Sunvault Energy (SVLT) 10-Q 20 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 18, 2015
Document And Entity Information
Entity Registrant Name	SunVault Energy, Inc.
Entity Central Index Key	1,547,716
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		106,878,613
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 83,762	$ 547,936
Accounts receivable, net of allowance for doubtful accounts of $104,529 (2014 - $90,864) (Note 3)	820,448	910,074
Inventory (Note 4)	402,749	528,727
Due from related parties (Note 14)	597,999	219,707
Prepaid expenses and deposits	113,130	69,060
Total current assets	2,018,088	2,275,504
Restricted cash	8,035	12,930
Deferred financing costs	103,576	34,024
Property and equipment (Note 5)	2,695,213	2,372,021
Assets held for sale (Note 6)	482,044	$ 482,044
Investment (Note 7)	170,576
Goodwill (Note 8)	389,569	$ 418,851
Total assets	5,867,101	5,595,374
Current liabilities:
Line of credit	186,599	151,141
Accounts payable and accrued liabilities (Note 9)	1,614,137	1,394,543
Current portion of capital lease obligations (Note 11)	274,288	163,373
Current portion of long-term debt (Note 10)	134,007	$ 144,080
Current portion of convertible debt (Note 13)	222,291
Loan payable (Note 12)	227,581	$ 115,281
Due to related parties (Note 14)	355,606	327,080
Deferred revenue	1,291,824	1,277,787
Total current liabilities	4,306,333	3,573,285
Site retirement obligation	61,132	65,727
Capital lease obligations (Note 11)	698,567	377,094
Long-term debt (Note 10)	252,801	343,843
Convertible debt, less unamortized discount of $nil (December 31, 2014 - $156,692 (Note 13)	1,181,156	371,503
Total liabilities	6,499,989	4,731,452
Stockholders' equity (deficit)
Common stock, 500,000,000 shares authorized, $0.001 par value 106,878,613 shares issued and outstanding	106,879	106,879
Additional paid-in capital	3,288,083	2,799,159
Common stock issuable (Note 15)	621,583	134,916
Deferred compensation (Note 15)	(19,973)	(30,000)
Accumulated other comprehensive income (loss)	14,135	21,623
Deficit	(4,915,101)	(2,662,441)
Total Sunvault Energy, Inc. stockholders' equity (deficit)	(904,394)	370,136
Non-controlling interest	271,506	493,786
Total stockholders' equity (deficit)	(632,888)	863,922
Total liabilities and stockholders' equity (deficit)	$ 5,867,101	$ 5,595,374

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Accounts receivable, net of allowance	$ 104,529	$ 90,864
Convertible debt, less unamortized discount	$ 0	$ 156,692
Stockholders' equity (deficit)
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	106,878,613	106,878,613
Common stock, shares outstanding	106,878,613	106,878,613

Statements of Operations and Co

Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue
Non-program service revenue	$ 116,342	$ 240,590	$ 341,528	$ 463,296
Recycling fee revenue	847	354,114	168,329	504,446
Scrap metal revenue	13,595	17,364	16,533	23,209
Services rig and software revenue	26,501	36,716	73,606	83,847
Tire collections revenue	113,751	272,412	181,379	522,998
Tire shred and mulch revenue	456,607	177,621	659,801	603,161
Transportation revenue	630,037	709,357	1,202,573	709,357
Total revenue	1,357,680	1,808,174	2,643,749	2,910,314
Direct costs
Amortization	77,646	61,363	154,361	110,293
Equipment rental and maintenance	178,915	225,484	371,465	329,679
Freight and transportation	245,756	218,071	376,737	525,537
Labour and subcontractors (Note 14)	671,472	713,604	1,310,706	872,674
Materials	23,275	(147,774)	124,952	(88,045)
Site operating costs	57,138	53,292	104,695	110,943
Tire processing costs	62,543	102,216	150,919	185,621
Total direct costs	1,316,745	1,226,256	2,593,835	2,046,702
Gross profit	40,935	581,918	49,914	863,612
Operating expenses
Amortization	15,833	8,737	31,282	15,009
Bad debt	142	21,658	12,414	21,658
Consulting fees (Note 14)	88,157	431,761	171,056	490,821
Equipment rental and maintenance	12,163	36,580	29,050	47,721
General and administrative	81,871	51,054	295,038	98,025
Management fees (Note 14)	84,942	201,055	681,485	327,898
Professional fees	86,924	189,718	153,905	222,432
Rent	19,804	$ 63,390	43,831	$ 91,369
Research and development	4,034		4,034
Salaries and subcontracting fees	94,253	$ 94,777	223,264	$ 166,319
Travel and promotion	59,958	50,176	107,449	73,143
Total operating expenses	548,081	1,148,906	1,752,808	1,554,395
Net loss before other income (expense)	(507,146)	$ (566,988)	(1,702,894)	$ (690,783)
Other income (expense)
Gain on sale of equipment	$ 7,508		$ 7,508
Gain on settlement of debt		$ 20,400		$ 20,400
Interest expense	$ (518,211)	(34,529)	$ (779,554)	(34,529)
Total other expense	(510,703)	(14,129)	(772,046)	(14,129)
Net loss	(1,017,849)	(581,117)	(2,474,940)	(704,912)
Less: net loss attributable to non-controlling interest	86,592	67,818	222,280	121,863
Net loss attributable to Sunvault Energy, Inc.	(931,257)	(513,299)	(2,252,660)	(583,049)
Comprehensive income (loss)
Foreign currency translation gain (loss)	822	(10,839)	(7,488)	20,245
Comprehensive loss attributable to Sunvault Energy, Inc.	$ (930,435)	$ (524,138)	$ (2,260,148)	$ (562,804)
Loss per share attributable to Sunvault Energy, Inc. shareholders, basic and diluted	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.01)
Weighted average shares outstanding used in the calculation of net loss attributable to Sunvault Energy, Inc. per common share	106,878,613	89,654,532	106,878,613	69,318,540

