Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | QRHC | ||
Entity Registrant Name | Quest Resource Holding Corporation | ||
Entity Central Index Key | 0001442236 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 15,328,870 | ||
Entity Public Float | $ 12,846,730 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 2,122,297 | $ 1,055,281 |
Accounts receivable, less allowance for doubtful accounts of $929,339 and $699,102 as of December 31, 2018 and 2017, respectively | 16,711,809 | 16,263,276 |
Prepaid expenses and other current assets | 965,755 | 1,508,014 |
Total current assets | 19,799,861 | 18,826,571 |
Goodwill | 58,208,490 | 58,337,290 |
Intangible assets, net | 2,610,921 | 5,031,595 |
Property and equipment, net, and other assets | 968,025 | 1,320,342 |
Total assets | 81,587,297 | 83,515,798 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 15,777,921 | 14,253,818 |
Deferred revenue and other current liabilities | 71,717 | 328,763 |
Total current liabilities | 15,849,638 | 14,582,581 |
Revolving credit facility, net | 5,194,588 | 6,763,497 |
Other long-term liabilities | 353 | 21,990 |
Total liabilities | 21,044,579 | 21,368,068 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of December 31, 2018 and 2017 | ||
Common stock, $0.001 par value, 200,000,000 shares authorized, 15,328,870 and 15,302,455 shares issued and outstanding as of December 31, 2018 and 2017, respectively | 15,329 | 15,302 |
Additional paid-in capital | 159,701,542 | 158,867,600 |
Accumulated deficit | (99,174,153) | (96,735,172) |
Total stockholders’ equity | 60,542,718 | 62,147,730 |
Total liabilities and stockholders’ equity | $ 81,587,297 | $ 83,515,798 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | |||
Allowance for doubtful accounts receivable | $ 929,339 | $ 699,102 | $ 333,578 |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, shares issued | 15,328,870 | 15,302,455 | |
Common stock, shares outstanding | 15,328,870 | 15,302,455 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 103,805,432 | $ 138,346,327 |
Cost of revenue | 86,942,718 | 122,633,815 |
Gross profit | 16,862,714 | 15,712,512 |
Operating expenses: | ||
Selling, general, and administrative | 16,163,153 | 17,078,033 |
Depreciation and amortization | 2,700,809 | 3,986,725 |
Total operating expenses | 18,863,962 | 21,064,758 |
Operating loss | (2,001,248) | (5,352,246) |
Other expense: | ||
Interest expense | (437,733) | (468,030) |
Total other expense, net | (437,733) | (468,030) |
Loss before taxes | (2,438,981) | (5,820,276) |
Net loss | (2,438,981) | (5,820,276) |
Net loss applicable to common stockholders | $ (2,438,981) | $ (5,820,276) |
Net loss per share | ||
Basic and Diluted | $ (0.16) | $ (0.38) |
Weighted average number of common shares outstanding | ||
Basic and Diluted | 15,311,220 | 15,280,617 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2016 | $ 67,272,208 | $ 15,273 | $ 158,171,831 | $ (90,914,896) |
Beginning Balance, Shares at Dec. 31, 2016 | 15,272,575 | |||
Stock-based compensation | 662,810 | 662,810 | ||
Shares issued for Employee Stock Purchase Plan options, Value | 32,988 | $ 29 | 32,959 | |
Shares issued for Employee Stock Purchase Plan options, Shares | 29,880 | |||
Net loss | (5,820,276) | (5,820,276) | ||
Ending Balance at Dec. 31, 2017 | 62,147,730 | $ 15,302 | 158,867,600 | (96,735,172) |
Ending Balance, Shares at Dec. 31, 2017 | 15,302,455 | |||
Stock-based compensation | 793,589 | 793,589 | ||
Shares issued for Employee Stock Purchase Plan options, Value | 40,380 | $ 27 | 40,353 | |
Shares issued for Employee Stock Purchase Plan options, Shares | 26,415 | |||
Net loss | (2,438,981) | (2,438,981) | ||
Ending Balance at Dec. 31, 2018 | $ 60,542,718 | $ 15,329 | $ 159,701,542 | $ (99,174,153) |
Ending Balance, Shares at Dec. 31, 2018 | 15,328,870 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (2,438,981) | $ (5,820,276) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 385,863 | 444,498 |
Amortization of intangibles | 2,499,349 | 3,712,763 |
Amortization of debt issuance costs | 93,902 | 78,251 |
Provision for doubtful accounts | 1,085,622 | 652,273 |
Stock-based compensation | 793,589 | 1,709,685 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,534,155) | 17,912,946 |
Prepaid expenses and other current assets | 542,259 | 116,113 |
Security deposits and other assets | 256,553 | 710,596 |
Accounts payable and accrued liabilities | 1,524,103 | (21,051,741) |
Deferred revenue and other liabilities | (239,616) | (117,359) |
Net cash provided by (used in) operating activities | 2,968,488 | (1,652,251) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (43,514) | (60,514) |
Purchase of capitalized software development | (196,460) | (254,772) |
Net cash used in investing activities | (239,974) | (315,286) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 100,479,383 | 108,571,721 |
Repayments of credit facilities | (102,142,194) | (106,614,751) |
Proceeds from shares issued for Employee Stock Purchase Plan | 40,380 | 32,988 |
Debt issuance costs | (234,334) | |
Repayments of capital lease obligations | (39,067) | (60,980) |
Net cash provided by (used in) financing activities | (1,661,498) | 1,694,644 |
Net increase (decrease) in cash and cash equivalents | 1,067,016 | (272,893) |
Cash and cash equivalents at beginning of period | 1,055,281 | 1,328,174 |
Cash and cash equivalents at end of period | $ 2,122,297 | $ 1,055,281 |
The Company, Description of Bus
The Company, Description of Business, and Liquidity | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
The Company, Description of Business, and Liquidity | 1. The Company, Description of Business, and Liquidity The accompanying consolidated financial statements include the accounts of Quest Resource Holding Corporation (“QRHC”) and its subsidiaries, Quest Resource Management Group, LLC (“Quest”), Landfill Diversion Innovations, LLC, (“LDI”), Youchange, Inc. (“Youchange”), Quest Vertigent Corporation (“QVC”), Quest Vertigent One, LLC (“QV One”), and Quest Sustainability Services, Inc. (“QSS”) (collectively, “we,” “us,” or “our company”). Operations We are a national provider of reuse, recycling, and disposal services that enable our customers to achieve and satisfy their environmental and sustainability goals and responsibilities. We provide businesses across multiple industry sectors with single source solutions for the reuse, recycling, and disposal of a wide variety of waste streams and recyclables generated by their operations. Our customers typically are multi-location businesses for which we create, implement, and manage customer-specific programs for the collection, processing, recycling, disposal, and tracking of waste streams and recyclables. In addition, we offer products such as antifreeze and windshield washer fluid as well as other minor ancillary services. We also provide information and data that tracks and reports the environmental results of our services and provides actionable data to improve business operations. Our principal offices are located in The Colony, Texas within the Dallas metroplex. Liquidity As of December 31, 2018 and 2017, our working capital balance was $3,950,223 and $4,243,990, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Presentation and Consolidation The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the operating activity of QRHC and its subsidiaries for the years ended December 31, 2018 and 2017. As QRHC, Quest, LDI, Youchange, QVC, QV One, and QSS each operate as environmental-based service companies, we did not deem segment reporting necessary. Accounting Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. We use significant estimates when accounting for the carrying amounts of accounts receivable, goodwill and other intangible assets, stock-based compensation expense, and deferred taxes, all of which are discussed in their respective notes to the consolidated financial statements. Revenue Recognition We recognize revenue as services are performed or products are delivered. For example, we recognize revenue as waste and recyclable material are collected or when products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements. We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. We record amounts collected from customers for sales tax on a net basis. Cash and Cash Equivalents We consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Accounts Receivable We follow the allowance method of recognizing uncollectible accounts receivable, which recognizes bad debt expense based on a review of the individual accounts outstanding and our prior history of uncollectible accounts receivable. We extend credit based on an evaluation of each customer’s financial condition, and our receivables are generally unsecured. Accounts receivable are stated net of an allowance for doubtful accounts in the consolidated balance sheets. We consider accounts past due if outstanding longer than contractual payment terms. We record an allowance based on consideration of a number of factors, including the length of time trade accounts are past due, our previous loss history, the creditworthiness of individual customers, economic conditions affecting specific customer industries, and economic conditions in general. We charge-off accounts receivable after all reasonable collection efforts have been exhausted. We credit payments subsequently received on such receivables to bad debt expense in the period we receive the payment. As of December 31, 2018 and 2017, we had established an allowance of $929,339 and $699,102, respectively, for potentially uncollectible accounts receivable. We record delinquent finance charges on outstanding accounts receivable only if they are collected. The changes in our allowance for doubtful accounts for the years ended December 31, 2018 and 2017 were as follows: Years ended December 31, 2018 2017 Beginning balance $ 699,102 $ 333,578 Bad debt expense, net of recoveries 1,085,622 652,273 Uncollectible accounts written off (855,385 ) (286,749 ) Ending balance $ 929,339 $ 699,102 Fair Value Measurements ASC Topic 820, Fair Value Measurements Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimate of assumptions that market participants would use in pricing the asset or liability. Property and Equipment We record property and equipment at cost. We provide for depreciation on the straight-line method, over the estimated useful lives of the assets. We amortize leasehold improvements over the shorter of the estimated useful life or the remaining term of the related leases. We charge expenditures for repairs and maintenance to operations as incurred; we capitalize renewals and betterments when they extend the useful life of the asset. We record gains and losses on the disposition of property and equipment in the period