Quest Resource Holding (QRHC) 10-Q 14 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	QRHC
Entity Registrant Name	Quest Resource Holding Corporation
Entity Central Index Key	0001442236
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,350,153
Entity File Number	001-36451
Entity Tax Identification Number	51-0665952
Entity Address, Address Line One	3481 Plano Parkway
Entity Address, City or Town	The Colony
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75056
City Area Code	972
Local Phone Number	464-0004
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock
Entity Incorporation, State or Country Code	NV
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 2,068,999	$ 2,122,297
Accounts receivable, less allowance for doubtful accounts of $751,352 and $929,339 as of September 30, 2019 and December 31, 2018, respectively	14,237,314	16,711,809
Prepaid expenses and other current assets	1,238,665	965,755
Total current assets	17,544,978	19,799,861
Goodwill	58,208,490	58,208,490
Intangible assets, net	1,853,279	2,610,921
Property and equipment, net, and other assets	2,687,629	968,025
Total assets	80,294,376	81,587,297
Current liabilities:
Accounts payable and accrued liabilities	13,514,157	15,777,921
Deferred revenue and other current liabilities	15,516	71,717
Total current liabilities	13,529,673	15,849,638
Revolving credit facility, net	4,228,255	5,194,588
Other long-term liabilities	1,295,004	353
Total liabilities	19,052,932	21,044,579
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of September 30, 2019 and December 31, 2018
Common stock, $0.001 par value, 200,000,000 shares authorized,15,350,153 and 15,328,870 shares issued and outstanding as of September 30, 2019 and December 31, 2018	15,350	15,329
Additional paid-in capital	160,489,898	159,701,542
Accumulated deficit	(99,263,804)	(99,174,153)
Total stockholders’ equity	61,241,444	60,542,718
Total liabilities and stockholders’ equity	$ 80,294,376	$ 81,587,297

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 751,352	$ 929,339
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	15,350,153	15,328,870
Common stock, shares outstanding	15,350,153	15,328,870

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 23,925,431	$ 25,920,215	$ 76,019,845	$ 78,544,764
Cost of revenue	19,154,129	21,449,658	61,956,123	66,098,602
Gross profit	4,771,302	4,470,557	14,063,722	12,446,162
Operating expenses:
Selling, general, and administrative	4,221,339	4,638,585	12,662,481	12,269,625
Depreciation and amortization	329,541	406,726	982,421	2,372,916
Total operating expenses	4,550,880	5,045,311	13,644,902	14,642,541
Operating income (loss)	220,422	(574,754)	418,820	(2,196,379)
Interest expense	118,652	106,140	344,160	335,576
Income (loss) before taxes	101,770	(680,894)	74,660	(2,531,955)
Income tax expense	54,771		164,311
Net income (loss)	46,999	(680,894)	(89,651)	(2,531,955)
Net income (loss) applicable to common stockholders	$ 46,999	$ (680,894)	$ (89,651)	$ (2,531,955)
Net income (loss) per share applicable to common stockholders
Basic	$ 0	$ (0.04)	$ (0.01)	$ (0.17)
Diluted	$ 0	$ (0.04)	$ (0.01)	$ (0.17)
Weighted average number of common shares outstanding
Basic	15,350,153	15,313,383	15,339,706	15,307,939
Diluted	15,398,839	15,313,383	15,339,706	15,307,939

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2017	$ 62,147,730	$ 15,302	$ 158,867,600	$ (96,735,172)
Beginning Balance, Shares at Dec. 31, 2017		15,302,455
Stock-based compensation	224,133		224,133
Net income (loss)	(1,312,519)			(1,312,519)
Ending Balance at Mar. 31, 2018	61,059,344	$ 15,302	159,091,733	(98,047,691)
Ending Balance, Shares at Mar. 31, 2018		15,302,455
Beginning Balance at Dec. 31, 2017	62,147,730	$ 15,302	158,867,600	(96,735,172)
Beginning Balance, Shares at Dec. 31, 2017		15,302,455
Net income (loss)	(2,531,955)
Ending Balance at Sep. 30, 2018	60,227,692	$ 15,313	159,479,506	(99,267,127)
Ending Balance, Shares at Sep. 30, 2018		15,313,383
Beginning Balance at Mar. 31, 2018	61,059,344	$ 15,302	159,091,733	(98,047,691)
Beginning Balance, Shares at Mar. 31, 2018		15,302,455
Stock-based compensation	182,582		182,582
Shares issued for Employee Stock Purchase Plan options, Value	18,396	$ 11	18,385
Shares issued for Employee Stock Purchase Plan options, Shares		10,928
Net income (loss)	(538,542)			(538,542)
Ending Balance at Jun. 30, 2018	60,721,780	$ 15,313	159,292,700	(98,586,233)
Ending Balance, Shares at Jun. 30, 2018		15,313,383
Stock-based compensation	186,806		186,806
Net income (loss)	(680,894)			(680,894)
Ending Balance at Sep. 30, 2018	60,227,692	$ 15,313	159,479,506	(99,267,127)
Ending Balance, Shares at Sep. 30, 2018		15,313,383
Beginning Balance at Dec. 31, 2018	60,542,718	$ 15,329	159,701,542	(99,174,153)
Beginning Balance, Shares at Dec. 31, 2018		15,328,870
Stock-based compensation	204,031		204,031
Net income (loss)	(163,752)			(163,752)
Ending Balance at Mar. 31, 2019	60,582,997	$ 15,329	159,905,573	(99,337,905)
Ending Balance, Shares at Mar. 31, 2019		15,328,870
Beginning Balance at Dec. 31, 2018	60,542,718	$ 15,329	159,701,542	(99,174,153)
Beginning Balance, Shares at Dec. 31, 2018		15,328,870
Net income (loss)	(89,651)
Ending Balance at Sep. 30, 2019	61,241,444	$ 15,350	160,489,898	(99,263,804)
Ending Balance, Shares at Sep. 30, 2019		15,350,153
Beginning Balance at Mar. 31, 2019	60,582,997	$ 15,329	159,905,573	(99,337,905)
Beginning Balance, Shares at Mar. 31, 2019		15,328,870
Stock-based compensation	269,201		269,201
Shares issued for Employee Stock Purchase Plan options, Value	29,669	$ 21	29,648
Shares issued for Employee Stock Purchase Plan options, Shares		21,283
Net income (loss)	27,102			27,102
Ending Balance at Jun. 30, 2019	60,908,969	$ 15,350	160,204,422	(99,310,803)
Ending Balance, Shares at Jun. 30, 2019		15,350,153
Stock-based compensation	276,816		276,816
Issuance of deferred common stock units	8,660		8,660
Net income (loss)	46,999			46,999
Ending Balance at Sep. 30, 2019	$ 61,241,444	$ 15,350	$ 160,489,898	$ (99,263,804)
Ending Balance, Shares at Sep. 30, 2019		15,350,153