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net loss	$ (2,474,940)	$ (704,912)
Adjustments to reconcile net loss to net cash provided by operating activities:
Accretion of discounts on convertible debt	488,924
Amortization of property and equipment	185,643	$ 123,056
Amortization of deferred financing costs	18,953	$ 2,246
Gain on sale of equipment	$ (7,508)
Gain on settlement of debt		$ (20,400)
Stock-based compensation	$ 496,694	286,423
Changes in operating assets and liabilities:
Accounts receivable	89,626	(208,317)
Inventory	125,978	(220,755)
Due from related parties	(197,543)	(68,164)
Prepaid expenses and deposits	(44,070)	(40,951)
Accounts payable and accrued liabilities	219,594	512,347
Deferred revenue	14,037	185,621
Due to related parties	15,777	114,996
Net cash used in operating activities	(1,068,835)	$ (38,810)
Investing activities
Advances to related parties	$ (219,749)
Cash acquired on recapitalization		$ 562
License costs		$ (21,690)
Proceeds from sale of equipment	$ 9,012
Proceeds from related parties	39,000
Purchase of investment	(170,576)
Purchase of property and equipment	(39,627)	$ (426,686)
Purchase of term deposit	(4,047)
Redemption of term deposit	8,213
Net cash used in investing activities	(377,774)	$ (447,814)
Financing activities
Line of credit	35,458	58,505
Deferred financing costs	(73,388)	(23,450)
Proceeds from convertible debt	878,280	$ 229,772
Proceeds from loans payable	$ 112,300
Repayment of loans payable		$ (16,411)
Repayment of long-term debt	$ (67,639)	(75,044)
Repayment of capital lease obligations	(175,981)	$ (54,249)
Proceeds from related parties	12,749
Net cash provided by financing activities	721,779	$ 119,123
Effect of foreign exchange rate changes on cash	260,656	63,662
Decrease in cash	(464,174)	(303,839)
Cash, beginning of period	547,936	547,288
Cash, end of period	83,762	$ 243,449
Non-cash investing and financing activities:
Property and equipment financed under capital lease	$ 629,978
Shares issued to settle convertible debt		$ 37,833
Shares issued to settle related party debt		31,100
Supplemental disclosures:
Interest paid	$ 66,488	$ 31,927
Income taxes paid	$ 9,210

1. Basis of Presentation

1. Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Basis of Presentation	The accompanying consolidated interim financial statements of Sunvault Energy, Inc. (the “Company”) should be read in conjunction with the consolidated financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown. The preparation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year. These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. As at June 30, 2015, the Company has a working capital deficiency of $2,288,245 and has accumulated losses of $4,915,101 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2. Significant Accounting Polic

2. Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Significant Accounting Policies	(a) Principles of Consolidation These consolidated financial statements and related notes are prepared in conformity with accounting principles generally accepted in the United States and are expressed in U.S. dollars. These consolidated financial statements include the accounts of the Company and the following entities: Werkman Transport Inc. (“WTI”) Wholly-owned subsidiary of the Company 1454004 Alberta Ltd. (“1454004”) Wholly-owned subsidiary of the Company CleanGen Inc. 69.6% owned subsidiary of the Company CleanGen Power Corp. Wholly-owned subsidiary of 1454004 Alberta Ltd. CleanGen Aboriginal HR Services Ltd. Wholly-owned subsidiary of CleanGen Inc. 1098541 Alberta Ltd. Wholly-owned subsidiary of CleanGen Inc. Cutting Edge Tire Recycling Limited Partnership Wholly-owned subsidiary of 1098541 Alberta Ltd. Coole Immersive Inc. 75.5% owned subsidiary of CleanGen Inc. All inter-company balances and transactions have been eliminated. (b) Comprehensive Income ASC 220, “ Comprehensive Income (c) Recent Accounting Pronouncements In 2014, the Financial Accounting Standards Board issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principal is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective beginning January 1, 2017 and can be applied either retrospectively for each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the impact and approach to adopting this accounting guidance on the consolidated financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. (d) Reclassifications Certain of the prior year figures have been reclassified to conform to the current year’s presentation.