incurred. We report assets held for sale, if any, at the lower of the carrying amount or fair value less costs to sell. The useful lives of property and equipment for purposes of computing depreciation are as follows: Vehicles 5 to 7 years Computer equipment 3 to 5 years Office furniture and fixtures 5 to 7 years Machinery and equipment 5 to 7 years Leasehold improvements 5 to 7 years Impairment of Long-Lived Assets We analyze long-lived assets, including property and equipment and definite-lived intangible assets, which are held and used in our operations, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. We review the amortization method and estimated period of useful life at least at each balance sheet date. We record the effects of any revision to operations when the change arises. We recognize impairment when the estimated undiscounted cash flow generated by those assets is less than the carrying amounts of such assets. The amount of impairment is the excess of the carrying amount over the fair value of such assets. We did not recognize any impairment charges for long-lived assets during 2018 and 2017. Goodwill We record as goodwill the excess of (i) the consideration transferred, the amount of any non-controlling interest in the acquiree, and the acquisition date fair value of any previous equity interest in the acquired entity over the (ii) fair value of the net identifiable assets acquired. We do not amortize goodwill; however, annually, or whenever there is an indication that goodwill may be impaired, we evaluate qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Our test of goodwill impairment includes assessing qualitative factors and the use of judgment in evaluating economic conditions, industry and market conditions, cost factors, and entity-specific events, as well as overall financial performance. We performed our most recent goodwill impairment analysis in the third quarter of 2018, utilizing an income approach with no impairment recorded. We believe that the discounted cash flow method best captures the significant value-creating activities we are undertaking. The primary assumptions in our income approach included estimating cash flows and projections. We determined that the fair value of our goodwill exceeded our carrying value, and consequently, no impairment was deemed to have occurred. However, a continued or prolonged period of declining gross margins or a significant decrease in our anticipated revenue growth could result in the write-off of a portion or all of our goodwill and other intangible assets in future periods. Net Loss Per Share We compute basic net loss per share by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. We have other potentially dilutive securities outstanding that are not shown in a diluted net loss per share calculation because their effect in both 2018 and 2017 would be anti-dilutive. These potentially dilutive securities include stock options and warrants and represented a total of 3,506,631 and 3,123,381 common shares at December 31, 2018 and December 31, 2017, respectively. Concentrations Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade accounts receivable. We deposit our cash with commercial banks. Cash deposits at commercial banks are at risk to the extent that the balances exceed the Federal Deposit Insurance Corporation insured level per institution. The bank cash balances on deposit may periodically exceed federally insured limits, such as $1,850,550 at December 31, 2018; however, we have never experienced any losses related to these balances. We sell our services and products primarily to customers without requiring collateral; however, we routinely assess the financial condition of our customers and maintain allowances for anticipated losses. From year to year, the customers that exceed 10% of our annual revenue, if any, may change. The following table discloses the number of customers that accounted for more than 10% of our annual revenue and their related receivable balances for the years ended December 31, 2018 and 2017: Customers Exceeding 10% of Revenue Year Number of Customers Revenue Combined Percent Accounts Receivable Combined Percent 2018 3 51 % 33 % 2017 2 44 % 21 % We believe we have no significant credit risk in excess of recorded reserves. Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences of temporary differences between the book and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We establish valuation allowances to reduce a deferred tax asset to the amount expected to be realized. We assess our ability to realize deferred tax assets based on current earnings performance and on projections of future taxable income in the relevant tax jurisdictions. These projections do not include taxable income from the reversal of deferred tax liabilities and do not reflect a general growth assumption but do consider known or pending events, such as the passage of legislation. We review our estimates of future taxable income annually. We first analyze all tax positions to determine if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes. After the initial analysis, we measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. Our income tax returns are subject to adjustment under audit for approximately the last three years. If we are required to pay interest on the underpayment of income taxes, we recognize interest expense in the first period the interest becomes due according to the provisions of the relevant tax law. If we are subject to payment of penalties, we recognize an expense for the amount of the statutory penalty in the period when the position is taken on the income tax return. If we did not recognize the penalty in the period when the position was initially taken, we recognize the expense in the period when we change our judgment about meeting minimum statutory thresholds related to the initial position taken. Advertising We charge our advertising costs to expense when incurred. During the years ended December 31, 2018 and 2017, advertising expense totaled $38,570 and $25,892, respectively. Stock-Based Compensation We expense all share-based grants to employees, including grants of employee stock options, based on their estimated fair values at grant date, in accordance with ASC Topic 718, Stock Compensation Equity-Based Payments to Non-Employees We estimate the fair value of stock options using the Black-Scholes-Merton valuation model. Significant assumptions used in the calculation are as follows: • We determine the expected term in accordance with SEC Staff Accounting Bulletin No. 107 using the simplified method for plain vanilla options by the average of the contractual term and vesting period of the award as appropriate statistical data required to properly estimate the expected term was not available; • We measure the expected volatility using the historical changes in the market price of our common stock and applicable comparison companies; • We use the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards to approximate the risk-free interest rate; and • We recognize the effects of forfeitures in compensation cost when they occur. Recently Issued Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) of the hosting arrangement, including periods covered by renewal options that are reasonably certain to be exercised. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. T There have been no other recent accounting pronouncements or changes in accounting pronouncements that have been issued but not yet adopted that are of significance, or potential significance, to us. |
Property and Equipment, Net, an
Property and Equipment, Net, and Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net, and Other Assets | 3. Property and Equipment, net, and Other Assets At December 31, 2018 and 2017, Property and equipment, net, and other assets consisted of the following: As of December 31, 2018 2017 Vehicles $ 493,373 $ 544,984 Computer equipment 700,218 700,893 Office furniture and fixtures 541,464 541,464 Machinery and equipment 845,128 804,722 Leasehold improvements 558,035 558,035 Property and equipment, gross 3,138,218 3,150,098 Accumulated depreciation (2,523,700 ) (2,193,231 ) Property and equipment, net 614,518 956,867 Security deposits and other assets 353,507 363,475 Property and equipment, net, and other assets $ 968,025 $ 1,320,342 We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. Depreciation expense for the year ended December 31, 2018 was $385,863, including $184,404 of depreciation expense reflected within Cost of revenue in our consolidated statement of operations as it related to assets used directly in servicing customer contracts. Depreciation expense for the year ended December 31, 2017 was $444,498, including $170,536 depreciation expense recorded in Cost of revenue. At December 31, 2018, our capital lease assets were $152,541, net of $347,556 of accumulated depreciation. At December 31, 2017, our capital lease assets were $243,778, net of $256,319 of accumulated depreciation. On February 20, 2018 (the “Closing Date”), we entered into an Asset Purchase Agreement with Earth Media Partners, LLC to sell certain assets of our wholly owned subsidiary, Earth911, Inc., in exchange for a 19% interest in Earth Media Partners, LLC, which was recorded as an investment in the amount of $246,585 as of the Closing Date, and a potential future earn-out amount of approximately $350,000. The net assets sold related to the Earth911.com website business and consisted primarily of the website and its content and customers, deferred revenues, and accounts receivable as of the Closing Date. Following the Closing Date, Earth911, Inc. was subsequently renamed Quest Sustainability Services, Inc. In addition to our investment in Earth Media Partners, LLC, we accrued a receivable in the amount of $59,030 related to the earn-out as of December 31, 2018. The carrying amount of our investment and the accrued earn-out receivable are included in other assets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 4. Goodwill and Other Intangible Assets The components of goodwill and other intangible assets are as follows: December 31, 2018 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Finite lived intangible assets: Customer relationships 5 years $ 12,720,000 $ 12,720,000 $ — Trademarks 7 years 6,235,068 4,860,305 1,374,763 Patents 7 years 230,683 230,683 — Software 7 years 1,934,308 698,150 1,236,158 Customer lists 5 years 307,153 307,153 — Total finite lived intangible assets $ 21,427,212 $ 18,816,291 $ 2,610,921 December 31, 2017 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Finite lived intangible assets: Customer relationships 5 years $ 12,720,000 $ 11,342,000 $ 1,378,000 Trademarks 7 years 6,242,055 3,969,576 2,272,479 Patents 7 years 230,683 230,683 — Software 7 years 1,904,279 548,163 1,356,116 Customer lists 5 years 307,153 282,153 25,000 Total finite lived intangible assets $ 21,404,170 $ 16,372,575 $ 5,031,595 Carrying Amount Changes in goodwill: Goodwill balance at December 31, 2017 $ 58,337,290 Adjustment related to Earth911, Inc. asset sale (128,800 ) Goodwill balance at December 31, 2018 $ 58,208,490 We compute amortization using the straight-line method over the estimated useful lives of the finite lived intangible assets. The amortization expense related to finite lived intangible assets was $2,499,349 and $3,712,763 for the years ended December 31, 2018 and 2017, respectively. We expect amortization expense to be approximately $1.1 million for the year ending December 31, 2019, approximately $660,000 for the year ending December 31, 2020, approximately $175,000 for the year ending December 31, 2021, approximately $175,000 for the year ending December 31, 2022, approximately $175,000 for the year ending December 31, 2023, and approximately $350,000 thereafter. We have no indefinite-lived intangible assets other than goodwill. The goodwill is not deductible for tax purposes. As required by FASB ASC Topic 350, Intangibles – Goodwill and Other |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable And Accrued Liabilities Current [Abstract] | |