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (89,651)	$ (2,531,955)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	175,562	301,651
Amortization of intangibles	880,564	2,207,840
Amortization of debt issuance costs	70,426	70,426
Provision for doubtful accounts	45,000	1,005,622
Stock-based compensation	758,708	593,521
Changes in operating assets and liabilities:
Accounts receivable	2,429,495	(1,895,297)
Prepaid expenses and other current assets	(272,910)	63,194
Security deposits and other assets	(73,979)	264,868
Accounts payable and accrued liabilities	(2,702,982)	2,253,156
Deferred revenue and other liabilities	(53,957)	(220,098)
Net cash provided by operating activities	1,166,276	2,112,928
Cash flows from investing activities:
Purchase of property and equipment	(86,965)	(43,371)
Purchase of capitalized software development	(122,922)	(159,930)
Net cash used in investing activities	(209,887)	(203,301)
Cash flows from financing activities:
Proceeds from credit facilities	76,320,336	74,818,231
Repayments of credit facilities	(77,357,095)	(76,717,277)
Proceeds from shares issued for Employee Stock Purchase Plan	29,669	18,396
Repayments of finance lease obligations	(2,597)	(36,001)
Net cash used in financing activities	(1,009,687)	(1,916,651)
Net decrease in cash and cash equivalents	(53,298)	(7,024)
Cash and cash equivalents at beginning of period	2,122,297	1,055,281
Cash and cash equivalents at end of period	2,068,999	1,048,257
Supplemental cash flow information:
Cash paid for interest	282,716	271,620
Cash paid for income taxes	$ 47,810
Supplemental non-cash activities:
Sale of goodwill and intangible assets		246,585
Investment in Earth Media Partners, LLC		$ (246,585)

