Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
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 | 15,372,905 | ||
Entity Public Float | $ 29,122,420 | ||
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, par value $.001 per share | ||
Entity Incorporation, State or Country Code | NV | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | None |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 3,411,108 | $ 2,122,297 |
Accounts receivable, less allowance for doubtful accounts of $767,464 and $929,339 as of December 31, 2019 and 2018, respectively | 13,899,451 | 16,711,809 |
Prepaid expenses and other current assets | 1,110,266 | 965,755 |
Total current assets | 18,420,825 | 19,799,861 |
Goodwill | 58,208,490 | 58,208,490 |
Intangible assets, net | 1,590,524 | 2,610,921 |
Property and equipment, net, and other assets | 2,436,094 | 968,025 |
Total assets | 80,655,933 | 81,587,297 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 13,316,805 | 15,777,921 |
Deferred revenue and other current liabilities | 19,644 | 71,717 |
Total current liabilities | 13,336,449 | 15,849,638 |
Revolving credit facility, net | 4,534,683 | 5,194,588 |
Other long-term liabilities | 1,140,749 | 353 |
Total liabilities | 19,011,881 | 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 December 31, 2019 and 2018 | ||
Common stock, $0.001 par value, 200,000,000 shares authorized, 15,372,905 and 15,328,870 shares issued and outstanding as of December 31, 2019 and 2018, respectively | 15,373 | 15,329 |
Additional paid-in capital | 160,858,072 | 159,701,542 |
Accumulated deficit | (99,229,393) | (99,174,153) |
Total stockholders’ equity | 61,644,052 | 60,542,718 |
Total liabilities and stockholders’ equity | $ 80,655,933 | $ 81,587,297 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | |||
Allowance for doubtful accounts receivable | $ 767,464 | $ 929,339 | $ 699,102 |
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 | 15,372,905 | 15,328,870 | |
Common stock, shares outstanding | 15,372,905 | 15,328,870 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 98,979,140 | $ 103,805,432 |
Cost of revenue | 80,253,172 | 86,942,718 |
Gross profit | 18,725,968 | 16,862,714 |
Operating expenses: | ||
Selling, general, and administrative | 16,815,767 | 16,163,153 |
Depreciation and amortization | 1,314,731 | 2,700,809 |
Total operating expenses | 18,130,498 | 18,863,962 |
Operating income (loss) | 595,470 | (2,001,248) |
Interest expense | 431,628 | 437,733 |
Income (loss) before taxes | 163,842 | (2,438,981) |
Income tax expense | 219,082 | |
Net loss | (55,240) | (2,438,981) |
Net loss applicable to common stockholders | $ (55,240) | $ (2,438,981) |
Net loss per share applicable to common stockholders | ||
Basic | $ 0 | $ (0.16) |
Diluted | $ 0 | $ (0.16) |
Weighted average number of common shares outstanding | ||
Basic | 15,347,039 | 15,311,220 |
Diluted | 15,347,039 | 15,311,220 |
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, 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 | 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 | |||
Stock-based compensation | 1,085,906 | 1,085,906 | ||
Shares issued for Employee Stock Purchase Plan options, Value | 70,668 | $ 44 | 70,624 | |
Shares issued for Employee Stock Purchase Plan options, Shares | 44,035 | |||
Net loss | (55,240) | (55,240) | ||
Ending Balance at Dec. 31, 2019 | $ 61,644,052 | $ 15,373 | $ 160,858,072 | $ (99,229,393) |
Ending Balance, Shares at Dec. 31, 2019 | 15,372,905 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (55,240) | $ (2,438,981) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 225,061 | 385,863 |
Amortization of intangibles | 1,176,722 | 2,499,349 |
Amortization of debt issuance costs | 93,901 | 93,902 |
Provision for doubtful accounts | 60,000 | 1,085,622 |
Stock-based compensation | 1,085,906 | 793,589 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,752,358 | (1,534,155) |
Prepaid expenses and other current assets | (144,511) | 542,259 |
Security deposits and other assets | 46,922 | 256,553 |
Accounts payable and accrued liabilities | (2,919,577) | 1,524,103 |
Deferred revenue and other liabilities | (45,663) | (239,616) |
Net cash provided by operating activities | 2,275,879 | 2,968,488 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (145,008) | (43,514) |
Purchase of capitalized software development | (156,325) | (196,460) |
Net cash used in investing activities | (301,333) | (239,974) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 99,403,848 | 100,479,383 |
Repayments of credit facilities | (100,157,654) | (102,142,194) |
Proceeds from shares issued for Employee Stock Purchase Plan | 70,668 | 40,380 |
Repayments of capital lease obligations | (2,597) | (39,067) |
Net cash used in financing activities | (685,735) | (1,661,498) |
Net increase in cash and cash equivalents | 1,288,811 | 1,067,016 |
Cash and cash equivalents at beginning of period | 2,122,297 | 1,055,281 |
Cash and cash equivalents at end of period | $ 3,411,108 | $ 2,122,297 |
The Company and Description of
The Company and Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company and Description of Business | 1. The Company and Description of Business 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 waste and recycling services to customers from across multiple industry sectors that are typically larger, multi-location businesses. We create customer-specific programs and perform the related services 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 and other minor ancillary services. We also provide information and data that tracks and reports the detailed transactional and environmental results of our services and provides actionable data to improve business operations. The data we generate also enables our customers to address their environmental and sustainability goals and responsibilities. Our principal office is located in The Colony, Texas within the Dallas metroplex. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018. 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, 2019 and 2018, we had established an allowance of $767,464 and $929,339, 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, 2019 and 2018 were as follows: Years ended December 31, 2019 2018 Beginning balance $ 929,339 $ 699,102 Bad debt expense 60,000 1,085,622 Uncollectible accounts written off, net of recoveries (221,875 ) (855,385 ) Ending balance $ 767,464 $ 929,339 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 2019 and 2018. 