Accounts Payable and Accrued Liabilities | 5. Accounts Payable and Accrued Liabilities The components of Accounts payable and accrued liabilities are as follows: As of December 31, 2018 2017 Accounts payable $ 14,025,221 $ 12,739,117 Accrued taxes 548,126 807,037 Employee compensation 910,796 434,358 Other 293,778 273,306 $ 15,777,921 $ 14,253,818 |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | 6. Revolving Credit Facility We entered into a Loan, Security and Guaranty Agreement (the “Citizens Loan Agreement”), dated as of February 24, 2017, with Citizens Bank, National Association as a lender, and as administrative agent, collateral agent, and issuing bank, which provides for an asset-based revolving credit facility (the “ABL Facility”) of up to $20 million and an equipment loan facility in the maximum principal amount of $2.0 million. Available borrowings on the ABL facility are based on formula-determined amounts of eligible trade receivables, as defined in the Citizens Loan Agreement, and are recalculated on a monthly basis. The ABL Facility replaced our Revolving Credit Note and Loan Agreement with Regions Bank, which was repaid and terminated effective February 24, 2017. Each loan under the ABL Facility bears interest, at our option, at either the Base Rate, as defined in the Citizens Loan Agreement, plus a margin ranging from 1.0% to 1.5% (6.75% as of December 31, 2018), or the LIBOR lending rate for the interest period in effect, plus a margin ranging from 2.0% to 2.5% (4.67% as of December 31, 2018). The maturity date of the ABL Facility is February 24, 2022. Loans under the equipment loan facility may be requested at any time until February 24, 2019. Each loan under the equipment loan facility bears interest, at our option, at either the Base Rate, as defined in the Citizens Loan Agreement, plus 2.00%, or the LIBOR lending rate for the interest period in effect, plus 3.00%. The maturity date of the equipment loan facility is February 24, 2022. The ABL Facility contains certain specific financial covenants regarding a minimum liquidity requirement and a minimum fixed charge coverage ratio. In addition, the ABL Facility contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, mergers and acquisitions, and other matters customarily restricted in such agreements. As of December 31, 2018, we were in compliance with the financial covenants included in the Citizens Loan Agreement. Quest and LDI are the borrowers under the Citizens Loan Agreement. QRHC and QSS are guarantors under the Citizens Loan Agreement. In addition, obligations under the ABL Facility are secured by certain first-priority security interests in substantially all of the tangible and intangible personal property of the borrowers, including a pledge of the capital stock and membership interests, as applicable, of certain of their direct and indirect subsidiaries. The guarantors under the Citizens Loan Agreement have granted a first priority lien on the capital stock and membership interests, as applicable, of certain of their direct and indirect subsidiaries. The amount of interest expense related to borrowings for the years ended December 31, 2018 and 2017 was $325,534 and $378,826, respectively. Debt issuance cost of $469,507 is being amortized to interest expense over the life of the ABL Facility beginning March 1, 2017. As of December 31, 2018, the unamortized portion of the debt issuance costs was $297,355. The amount of interest expense related to the amortization of the discount on the ABL Facility for was $93,902 and $78,251, respectively. |
Capital Lease Obligations
Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Capital Lease Obligations | 7. Capital Lease Obligations Our capital lease obligations are included within Deferred revenue and other current liabilities and Other long-term liabilities in our consolidated balance sheets. At December 31, 2018 and 2017, total capital lease obligations outstanding consisted of the following: As of December 31, 2018 2017 Capital lease obligations, imputed interest of 4.99% to 13.29%, with current monthly payments of approximately $500, expiring through September 2019, secured by computer and office equipment $ 2,597 $ 41,664 Total 2,597 41,664 Less: current maturities (2,597 ) (39,067 ) Long-term portion $ — $ 2,597 The amount of interest expense related to our capital leases for the years ended December 31, 2018 and 2017 was $1,388 and $5,897, respectively. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 8. Revenue Operating Revenues We provide businesses with services to reuse, recycle, and dispose of a wide variety of waste streams and recyclables generated by their operations. In addition, we have product sales and other revenue primarily from sales of products such as antifreeze and windshield washer fluid as well as minor ancillary services. Revenue Recognition We recognize revenue as services are performed or products are delivered. For example, we recognize revenue as waste and recyclable material are collected or when products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements. We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. We record amounts collected from customers for sales tax on a net basis. We previously had a contract accounted for as a net basis management fee contract, with revenue of $78,145 and gross billings of $2,173,022 for the year ended December 31, 2017. This management fee contract ended in the second quarter of 2017, and we currently have no other net basis contracts. Disaggregation of Revenue The following table presents our revenue disaggregated by source. Sales and usage-based taxes are excluded from revenue. Three customers accounted for 51% of revenue for the year ended December 31, 2018, and two customers accounted for 44% of revenue for the year ended December 31, 2017. We operate primarily in the United States, with minor services in Canada. Year Ended December 31, 2018 2017 Revenue Type: Services $ 93,524,370 $ 126,998,825 Product sales and other 10,281,062 11,347,502 Total revenue $ 103,805,432 $ 138,346,327 Contract Balances Our incremental direct costs of obtaining a customer contract are generally deferred and amortized to selling, general, and administrative expense or as a reduction to revenue (depending on the nature of the cost) over the estimated life of the customer contract. We classify our contract acquisition costs as current or noncurrent based on the timing of when we expect to recognize the amortization and are included in other assets. As of December 31, 2018 and 2017, we had $7,448 and $136,139, respectively, of deferred contract costs. During the year ended December 31, 2018, we amortized $211,250 and $36,139 of deferred contract costs to selling, general, and administrative expense and as a reduction to income, respectively. During the year ended December 31, 2017, we amortized $110,000 and $72,777 of deferred contract costs to selling, general, and administrative expense and as a reduction to income, respectively. Certain customers are billed in advance, and, accordingly, recognition of related revenues is deferred as a contract liability until the services are provided and control transferred to the customer. As of December 31, 2018 and 2017, we had $69,473 and $309,089, respectively, of deferred revenue, the majority of which was classified in “Deferred revenue and other current liabilities.” |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes We compute income taxes using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes The Tax Cuts and Jobs Act (the “2017 Act”) was signed into law on December 22, 2017 and was generally effective for tax years beginning January 1, 2018. The most significant impact to us of the 2017 Act was a decrease in the federal corporate income tax rate from 35% to 21%. As a result of the decrease in the corporate income tax rate, we were required to recognize the effect of the corporate income tax rate change on our deferred tax assets and liabilities in the year ending December 31, 2017, the period in which the legislation was enacted. The components of net deferred taxes are as follows: As of December 31, 2018 2017 Deferred tax assets (liabilities): Net operating loss $ 5,095,000 $ 5,115,000 Depreciation and amortization 4,449,000 4,435,000 Stock-based compensation 2,840,000 2,627,000 Capitalized software costs (522,000 ) (244,000 ) Accrued interest expense 36,000 52,000 Allowance for doubtful accounts 251,000 138,000 Deferred lease liability 53,000 27,000 Total deferred tax assets, net 12,202,000 12,150,000 Less: valuation allowance (12,202,000 ) (12,150,000 ) Net deferred taxes $ — $ — The reconciliation between the income tax expense (benefit) calculated by applying statutory rates to net loss and the income tax (benefit) reported in the accompanying consolidated financial statements is as follows: Years Ended December 31, 2018 2017 U.S. federal statutory rate applied to pretax loss $ (512,000 ) $ (2,037,097 ) State taxes (146,000 ) — Permanent differences 7,000 13,342 Benefit of operating loss carryforwards (170,000 ) — Cumulative adjustment to deferred taxes 612,000 — Change in state tax rates and other 157,000 (155,245 ) Impact of 2017 Tax Act — 5,584,000 Change in valuation allowance 52,000 (3,405,000 ) $ — $ — As of December 31, 2018 and 2017, we had federal income tax net operating loss carryforwards of approximately $18,900,000 and $19,700,000, respectively, which expire at various dates ranging from 2031 through 2037. We are subject to limitations existing under Internal Revenue Code Section 382 (Change of Control) relating to the availability of the operating loss. Such limitation of the net operating losses may have occurred, which we have not fully analyzed at this time as we have fully reserved the deferred tax asset. As of December 31, 2018 and 2017, we did not recognize any assets or liabilities relative to uncertain tax positions, nor do we anticipate any significant unrecognized tax benefits will be recorded during 2019. It is our policy to classify interest and penalties on income taxes as interest expense or penalties expense, should any be incurred. Tax positions are positions taken in a previously filed tax return or positions expected to be taken in a future tax return that are reflected in measuring current or deferred income tax assets and liabilities reported in the financial statements. Tax positions include the following: • an allocation or shift of income between taxing jurisdictions; • the characterization of income or a decision to exclude reportable taxable income in a tax return; or • a decision to classify a transaction, entity, or other position in a tax return as tax exempt. We are potentially subject to tax audits for federal and state tax returns for tax years ended 2015 to 2018. Tax audits by their very nature are often complex and can require several years to complete. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 10. Fair Value of Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, deferred revenue, the ABL Facility, and capital lease obligations. We do not believe that we are exposed to significant interest, currency, or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values using Level 3 inputs, based on their short maturities or, for the ABL Facility, based on borrowing rates currently available to us for loans with similar terms and maturities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Operating Leases We lease corporate office space in The Colony, Texas under an 84-month, non-cancelable operating lease. The lease expires in October 2022. Lease expense totaled $609,295 and $610,797 for the years ended December 31, 2018 and 2017, respectively. The following is a schedule, by year, of future minimum rental payments required under non-cancelable operating lease agreements as of December 31, 2018: Year Ending December 31, Amount 2019 $ 631,260 2020 664,200 2021 664,200 2022 498,150 Total $ 2,457,810 Indemnifications During the normal course of business, we make certain indemnities and commitments under which we may be required to make payments in relation to certain transactions. These may include (i) intellectual property indemnities to customers in connection with the use, sales, and/or license of products and services; (ii) indemnities to customers in connection with losses incurred while performing services on their premises; (iii) indemnities to vendors and service providers pertaining to claims based on negligence or willful misconduct; and (iv) indemnities involving the representations and warranties in certain contracts. In addition, under our bylaws we are committed to our directors and officers for providing for payments upon the occurrence of certain prescribed events. The majority of these indemnities and commitments do not provide for any limitation on the maximum potential for future payments that we could be obligated to make. We have not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minimal. Accordingly, we had no liabilities recorded for these agreements as of December 31, 2018 and 2017. Defined Contribution Plan We maintain a defined contribution 401(k) plan covering substantially all full-time employees. Employees are permitted to make voluntary contributions, which we match at a certain percentage, to the plan. For the years ended December 31, 2018 and 2017, our plan contribution expense was $150,791 and $112,277, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Preferred Stock Our authorized preferred stock consists of 10,000,000 shares of preferred stock with a par value of $0.001, of which no shares have been issued or were outstanding as of December 31, 2018 and 2017. Preferred stock is to be designated in classes or series and the number of each class or series and the voting powers, designations, preferences, limitations, restrictions, relative rights, and distinguishing designation of each class or series of stock as the Board of Directors shall determine in its sole discretion. Common Stock Our authorized common stock consists of 200,000,000 shares of common stock with a par value of $0.001, of which 15,328,870 and 15,302,455 shares were issued and outstanding as of December 31, 2018 and 2017, respectively. Employee Stock Purchase Plan On September 17, 2014, our stockholders approved our 2014 Employee Stock Purchase Plan (“ESPP”). We recorded expense of $17,738 and $25,930 related to the ESPP during the years ended December 31, 2018 and 2017, respectively. During the year ended December 31, 2018, we issued an aggregate 26,415 shares of common stock for $40,380, all to employees under our ESPP, as follows: • On May 16, 2018, we issued 10,928 shares for $18,396 for options that vested and were exercised. • On November 16, 2018, we issued 15,487 shares for $21,984 for options that vested and were exercised. During the year ended December 31, 2017 we issued an aggregate 29,880 shares of common stock for $32,988, all to employees under our ESPP, as follows: • On May 23, 2017, we issued 8,749 shares for $11,972 for options that vested and were exercised. • On November 14, 2017, we issued 21,131 shares for $21,016 for options that vested and were exercised. Warrants During the year ended December 31, 2018, we did not issue any warrants and no holders exercised warrants. During the year ended December 31, 2017, we did not issue any warrants, no holders exercised warrants, and warrants to purchase 205,126 shares of common stock expired. The following table summarizes the warrants issued and outstanding as of December 31, 2018: Warrants Issued and Outstanding as of December 31, 2018 Date of Exercise Shares of Description Issuance Expiration Price Common Stock Exercisable warrants Warrants 9/24/2014 9/24/2019 $ 20.00 1,125,005 Warrants 10/20/2014 10/20/2019 $ 20.00 87,500 Warrants 3/30/2016 3/30/2021 $ 3.88 521,060 Total warrants issued and outstanding 1,733,565 Incentive Compensation Plan In October 2012, we adopted our 2012 Incentive Compensation Plan (the “2012 Plan”) as the sole plan for providing equity-based incentive compensation to our employees, non-employee directors, and other service providers. The plan allows for the grant of stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, and other incentive awards to our employees, non-employee directors, and other service providers who are in a position to make a significant contribution to our success and our affiliates. The purpose of the plan is to attract and retain individuals, further align employee and stockholder interests, and closely link compensation with our performance. The plan is administered by the compensation committee of our board of directors. Our policy is to fulfill any exercise of options from common stock that is authorized and unissued. The maximum number of shares of common stock available for grant under the plan is 1,837,500. Stock compensation expense prior to October 2012 related to options granted prior to the Earth911 Merger that was superseded by the 2012 Plan at the time of the Earth911 Merger. The number of shares available for award under the plan is subject to adjustment for certain corporate changes in accordance with the provisions of the plan. Stock Options The following table summarizes the stock option activity from January 1, 2017 through December 31, 2018: Stock Options Weighted- Exercise Average Number Price Per Exercise Price of Shares Share Per Share Outstanding at January 1, 2017 1,317,402 $2.08 — $26.00 $ 9.09 Granted 117,500 $1.17 — $2.71 $ 2.07 Canceled/Forfeited (45,086 ) $4.80 — $23.20 $ 12.37 Outstanding at December 31, 2017 1,389,816 $1.17 — $26.00 $ 8.39 Granted 420,500 $1.65 — $2.62 $ 2.38 Canceled/Forfeited (37,250 ) $2.39 — $23.20 $ 5.98 Outstanding at December 31, 2018 1,773,066 $1.17 — $26.00 $ 7.02 The weighted-average grant-date fair value of options granted was $1.71 and $1.49 for the years ended December 31, 2018 and 2017, respectively. For the years ended December 31, 2018 and 2017, the intrinsic value of options outstanding was approximately $7,220 and $59,000, respectively, and the intrinsic value of options exercisable was approximately $7,220 and $47,000, respectively. The following additional information applies to options outstanding at December 31, 2018: Range of Exercise Prices Outstanding at December 31, 2018 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable at December 31, 2018 Weighted- Average Exercise Price $1.17 - $26.00 1,773,066 6.9 $ 7.02 999,999 $ 10.05 The following additional information applies to options outstanding at December 31, 2017: Range of Exercise Prices Outstanding at December 31, 2017 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable at December 31, 2017 Weighted- Average Exercise Price $1.17 - $26.00 1,389,816 7.3 $ 8.39 766,858 $ 12.24 Stock-based compensation expense for stock-based incentive awards was $793,589 and $662,810 for the years ended December 31, 2018 and 2017, respectively. At December 31, 2018, the balance of unearned stock-based compensation to be expensed in future periods related to unvested share-based awards was approximately $1.3 million. The weighted-average period over which the unearned stock-based compensation is expected to be recognized is approximately 2 years. Stock-Based Compensation We account for all stock-based payment awards made to employees and directors, including stock options and employee stock purchases, based on estimated fair values. We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and the value of the portion of the award is recognized as expense over the requisite service period. We recognize the effects of forfeitures in compensation cost when they occur. We use the Black-Scholes-Merton option-pricing model as our method of valuation. The fair value is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair value of share-based payment awards on the date of grant as determined by the Black-Scholes-Merton model is affected by our stock price as well as other assumptions. These assumptions include the expected stock price volatility over the term of the awards, and the actual and projected employee stock option exercise behaviors. The weighted-average estimated value of employee stock options granted during the years ended