3. Accounts Receivable

3. Accounts Receivable	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Accounts Receivable	June 30, 2015 $ December 31, 2014 $ Trade accounts receivable 794,703 898,141 GST receivable 23,981 9,411 Other receivable 1,764 2,522 820,448 910,074

4. Inventory

4. Inventory	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Inventory	June 30, 2015 $ December 31, 2014 $ Tire mulch 15,778 15,727 Tire shred 386,971 513,000 402,749 528,727

5. Property and Equipment

5. Property and Equipment	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Property and Equipment	Cost $ Accumulated amortization $ Net book value as at June 30, 2015 $ Net book value as at December 31, 2014 $ Building 88,142 1,705 86,437 94,768 Computer equipment 34,315 17,681 16,634 21,168 Field and production equipment 1,749,598 475,826 1,273,772 1,427,784 Furniture 54,146 13,230 40,916 12,781 Land 68,810 – 68,810 73,982 Transportation equipment 1,265,336 105,518 1,159,818 685,737 Truck 64,000 15,174 48,826 55,801 3,324,347 629,134 2,695,213 2,372,021 As at June 30, 2015, included in field and production equipment are assets under capital lease with an original cost of $170,226 (December 31, 2014 - $224,515) and accumulated amortization of $9,895 (December 31, 2014 - $35,898). Included in transportation equipment are assets under capital lease with an original cost of $1,173,938 (December 31, 2014 - $586,669) and accumulated amortization of $84,748 (December 31, 2014 - $51,727). During the six months ended June 30, 2015, amortization expense includes $37,985 (2014 - $27,692) related to assets under capital leases.

6. Assets Held For Sale

6. Assets Held For Sale	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Assets Held For Sale	Assets held for sale consists of solar panels which the Company acquired by issuing 333,333 units in 2013.

7. Investment

7. Investment	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
7. Investment	On January 5, 2015, the Company paid $170,576 pursuant to an assignment agreement dated December 27, 2014, whereby the Company acquired a 13% interest in a joint venture.

8. Goodwill

8. Goodwill	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Goodwill	Cost $ Foreign currency translation adjustment $ Impairment $ Net carrying value as at June 30, 2015 $ Net carrying value as at December 31, 2014 $ Coole Immersive Inc. 137,095 (26,346 ) – 110,749 119,073 Werkman Transport Inc. 273,224 73,601 (68,005 ) 278,820 299,778 410,319 47,255 (68,005 ) 389,569 418,851

9. Accounts Payable and Accrued

9. Accounts Payable and Accrued Liabilities	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Accounts Payable and Accrued Liabilities	June 30, 2015 $ December 31, 2014 $ Trade accounts payable 1,310,517 1,202,012 Accrued liabilities 134,492 63,095 GST payable 38,624 61,165 Income taxes payable 6,591 16,896 Payroll payable 117,900 44,910 Other payable 6,013 6,465 1,614,137 1,394,543

10. Long-term Debt

10. Long-term Debt	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Long-term Debt	June 30, 2015 $ December 31, 2014 $ Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,000 plus interest at 7%, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 168,364 212,051 Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,667 plus interest at 8%, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 187,080 235,624 John Deere Finance, repayable in monthly installments of Cdn$1,262 including interest at 0%, maturing on January 1, 2018, secured by specific equipment. 31,364 40,248 386,808 487,923 Less: current portion (134,007 ) (144,080 ) Long-term portion 252,801 343,843 Principal repayments on long-term debt in each of the next four years are as follows: Year $ $ 2015 83,574 67,004 2016 167,147 134,007 2017 167,147 134,007 2018 64,597 51,790 482,465 386,808

11. Capital Lease Obligations

11. Capital Lease Obligations	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Capital Lease Obligations	June 30, 2015 $ December 31, 2014 $ Treadco Inc., equipment lease repayable in monthly installments of Cdn$5,000 including interest at 12% per annum, due in February 2015, secured by specific field equipment. – 23,707 Coast Capital, equipment lease repayable in monthly instalments of Cdn$1,186 including interest at 8.23% per annum, due in July 2017, secured by production equipment. 21,772 28,456 Coast Capital, equipment lease repayable in monthly instalments of Cdn$1,067 including interest at 8.23% per annum, due in July 2017, secured by production equipment. 28,971 34,988 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$823, due in June 2019, secured by plant equipment. 20,963 25,060 Roynat Inc., equipment lease repayable in monthly installments of Cdn$1,464, due in March 2020, secured by specific field equipment. 57,416 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,093, due in June 2016, secured by transportation equipment. 19,216 30,335 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,123, due in September 2016, secured by transportation equipment. 25,633 37,104 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,188, due in June 2018, secured by transportation equipment. 107,098 131,733 Mercado Capital Corporation, equipment lease repayable in monthly installments of Cdn $1,745, due in June 2019, secured by transportation equipment. 56,045 66,649 Blue Chip Leasing Corporation, equipment lease repayable in monthly installments of Cdn$819, due in June 2019, secured by transportation equipment. 20,364 24,630 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$783, due in June 2019, secured by transportation equipment. 19,202 22,871 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 49,140 57,467 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 49,140 57,467 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$3,674, due in February 2020, secured by transportation equipment. 131,012 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,070, due in March 2020, secured by transportation equipment. 150,494 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$6,109 for the first six payments and thereafter to decrease to Cdn$4,345, due in March 2019, secured by transportation equipment. 134,949 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$1,943, due in August 2016, secured by transportation equipment. 19,306 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,875, due in January 2018, secured by transportation equipment. 62,134 – 972,855 540,467 Less: current portion (274,288 ) (163,373 ) Long-term portion 698,567 377,094 Future minimum lease payments related to capital lease obligations are as follows: $ 2015 187,500 2016 341,823 2017 297,516 2018 235,167 2019 102,941 2020 16,137 1,181,084 Less: imputed interest (208,229 ) 972,855 Less: current portion (274,288 ) Long-term portion 698,567