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 2019, 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 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. 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. 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 $3,188,540 at December 31, 2019; 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, 2019 and 2018: Customers Exceeding 10% of Revenue Year Number of Customers Revenue Combined Percent Accounts Receivable Combined Percent 2019 3 53 % 36 % 2018 3 51 % 33 % 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, 2019 and 2018, advertising expense totaled $20,364 and $38,570, respectively. Stock-Based Compensation We measure all share-based payments, including grants of options to purchase common stock and the issuance of deferred stock units to employees, third parties and board members, using a fair value-based method, in accordance with ASC Topic 718, Stock Compensation 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. Deferred Stock Units for Nonemployee Directors 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. Director fees deferred into stock units are calculated and expensed each month by taking fees earned during the month and dividing by the closing price of our common stock on the last trading day of the month, rounded down to the nearest whole share. Each DSU represents the right to receive one share of our common stock following the completion of a director’s service. A total of 14,451 stock units were deferred in the year ended December 31, 2019. Recently Issued 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) 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. This guidance also requires entities to present the expense in the same line item in the statement of operations as the fees associated with the hosting arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The amendments in this ASU are effective for us on January 1, 2020. T In December 2019, the FASB issued ASU 2019-12, Income Taxes – (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions and amending guidance to improve consistent application of accounting over income taxes. This guidance is effective January 1, 2021 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, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net, and Other Assets | 3. Property and Equipment, net, and Other Assets At December 31, 2019 and 2018, Property and equipment, net, and other assets consisted of the following: As of December 31, 2019 2018 Vehicles $ 493,373 $ 493,373 Computer equipment 247,776 700,218 Office furniture and fixtures 541,464 541,464 Machinery and equipment 688,137 845,128 Leasehold improvements 558,035 558,035 Property and equipment, gross 2,528,785 3,138,218 Accumulated depreciation (1,994,320 ) (2,523,700 ) Property and equipment, net 534,465 614,518 Right-of-use operating lease asset 1,595,044 — Security deposits and other assets 306,585 353,507 Property and equipment, net, and other assets $ 2,436,094 $ 968,025 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, 2019 was $225,061, including $87,053 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, 2018 was $385,863, including $184,404 depreciation expense recorded in “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 revenues, and accounts receivable as of the Closing Date. Earth911, Inc. was subsequently renamed Quest Sustainability Services, Inc. The carrying amount of our investment in Earth Media Partners, LLC is included in “Security deposits and other assets” and we have an accrued receivable in the amount of $163,781 related to the earn-out included in “Accounts receivable” as of December 31, 2019. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 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 are as follows: December 31, 2019 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 6,235,069 5,751,037 484,032 Patents 7 years 230,683 230,683 — Software 7 years 2,090,633 984,141 1,106,492 Customer lists 5 years 307,153 307,153 — Total finite lived intangible assets $ 21,583,538 $ 19,993,014 $ 1,590,524 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, 2019 and 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. The amortization expense related to finite lived intangible assets was $1,176,722 and $2,499,349 for the years ended December 31, 2019 and 2018, respectively. We expect amortization expense to be approximately $780,000 for the year ending December 31, 2020, approximately $295,000 for the year ending December 31, 2021, approximately $245,000 for the year ending December 31, 2022, approximately $115,000 for the year ending December 31, 2023, approximately $90,000 for the year ending December 31, 2024, and approximately $65,000 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, 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 are as follows: As of December 31, 2019 2018 Accounts payable $ 10,436,715 $ 14,025,221 Accrued taxes 716,545 548,126 Employee compensation 1,384,360 910,796 Operating lease liability - current portion 627,896 — Other 151,289 293,778 $ 13,316,805 $ 15,777,921 |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Dec. 31, 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. 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. 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% (6.00% as of December 31, 2019), or the LIBOR lending rate for the interest period in effect, plus a margin ranging from 2.0% to 2.5% (4.09% as of December 31, 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. As of December 31, 2019, 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, 2019 and 2018 was $326,212 and $325,534, respectively. Debt issuance cost of $469,507 is being amortized to interest expense over the life of the ABL Facility. As of December 31, 2019, the unamortized portion of the debt issuance costs was $203,453. The amount of interest expense related to the amortization of the discount on the ABL Facility for was $93,901 and $93,902, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | 7. Leases ASU 2016-02 Adoption On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) information in the condensed consolidated financial statements has not been revised and continues to be reported under the previous applicable lease accounting guidance (ASC 840). Leases with terms of 12 months or less are not recorded on the balance sheet. 