The Company and Description of

The Company and Description of Business	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
The Company and Description of Business	1. The Company and Description of Business The accompanying condensed 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,” “our,” 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Presentation and Consolidation The condensed consolidated financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position at September 30, 2019 and the results of our operations and cash flows for the periods presented. We derived the December 31, 2018 condensed consolidated balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. As QRHC, Quest, LDI, Youchange, QVC, QV One, and QSS each operate as environmental-based service companies, we did not deem segment reporting necessary. All intercompany accounts and transactions have been eliminated in consolidation. Interim results are subject to seasonal variations, and the results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. Recent Accounting Pronouncements Adopted On January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), Leases Leases On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) 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	9 Months Ended
	Sep. 30, 2019
Property Plant And Equipment [Abstract]
Property and Equipment, Net, and Other Assets	3. Property and Equipment, net, and Other Assets At September 30, 2019 and December 31, 2018, property and equipment, net, and other assets consisted of the following: September 30, December 31, 2019 2018 (Unaudited) Property and equipment, net of accumulated depreciation of $2,348,954 and $2,523,700 as of September 30, 2019 and December 31, 2018, respectively $ 525,921 $ 614,518 Right-of-use operating lease asset 1,734,222 — Security deposits and other assets 427,486 353,507 Property and equipment, net, and other assets $ 2,687,629 $ 968,025 We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. Depreciation expense for the three months ended September 30, 2019 was $58,933, including $24,695 of depreciation expense reflected within “Cost of revenue” in our condensed consolidated statements of operations as it related to assets used in directly servicing customer contracts, and was $175,562 for the nine months ended September 30, 2019, including $73,704 of depreciation expense reflected within “Cost of revenue.” Depreciation expense for the three months ended September 30, 2018 was $97,679, including $45,576 of depreciation expense reflected within “Cost of revenue,” and was $301,651 for the nine months ended September 30, 2018, including $136,574 reflected within “Cost of revenue.” We recorded a right-of-use operating lease asset of $2.0 million related to our corporate office lease upon the adoption of ASC 842 effective January 1, 2019. Refer to Note 7, Leases 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 revenue, and accounts receivable as of 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 $134,926 related to the earn-out as of September 30, 2019. 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	9 Months Ended
	Sep. 30, 2019
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 were as follows: September 30, 2019 (Unaudited) 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 5,528,354 706,714 Patents 7 years 230,683 230,683 — Software 7 years 2,057,230 910,665 1,146,565 Customer lists 5 years 307,153 307,153 — Total finite lived intangible assets $ 21,550,134 $ 19,696,855 $ 1,853,279 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 September 30, 2019 (Unaudited) and December 31, 2018 Estimated Useful Life Carrying Amount Indefinite lived intangible asset: Goodwill Indefinite $ 58,208,490 We compute amortization using the straight-line method over the estimated useful lives of the finite lived intangible assets. Amortization expense related to finite lived intangible assets was $295,304 and $354,623 for the three months ended September 30, 2019 and 2018, respectively. Amortization expense related to finite lived intangible assets was $880,564 and $2,207,840 for the nine months ended September 30, 2019 and 2018, respectively. We have no indefinite-lived intangible assets other than goodwill. The goodwill is not deductible for tax purposes. We performed our annual impairment analysis for goodwill and other intangible assets in the third quarter of 2019 with no impairment recorded.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	9 Months Ended
	Sep. 30, 2019
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 were as follows: September 30, December 31, 2019 2018 (Unaudited) Accounts payable $ 10,990,219 $ 14,025,221 Accrued taxes 791,914 548,126 Employee compensation 937,354 910,796 Operating lease liability - current portion 624,056 — Other 170,614 293,778 $ 13,514,157 $ 15,777,921 Refer to Note 7, Leases Leases

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Sep. 30, 2019
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. 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% (6.25% as of September 30, 2019), or the LIBOR lending rate for the interest period in effect, plus a margin ranging from 2.0% to 2.5% (4.37% as of September 30, 2019). The maturity date of the ABL Facility is February 24, 2022. LIBOR is expected to be discontinued after 2021. The ABL Facility provides procedures for determining a replacement or alternative rate in the event that LIBOR is unavailable. However, there can be no assurances as to whether such replacement or alternative rate will be more or less favorable than LIBOR. We intend to monitor the developments with respect to the potential phasing out of LIBOR after 2021 and will work with Citizens Bank, National Association to ensure any transition away from LIBOR will have minimal impact on our financial condition. We however can provide no assurances regarding the impact of the discontinuation of LIBOR on the interest rate that we would be required to pay or on our financial condition. We had no borrowings under the equipment loan facility, which were required to be requested no later than February 24, 2019. 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. The amount of interest expense related to borrowings for the three months ended September 30, 2019 and 2018 was $86,765 and $81,644, respectively. The amount of interest expense related to borrowings for the nine months ended September 30, 2019 and 2018 was $263,542 and $247,071, respectively. Debt issuance cost of $469,507 is being amortized to interest expense over the term of the ABL Facility. As of September 30, 2019, the unamortized portion of the debt issuance costs was $226,928. The amount of interest expense related to the amortization of the discount on the ABL Facility for was $70,426.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Lessee Disclosure [Abstract]
Leases	7. Leases ASU 2016-02 Adoption On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) When we have the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and if it is reasonably certain that we will exercise the option, we consider these options in determining the classification and measurement of the lease. As of December 31, 2018, leases classified as capital leases under ASC 840 were included in Property and equipment, net and represented almost fully depreciated office equipment with a negligible book value. We lease certain equipment to a customer under a lease arrangement that expires in 2020. The capital lease receivable amounts are approximately $8,000 at September 30, 2019, the majority of which is included in Prepaid expenses and other current assets. Balance Sheet Classification The table below presents the lease related assets and liabilities recorded on the balance sheet. Right-of-use assets and related liabilities related to finance leases at September 30, 2019 are de minimis and mature in less than 12 months. September 30, 2019 Operating Leases: Right-of-use operating lease asset: Property and equipment, net and other assets $ 1,734,222 Lease Liabilities: Accounts payable and accrued liabilities $ 624,056 Other long-term liabilities 1,295,004 Total operating lease liabilities $ 1,919,060 Lease Costs For the three and nine months ended September 30, 2019, we recorded approximately $150,000 and $450,000 of fixed cost operating lease expense, respectively. Our operating lease expense is offset by a minimum annual incentive received from a local Economic Development Council, which is accrued monthly and will continue over the term of the lease through August 2022. This minimum annual incentive is $63,000, which will increase to $93,600 for the annual incentive period starting September 2020. Cash paid for operating leases approximated operating lease expense and non-cash right of use asset amortization for the three and nine months ended September 30, 2019. We did not obtain any new operating lease right-of-use assets in the nine months ended September 30, 2019. Other Information Our office lease had a remaining term of 3 years as of September 30, 2019, and we used an effective interest rate of 2.456%, which was our incremental borrowing rate in effect at the inception of the lease as our lease does not provide a readily determinable implicit rate. The future minimum lease payments required under our office lease as of September 30, 2019 were as follows: Year Ending December 31, Amount 2019 $ 166,050 2020 664,200 2021 664,200 2022 498,150 Total lease payments 1,992,600 Less: Interest 73,540 Present value of lease liabilities $ 1,919,060