December 31, 2018 and 2017 were estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions: Years Ended December 31, 2018 2017 Expected volatility 85 % 91 % Risk-free interest rate 2.42 % 1.81 % Expected dividends 0.00 % 0.00 % Expected term in years 5.9 4.8 |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 13. Net Loss per Share We compute basic loss per share by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. We have potentially dilutive securities outstanding that are not shown in a diluted loss per share calculation because their effect in both 2018 and 2017 would be anti-dilutive. These potentially dilutive securities include options and warrants and totaled 3,506,631 and 3,123,381 shares at December 31, 2018 and 2017, respectively. The following table sets forth the anti-dilutive securities excluded from diluted loss per share: Years ended December 31, 2018 2017 Anti-dilutive securities excluded from diluted loss per share: Stock options 1,773,066 1,389,816 Warrants 1,733,565 1,733,565 Total anti-dilutive securities excluded from diluted loss per share 3,506,631 3,123,381 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 14. Supplemental Cash Flow Information The following is provided as supplemental information to the consolidated statements of cash flows: Years Ended December 31, 2018 2017 Supplemental cash flow information: Cash paid for interest $ 364,372 $ 346,658 Cash paid for income taxes $ — $ — Supplemental non-cash activities: Sale of goodwill and intangible assets $ 246,585 $ — Investment in Earth Media Partners, LLC $ (246,585 ) $ — Draw on Citizens ABL facility $ — $ 9,250,000 Repayment of Regions line of credit $ — $ (9,250,000 ) Draw on Citizens ABL facility for repayment of capital lease obligation $ — $ 212,609 Debt issuance costs financed with Citizens ABL facility $ — $ 235,173 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Presentation and Consolidation | Principles of Presentation and Consolidation The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the operating activity of QRHC and its subsidiaries for the years ended December 31, 2018 and 2017. As QRHC, Quest, LDI, Youchange, QVC, QV One, and QSS each operate as environmental-based service companies, we did not deem segment reporting necessary. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. We use significant estimates when accounting for the carrying amounts of accounts receivable, goodwill and other intangible assets, stock-based compensation expense, and deferred taxes, all of which are discussed in their respective notes to the consolidated financial statements. |
Revenue Recognition | Revenue Recognition We recognize revenue as services are performed or products are delivered. For example, we recognize revenue as waste and recyclable material are collected or when products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements. We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. We record amounts collected from customers for sales tax on a net basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. |
Accounts Receivable | Accounts Receivable We follow the allowance method of recognizing uncollectible accounts receivable, which recognizes bad debt expense based on a review of the individual accounts outstanding and our prior history of uncollectible accounts receivable. We extend credit based on an evaluation of each customer’s financial condition, and our receivables are generally unsecured. Accounts receivable are stated net of an allowance for doubtful accounts in the consolidated balance sheets. We consider accounts past due if outstanding longer than contractual payment terms. We record an allowance based on consideration of a number of factors, including the length of time trade accounts are past due, our previous loss history, the creditworthiness of individual customers, economic conditions affecting specific customer industries, and economic conditions in general. We charge-off accounts receivable after all reasonable collection efforts have been exhausted. We credit payments subsequently received on such receivables to bad debt expense in the period we receive the payment. As of December 31, 2018 and 2017, we had established an allowance of $929,339 and $699,102, respectively, for potentially uncollectible accounts receivable. We record delinquent finance charges on outstanding accounts receivable only if they are collected. The changes in our allowance for doubtful accounts for the years ended December 31, 2018 and 2017 were as follows: Years ended December 31, 2018 2017 Beginning balance $ 699,102 $ 333,578 Bad debt expense, net of recoveries 1,085,622 652,273 Uncollectible accounts written off (855,385 ) (286,749 ) Ending balance $ 929,339 $ 699,102 |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimate of assumptions that market participants would use in pricing the asset or liability. |
Property and Equipment | Property and Equipment We record property and equipment at cost. We provide for depreciation on the straight-line method, over the estimated useful lives of the assets. We amortize leasehold improvements over the shorter of the estimated useful life or the remaining term of the related leases. We charge expenditures for repairs and maintenance to operations as incurred; we capitalize renewals and betterments when they extend the useful life of the asset. We record gains and losses on the disposition of property and equipment in the period incurred. We report assets held for sale, if any, at the lower of the carrying amount or fair value less costs to sell. The useful lives of property and equipment for purposes of computing depreciation are as follows: Vehicles 5 to 7 years Computer equipment 3 to 5 years Office furniture and fixtures 5 to 7 years Machinery and equipment 5 to 7 years Leasehold improvements 5 to 7 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We analyze long-lived assets, including property and equipment and definite-lived intangible assets, which are held and used in our operations, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. We review the amortization method and estimated period of useful life at least at each balance sheet date. We record the effects of any revision to operations when the change arises. We recognize impairment when the estimated undiscounted cash flow generated by those assets is less than the carrying amounts of such assets. The amount of impairment is the excess of the carrying amount over the fair value of such assets. We did not recognize any impairment charges for long-lived assets during 2018 and 2017. |
Goodwill | Goodwill We record as goodwill the excess of (i) the consideration transferred, the amount of any non-controlling interest in the acquiree, and the acquisition date fair value of any previous equity interest in the acquired entity over the (ii) fair value of the net identifiable assets acquired. We do not amortize goodwill; however, annually, or whenever there is an indication that goodwill may be impaired, we evaluate qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Our test of goodwill impairment includes assessing qualitative factors and the use of judgment in evaluating economic conditions, industry and market conditions, cost factors, and entity-specific events, as well as overall financial performance. We performed our most recent goodwill impairment analysis in the third quarter of 2018, utilizing an income approach with no impairment recorded. We believe that the discounted cash flow method best captures the significant value-creating activities we are undertaking. The primary assumptions in our income approach included estimating cash flows and projections. We determined that the fair value of our goodwill exceeded our carrying value, and consequently, no impairment was deemed to have occurred. However, a continued or prolonged period of declining gross margins or a significant decrease in our anticipated revenue growth could result in the write-off of a portion or all of our goodwill and other intangible assets in future periods. |
Net Loss Per Share | Net Loss Per Share We compute basic net loss per share by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. We have other potentially dilutive securities outstanding that are not shown in a diluted net loss per share calculation because their effect in both 2018 and 2017 would be anti-dilutive. These potentially dilutive securities include stock options and warrants and represented a total of 3,506,631 and 3,123,381 common shares at December 31, 2018 and December 31, 2017, respectively. |
Concentrations | Concentrations Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade accounts receivable. We deposit our cash with commercial banks. Cash deposits at commercial banks are at risk to the extent that the balances exceed the Federal Deposit Insurance Corporation insured level per institution. The bank cash balances on deposit may periodically exceed federally insured limits, such as $1,850,550 at December 31, 2018; however, we have never experienced any losses related to these balances. We sell our services and products primarily to customers without requiring collateral; however, we routinely assess the financial condition of our customers and maintain allowances for anticipated losses. From year to year, the customers that exceed 10% of our annual revenue, if any, may change. The following table discloses the number of customers that accounted for more than 10% of our annual revenue and their related receivable balances for the years ended December 31, 2018 and 2017: Customers Exceeding 10% of Revenue Year Number of Customers Revenue Combined Percent Accounts Receivable Combined Percent 2018 3 51 % 33 % 2017 2 44 % 21 % We believe we have no significant credit risk in excess of recorded reserves. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences of temporary differences between the book and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We establish valuation allowances to reduce a deferred tax asset to the amount expected to be realized. We assess our ability to realize deferred tax assets based on current earnings performance and on projections of future taxable income in the relevant tax jurisdictions. These projections do not include taxable income from the reversal of deferred tax liabilities and do not reflect a general growth assumption but do consider known or pending events, such as the passage of legislation. We review our estimates of future taxable income annually. We first analyze all tax positions to determine if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes. After the initial analysis, we measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. Our income tax returns are subject to adjustment under audit for approximately the last three years. If we are required to pay interest on the underpayment of income taxes, we recognize interest expense in the first period the interest becomes due according to the provisions of the relevant tax law. If we are subject to payment of penalties, we recognize an expense for the amount of the statutory penalty in the period when the position is taken on the income tax return. If we did not recognize the penalty in the period when the position was initially taken, we recognize the expense in the period when we change our judgment about meeting minimum statutory thresholds related to the initial position taken. |