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. At December 31, 2018, capital lease obligations of $2,597 were included in Deferred revenue and other current liabilities. We lease certain equipment to a customer under a lease arrangement that expires in 2020. The capital lease receivable amounts are approximately $5,000 at December 31, 2019, 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 December 31, 2019 are de minimis. As of December 31, 2019 2018 Operating Leases Right-of-use operating lease asset: Property and equipment, net and other assets $ 1,595,044 $ — Lease Liabilities: Accounts payable and accrued liabilities $ 627,896 $ — Other long-term liabilities 1,136,583 — Total operating lease liabilities $ 1,764,479 $ — Lease Costs For the years ended December 31, 2019 and 2018, we recorded $602,587 and $609,295, respectively, of fixed cost operating lease expense. 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 through the remainder of the lease term. Effective December 1, 2019, we subleased a portion of our corporate office space to a single tenant. The sublease agreement is accounted for as an operating lease and we recognize sublease income as an offset to operating lease expense on a straight-line basis over the term of the sublease agreement through August 2022. Sublease income, net of amortized leasing costs, for the year ended December 31, 2019 was approximately $4,000. Cash paid for operating leases approximated operating lease expense and non-cash right of use asset amortization for the year ended December 31, 2019. We did not obtain any new operating lease right-of-use assets in the year ended December 31, 2019. Other Information We lease corporate office space in The Colony, Texas under an 84-month, non-cancelable operating lease. The lease expires in October 2022. Our office lease had a remaining term of 2.75 years as of December 31, 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 December 31, 2019 were as follows: Year Ending December 31, Amount 2020 $ 664,200 2021 664,200 2022 498,150 Total lease payments 1,826,550 Less: Interest 62,071 Present value of lease payments 1,764,479 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 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 53% of revenue for the year ended December 31, 2019, and three customers accounted for 51% of revenue for the year ended December 31, 2018. We operate primarily in the United States, with minor services in Canada. Year Ended December 31, 2019 2018 Revenue Type: Services $ 88,841,868 $ 93,524,370 Product sales and other 10,137,272 10,281,062 Total revenue $ 98,979,140 $ 103,805,432 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, 2019 and 2018 we had $113,750 and $7,448, respectively, of deferred contract costs. During the year ended December 31, 2019, we amortized $215,000 deferred contract costs to selling, general, and administrative expense. 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. 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, 2019 and 2018, we had $19,644 and $69,473, respectively, of deferred revenue, which was classified in “Deferred revenue and other current liabilities.” |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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 components of net deferred taxes are as follows: As of December 31, 2019 2018 Deferred tax assets (liabilities): Net operating loss $ 4,616,000 $ 5,095,000 Depreciation and amortization 5,002,000 4,449,000 Stock-based compensation 3,113,000 2,840,000 Capitalized software costs (561,000 ) (522,000 ) Deferred lease liability 45,000 53,000 Allowance for doubtful accounts 206,000 251,000 Other 31,000 36,000 Total deferred tax assets, net 12,452,000 12,202,000 Less: valuation allowance (12,452,000 ) (12,202,000 ) Net deferred taxes $ — $ — Our statutory income tax rate is expected to be approximately 26.8%. We had state income tax expense of $219,082 for the year ended December 31, 2019, which is attributable to state 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. The provision for income taxes consisted of the following: Years Ended December 31, 2019 2018 Current $ 219,082 $ — Deferred — — Total $ 219,082 $ — The reconciliation between the income tax expense (benefit) calculated by applying statutory rates to net loss and the income tax expense reported in the accompanying consolidated financial statements is as follows: Years Ended December 31, 2019 2018 U.S. federal statutory rate applied to pretax income (loss) $ 34,000 $ (512,000 ) State taxes, net of federal benefit 165,082 (146,000 ) Permanent differences 11,000 7,000 Benefit of federal operating loss carryforwards (381,000 ) (170,000 ) Cumulative adjustment to deferred taxes — 612,000 Change in state tax rates and other 140,000 157,000 Change in valuation allowance 250,000 52,000 $ 219,082 $ — As of December 31, 2019 and 2018, we had federal income tax net operating loss carryforwards of approximately $17,200,000 and $18,900,000, 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, 2019 and 2018, 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 2020. 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 2016 to 2019. 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, 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies 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, 2019 and 2018. 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, 2019 and 2018, our plan contribution expense was $182,702 and $150,791, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018. 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 15,372,905 and 15,328,870 shares were issued and outstanding as of December 31, 2019 and 2018, respectively. Employee Stock Purchase Plan On September 17, 2014, our stockholders approved our 2014 Employee Stock Purchase Plan (“ESPP”). We recorded expense of $31,848 and $17,738 related to the ESPP during the years ended December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, we issued an aggregate 44,035 shares of common stock for $70,668, all to employees under our ESPP, as follows: • On May 14, 2019, we issued 21,283 shares for $29,669 for options that vested and were exercised. • On November 14, 2019, we issued 22,752 shares for $40,999 for options that vested and were exercised. 