Revenue

Revenue	9 Months Ended
	Sep. 30, 2019
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. Disaggregation of Revenue The following table presents our revenue disaggregated by source. Three customers accounted for 49.4% of revenue for the three months ended September 30, 2019, and three customers accounted for 48.6% of revenue for the three months ended September 30, 2018. Three customers accounted for 54.6% of revenue for the nine months ended September 30, 2019, and three customers accounted for 50.1% of revenue for the nine months ended September 30, 2018. We operate primarily in the United States, with minor services in Canada. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) Revenue Type: Services $ 21,422,455 $ 23,412,066 $ 68,244,033 $ 70,742,475 Product sales and other 2,502,976 2,508,149 7,775,812 7,802,289 Total revenue $ 23,925,431 $ 25,920,215 $ 76,019,845 $ 78,544,764 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 September 30, 2019 and December 31, 2018, we had $67,500 and $7,448, respectively, of deferred contract costs. During the three months ended September 30, 2019, we amortized $53,750 of deferred contract costs to selling, general, and administrative expense. During the three months ended September 30, 2018, we amortized $53,750 of deferred contract costs to selling, general, and administrative expense. During the nine months ended September 30, 2019, we amortized $161,250 of deferred contract costs to selling, general, and administrative expense. During the nine months ended September 30, 2018, we amortized $157,500 and $36,139 of deferred contract costs to selling, general, and administrative expense and as a reduction to income, respectively. We bill certain customers in advance, and, accordingly, we defer recognition of related revenues as a contract liability until the services are provided and control is transferred to the customer. As of September 30, 2019 and December 31, 2018, we had $15,516 and $69,473, respectively, of deferred revenue, the majority of which was classified in “Deferred revenue and other current liabilities.”

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes Our statutory income tax rate is anticipated to be 27%. However, we had income tax expense of $164,311 for the nine months ended September 30, 2019, which is attributable to state tax obligations for states with no net operating loss carryforwards, and the continued reserve against the benefit of the net operating losses at the federal level. We compute income taxes using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
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, and the ABL Facility. 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.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Stockholders' Equity	11. 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 are outstanding. Common Stock – Our authorized common stock consists of 200,000,000 shares of common stock with a par value of $0.001, of which 15,350,153 and 15,328,870 shares were issued and outstanding as of September 30, 2019 and December 31, 2018, respectively. Employee Stock Purchase Plan – On September 17, 2014, our stockholders approved our 2014 Employee Stock Purchase Plan (“ESPP”). On May 14, 2019, we issued 21,283 shares to employees for $29,669 under our ESPP for options that vested and were exercised. We recorded expense of $20,617 and $9,317 related to the ESPP for the nine months ended September 30, 2019 and 2018, respectively. Warrants – At September 30, 2019, we had outstanding exercisable warrants to purchase 608,560 shares of common stock. Warrants to purchase 1,125,005 shares of common stock expired on September 24, 2019. The following table summarizes the warrants issued and outstanding as of September 30, 2019: Date of Exercise Shares of Description Issuance Expiration Price Common Stock Exercisable warrants Warrants 10/20/2014 10/20/2019 $ 20.00 87,500 Warrants 3/30/2016 03/30/2021 $ 3.88 521,060 Total warrants issued and outstanding 608,560 Stock Options – We recorded stock option expense of $729,431 and $584,204 for the nine months ended September 30, 2019 and 2018, respectively. The following table summarizes the stock option activity for the nine months ended September 30, 2019: Stock Options Weighted- Exercise Average Number Price Per Exercise Price of Shares Share Per Share Outstanding at December 31, 2018 1,773,066 $1.17 — $26.00 $ 7.02 Granted 1,004,015 $1.51 — $3.12 $ 1.90 Canceled/Forfeited (132,967 ) $1.51 — $16.40 $ 2.62 Outstanding at September 30, 2019 2,644,114 $1.17 — $26.00 $ 5.30 Deferred Stock Units – Effective September 1, 2019, nonemployee directors can elect to receive all or a portion of their annual retainers in the form of deferred stock units (“DSUs”). The DSUs are recognized at their fair value on the date of grant. Each DSU represents the right to receive one share of our common stock following the completion of a director’s service. During the nine months ended September 30, 2019, we granted 3,464 DSUs and recorded director compensation expense of $8,660 related to the grants.