12. Loans Payable

12. Loans Payable	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Loans Payable	(a) As at June 30, 2015, the Company owed $115,281 (December 31, 2014 – $115,281) to a non-related party for expenses paid on behalf of the Company. The amount due is non-interest bearing, unsecured, and due on demand. (b) As at June 30, 2015, the Company owed $112,300 (December 31, 2014 – $nil) to various non-related parties for proceeds received pursuant to the future exercise of share purchase warrants. The share purchase warrants are exercisable at a price of $0.50 per share of common stock for a period of 90 days from when the Company’s shares resume trading. To exercise the share purchase warrants, each holder must first exercise a minimum of 25% of the respective share purchase warrants issued.

13. Convertible Debt

13. Convertible Debt	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Convertible Debt	(a) Effective April 22, 2014, the Company entered into private placement subscription agreements with several investors pursuant to which the Company issued convertible debentures in the aggregate amount of $180,200 and $42,091 (Cdn$52,500). The convertible debentures are unsecured, bear interest at 8% per annum and paid quarterly, due on April 22, 2016, and may be converted into shares of the Company’s common stock at any time at the conversion price of $0.30 per share. The Company incurred financing costs of $23,450 in connection with the financing, which was deferred and will be amortized over the term of the debt. During the six months ended June 30, 2015, the Company amortized $5,806 (2014 - $2,246) of the deferred financing costs. In accordance with ASC 470-20, “Debt with Conversion and Other Options”, the Company determined that the convertible promissory note contained no embedded beneficial conversion feature as the convertible promissory note was issued with a conversion price higher than the fair market value of the Company’s shares of common stock at the time of issuance. (b) Effective December 15, 2014, the Company entered into private placement subscription agreements with several investors pursuant to which the Company issued convertible debentures in the aggregate amount of $725,990 and $42,331 (Cdn$52,800). Of these amounts, $302,740 was received as at December 31, 2014. During the three months ended March 31, 2015, the Company received additional proceeds in the amount of $423,250 and $42,331 (Cdn$52,800). The convertible debentures are unsecured, bear interest at 10% per annum which is paid quarterly, due on December 15, 2016, and may be converted into shares of the Company’s common stock, after six months from issuance, at a conversion price of $0.20 per share. If converted into shares of common stock, the holder is entitled to one share purchase warrant with an exercise price of $0.50 for a period of two years. The Company incurred financing costs of $40,568 in connection with the financing, which was deferred and will be amortized over the term of the debt. During the six months ended June 30, 2015, the Company amortized $9,456 (2014 - $nil) of the deferred financing costs. In accordance with ASC 470-20, “ Debt with Conversion and Other Options (c) Effective March 1, 2015, the Company entered into private placement subscription agreements with several investors pursuant to which the Company issued convertible debentures in the aggregate amount of $396,800 and $16,035 (Cdn$20,000). The convertible debentures are unsecured, bear interest at 8.5% per annum which is paid quarterly, due on March 1, 2016, and may be converted into shares of the Company’s common stock, after six months from issuance or if the stock trades above $0.75 for a 14 calendar day period, at a conversion price of $0.25 per share. If converted into shares of common stock, the holder is entitled to one share purchase warrant with an exercise price of $1.00 for a period of two years. The Company incurred financing costs of $32,820 in connection with the financing, which was deferred and will be amortized over the term of the debt. During the six months ended June 30, 2015, the Company amortized $3,690 (2014 - $nil) of the deferred financing costs. In accordance with ASC 470-20, “ Debt with Conversion and Other Options th