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. Warrants During the year ended December 31, 2019, we did not issue any warrants, no holders exercised warrants, and warrants to purchase 1,212,505 shares of common stock expired. During the year ended December 31, 2018, we did not issue any warrants and no holders exercised warrants. The following table summarizes the warrants issued and outstanding as of December 31, 2019: Warrants Issued and Outstanding as of December 31, 2019 Date of Exercise Shares of Description Issuance Expiration Price Common Stock Exercisable warrants Warrants 3/30/2016 3/30/2021 $ 3.88 521,060 Total warrants issued and outstanding 521,060 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 4,837,500. 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, 2018 through December 31, 2019: Stock Options Weighted- Exercise Average Number Price Per Exercise Price of Shares Share Per Share Outstanding at January 1, 2018 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 Granted 1,074,515 $1.51 — $3.12 $ 1.93 Canceled/Forfeited (402,128 ) $1.51 — $26.00 $ 15.64 Outstanding at December 31, 2019 2,445,453 $1.17 — $23.20 $ 3.37 The weighted-average grant-date fair value of options granted was $1.23 and $1.71 for the years ended December 31, 2019 and 2018, respectively. For the years ended December 31, 2019 and 2018, the intrinsic value of options outstanding was approximately $360,573 and $7,220, respectively, and the intrinsic value of options exercisable was approximately $53,259 and $7,220, respectively. The following additional information applies to options outstanding at December 31, 2019: Range of Exercise Prices Outstanding at December 31, 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable at December 31, 2019 Weighted- Average Exercise Price $1.17 - $23.20 2,445,453 7.6 $ 3.37 1,209,087 $ 4.47 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 Stock-based compensation expense for stock-based incentive awards was $1,019,409 and $775,851 for the years ended December 31, 2019 and 2018, respectively. At December 31, 2019, the balance of unearned stock-based compensation to be expensed in future periods related to unvested share-based awards was approximately $1.4 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, 2019 and 2018 were estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions: Years Ended December 31, 2019 2018 Expected volatility 76 % 85 % Risk-free interest rate 2.37 % 2.42 % Expected dividends 0.00 % 0.00 % Expected term in years 5.8 5.9 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 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 year ended December 31, 2019, we granted 14,451 DSUs and recorded director compensation expense of $34,649 related to the grants. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 13. Net 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 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. 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 12) are included in both basic and diluted earnings per share computations. The computation of basic and diluted net loss per share attributable to common stockholders is as follows: Years Ended December 31, 2019 2018 (Unaudited) Numerator: Net loss applicable to common stockholders $ (55,240 ) $ (2,438,981 ) Denominator: Weighted average common shares outstanding, basic 15,347,039 15,311,220 Effect of dilutive common shares — — Weighted average common shares outstanding, diluted 15,347,039 15,311,220 Net loss per share: Basic $ (0.00 ) $ (0.16 ) Diluted $ (0.00 ) $ (0.16 ) Anti-dilutive securities excluded from diluted net loss per share: Stock options 2,445,453 1,773,066 Warrants 521,060 1,733,565 Total anti-dilutive securities excluded from net loss per share 2,966,513 3,506,631 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Supplemental cash flow information: Cash paid for interest $ 351,741 $ 364,372 Cash paid for income taxes $ 76,030 $ — Supplemental non-cash activities: Sale of goodwill and intangible assets $ — $ 246,585 Investment in Earth Media Partners, LLC $ — $ (246,585 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions During the year ended December 31, 2019, three stockholders sold approximately 4.3 million shares of our common stock in a registered public offering. 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 are included in selling, general, and administrative expense for the year ended December 31, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018. 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, 2019 and 2018, we had established an allowance of $767,464 and $929,339, 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, 2019 and 2018 were as follows: Years ended December 31, 2019 2018 Beginning balance $ 929,339 $ 699,102 Bad debt expense 60,000 1,085,622 Uncollectible accounts written off, net of recoveries (221,875 ) (855,385 ) Ending balance $ 767,464 $ 929,339 |
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 2019 and 2018. |
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 2019, 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 Income (Loss) per Share | 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. 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. |
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 $3,188,540 at December 31, 2019; 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, 2019 and 2018: Customers Exceeding 10% of Revenue Year Number of Customers Revenue Combined Percent Accounts Receivable Combined Percent 2019 3 53 % 36 % 2018 3 51 % 33 % 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, 2019 and 2018, advertising expense totaled $20,364 and $38,570, respectively. |
Stock-Based Compensation | Stock-Based Compensation We measure all share-based payments, including grants of options to purchase common stock and the issuance of deferred stock units to employees, third parties and board members, using a fair value-based method, in accordance with ASC Topic 718, Stock Compensation 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. |