Net Income (Loss) per Share

Net Income (Loss) per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Income (Loss) per Share	12. Net Income (Loss) per Share We compute basic net income (loss) per share using the weighted average number of shares of common stock outstanding plus the number of common stock equivalents for DSUs during the period. We compute diluted net income (loss) per share using the weighted average number of shares of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods where losses are reported, the weighted average number of shares of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options. Dilutive potential securities are excluded from the computation of earnings per share if their effect is antidilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method. Deferred stock units (see Note 11) are included in both basic and diluted earnings per share computations. The computation of basic and diluted net income (loss) per share attributable to common stockholders is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) Numerator: Net income (loss) applicable to common stockholders $ 46,999 $ (680,894 ) $ (89,651 ) $ (2,531,955 ) Denominator: Weighted average common shares outstanding, basic 15,350,153 15,313,383 15,339,706 15,307,939 Effect of dilutive common shares 48,686 — — — Weighted average common shares outstanding, diluted 15,398,839 15,313,383 15,339,706 15,307,939 Net income (loss) per share: Basic $ 0.00 $ (0.04 ) $ (0.01 ) $ (0.17 ) Diluted $ 0.00 $ (0.04 ) $ (0.01 ) $ (0.17 ) Anti-dilutive securities excluded from diluted net income (loss) per share: Stock options 2,595,428 1,752,566 2,644,114 1,752,566 Warrants 608,560 1,733,565 608,560 1,733,565 Total anti-dilutive securities excluded from net income (loss) per share 3,203,988 3,486,131 3,252,674 3,486,131

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	13. Related Party Transactions During the quarter ended June 30, 2019, three stockholders sold approximately 4.3 million shares of our common stock in a registered public offering that closed on April 11, 2019. In a separate private transaction, a certain selling stockholder sold 1,750,000 shares of our common stock. The offering and private transaction, together the “Transactions”, closed on April 11, 2019. We did not receive any proceeds from sales by the selling stockholders in the Transactions. We incurred costs and expenses in connection with the Transactions, consisting of various registration, due diligence, printing, and professional service fees and expenses, and such costs, less amounts reimbursed by the selling stockholders at the closing of the Transactions, were approximately $248,000, and is included in selling, general, and administrative expense for the nine months ended September 30, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Principles of Presentation and Consolidation	Principles of Presentation and Consolidation The condensed consolidated financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position at September 30, 2019 and the results of our operations and cash flows for the periods presented. We derived the December 31, 2018 condensed consolidated balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. As QRHC, Quest, LDI, Youchange, QVC, QV One, and QSS each operate as environmental-based service companies, we did not deem segment reporting necessary. All intercompany accounts and transactions have been eliminated in consolidation. Interim results are subject to seasonal variations, and the results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted On January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), Leases Leases On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) 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, _2

Property and Equipment, Net, and Other Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Property Plant And Equipment [Abstract]
Components Property and Equipment, Net, and Other Assets	At September 30, 2019 and December 31, 2018, property and equipment, net, and other assets consisted of the following: September 30, December 31, 2019 2018 (Unaudited) Property and equipment, net of accumulated depreciation of $2,348,954 and $2,523,700 as of September 30, 2019 and December 31, 2018, respectively $ 525,921 $ 614,518 Right-of-use operating lease asset 1,734,222 — Security deposits and other assets 427,486 353,507 Property and equipment, net, and other assets $ 2,687,629 $ 968,025

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The components of goodwill and other intangible assets were as follows: September 30, 2019 (Unaudited) 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 5,528,354 706,714 Patents 7 years 230,683 230,683 — Software 7 years 2,057,230 910,665 1,146,565 Customer lists 5 years 307,153 307,153 — Total finite lived intangible assets $ 21,550,134 $ 19,696,855 $ 1,853,279 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
Schedule of Indefinite-Lived Intangible Assets	September 30, 2019 (Unaudited) and December 31, 2018 Estimated Useful Life Carrying Amount Indefinite lived intangible asset: Goodwill Indefinite $ 58,208,490

Accounts Payable and Accrued _2

Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Accounts Payable And Accrued Liabilities Current [Abstract]
Components of Accounts Payable and Accrued Liabilities	The components of Accounts payable and accrued liabilities were as follows: September 30, December 31, 2019 2018 (Unaudited) Accounts payable $ 10,990,219 $ 14,025,221 Accrued taxes 791,914 548,126 Employee compensation 937,354 910,796 Operating lease liability - current portion 624,056 — Other 170,614 293,778 $ 13,514,157 $ 15,777,921

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Lessee Disclosure [Abstract]
Summary of Lease Related Assets and Liabilities Recorded on Balance Sheet	The table below presents the lease related assets and liabilities recorded on the balance sheet. Right-of-use assets and related liabilities related to finance leases at September 30, 2019 are de minimis and mature in less than 12 months. September 30, 2019 Operating Leases: Right-of-use operating lease asset: Property and equipment, net and other assets $ 1,734,222 Lease Liabilities: Accounts payable and accrued liabilities $ 624,056 Other long-term liabilities 1,295,004 Total operating lease liabilities $ 1,919,060
Future Minimum Lease Payments Required Under Office Lease	The future minimum lease payments required under our office lease as of September 30, 2019 were as follows: Year Ending December 31, Amount 2019 $ 166,050 2020 664,200 2021 664,200 2022 498,150 Total lease payments 1,992,600 Less: Interest 73,540 Present value of lease liabilities $ 1,919,060