14. Related Party Transactions

14. Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Related Party Transactions	(a) As at June 30, 2015, the Company owed $27,708 (December 31, 2014 - $10,286) to a company controlled by the President of the Company, which is unsecured, non-interest bearing, and due on demand. (b) As at June 30, 2015, the Company was owed $80,573 (December 31, 2014 - $56,511) from a company controlled by the President of the Company, which is unsecured, non-interest bearing, and due on demand. (c) As at June 30, 2015, the Company owed $37,500 (December 31, 2014 - $19,500) to the Chief Technology Officer of the Company, which is unsecured, non-interest bearing, and due on demand. (d) As at June 30, 2015, the Company owed $14,980 (December 31, 2014 - $14,980) to the Treasurer and Secretary of the Company, which is unsecured, non-interest bearing, and due on demand. (e) As at June 30, 2015, the Company owed $149,412 (December 31, 2014 - $107,232) to a company controlled by a director of the Company, which is unsecured, non-interest bearing, and due on demand. (f) As at June 30, 2015, the Company owed $19,547 (December 31, 2014 - $nil) to a company controlled by a director of the Company, which is unsecured, non-interest bearing, and due on demand. (g) As at June 30, 2015, the Company was owed $380,496 (December 31, 2014 - $158,886) from a company controlled by a significant shareholder of the Company, which is unsecured, non-interest bearing, and due on demand. (h) As at June 30, 2015, the Company was owed $111,000 (December 31, 2014 - $nil) from a company under common control, which is unsecured, non-interest bearing, and due on demand. (i) As at June 30, 2015, the Company was owed $4,009 (Cdn$5,000) (December 31, 2014 - $4,310 (Cdn$5,000)) from a director of the Company, which is unsecured, non-interest bearing, and due on demand. (j) As at June 30, 2015, the Company owed $19,349 (Cdn$24,134) (December 31, 2014 - $20,804 (Cdn$24,134)) to the President and companies controlled by the President of 1454004, which is unsecured, non-interest bearing, and due on demand. (k) As at June 30, 2015, the Company was owed $21,921 (Cdn$27,342) from (December 31, 2014 – owed $69 (Cdn$80) to) a shareholder of Coole, which is unsecured, non-interest bearing, and due on demand. (l) As at June 30, 2015, the Company owed $87,110 (Cdn$108,652) (December 31, 2014 – $154,209 (Cdn$178,898)) to the President of WTI, which is unsecured, non-interest bearing, and due on demand. (m) For the six months ended June 30, 2015, the Company incurred management fees of $13,085 (2014 - $72,937) and consulting fees of $nil (2014 - $19,146) to the President and companies controlled by the President of 1454004. (n) For the six months ended June 30, 2015, the Company incurred labour costs of $110,058 (2014 - $nil) to a company controlled by the brother of the President of WTI. (o) For the six months ended June 30, 2015, the Company incurred consulting fees of $20,460 (2014 - $nil) and management fees of $nil (2014 - $16,500) to the Chief Technology Officer of the Company. (p) For the six months ended June 30, 2015, the Company incurred consulting fees of $4,000 (2014 - $nil) to a director of the Company. (q) For the six months ended June 30, 2015, the Company incurred salaries and subcontracting fees of $11,400 (2014 - $nil) to the President of Coole. (r) For the six months ended June 30, 2015, the Company incurred consulting fees of $nil (2014 - $60,000) to and management fees recovery of $39,375 (2014 - $nil) from a company controlled by a significant shareholder of the Company. (s) For the six months ended June 30, 2015, the Company incurred freight and transportation expenses of $nil (2014 - $63,378) to a company owned by the spouse of a member of management of the Company. (t) For the six months ended June 30, 2015, included in management fees are the following amounts: · $60,000 (2014 - $55,000) incurred to the President of the Company; · $90,893 (2014 - $10,000) incurred to a director of the Company; · $48,315 (2014 - $22,793) incurred to the President of WTI; · $530,417 (2014 - $nil) incurred to a company controlled by the Chief Executive Officer of the Company; · $nil (2014 - $39,283) incurred to the daughter of the President of 1454004; · $nil (2014 - $23,249) incurred to the son of the President of 1454004; and · $nil (2014 - $82,054) incurred to a former director of 1454004. (u) For the six months ended June 30, 2015, included in labour costs is $28,368 (2014 - $22,805) paid to the son of the former President of 1454004.

15. Common Stock

15. Common Stock	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Common Stock	(a) As at June 30, 2015, the Company had $134,916 (Cdn$156,516) (December 31, 2014 – $134,916 (Cdn$156,516)) in common stock issuable to a company controlled by the President of WTI for the acquisition of certain assets and assumption of certain liabilities of 1301540 Alberta Ltd. on April 15, 2014. (b) As at June 30, 2015, the Company had $486,667 (December 31, 2014 – $nil) in common stock issuable to a company controlled by a director of the Company for management fees incurred. Refer to Note 18(h). (c) On March 1, 2014, the Company entered into a consulting agreement with a non-related party for a period of one year commencing March 1, 2015. As consideration for these services, the Company issued 300,000 shares of common stock with a fair value of $30,000 which was recorded as deferred compensation. During the six months ended June 30, 2015, the Company expensed $10,027 of the deferred compensation as consulting fees which reflects the pro-rata portion of the services provided to June 30, 2015.

16. Stock Options

16. Stock Options	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Stock Options	On February 6, 2014, the Company adopted the 2014 Stock Option Plan which permits the Company to grant stock options for up to 12,968,800 shares of common stock to officers, directors, employees, and consultants. The Board of Directors will determine the exercise price and vesting schedule for stock options granted. The maximum term of stock options granted is five years. A summary of the Company’s stock option activity is as follows: Number of options Weighted average exercise price $ Aggregate intrinsic value $ Outstanding, December 31, 2014 and June 30, 2015 3,100,000 0.10 1,953,000 Additional information regarding stock options outstanding as at June 30, 2015, is as follows: Outstanding and exercisable Range of exercise prices $ Number of shares Weighted average remaining contractual life (years) Weighted average exercise price $ 0.10 3,100,000 3.6 0.10