Deferred Stock Units for Nonemployee Directors | Deferred Stock Units for Nonemployee Directors 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. Director fees deferred into stock units are calculated and expensed each month by taking fees earned during the month and dividing by the closing price of our common stock on the last trading day of the month, rounded down to the nearest whole share. Each DSU represents the right to receive one share of our common stock following the completion of a director’s service. A total of 14,451 stock units were deferred in the year ended December 31, 2019. |
Recently Issued Accounting Pronouncements | Recently Issued 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) 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. This guidance also requires entities to present the expense in the same line item in the statement of operations as the fees associated with the hosting arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The amendments in this ASU are effective for us on January 1, 2020. T In December 2019, the FASB issued ASU 2019-12, Income Taxes – (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions and amending guidance to improve consistent application of accounting over income taxes. This guidance is effective January 1, 2021 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, 2019 | |
Accounting Policies [Abstract] | |
Changes in Allowance for Doubtful Accounts | The changes in our allowance for doubtful accounts for the years ended December 31, 2019 and 2018 were as follows: Years ended December 31, 2019 2018 Beginning balance $ 929,339 $ 699,102 Bad debt expense 60,000 1,085,622 Uncollectible accounts written off, net of recoveries (221,875 ) (855,385 ) Ending balance $ 767,464 $ 929,339 |
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, 2019 and 2018: Customers Exceeding 10% of Revenue Year Number of Customers Revenue Combined Percent Accounts Receivable Combined Percent 2019 3 53 % 36 % 2018 3 51 % 33 % |
Property and Equipment, Net, _2
Property and Equipment, Net, and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Components Property and Equipment, Net, and Other Assets | At December 31, 2019 and 2018, Property and equipment, net, and other assets consisted of the following: As of December 31, 2019 2018 Vehicles $ 493,373 $ 493,373 Computer equipment 247,776 700,218 Office furniture and fixtures 541,464 541,464 Machinery and equipment 688,137 845,128 Leasehold improvements 558,035 558,035 Property and equipment, gross 2,528,785 3,138,218 Accumulated depreciation (1,994,320 ) (2,523,700 ) Property and equipment, net 534,465 614,518 Right-of-use operating lease asset 1,595,044 — Security deposits and other assets 306,585 353,507 Property and equipment, net, and other assets $ 2,436,094 $ 968,025 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 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 6,235,069 5,751,037 484,032 Patents 7 years 230,683 230,683 — Software 7 years 2,090,633 984,141 1,106,492 Customer lists 5 years 307,153 307,153 — Total finite lived intangible assets $ 21,583,538 $ 19,993,014 $ 1,590,524 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 | December 31, 2019 and 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) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Accounts payable $ 10,436,715 $ 14,025,221 Accrued taxes 716,545 548,126 Employee compensation 1,384,360 910,796 Operating lease liability - current portion 627,896 — Other 151,289 293,778 $ 13,316,805 $ 15,777,921 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 are de minimis. As of December 31, 2019 2018 Operating Leases Right-of-use operating lease asset: Property and equipment, net and other assets $ 1,595,044 $ — Lease Liabilities: Accounts payable and accrued liabilities $ 627,896 $ — Other long-term liabilities 1,136,583 — Total operating lease liabilities $ 1,764,479 $ — |
Future Minimum Lease Payments Required Under Office Lease | The future minimum lease payments required under our office lease as of December 31, 2019 were as follows: Year Ending December 31, Amount 2020 $ 664,200 2021 664,200 2022 498,150 Total lease payments 1,826,550 Less: Interest 62,071 Present value of lease payments 1,764,479 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Revenue Type: Services $ 88,841,868 $ 93,524,370 Product sales and other 10,137,272 10,281,062 Total revenue $ 98,979,140 $ 103,805,432 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Net Deferred Taxes | The components of net deferred taxes are as follows: As of December 31, 2019 2018 Deferred tax assets (liabilities): Net operating loss $ 4,616,000 $ 5,095,000 Depreciation and amortization 5,002,000 4,449,000 Stock-based compensation 3,113,000 2,840,000 Capitalized software costs (561,000 ) (522,000 ) Deferred lease liability 45,000 53,000 Allowance for doubtful accounts 206,000 251,000 Other 31,000 36,000 Total deferred tax assets, net 12,452,000 12,202,000 Less: valuation allowance (12,452,000 ) (12,202,000 ) Net deferred taxes $ — $ — |
Schedule of Provision of Income Taxes | The provision for income taxes consisted of the following: Years Ended December 31, 2019 2018 Current $ 219,082 $ — Deferred — — Total $ 219,082 $ — |
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 expense reported in the accompanying consolidated financial statements is as follows: Years Ended December 31, 2019 2018 U.S. federal statutory rate applied to pretax income (loss) $ 34,000 $ (512,000 ) State taxes, net of federal benefit 165,082 (146,000 ) Permanent differences 11,000 7,000 Benefit of federal operating loss carryforwards (381,000 ) (170,000 ) Cumulative adjustment to deferred taxes — 612,000 Change in state tax rates and other 140,000 157,000 Change in valuation allowance 250,000 52,000 $ 219,082 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Warrants Issued and Outstanding | The following table summarizes the warrants issued and outstanding as of December 31, 2019: Warrants Issued and Outstanding as of December 31, 2019 Date of Exercise Shares of Description Issuance Expiration Price Common Stock Exercisable warrants Warrants 3/30/2016 3/30/2021 $ 3.88 521,060 Total warrants issued and outstanding 521,060 |