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue From Contract With Customer [Abstract]
Summary of Revenue Disaggregated by Source	The following table presents our revenue disaggregated by source. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) Revenue Type: Services $ 21,422,455 $ 23,412,066 $ 68,244,033 $ 70,742,475 Product sales and other 2,502,976 2,508,149 7,775,812 7,802,289 Total revenue $ 23,925,431 $ 25,920,215 $ 76,019,845 $ 78,544,764

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Summary of Warrants Issued and Outstanding	The following table summarizes the warrants issued and outstanding as of September 30, 2019: Date of Exercise Shares of Description Issuance Expiration Price Common Stock Exercisable warrants Warrants 10/20/2014 10/20/2019 $ 20.00 87,500 Warrants 3/30/2016 03/30/2021 $ 3.88 521,060 Total warrants issued and outstanding 608,560
Summary of Stock Option Activity	The following table summarizes the stock option activity for the nine months ended September 30, 2019 Stock Options Weighted- Exercise Average Number Price Per Exercise Price of Shares Share Per Share Outstanding at December 31, 2018 1,773,066 $1.17 — $26.00 $ 7.02 Granted 1,004,015 $1.51 — $3.12 $ 1.90 Canceled/Forfeited (132,967 ) $1.51 — $16.40 $ 2.62 Outstanding at September 30, 2019 2,644,114 $1.17 — $26.00 $ 5.30

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders	The computation of basic and diluted net income (loss) per share attributable to common stockholders is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) Numerator: Net income (loss) applicable to common stockholders $ 46,999 $ (680,894 ) $ (89,651 ) $ (2,531,955 ) Denominator: Weighted average common shares outstanding, basic 15,350,153 15,313,383 15,339,706 15,307,939 Effect of dilutive common shares 48,686 — — — Weighted average common shares outstanding, diluted 15,398,839 15,313,383 15,339,706 15,307,939 Net income (loss) per share: Basic $ 0.00 $ (0.04 ) $ (0.01 ) $ (0.17 ) Diluted $ 0.00 $ (0.04 ) $ (0.01 ) $ (0.17 ) Anti-dilutive securities excluded from diluted net income (loss) per share: Stock options 2,595,428 1,752,566 2,644,114 1,752,566 Warrants 608,560 1,733,565 608,560 1,733,565 Total anti-dilutive securities excluded from net income (loss) per share 3,203,988 3,486,131 3,252,674 3,486,131

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Significant Accounting Policies [Line Items]
Operating lease right-of-use asset	$ 1,734,222
Operating lease liability	1,919,060
Accumulated deficit	$ (99,263,804)		$ (99,174,153)
ASU 2016-02 [Member]
Significant Accounting Policies [Line Items]
Operating lease right-of-use asset		$ 2,000,000
Operating lease liability		2,200,000
Accumulated deficit		$ 0

Property and Equipment, Net, _3

Property and Equipment, Net, and Other Assets - Components of Property and Equipment, Net, and Other Assets (Detail) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Property And Equipment Net And Other Assets [Abstract]
Property and equipment, net of accumulated depreciation of $2,348,954 and $2,523,700 as of September 30, 2019 and December 31, 2018, respectively	$ 525,921	$ 614,518
Right-of-use operating lease asset	1,734,222
Security deposits and other assets	427,486	353,507
Property and equipment, net, and other assets	$ 2,687,629	$ 968,025

Property and Equipment, Net, _4

Property and Equipment, Net, and Other Assets - Components of Property and Equipment, Net, and Other Assets ( Parenthetical) (Detail) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Property And Equipment Net And Other Assets [Abstract]
Accumulated depreciation, Property and equipment	$ 2,348,954	$ 2,523,700

Property and Equipment, Net, _5

Property and Equipment, Net, and Other Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019	Feb. 20, 2018
Property And Equipment Net And Other Assets [Line Items]
Depreciation	$ 58,933	$ 97,679	$ 175,562	$ 301,651
Right-of-use operating lease asset	1,734,222		1,734,222
Asset Purchase Agreement [Member] | Earth Media Partners, LLC [Member]
Property And Equipment Net And Other Assets [Line Items]
Percentage of ownership interest						19.00%
Ownership interest amount recorded as investment						$ 246,585
Accrued earn-out amount	134,926		134,926
Asset Purchase Agreement [Member] | Earth Media Partners, LLC [Member] | Wholly Owned Subsidiary and Earth911, Inc. [Member] | Disposal Group, Not Discontinued Operations [Member]
Property And Equipment Net And Other Assets [Line Items]
Future earn-out amount						$ 350,000
ASU 2016-02 [Member]
Property And Equipment Net And Other Assets [Line Items]
Right-of-use operating lease asset					$ 2,000,000
Service [Member]
Property And Equipment Net And Other Assets [Line Items]
Depreciation reflected in cost of revenue	$ 24,695	$ 45,576	$ 73,704	$ 136,574