17. Share Purchase Warrants

17. Share Purchase Warrants	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Share Purchase Warrants	On May 15, 2015, the Company issued 2,050,000 share purchase warrants exercisable at a price of $0.50 per share of common stock for a period of 90 days from when the Company’s shares resume trading. To exercise the share purchase warrants, each holder must first exercise a minimum of 25% of the respective share purchase warrants issued. The share purchase warrants have no value as of June 30, 2015 as the Company’s shares have not resumed trading and the vesting date cannot be determined as of the date of these financial statements. The following table summarizes the continuity of share purchase warrants: Number of warrants Weighted average exercise price $ Balance, December 31, 2014 527,333 2.00 Issued 2,050,000 0.50 Balance, June 30, 2015 2,577,333 0.81 As at June 30, 2015, the following share purchase warrants were outstanding: Number of warrants Exercise price $ Expiry date 60,000 2.00 September 16, 2015 34,000 2.00 September 17, 2015 333,333 2.00 November 15, 2015 100,000 2.00 April 15, 2017 2,050,000 0.50 90 days from when the Company's shares resume trading 2,577,333

18. Commitments and Contingenci

18. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments and Contingencies	(a) On September 14, 2011, CleanGen Power received notice that The Groundworx Co. (“Groundworx") was seeking damages of Cdn$33,678 for repair services provided for a Doppstadt Shredder (the “Shredder”). Management of CleanGen Power asserts that any repair services provided for the Shredder was done without the agreement and the knowledge of CleanGen Power. On October 5, 2012, CleanGen Power filed a Statement of Defense and Counterclaim, seeking damages of Cdn$6,000,000 from Groundworx for the following: (i) trespassing, including physical damage to the gates and structures located on land that CleanGen Power was entitled to possession of; (ii) removal and conversion of the Shredder without permission; (iii) consequential losses arising from, but not limited to, CleanGen Power’s inability to perform its obligations under agreements with third parties as a direct result of the loss of the Shredder; (iv) damages arising from the disruption of CleanGen Power’s business, causing CleanGen Power to be unable to honour all of its financial obligations to third parties; and (v) administrative time and resources spent by CleanGen Power to locate the Shredder and to deal with the abovementioned acts of Groundworx. On November 16, 2012, CleanGen Power received a Statement of Defense to Counterclaim from Groundworx, who denied all of the allegations in the Counterclaim. CleanGen Power has until April 30, 2016 to advance the action or it risks automatic dismissal for delay by the Court. (b) On December 9, 2013, the Company entered into a licensing agreement pursuant to which the Company has been granted a royalty-bearing, exclusive license to certain patented inventions. The Company has agreed to pay the licensor $3,000 and issue shares of common stock equal to a fair value of $30,000 on or before January 8, 2014. The Company will pay royalties to the licensor calculated based on 4% of net sales for licensed products and processes. The minimum royalty payments are to be paid in advance on a quarterly basis as follows: December 3, 2018: - $500; year 2019 - $2,000; year 2020 - $4,000; year 2021 - $6,000; year 2022 - $8,000; and $10,000 for year 2023 and every year thereafter for the life of the agreement. If the first sale of a licensed product occurs before 2019, the first minimum royalty payment will be due on December 31 of the year in which the first sale occurred and the due dates for the subsequent minimum royalty payments will be adjusted accordingly. The Company must provide funding of at least $50,000 by January 6, 2014 for research by the licensor in the area of electrochemical based solar cells with energy storage capacity. In addition, the Company must pay the licensor milestone payments as follows: $5,000 upon completion of a working prototype due on March 31, 2018 and $10,000 upon its first commercial sale due on March 31, 2019. The Company must execute the first commercial sales of products to a retail customer on or before March 31, 2019 or the licensor has the right to terminate the agreement. The term of this license will continue until the latter of: (i) the date that no licensed patent remains a pending application or an unforceable patent, or (ii) the date on which the licensee’s obligation to pay royalties expires. (c) On January 16, 2014, the Company entered into an agreement with a company controlled by the President of the Company whereby the Company is to pay $10,000 per month, which is to be paid with shares of common stock of the Company until the Company has adequate funding. If the agreement is terminated by the Company without cause or as a result of a change in control, the company controlled by the President of the Company will be entitled to termination pay of $240,000. (d) On March 31, 2014, CleanGen Power received a demand for payment of Cdn$1,045,627 from the Province of Alberta pursuant to the biorefining commercialization and market development program grant agreement (the “Grant Agreement”). The amount consists of Cdn$969,157 of grant funds disallowed under the Grant Agreement and Cdn$76,471 of interest earned on the grant funds. While CleanGen Power acknowledges that it was in default of the Grant Agreement, the breach was brought about in part by circumstances beyond CleanGen Power’s control. In particular, a sawdust pile fire incident occurred from December 2 to December 21, 2011, which consumed 250,000 tonnes of wood material to be used for the biomass project worth Cdn$1,500,000 to Cdn$2,000,000 and cost approximately Cdn$500,000 to put out. This greatly affected CleanGen Power’s ability to progress with the project under the Grant Agreement. As such, CleanGen Power is in discussions with the Province of Alberta to reduce or settle the amount owed. As the Company have not received further communications from the Province of Alberta, there is uncertainty as the the estimated amount owed and the probability of the payout. As such, the Company did not record an accrual for the contingent liability. (e) On April 15, 2014, the Company entered into a management agreement with the President of WTI whereby the Company is to pay Cdn$10,000 per month for the management services for a term of five years. (f) On April 24, 2014, the Company entered into a Services and Commission Agreement with Aboriginal Financial Services Corporation (“AFSC”), a company controlled by a director of the Company, pursuant to which AFSC will provide the Company with knowledge regarding various Aboriginal peoples, groups, organizations and First Nations, Metis and Inuit communities (“Aboriginal Stakeholders”) and their business practices to assist the Company in identifying utility resource development and associated services to assist the Company with contractual arrangements for the development of resource opportunities on Aboriginal lands. Under the terms of the agreement, the Company agreed to pay AFSC a one-time retainer of Cdn$3,000 upon execution of the agreement and reimburse AFSC on a monthly basis for pre-approved out-of-pocket expenses. The Company has also agreed to issue the following shares based on various target contracts, as more particularly described in the agreement: i) 500,000 shares of common stock at the then prevailing market rate for any and all target contracts having a total capital investment value of up to Cdn$4,999,999 issuable as of the date of signing of target contracts with Aboriginal Stakeholders. ii) An additional 500,000 shares of common stock at the then prevailing market rate will be deemed earned and issuable as of the date of completion of the target contracts. iii) A further 500,000 shares of common stock at the prevailing market rate for any and all target contracts having a cumulative total capital investment of Cdn$5,000,000 or more upon completion of the target contracts. Such shares will be deemed earned and issuable upon the target contracts being completed. The Company also agreed to pay AFSC a commission for any and all third party financing introduced to the Company by AFSC as follows: i) 10% of the first Cdn$1,000,000, plus; ii) 8% of the second Cdn$1,000,000, plus; iii) 6% of the third Cdn$1,000,000, plus; iv) 4% of the fourth Cdn$1,000,000, plus; v) 2% of everything above Cdn$4,000,000. The agreement may be terminated by either party with 90 days written notice. On September 26, 2014, pursuant to an addendum to the Services and Commission Agreement with AFSC, the Company issued 500,000 shares of common stock to AFSC as additional consideration for AFSC’s performance of services rendered in identifying and introducing other business opportunities to the Company. (g) On December 15, 2014, the Company entered into a license and development agreement with a non-related party to develop the nanotech energy graphine energy storage device. Pursuant to the agreement, the Company shall provide all funding in a sufficient amount to: (i) develop and equip a factory to manufacture the products; and (ii) provide the proposed funding of $10,000,000 within 75 days of December 15, 2014. On June 3, 2015, the agreement was mutually terminated. (h) On March 18, 2015, the Company entered into a management agreement with AFSC for services to be rendered by its President as an officer and director of the Company. In consideration for the management services rendered, the Company agrees to pay AFSC the following fees and expenses: i) Upon execution of this agreement, the Company agrees to issue to AFSC 666,667 unrestricted common voting shares of the Company at the then prevailing market price and stock options as determined by the Board of Directors (refer to Note 15(b)); ii) The Company agrees to pay to AFSC a monthly fee of $12,500, plus applicable taxes, in equal semi-monthly installments which is to be paid with shares of common stock of the Company until the Company has adequate funding; iii) The Company agrees to pay AFSC for all reasonable and necessary travel and out of pocket expenses incurred in fulfilling its obligations under this agreement upon verification of all related receipts; and iv) The Company agrees to issue common stock and stock options to AFSC, at its discretion at such times and in such amounts as it determines from time to time. AFSC shall be entitled to participate in other incentive plans or employee incentive stock options. Such stock options are to be exercisable for a minimum period of five years from the date of grant, considered earned and fully vested at the time of issue regardless of whether AFSC exercises its right, and the Company shall have no right to cancel or rescind such stock options granted thereafter.