Summary of Stock Option Activity | The following table summarizes the stock option activity from January 1, 2018 through December 31, 2019: Stock Options Weighted- Exercise Average Number Price Per Exercise Price of Shares Share Per Share Outstanding at January 1, 2018 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 Granted 1,074,515 $1.51 — $3.12 $ 1.93 Canceled/Forfeited (402,128 ) $1.51 — $26.00 $ 15.64 Outstanding at December 31, 2019 2,445,453 $1.17 — $23.20 $ 3.37 |
Summary of Stock Option Outstanding | The following additional information applies to options outstanding at December 31, 2019: Range of Exercise Prices Outstanding at December 31, 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable at December 31, 2019 Weighted- Average Exercise Price $1.17 - $23.20 2,445,453 7.6 $ 3.37 1,209,087 $ 4.47 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 |
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, 2019 and 2018 were estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions: Years Ended December 31, 2019 2018 Expected volatility 76 % 85 % Risk-free interest rate 2.37 % 2.42 % Expected dividends 0.00 % 0.00 % Expected term in years 5.8 5.9 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders | The computation of basic and diluted net loss per share attributable to common stockholders is as follows: Years Ended December 31, 2019 2018 (Unaudited) Numerator: Net loss applicable to common stockholders $ (55,240 ) $ (2,438,981 ) Denominator: Weighted average common shares outstanding, basic 15,347,039 15,311,220 Effect of dilutive common shares — — Weighted average common shares outstanding, diluted 15,347,039 15,311,220 Net loss per share: Basic $ (0.00 ) $ (0.16 ) Diluted $ (0.00 ) $ (0.16 ) Anti-dilutive securities excluded from diluted net loss per share: Stock options 2,445,453 1,773,066 Warrants 521,060 1,733,565 Total anti-dilutive securities excluded from net loss per share 2,966,513 3,506,631 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Supplemental cash flow information: Cash paid for interest $ 351,741 $ 364,372 Cash paid for income taxes $ 76,030 $ — Supplemental non-cash activities: Sale of goodwill and intangible assets $ — $ 246,585 Investment in Earth Media Partners, LLC $ — $ (246,585 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 01, 2019 | Jan. 01, 2019 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | ||||||||
Allowance for doubtful accounts receivable | $ 767,464 | $ 929,339 | $ 699,102 | |||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | |||||
Bank cash balances on deposit exceeded federally insured limits | $ 3,188,540 | |||||||
Tax benefit percentage of being realized upon ultimate settlement | 50.00% | |||||||
Advertising expense | $ 20,364 | 38,570 | ||||||
Operating lease right-of-use asset | 1,595,044 | |||||||
Operating lease liability | 1,764,479 | |||||||
Accumulated deficit | $ (99,229,393) | $ (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 | |||||||
Deferred Stock Units [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of stock unit received | 1 | |||||||
Deferred stock units | 14,451 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Beginning balance | $ 929,339 | $ 699,102 |
Bad debt expense | 60,000 | 1,085,622 |
Uncollectible accounts written off, net of recoveries | (221,875) | (855,385) |
Ending balance | $ 767,464 | $ 929,339 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Number of Customers | 3 | 3 |
Revenue Combined Percent | 53.00% | 51.00% |
Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Number of Customers | 3 | 3 |
Customer Accounted [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Revenue Combined Percent | 53.00% | 51.00% |
Customer Accounted [Member] | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Revenue Combined Percent | 36.00% | 33.00% |
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, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,528,785 | $ 3,138,218 |
Accumulated depreciation | (1,994,320) | (2,523,700) |
Property and equipment, net | 534,465 | 614,518 |
Right-of-use operating lease asset | 1,595,044 | |
Security deposits and other assets | 306,585 | 353,507 |
Property and equipment, net, and other assets | 2,436,094 | 968,025 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 493,373 | 493,373 |
Computer equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 247,776 | 700,218 |
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 | 688,137 | 845,128 |
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, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Feb. 20, 2018 | |
Property And Equipment Net And Other Assets [Line Items] | ||||
Depreciation | $ 225,061 | $ 385,863 | ||
Right-of-use operating lease asset | 1,595,044 | |||
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 | 163,781 | |||
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 | $ 87,053 | $ 184,404 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,583,538 | $ 21,427,212 |
Accumulated Amortization | 19,993,014 | 18,816,291 |
Net | $ 1,590,524 | $ 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 | $ 6,235,069 | $ 6,235,068 |
Accumulated Amortization | 5,751,037 | 4,860,305 |
Net | $ 484,032 | $ 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 | $ 2,090,633 | $ 1,934,308 |
Accumulated Amortization | 984,141 | 698,150 |
Net | $ 1,106,492 | $ 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 ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible Assets Net Including Goodwill [Abstract] | ||
Goodwill, 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 | 12 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangibles | $ 1,176,722 | $ 2,499,349 | |||
Expected amortization expense 2020, related to intangible assets | 780,000 | ||||
Expected amortization expense 2021, related to intangible assets | 295,000 | ||||
Expected amortization expense 2022, related to intangible assets | 245,000 | ||||
Expected amortization expense 2023, related to intangible assets | 115,000 | ||||
Expected amortization expense 2024, related to intangible assets | 90,000 | ||||
Expected amortization expense thereafter, related to intangible assets | 65,000 | ||||
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, 2019 | Dec. 31, 2018 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accounts payable | $ 10,436,715 | $ 14,025,221 |
Accrued taxes | 716,545 | 548,126 |
Employee compensation | 1,384,360 | 910,796 |
Operating lease liability - current portion | 627,896 | |
Other | 151,289 | 293,778 |