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 21,550,134	$ 21,427,212
Accumulated Amortization	19,696,855	18,816,291
Net	$ 1,853,279	$ 2,610,921
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	$ 12,720,000
Trademarks [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Useful Life	7 years	7 years
Gross Carrying Amount	$ 6,235,068	$ 6,235,068
Accumulated Amortization	5,528,354	4,860,305
Net	$ 706,714	$ 1,374,763
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	$ 2,057,230	$ 1,934,308
Accumulated Amortization	910,665	698,150
Net	$ 1,146,565	$ 1,236,158
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	$ 307,153

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Detail) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Intangible Assets Net Including Goodwill [Abstract]
Carrying Amount	$ 58,208,490	$ 58,208,490

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 295,304	$ 354,623	$ 880,564	$ 2,207,840
Indefinite-lived intangible assets other than goodwill			$ 0
Impairment of goodwill and other intangible assets	$ 0

Accounts Payable and Accrued _3

Accounts Payable and Accrued Liabilities - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounts Payable And Accrued Liabilities Current [Abstract]
Accounts payable	$ 10,990,219	$ 14,025,221
Accrued taxes	791,914	548,126
Employee compensation	937,354	910,796
Operating lease liability - current portion	624,056
Other	170,614	293,778
Accounts payable and accrued liabilities	$ 13,514,157	$ 15,777,921

Revolving Credit Facility - Add

Revolving Credit Facility - Additional Information (Detail) - USD ($)	Feb. 24, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Line of Credit Facility [Line Items]
Interest expense related to borrowings		$ 118,652	$ 106,140	$ 344,160	$ 335,576
Interest expense related to amortization of discount				70,426	70,426
Revolving credit facility, net		4,228,255		4,228,255		$ 5,194,588
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
Borrowings		4,455,183		4,455,183
Interest expense related to borrowings		86,765	$ 81,644	263,542	247,071
Debt issuance cost		469,507		469,507
Unamortized portion of debt discount		226,928		226,928
Interest expense related to amortization of discount				70,426	$ 70,426
Revolving credit current borrowing facility		9,625,000		9,625,000
Revolving credit facility, net		4,228,255		4,228,255
Unamortized debt issuance cost		$ 226,928		$ 226,928
ABL Facility [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate		6.25%		6.25%
ABL Facility [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate		4.37%		4.37%
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
Borrowings	$ 0

Leases - Additional Information

Leases - Additional Information (Details) - USD ($)	Sep. 01, 2020	Sep. 30, 2019	Sep. 30, 2019	Jan. 01, 2019
Lessee Lease Description [Line Items]
Operating right-of-use asset		$ 1,734,222	$ 1,734,222
Operating lease liabilities		1,919,060	$ 1,919,060
Equipment lease expire year			2020
Fixed cost operating lease expense		$ 150,000	$ 450,000
Operating lease minimum annual incentive payment			$ 63,000
Operating lease, remaining lease term		3 years	3 years
Operating lease, effective interest rate		2.456%	2.456%
Scenario, Forecast [Member]
Lessee Lease Description [Line Items]
Operating lease minimum annual incentive payment	$ 93,600
Maximum [Member]
Lessee Lease Description [Line Items]
Finance leases maturity period		12 months	12 months
ASU 2016-02 [Member]
Lessee Lease Description [Line Items]
Operating right-of-use asset				$ 2,000,000
Operating lease liabilities				$ 2,200,000

Leases - Additional Informati_2

Leases - Additional Information 1 (Details)	Sep. 30, 2019USD ($)
Lessor Disclosure [Abstract]
Capital lease receivable amounts	$ 8,000

Leases - Summary of Lease Relat

Leases - Summary of Lease Related Assets and Liabilities Recorded on Balance Sheet (Details)	Sep. 30, 2019USD ($)
Assets And Liabilities Lessee [Abstract]
Right-of-use operating lease asset	$ 1,734,222
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	qrhc:PropertyAndEquipmentNetAndOtherAssetsMember
Operating lease liability - current portion	$ 624,056
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesMember
Other long-term liabilities	$ 1,295,004
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherNoncurrentLiabilitiesMember
Total operating lease liabilities	$ 1,919,060

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments Required Under Office Lease (Details)	Sep. 30, 2019USD ($)
Operating Lease Liabilities Payments Due [Abstract]
2019	$ 166,050
2020	664,200
2021	664,200
2022	498,150
Total lease payments	1,992,600
Less: Interest	73,540
Operating lease liability	$ 1,919,060

Revenue - Additional Informatio

Revenue - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)Customer	Sep. 30, 2018USD ($)Customer	Sep. 30, 2019USD ($)Customer	Sep. 30, 2018USD ($)Customer	Dec. 31, 2018USD ($)
Revenue Recognition [Line Items]
Number of customer | Customer	3	3	3	3
Percentage of revenue	49.40%	48.60%	54.60%	50.10%
Deferred contract costs	$ 67,500		$ 67,500		$ 7,448
Deferred revenue	15,516		15,516		$ 69,473
Selling, General and Administrative Expense [Member]
Revenue Recognition [Line Items]
Amortized deferred contract costs	$ 53,750	$ 53,750	$ 161,250	$ 157,500
Reduction to Income [Member]
Revenue Recognition [Line Items]
Amortized deferred contract costs				$ 36,139