Advertising | Advertising We charge our advertising costs to expense when incurred. During the years ended December 31, 2018 and 2017, advertising expense totaled $38,570 and $25,892, respectively. |
Stock-Based Compensation | Stock-Based Compensation We expense all share-based grants to employees, including grants of employee stock options, based on their estimated fair values at grant date, in accordance with ASC Topic 718, Stock Compensation Equity-Based Payments to Non-Employees We estimate the fair value of stock options using the Black-Scholes-Merton valuation model. Significant assumptions used in the calculation are as follows: • We determine the expected term in accordance with SEC Staff Accounting Bulletin No. 107 using the simplified method for plain vanilla options by the average of the contractual term and vesting period of the award as appropriate statistical data required to properly estimate the expected term was not available; • We measure the expected volatility using the historical changes in the market price of our common stock and applicable comparison companies; • We use the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards to approximate the risk-free interest rate; and • We recognize the effects of forfeitures in compensation cost when they occur. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) of the hosting arrangement, including periods covered by renewal options that are reasonably certain to be exercised. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. T There have been no other recent accounting pronouncements or changes in accounting pronouncements that have been issued but not yet adopted that are of significance, or potential significance, to us. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Changes in Allowance for Doubtful Accounts | The changes in our allowance for doubtful accounts for the years ended December 31, 2018 and 2017 were as follows: Years ended December 31, 2018 2017 Beginning balance $ 699,102 $ 333,578 Bad debt expense, net of recoveries 1,085,622 652,273 Uncollectible accounts written off (855,385 ) (286,749 ) Ending balance $ 929,339 $ 699,102 |
Schedule of Property and Equipment Useful Lives | The useful lives of property and equipment for purposes of computing depreciation are as follows: Vehicles 5 to 7 years Computer equipment 3 to 5 years Office furniture and fixtures 5 to 7 years Machinery and equipment 5 to 7 years Leasehold improvements 5 to 7 years |
Schedule of Number of Customers that Accounted for More than Ten Percentage of Annual Sales and Receivable Balances | The following table discloses the number of customers that accounted for more than 10% of our annual revenue and their related receivable balances for the years ended December 31, 2018 and 2017: Customers Exceeding 10% of Revenue Year Number of Customers Revenue Combined Percent Accounts Receivable Combined Percent 2018 3 51 % 33 % 2017 2 44 % 21 % |
Property and Equipment, Net, _2
Property and Equipment, Net, and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components Property and Equipment, Net, and Other Assets | At December 31, 2018 and 2017, Property and equipment, net, and other assets consisted of the following: As of December 31, 2018 2017 Vehicles $ 493,373 $ 544,984 Computer equipment 700,218 700,893 Office furniture and fixtures 541,464 541,464 Machinery and equipment 845,128 804,722 Leasehold improvements 558,035 558,035 Property and equipment, gross 3,138,218 3,150,098 Accumulated depreciation (2,523,700 ) (2,193,231 ) Property and equipment, net 614,518 956,867 Security deposits and other assets 353,507 363,475 Property and equipment, net, and other assets $ 968,025 $ 1,320,342 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The components of goodwill and other intangible assets are as follows: December 31, 2018 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Finite lived intangible assets: Customer relationships 5 years $ 12,720,000 $ 12,720,000 $ — Trademarks 7 years 6,235,068 4,860,305 1,374,763 Patents 7 years 230,683 230,683 — Software 7 years 1,934,308 698,150 1,236,158 Customer lists 5 years 307,153 307,153 — Total finite lived intangible assets $ 21,427,212 $ 18,816,291 $ 2,610,921 December 31, 2017 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Finite lived intangible assets: Customer relationships 5 years $ 12,720,000 $ 11,342,000 $ 1,378,000 Trademarks 7 years 6,242,055 3,969,576 2,272,479 Patents 7 years 230,683 230,683 — Software 7 years 1,904,279 548,163 1,356,116 Customer lists 5 years 307,153 282,153 25,000 Total finite lived intangible assets $ 21,404,170 $ 16,372,575 $ 5,031,595 |
Schedule of Changes in Goodwill | Carrying Amount Changes in goodwill: Goodwill balance at December 31, 2017 $ 58,337,290 Adjustment related to Earth911, Inc. asset sale (128,800 ) Goodwill balance at December 31, 2018 $ 58,208,490 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable And Accrued Liabilities Current [Abstract] | |
Components of Accounts Payable and Accrued Liabilities | The components of Accounts payable and accrued liabilities are as follows: As of December 31, 2018 2017 Accounts payable $ 14,025,221 $ 12,739,117 Accrued taxes 548,126 807,037 Employee compensation 910,796 434,358 Other 293,778 273,306 $ 15,777,921 $ 14,253,818 |
Capital Lease Obligations (Tabl
Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Capital Lease Obligations | At December 31, 2018 and 2017, total capital lease obligations outstanding consisted of the following: As of December 31, 2018 2017 Capital lease obligations, imputed interest of 4.99% to 13.29%, with current monthly payments of approximately $500, expiring through September 2019, secured by computer and office equipment $ 2,597 $ 41,664 Total 2,597 41,664 Less: current maturities (2,597 ) (39,067 ) Long-term portion $ — $ 2,597 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue Disaggregated by Source | The following table presents our revenue disaggregated by source. Year Ended December 31, 2018 2017 Revenue Type: Services $ 93,524,370 $ 126,998,825 Product sales and other 10,281,062 11,347,502 Total revenue $ 103,805,432 $ 138,346,327 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Net Deferred Taxes | The components of net deferred taxes are as follows: As of December 31, 2018 2017 Deferred tax assets (liabilities): Net operating loss $ 5,095,000 $ 5,115,000 Depreciation and amortization 4,449,000 4,435,000 Stock-based compensation 2,840,000 2,627,000 Capitalized software costs (522,000 ) (244,000 ) Accrued interest expense 36,000 52,000 Allowance for doubtful accounts 251,000 138,000 Deferred lease liability 53,000 27,000 Total deferred tax assets, net 12,202,000 12,150,000 Less: valuation allowance (12,202,000 ) (12,150,000 ) Net deferred taxes $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between the income tax expense (benefit) calculated by applying statutory rates to net loss and the income tax (benefit) reported in the accompanying consolidated financial statements is as follows: Years Ended December 31, 2018 2017 U.S. federal statutory rate applied to pretax loss $ (512,000 ) $ (2,037,097 ) State taxes (146,000 ) — Permanent differences 7,000 13,342 Benefit of operating loss carryforwards (170,000 ) — Cumulative adjustment to deferred taxes 612,000 — Change in state tax rates and other 157,000 (155,245 ) Impact of 2017 Tax Act — 5,584,000 Change in valuation allowance 52,000 (3,405,000 ) $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Non-Cancelable Operating Leases | The following is a schedule, by year, of future minimum rental payments required under non-cancelable operating lease agreements as of December 31, 2018: Year Ending December 31, Amount 2019 $ 631,260 2020 664,200 2021 664,200 2022 498,150 Total $ 2,457,810 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Warrants Issued and Outstanding | The following table summarizes the warrants issued and outstanding as of December 31, 2018: Warrants Issued and Outstanding as of December 31, 2018 Date of Exercise Shares of Description Issuance Expiration Price Common Stock Exercisable warrants Warrants 9/24/2014 9/24/2019 $ 20.00 1,125,005 Warrants 10/20/2014 10/20/2019 $ 20.00 87,500 Warrants 3/30/2016 3/30/2021 $ 3.88 521,060 Total warrants issued and outstanding 1,733,565 |
Summary of Stock Option Activity | The following table summarizes the stock option activity from January 1, 2017 through December 31, 2018: Stock Options Weighted- Exercise Average Number Price Per Exercise Price of Shares Share Per Share Outstanding at January 1, 2017 1,317,402 $2.08 — $26.00 $ 9.09 Granted 117,500 $1.17 — $2.71 $ 2.07 Canceled/Forfeited (45,086 ) $4.80 — $23.20 $ 12.37 Outstanding at December 31, 2017 1,389,816 $1.17 — $26.00 $ 8.39 Granted 420,500 $1.65 — $2.62 $ 2.38 Canceled/Forfeited (37,250 ) $2.39 — $23.20 $ 5.98 Outstanding at December 31, 2018 1,773,066 $1.17 — $26.00 $ 7.02 |
Summary of Stock Option Outstanding | The following additional information applies to options outstanding at December 31, 2018: Range of Exercise Prices Outstanding at December 31, 2018 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable at December 31, 2018 Weighted- Average Exercise Price $1.17 - $26.00 1,773,066 6.9 $ 7.02 999,999 $ 10.05 The following additional information applies to options outstanding at December 31, 2017: Range of Exercise Prices Outstanding at December 31, 2017 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable at December 31, 2017 Weighted- Average Exercise Price $1.17 - $26.00 1,389,816 7.3 $ 8.39 766,858 $ 12.24 |