Accounts payable and accrued liabilities | $ 13,316,805 | $ 15,777,921 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - USD ($) | Feb. 24, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | |||
Interest expense related to borrowings | $ 431,628 | $ 437,733 | |
Interest expense related to amortization of discount | 93,901 | 93,902 | |
Revolving credit facility, net | 4,534,683 | 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 | 4,738,136 | ||
Interest expense related to borrowings | 326,212 | 325,534 | |
Debt issuance cost | 469,507 | ||
Unamortized portion of debt discount | 203,453 | ||
Interest expense related to amortization of discount | 93,901 | $ 93,902 | |
Revolving credit current borrowing facility | 9,794,000 | ||
Revolving credit facility, net | 4,534,683 | ||
Unamortized debt issuance cost | $ 203,453 | ||
ABL Facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument interest rate | 6.00% | ||
ABL Facility [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument interest rate | 4.09% | ||
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 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 |
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use asset | $ 1,595,044 | |||
Operating lease liabilities | $ 1,764,479 | |||
Capital lease obligations | $ 2,597 | |||
Equipment lease expire year | 2020 | |||
Fixed cost operating lease expense | $ 602,587 | $ 609,295 | ||
Operating lease minimum annual incentive payment | $ 63,000 | |||
Sublease commencement period | Dec. 1, 2019 | |||
Sublease expiration, month and year | 2022-08 | |||
Sublease income, net of amortized leasing costs | $ 4,000 | |||
Texas [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease period | 84 months | |||
Operating leases expiration period | 2022-10 | |||
Operating lease, remaining lease term | 2 years 9 months | |||
Operating lease, effective interest rate | 2.456% | |||
Scenario, Forecast [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease minimum annual incentive payment | $ 93,600 | |||
ASU 2016-02 [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use asset | $ 2,000,000 | |||
Operating lease liabilities | $ 2,200,000 |
Leases - Additional Informati_2
Leases - Additional Information 1 (Details) | Dec. 31, 2019USD ($) |
Lessor Disclosure [Abstract] | |
Capital lease receivable amounts | $ 5,000 |
Leases - Summary of Lease Relat
Leases - Summary of Lease Related Assets and Liabilities Recorded on Balance Sheet (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets And Liabilities Lessee [Abstract] | ||
Operating lease right-of-use asset | $ 1,595,044 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | qrhc:PropertyAndEquipmentNetAndOtherAssetsMember | qrhc:PropertyAndEquipmentNetAndOtherAssetsMember |
Operating lease liability - current portion | $ 627,896 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | us-gaap:AccountsPayableAndAccruedLiabilitiesMember |
Other long-term liabilities | $ 1,136,583 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherNoncurrentLiabilitiesMember | us-gaap:OtherNoncurrentLiabilitiesMember |
Total operating lease liabilities | $ 1,764,479 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Required Under Office Lease (Details) | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 664,200 |
2021 | 664,200 |
2022 | 498,150 |
Total lease payments | 1,826,550 |
Less: Interest | 62,071 |
Present value of lease payments | $ 1,764,479 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | |
Revenue Recognition [Line Items] | ||
Number of customer | Customer | 3 | 3 |
Percentage of revenue | 53.00% | 51.00% |
Deferred contract costs | $ 113,750 | $ 7,448 |
Deferred revenue | 19,644 | 69,473 |
Selling, General and Administrative Expense [Member] | ||
Revenue Recognition [Line Items] | ||
Amortized deferred contract costs | $ 215,000 | 211,250 |
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 ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 98,979,140 | $ 103,805,432 |
Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 88,841,868 | 93,524,370 |
Product Sales and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 10,137,272 | $ 10,281,062 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax [Line Items] | ||
Valuation allowance | $ 12,452,000 | $ 12,202,000 |
Federal corporate income tax rate | 26.80% | |
Income tax expense | $ 219,082 | |
Federal income tax net operating loss carry forward | $ 17,200,000 | $ 18,900,000 |
Net operating loss carry forwards expiration beginning year | 2031 | |
Net operating loss carry forwards expiration ending year | 2037 | |
State [Member] | ||
Income Tax [Line Items] | ||
Operating loss carryforwards | $ 0 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Taxes (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 4,616,000 | $ 5,095,000 |
Depreciation and amortization | 5,002,000 | 4,449,000 |
Stock-based compensation | 3,113,000 | 2,840,000 |
Capitalized software costs | (561,000) | (522,000) |
Deferred lease liability | 45,000 | 53,000 |
Allowance for doubtful accounts | 206,000 | 251,000 |
Other | 31,000 | 36,000 |
Total deferred tax assets, net | 12,452,000 | 12,202,000 |
Less: valuation allowance | $ (12,452,000) | $ (12,202,000) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision of Income Taxes (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Current | $ 219,082 |
Total income tax expense (benefit) | $ 219,082 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory rate applied to pretax income (loss) | $ 34,000 | $ (512,000) |
State taxes, net of federal benefit | 165,082 | (146,000) |
Permanent differences | 11,000 | 7,000 |
Benefit of federal operating loss carryforwards | (381,000) | (170,000) |
Cumulative adjustment to deferred taxes | 612,000 | |
Change in state tax rates and other | 140,000 | 157,000 |
Change in valuation allowance | 250,000 | $ 52,000 |
Total income tax expense (benefit) | $ 219,082 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Liabilities incurred to defend lawsuits | $ 0 | $ 0 |
Plan contribution expense | $ 182,702 | $ 150,791 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Dec. 31, 2019 | 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 | 15,372,905 | 15,328,870 |
Common stock, shares outstanding | 15,372,905 | 15,328,870 |
Stockholders' Equity - Additi_2