Revenue - Summary of Revenue Di

Revenue - Summary of Revenue Disaggregated by Source (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Total revenue	$ 23,925,431	$ 25,920,215	$ 76,019,845	$ 78,544,764
Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	21,422,455	23,412,066	68,244,033	70,742,475
Product Sales and Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 2,502,976	$ 2,508,149	$ 7,775,812	$ 7,802,289

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 54,771	$ 164,311
Federal corporate income tax rate		27.00%
Operating loss carryforwards	0	$ 0
Valuation allowance	12,075,000	12,075,000	$ 12,202,000
Federal income tax net operating loss carry forward	$ 17,900,000	$ 17,900,000	$ 18,900,000
Net operating loss carry forwards expiration beginning year		2031
Net operating loss carry forwards expiration ending year		2037

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	May 14, 2019	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
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				15,350,153		15,328,870
Common stock, shares outstanding				15,350,153		15,328,870
Employee stock purchase plan expense				$ 20,617	$ 9,317
Shares issued for Employee Stock Purchase Plan options, Shares	21,283
Shares issued for Employee Stock Purchase Plan options, Value	$ 29,669	$ 29,669	$ 18,396

Stockholders' Equity - Additi_2

Stockholders' Equity - Additional Information - Warrants (Detail)	9 Months Ended
	Sep. 30, 2019shares
Class Of Warrant Or Right [Line Items]
Warrants outstanding	608,560
Number of warrants expired	1,125,005
Date of Expiration	Sep. 24, 2019
Exercisable Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding	608,560

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Warrants Issued and Outstanding (Detail)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Class Of Warrant Or Right [Line Items]
Date of Expiration	Sep. 24, 2019
Shares of Common Stock	608,560
Exercisable Warrants [Member]
Class Of Warrant Or Right [Line Items]
Shares of Common Stock	608,560
Exercisable Warrants [Member] | Warrants One [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 Two [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_3

Stockholders' Equity - Additional Information - Stock Options (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Stock options expense	$ 729,431	$ 584,204

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Option Activity (Detail)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding Beginning Balance, Number of Shares | shares	1,773,066
Granted, Number of Shares | shares	1,004,015
Canceled/Forfeited, Number of Shares | shares	(132,967)
Outstanding Ending Balance, Number of Shares | shares	2,644,114
Outstanding Beginning Balance, Weighted-Average Exercise Price Per Share	$ 7.02
Granted, Weighted-Average Exercise Price Per Share	1.90
Canceled/Forfeited, Weighted-Average Exercise Price Per Share	2.62
Outstanding Ending Balance, Weighted-Average Exercise Price Per Share	5.30
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, 1.51 — 3.12 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise Price Per Share, Minimum	1.51
Exercise Price Per Share, Maximum	3.12
Canceled/Forfeited, 1.51 — 16.40 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise Price Per Share, Minimum	1.51
Exercise Price Per Share, Maximum	16.40
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_4

Stockholders' Equity - Additional Information - Deferred Stock Units (Detail) - Deferred Stock Units [Member] - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 01, 2019
Schedule Of Stockholders Equity [Line Items]
Number of stock unit received		1
Deferred stock units	3,464
Director [Member]
Schedule Of Stockholders Equity [Line Items]
Director compensation expense related to grants	$ 8,660

Net Income (Loss) per Share - C

Net Income (Loss) per Share - Computation of Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income (loss) applicable to common stockholders	$ 46,999	$ (680,894)	$ (89,651)	$ (2,531,955)
Denominator:
Basic	15,350,153	15,313,383	15,339,706	15,307,939
Effect of dilutive common shares	48,686
Weighted average common shares outstanding, diluted	15,398,839	15,313,383	15,339,706	15,307,939
Net income (loss) per share:
Basic	$ 0	$ (0.04)	$ (0.01)	$ (0.17)
Diluted	$ 0	$ (0.04)	$ (0.01)	$ (0.17)
Anti-dilutive securities excluded from diluted net income (loss) per share:
Anti-dilutive securities excluded from diluted net income (loss) per share	3,203,988	3,486,131	3,252,674	3,486,131
Stock options [Member]
Anti-dilutive securities excluded from diluted net income (loss) per share:
Anti-dilutive securities excluded from diluted net income (loss) per share	2,595,428	1,752,566	2,644,114	1,752,566
Warrants [Member]
Anti-dilutive securities excluded from diluted net income (loss) per share:
Anti-dilutive securities excluded from diluted net income (loss) per share	608,560	1,733,565	608,560	1,733,565

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2019	Sep. 30, 2019
Related Party Transaction [Line Items]
Sale of common stock, description		The offering and private transaction, together the “Transactions”, closed on April 11, 2019.
Proceeds from sale of common stock	$ 0
Public Offering [Member]
Related Party Transaction [Line Items]
Number of common stock sold by shareholders	4,300,000
Private Transaction [Member]
Related Party Transaction [Line Items]
Number of common stock sold by shareholders	1,750,000
Transactions [Member] | Selling, General and Administrative Expense [Member]
Related Party Transaction [Line Items]
Costs and expenses		$ 248,000