued | 168,700 | ||
Consulting services | |||
Shares issued | 250,000 |