Schedule of Weighted-Average Estimated Value of Employee Stock Options Granted | The weighted-average estimated value of employee stock options granted during the years ended December 31, 2018 and 2017 were estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions: Years Ended December 31, 2018 2017 Expected volatility 85 % 91 % Risk-free interest rate 2.42 % 1.81 % Expected dividends 0.00 % 0.00 % Expected term in years 5.9 4.8 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-dilutive Securities Excluded from Diluted Loss Per Share | The following table sets forth the anti-dilutive securities excluded from diluted loss per share: Years ended December 31, 2018 2017 Anti-dilutive securities excluded from diluted loss per share: Stock options 1,773,066 1,389,816 Warrants 1,733,565 1,733,565 Total anti-dilutive securities excluded from diluted loss per share 3,506,631 3,123,381 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Information to Consolidated Statements of Cash Flows | The following is provided as supplemental information to the consolidated statements of cash flows: Years Ended December 31, 2018 2017 Supplemental cash flow information: Cash paid for interest $ 364,372 $ 346,658 Cash paid for income taxes $ — $ — Supplemental non-cash activities: Sale of goodwill and intangible assets $ 246,585 $ — Investment in Earth Media Partners, LLC $ (246,585 ) $ — Draw on Citizens ABL facility $ — $ 9,250,000 Repayment of Regions line of credit $ — $ (9,250,000 ) Draw on Citizens ABL facility for repayment of capital lease obligation $ — $ 212,609 Debt issuance costs financed with Citizens ABL facility $ — $ 235,173 |
The Company, Description of B_2
The Company, Description of Business, and Liquidity - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Risks And Uncertainties [Abstract] | ||
Working Capital | $ 3,950,223 | $ 4,243,990 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||||||
Allowance for doubtful accounts receivable | $ 929,339 | $ 699,102 | $ 333,578 | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | |||
Potentially dilutive securities include options and warrants | 3,506,631 | 3,123,381 | ||||
Bank cash balances on deposit exceeded federally insured limits | $ 1,850,550 | |||||
Tax benefit percentage of being realized upon ultimate settlement | 50.00% | |||||
Advertising expense | $ 38,570 | $ 25,892 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Beginning balance | $ 699,102 | $ 333,578 |
Bad debt expense, net of recoveries | 1,085,622 | 652,273 |
Uncollectible accounts written off | (855,385) | (286,749) |
Ending balance | $ 929,339 | $ 699,102 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | Vehicles [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 5 years |
Minimum [Member] | Computer equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 3 years |
Minimum [Member] | Office furniture and fixtures [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 5 years |
Minimum [Member] | Machinery and equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 5 years |
Minimum [Member] | Leasehold improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 5 years |
Maximum [Member] | Vehicles [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 7 years |
Maximum [Member] | Computer equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 5 years |
Maximum [Member] | Office furniture and fixtures [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 7 years |
Maximum [Member] | Machinery and equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 7 years |
Maximum [Member] | Leasehold improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives of property and equipment | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Number of Customers that Accounted for More than Ten Percentage of Annual Sales and Receivable Balances (Detail) - Customer | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | ||
Number of Customers | 3 | 2 |
Revenue Combined Percent | 51.00% | 44.00% |
Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Number of Customers | 3 | 2 |
Customer Accounted [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Revenue Combined Percent | 51.00% | 44.00% |
Customer Accounted [Member] | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Revenue Combined Percent | 33.00% | 21.00% |
Property and Equipment, Net, _3
Property and Equipment, Net, and Other Assets - Components of Property and Equipment, Net, and Other Assets (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,138,218 | $ 3,150,098 |
Accumulated depreciation | (2,523,700) | (2,193,231) |
Property and equipment, net | 614,518 | 956,867 |
Security deposits and other assets | 353,507 | 363,475 |
Property and equipment, net, and other assets | 968,025 | 1,320,342 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 493,373 | 544,984 |
Computer equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 700,218 | 700,893 |
Office furniture and fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 541,464 | 541,464 |
Machinery and equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 845,128 | 804,722 |
Leasehold improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 558,035 | $ 558,035 |
Property and Equipment, Net, _4
Property and Equipment, Net, and Other Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Feb. 20, 2018 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 385,863 | $ 444,498 | |
Carrying value of capital lease assets, net | 152,541 | 243,778 | |
Capital lease assets, accumulated depreciation | 347,556 | 256,319 | |
Asset Purchase Agreement [Member] | Earth Media Partners, LLC [Member] | |||
Property Plant And Equipment [Line Items] | |||
Percentage of ownership interest | 19.00% | ||
Ownership interest amount recorded as investment | $ 246,585 | ||
Accrued earn-out amount | 59,030 | ||
Asset Purchase Agreement [Member] | Earth Media Partners, LLC [Member] | Wholly Owned Subsidiary and Earth911, Inc. [Member] | Disposal Group, Not Discontinued Operations [Member] | |||
Property Plant And Equipment [Line Items] | |||
Future earn-out amount | $ 350,000 | ||
Service [Member] | |||
Property Plant And Equipment [Line Items] | |||
Depreciation reflected in cost of revenue | $ 184,404 | $ 170,536 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,427,212 | $ 21,404,170 |
Accumulated Amortization | 18,816,291 | 16,372,575 |
Net | $ 2,610,921 | $ 5,031,595 |
Customer relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | 5 years |
Gross Carrying Amount | $ 12,720,000 | $ 12,720,000 |
Accumulated Amortization | $ 12,720,000 | 11,342,000 |
Net | $ 1,378,000 | |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | 7 years |
Gross Carrying Amount | $ 6,235,068 | $ 6,242,055 |
Accumulated Amortization | 4,860,305 | 3,969,576 |
Net | $ 1,374,763 | $ 2,272,479 |
Patents [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | 7 years |
Gross Carrying Amount | $ 230,683 | $ 230,683 |
Accumulated Amortization | $ 230,683 | $ 230,683 |
Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | 7 years |
Gross Carrying Amount | $ 1,934,308 | $ 1,904,279 |
Accumulated Amortization | 698,150 | 548,163 |
Net | $ 1,236,158 | $ 1,356,116 |
Customer lists [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | 5 years |
Gross Carrying Amount | $ 307,153 | $ 307,153 |
Accumulated Amortization | $ 307,153 | 282,153 |
Net | $ 25,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Changes in Goodwill (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill beginning balance | $ 58,337,290 |
Adjustment related to Earth911, Inc. asset sale | (128,800) |
Goodwill ending balance | $ 58,208,490 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangibles | $ 2,499,349 | $ 3,712,763 | |||
Expected amortization expense 2019, related to intangible assets | 1,100,000 | ||||
Expected amortization expense 2020, related to intangible assets | 660,000 | ||||
Expected amortization expense 2021, related to intangible assets | 175,000 | ||||
Expected amortization expense 2022, related to intangible assets | 175,000 | ||||
Expected amortization expense 2023, related to intangible assets | 175,000 | ||||
Expected amortization expense thereafter, related to intangible assets | 350,000 | ||||
Indefinite-lived intangible assets other than goodwill | $ 0 | ||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accounts payable | $ 14,025,221 | $ 12,739,117 |
Accrued taxes | 548,126 | 807,037 |
Employee compensation | 910,796 | 434,358 |
Other | 293,778 | 273,306 |
Accounts payable and accrued liabilities | $ 15,777,921 | $ 14,253,818 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - USD ($) | Feb. 24, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Interest expense related to borrowings | $ 437,733 | $ 468,030 | |
Interest expense related to amortization of discount | 93,902 | 78,251 | |
Revolving credit facility, net | 5,194,588 | 6,763,497 | |
ABL Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility maximum principal amount | $ 20,000,000 | ||
Debt instrument maturity date | Feb. 24, 2022 | ||
Interest expense related to borrowings | 325,534 | 378,826 | |
Debt issuance cost | 469,507 | ||
Unamortized portion of debt discount | 297,355 | ||
Interest expense related to amortization of discount | 93,902 | $ 78,251 | |
Revolving credit current borrowing facility | 11,261,000 | ||
Revolving credit facility, net | 5,194,588 | ||
Unamortized debt issuance cost | $ 297,355 | ||
ABL Facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument interest rate | 6.75% | ||
ABL Facility [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument interest rate | 4.67% | ||
ABL Facility [Member] | Minimum [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, margin on variable rate | 1.00% | ||
ABL Facility [Member] | Minimum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, margin on variable rate | 2.00% | ||
ABL Facility [Member] | Maximum [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, margin on variable rate | 1.50% | ||
ABL Facility [Member] | Maximum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, margin on variable rate | 2.50% | ||
Equipment Loan Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility maximum principal amount | $ 2,000,000 | ||
Debt instrument maturity date | Feb. 24, 2022 | ||
Revolving credit facility, net | $ 0 | ||
Equipment Loan Facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, margin on variable rate | 2.00% | ||
Equipment Loan Facility [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, margin on variable rate | 3.00% | ||
Revolving Credit Note and Loan Agreement [Member] | Regions Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument maturity date | Feb. 24, 2017 |
Capital Lease Obligations - Sum
Capital Lease Obligations - Summary of Capital Lease Obligations (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Capital lease obligations, imputed interest of 4.99% to 13.29%, with current monthly payments of approximately $500, expiring through September 2019, secured by computer, and office equipment | $ 2,597 | $ 41,664 |
Less: current maturities | $ (2,597) | (39,067) |
Long-term portion | $ 2,597 |
Capital Lease Obligations - S_2
Capital Lease Obligations - Summary of Capital Lease Obligations (Parenthetical) (Detail) - Capital lease obligations, imputed interest at 4.99% to 13.29% [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Imputed interest rate for capital lease obligation, minimum | 4.99% | 4.99% |