19. Segmented Information

19. Segmented Information	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Segmented Information	The Company has three reportable segments: (i) recycling services, (ii) services rig and software revenue, and (iii) transportation services. The Company allocates resources to and assess the performance of each reportable segment using information about its revenue and operating income (loss). The Company does not evaluate operating segments using discrete asset information. The “Corporate and other” category includes income, expenses, and charges such as: · results of operations of various initiatives which support all of the Company’s reportable segments; · corporate management costs, such as human resources, finance and legal, not allocated to the Company’s reportable segments; and · stock-based compensation. The following table summarizes the financial performance of the Company’s reportable segments: 2015 $ 2014 $ Recycling services 1,367,570 2,117,110 Services rig and software revenue 73,606 83,847 Transportation services 1,233,340 787,609 Elimination of inter-segment net revenue (30,767 ) (78,252 ) Total consolidated net revenue 2,643,749 2,910,314 The following table provides a reconciliation to the Company’s consolidated operating results: 2015 $ 2014 $ Recycling services (715,803 ) (54,041 ) Services rig and software revenue 679 43,070 Transportation services 108,034 5,544 Corporate and other (1,095,804 ) (685,496 ) Total consolidated operating loss (1,702,894 ) (690,923 ) Segmentation by geographical location is not presented as all revenues are earned in Canada and all long-lived assets are located in Canada. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by the Chief Operating Decision Maker of the Company.