Stockholders' Equity - Additional Information - Employee Stock Purchase Plan (Detail) - USD ($) | Nov. 14, 2019 | May 14, 2019 | Nov. 16, 2018 | May 16, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Stockholders Equity [Line Items] | ||||||
Employee stock purchase plan expense | $ 31,848 | $ 17,738 | ||||
Shares issued for Employee Stock Purchase Plan options, Value | $ 70,668 | $ 40,380 | ||||
Common Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Shares issued for Employee Stock Purchase Plan options, Shares | 44,035 | 26,415 | ||||
Shares issued for Employee Stock Purchase Plan options, Value | $ 44 | $ 27 | ||||
2014 Employee Stock Purchase Plan [Member] | Common Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Shares issued for Employee Stock Purchase Plan options, Shares | 22,752 | 21,283 | 15,487 | 10,928 | 44,035 | 26,415 |
Shares issued for Employee Stock Purchase Plan options, Value | $ 40,999 | $ 29,669 | $ 21,984 | $ 18,396 | $ 70,668 | $ 40,380 |
Stockholders' Equity - Additi_3
Stockholders' Equity - Additional Information - Warrants (Detail) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Warrants issued | 0 | 0 |
Number of exercised warrants | 0 | 0 |
Number of warrants expired | 1,212,505 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrants Issued and Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Class Of Warrant Or Right [Line Items] | |
Shares of Common Stock | 521,060 |
Exercisable Warrants [Member] | Warrants One [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 | 4,837,500 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding Beginning Balance, Number of Shares | 1,773,066 | 1,389,816 |
Granted, Number of Shares | 1,074,515 | 420,500 |
Canceled/Forfeited, Number of Shares | (402,128) | (37,250) |
Outstanding Ending Balance, Number of Shares | 2,445,453 | 1,773,066 |
Outstanding Beginning Balance, Weighted-Average Exercise Price Per Share | $ 7.02 | $ 8.39 |
Granted, Weighted-Average Exercise Price Per Share | 1.93 | 2.38 |
Canceled/Forfeited, Weighted-Average Exercise Price Per Share | 15.64 | 5.98 |
Outstanding Ending Balance, Weighted-Average Exercise Price Per Share | 3.37 | 7.02 |
Exercise Price Per Share, Minimum | 1.17 | 1.17 |
Exercise Price Per Share, Maximum | 23.20 | 26 |
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 | |
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 — 26.00 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 1.51 | |
Exercise Price Per Share, Maximum | 26 | |
Outstanding, 1.17 — 23.20 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price Per Share, Minimum | 1.17 | |
Exercise Price Per Share, Maximum | $ 23.20 |
Stockholders' Equity - Additi_5
Stockholders' Equity - Additional Information - Stock Options (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Stockholders Equity [Line Items] | ||
Options outstanding, intrinsic value | $ 360,573 | $ 7,220 |
Options exercisable, intrinsic value | 53,259 | 7,220 |
Stock-based compensation expense | 1,019,409 | $ 775,851 |
Unvested share-based awards | $ 1,400,000 | |
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 | $ 1.23 | $ 1.71 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock Option Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Option Outstanding - Range of Exercise Prices, Lower Limit | $ 1.17 | $ 1.17 | |
Option Outstanding - Range of Exercise Prices, Upper Limit | $ 23.20 | $ 26 | |
Option Outstanding - Number of Shares | 2,445,453 | 1,773,066 | 1,389,816 |
Option Outstanding - Weighted-Average Remaining Contractual Life | 7 years 7 months 6 days | 6 years 10 months 25 days | |
Option Outstanding - Weighted Average Exercise Price | $ 3.37 | $ 7.02 | $ 8.39 |
Option Exercisable | 1,209,087 | 999,999 | |
Option Exercisable - Weighted Average Exercise Price | $ 4.47 | $ 10.05 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Weighted-Average Estimated Value of Employee Stock Options Granted (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Expected volatility | 76.00% | 85.00% |
Risk-free interest rate | 2.37% | 2.42% |
Expected dividends | 0.00% | 0.00% |
Expected term in years | 5 years 9 months 18 days | 5 years 10 months 25 days |
Stockholders' Equity - Additi_6
Stockholders' Equity - Additional Information - Deferred Stock Units (Detail) - Deferred Stock Units [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Sep. 01, 2019 | |
Schedule Of Stockholders Equity [Line Items] | ||
Number of stock unit received | 1 | |
Deferred stock units | 14,451 | |
Director [Member] | ||
Schedule Of Stockholders Equity [Line Items] | ||
Director compensation expense related to grants | $ 34,649 |
Net Loss per Share - Computatio
Net Loss per Share - Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||
Net loss applicable to common stockholders | $ (55,240) | $ (2,438,981) |
Denominator: | ||
Weighted average common shares outstanding, basic | 15,347,039 | 15,311,220 |
Weighted average common shares outstanding, diluted | 15,347,039 | 15,311,220 |
Net loss per share: | ||
Basic | $ 0 | $ (0.16) |
Diluted | $ 0 | $ (0.16) |
Anti-dilutive securities excluded from diluted net loss per share: | ||
Anti-dilutive securities excluded from diluted net loss per share | 2,966,513 | 3,506,631 |
Stock options [Member] | ||
Anti-dilutive securities excluded from diluted net loss per share: | ||
Anti-dilutive securities excluded from diluted net loss per share | 2,445,453 | 1,773,066 |
Warrants [Member] | ||
Anti-dilutive securities excluded from diluted net loss per share: | ||
Anti-dilutive securities excluded from diluted net loss per share | 521,060 | 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, 2019 | Dec. 31, 2018 | |
Supplemental cash flow information: | ||
Cash paid for interest | $ 351,741 | $ 364,372 |
Cash paid for income taxes | $ 76,030 | |
Supplemental non-cash activities: | ||
Sale of goodwill and intangible assets | 246,585 | |
Investment in Earth Media Partners, LLC | $ (246,585) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
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 | shares | 4,300,000 |
Private Transaction [Member] | |
Related Party Transaction [Line Items] | |
Number of common stock sold by shareholders | shares | 1,750,000 |
Transactions [Member] | Selling, General and Administrative Expense [Member] | |
Related Party Transaction [Line Items] | |
Costs and expenses | $ | $ 248,000 |