Imputed interest rate for capital lease obligation, maximum | 13.29% | 13.29% |
Monthly installment capital lease obligation | $ 500 | $ 500 |
Debt instrument expiring date, description | expiring through September 2019 |
Capital Lease Obligations - Add
Capital Lease Obligations - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Interest expense related to capital leases | $ 1,388 | $ 5,897 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer | |
Revenue Recognition [Line Items] | ||
Revenue | $ 103,805,432 | $ 138,346,327 |
Number of customer | Customer | 3 | 2 |
Percentage of revenue | 51.00% | 44.00% |
Deferred contract costs | $ 7,448 | $ 136,139 |
Deferred revenue | 69,473 | 309,089 |
Selling, General and Administrative Expense [Member] | ||
Revenue Recognition [Line Items] | ||
Amortized deferred contract costs | 211,250 | 110,000 |
Reduction to Income [Member] | ||
Revenue Recognition [Line Items] | ||
Amortized deferred contract costs | $ 36,139 | 72,777 |
Management Fee Contract [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue | 78,145 | |
Management Fees Gross Billings [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue | $ 2,173,022 |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Source (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 103,805,432 | $ 138,346,327 |
Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 93,524,370 | 126,998,825 |
Product Sales and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 10,281,062 | $ 11,347,502 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 12,202,000 | $ 12,150,000 |
Federal corporate income tax rate | 21.00% | 35.00% |
Federal income tax net operating loss carry forward | $ 18,900,000 | $ 19,700,000 |
Net operating loss carry forwards expiration beginning year | 2031 | |
Net operating loss carry forwards expiration ending year | 2037 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Taxes (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 5,095,000 | $ 5,115,000 |
Depreciation and amortization | 4,449,000 | 4,435,000 |
Stock-based compensation | 2,840,000 | 2,627,000 |
Capitalized software costs | (522,000) | (244,000) |
Accrued interest expense | 36,000 | 52,000 |
Allowance for doubtful accounts | 251,000 | 138,000 |
Deferred lease liability | 53,000 | 27,000 |
Total deferred tax assets, net | 12,202,000 | 12,150,000 |
Less: valuation allowance | $ (12,202,000) | $ (12,150,000) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory rate applied to pretax loss | $ (512,000) | $ (2,037,097) |
State taxes | (146,000) | |
Permanent differences | 7,000 | 13,342 |
Benefit of operating loss carryforwards | (170,000) | |
Cumulative adjustment to deferred taxes | 612,000 | |
Change in state tax rates and other | 157,000 | (155,245) |
Impact of 2017 Tax Act | 5,584,000 | |
Change in valuation allowance | $ 52,000 | $ (3,405,000) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Payment Of Commitment And Contingencies [Line Items] | ||
Operating lease expense | $ 609,295 | $ 610,797 |
Liabilities incurred to defend lawsuits | 0 | 0 |
Plan contribution expense | $ 150,791 | $ 112,277 |
Texas [Member] | ||
Payment Of Commitment And Contingencies [Line Items] | ||
Operating lease period | 84 months | |
Operating leases expiring period | 2022-10 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Non-Cancelable Operating Leases (Detail) | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 631,260 |
2020 | 664,200 |
2021 | 664,200 |
2022 | 498,150 |
Operating lease total | $ 2,457,810 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 15,328,870 | 15,302,455 |
Common stock, shares outstanding | 15,328,870 | 15,302,455 |
Stockholders' Equity - Additi_2
Stockholders' Equity - Additional Information - Employee Stock Purchase Plan (Detail) - USD ($) | Nov. 16, 2018 | May 16, 2018 | Nov. 14, 2017 | May 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Stockholders Equity [Line Items] | ||||||
Employee stock purchase plan expense | $ 17,738 | $ 25,930 | ||||
Shares issued for Employee Stock Purchase Plan options, Value | $ 40,380 | $ 32,988 | ||||
Common Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Shares issued for Employee Stock Purchase Plan options, Shares | 26,415 | 29,880 | ||||
Shares issued for Employee Stock Purchase Plan options, Value | $ 27 | $ 29 | ||||
2014 Employee Stock Purchase Plan [Member] | Common Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Shares issued for Employee Stock Purchase Plan options, Shares | 15,487 | 10,928 | 21,131 | 8,749 | 26,415 | 29,880 |
Shares issued for Employee Stock Purchase Plan options, Value | $ 21,984 | $ 18,396 | $ 21,016 | $ 11,972 | $ 40,380 | $ 32,988 |
Stockholders' Equity - Additi_3
Stockholders' Equity - Additional Information - Warrants (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Warrants issued | 0 | 0 |
Number of exercised warrants | 0 | 0 |
Number of warrants expired | 205,126 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrants Issued and Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Class Of Warrant Or Right [Line Items] | |
Shares of Common Stock | 1,733,565 |
Exercisable Warrants [Member] | Warrants One [Member] | |
Class Of Warrant Or Right [Line Items] | |
Date of Issuance | Sep. 24, 2014 |
Date of Expiration | Sep. 24, 2019 |
Exercise Price | $ / shares | $ 20 |
Shares of Common Stock | 1,125,005 |
Exercisable Warrants [Member] | Warrants Two [Member] | |
Class Of Warrant Or Right [Line Items] | |
Date of Issuance | Oct. 20, 2014 |
Date of Expiration | Oct. 20, 2019 |
Exercise Price | $ / shares | $ 20 |
Shares of Common Stock | 87,500 |
Exercisable Warrants [Member] | Warrants Three [Member] | |
Class Of Warrant Or Right [Line Items] | |
Date of Issuance | Mar. 30, 2016 |
Date of Expiration | Mar. 30, 2021 |
Exercise Price | $ / shares | $ 3.88 |
Shares of Common Stock | 521,060 |
Stockholders' Equity - Additi_4
Stockholders' Equity - Additional Information - Incentive Compensation Plan (Detail) | Oct. 31, 2012shares |
Incentive Compensation Plan [Member] | Maximum [Member] | |
Schedule Of Stockholders Equity [Line Items] | |
Number of shares available for grant | 1,837,500 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding Beginning Balance, Number of Shares | 1,389,816 | 1,317,402 |
Granted, Number of Shares | 420,500 | 117,500 |
Canceled/Forfeited, Number of Shares | (37,250) | (45,086) |
Outstanding Ending Balance, Number of Shares | 1,773,066 | 1,389,816 |
Outstanding Beginning Balance, Weighted-Average Exercise Price Per Share | $ 8.39 | $ 9.09 |
Granted, Weighted-Average Exercise Price Per Share | 2.38 | 2.07 |
Canceled/Forfeited, Weighted-Average Exercise Price Per Share | 5.98 | 12.37 |
Outstanding Ending Balance, Weighted-Average Exercise Price Per Share | 7.02 | 8.39 |
Exercise Price Per Share, Minimum | 1.17 | 1.17 |
Exercise Price Per Share, Maximum | 26 | 26 |
Outstanding, 2.08 — 26.00 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 2.08 | |
Exercise Price Per Share, Maximum | 26 | |
Granted, 1.17 — 2.71 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 1.17 | |
Exercise Price Per Share, Maximum | 2.71 | |
Canceled/Forfeited, 4.80 — 23.20 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 4.80 | |
Exercise Price Per Share, Maximum | 23.20 | |
Outstanding, 1.17 — 26.00 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 1.17 | |
Exercise Price Per Share, Maximum | $ 26 | |
Granted, 1.65 — 2.62 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 1.65 | |
Exercise Price Per Share, Maximum | 2.62 | |
Canceled/Forfeited, 2.39 — 23.20 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 2.39 | |
Exercise Price Per Share, Maximum | 23.20 | |
Outstanding, 1.17 — 26.00 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 1.17 | |
Exercise Price Per Share, Maximum | $ 26 |
Stockholders' Equity - Additi_5
Stockholders' Equity - Additional Information - Stock Options (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Stockholders Equity [Line Items] | ||
Options outstanding, intrinsic value | $ 7,220 | $ 59,000 |
Options exercisable, intrinsic value | 7,220 | 47,000 |
Stock-based compensation expense | 793,589 | $ 662,810 |
Unvested share-based awards | $ 1,300,000 | |
Expected weighted average period to recognize unearned stock-based compensation | 2 years | |
Stock Options [Member] | ||
Schedule Of Stockholders Equity [Line Items] | ||
Weighted-average grant-date fair value | $ 1.71 | $ 1.49 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock Option Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Option Outstanding - Range of Exercise Prices, Lower Limit | $ 1.17 | $ 1.17 | |
Option Outstanding - Range of Exercise Prices, Upper Limit | $ 26 | $ 26 | |
Option Outstanding - Number of Shares | 1,773,066 | 1,389,816 | 1,317,402 |
Option Outstanding - Weighted-Average Remaining Contractual Life | 6 years 10 months 24 days | 7 years 3 months 18 days | |
Option Outstanding - Weighted Average Exercise Price | $ 7.02 | $ 8.39 | $ 9.09 |
Option Exercisable | 999,999 | 766,858 | |
Option Exercisable - Weighted Average Exercise Price | $ 10.05 | $ 12.24 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Weighted-Average Estimated Value of Employee Stock Options Granted (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Expected volatility | 85.00% | 91.00% |
Risk-free interest rate | 2.42% | 1.81% |
Expected dividends | 0.00% | 0.00% |
Expected term in years | 5 years 10 months 24 days | 4 years 9 months 18 days |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive securities include options and warrants | 3,506,631 | 3,123,381 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Anti-dilutive Securities Excluded from Diluted Loss Per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted loss per share | 3,506,631 | 3,123,381 |
Stock options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted loss per share | 1,773,066 | 1,389,816 |
Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted loss per share | 1,733,565 | 1,733,565 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Summary of Supplemental Information to Consolidated Statements of Cash Flows (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental cash flow information: | ||
Cash paid for interest | $ 364,372 | $ 346,658 |
Supplemental non-cash activities: | ||
Sale of goodwill and intangible assets | 246,585 | |
Investment in Earth Media Partners, LLC | $ (246,585) | |
Repayment of Regions line of credit | (9,250,000) | |
ABL Facility [Member] | ||
Supplemental non-cash activities: | ||
Draw on Citizens ABL facility | 9,250,000 | |
Draw on Citizens ABL facility for repayment of capital lease obligation | 212,609 | |
Debt issuance costs financed with Citizens ABL facility | $ 235,173 |