20. Subsequent Events

20. Subsequent Events	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Subsequent Events	(a) Subsequent to June 30, 2015, the Company entered into a private placement subscription agreement with an investors pursuant to which the Company issued a convertible debenture in the amount of $50,000. The convertible debenture is unsecured, due two years from the date of issuance, bears interest at the rate of 8.5% per annum, calculated annually and paid quarterly, and may be converted into units after six months from the date of issuance or if the shares trade above $0.75 for a 14 day period at a conversion price of $0.25 per unit. Each unit is to consist of one share of common stock and one share purchase warrant exercisable at a price of $1.00 for a period of two years from the date of conversion. (b) Subsequent to June 30, 2015, the Company received proceeds in the amount of $45,400 pursuant to the future exercise of share purchase warrants. The share purchase warrants are exercisable at a price of $0.50 per share of common stock for a period of 90 days from when the Company’s shares resume trading. To exercise the share purchase warrants, each holder must first exercise a minimum of 25% of the respective share purchase warrants issued.

2. Significant Accounting Pol26

2. Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Significant Accounting Policies Policies
Principles of Consolidation	These consolidated financial statements and related notes are prepared in conformity with accounting principles generally accepted in the United States and are expressed in U.S. dollars. These consolidated financial statements include the accounts of the Company and the following entities: Werkman Transport Inc. (“WTI”) Wholly-owned subsidiary of the Company 1454004 Alberta Ltd. (“1454004”) Wholly-owned subsidiary of the Company CleanGen Inc. 69.6% owned subsidiary of the Company CleanGen Power Corp. Wholly-owned subsidiary of 1454004 Alberta Ltd. CleanGen Aboriginal HR Services Ltd. Wholly-owned subsidiary of CleanGen Inc. 1098541 Alberta Ltd. Wholly-owned subsidiary of CleanGen Inc. Cutting Edge Tire Recycling Limited Partnership Wholly-owned subsidiary of 1098541 Alberta Ltd. Coole Immersive Inc. 75.5% owned subsidiary of CleanGen Inc. All inter-company balances and transactions have been eliminated.
Comprehensive Income	ASC 220, “ Comprehensive Income
Recent Accounting Pronouncements	In 2014, the Financial Accounting Standards Board issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principal is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective beginning January 1, 2017 and can be applied either retrospectively for each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the impact and approach to adopting this accounting guidance on the consolidated financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Reclassifications	Certain of the prior year figures have been reclassified to conform to the current year’s presentation.

2. Significant Accounting Pol27

2. Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Significant Accounting Policies Tables
Summary of Equipment	Werkman Transport Inc. (“WTI”) Wholly-owned subsidiary of the Company 1454004 Alberta Ltd. (“1454004”) Wholly-owned subsidiary of the Company CleanGen Inc. 69.6% owned subsidiary of the Company CleanGen Power Corp. Wholly-owned subsidiary of 1454004 Alberta Ltd. CleanGen Aboriginal HR Services Ltd. Wholly-owned subsidiary of CleanGen Inc. 1098541 Alberta Ltd. Wholly-owned subsidiary of CleanGen Inc. Cutting Edge Tire Recycling Limited Partnership Wholly-owned subsidiary of 1098541 Alberta Ltd. Coole Immersive Inc. 75.5% owned subsidiary of CleanGen Inc.

3. Accounts Receivable (Tables)

3. Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2015
Accounts Receivable Tables
Accounts Receivable	June 30, 2015 $ December 31, 2014 $ Trade accounts receivable 794,703 898,141 GST receivable 23,981 9,411 Other receivable 1,764 2,522 820,448 910,074

4. Inventory (Tables)

4. Inventory (Tables)	6 Months Ended
	Jun. 30, 2015
Inventory Tables
Inventory	June 30, 2015 $ December 31, 2014 $ Tire mulch 15,778 15,727 Tire shred 386,971 513,000 402,749 528,727

5. Property and Equipment (Tabl

5. Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property And Equipment Tables
Property and Equipment	Cost $ Accumulated amortization $ Net book value as at June 30, 2015 $ Net book value as at December 31, 2014 $ Building 88,142 1,705 86,437 94,768 Computer equipment 34,315 17,681 16,634 21,168 Field and production equipment 1,749,598 475,826 1,273,772 1,427,784 Furniture 54,146 13,230 40,916 12,781 Land 68,810 – 68,810 73,982 Transportation equipment 1,265,336 105,518 1,159,818 685,737 Truck 64,000 15,174 48,826 55,801 3,324,347 629,134 2,695,213 2,372,021

8. Goodwill (Tables)

8. Goodwill (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill Tables
Summary of Goodwill	Cost $ Foreign currency translation adjustment $ Impairment $ Net carrying value as at June 30, 2015 $ Net carrying value as at December 31, 2014 $ Coole Immersive Inc. 137,095 (26,346 ) – 110,749 119,073 Werkman Transport Inc. 273,224 73,601 (68,005 ) 278,820 299,778 410,319 47,255 (68,005 ) 389,569 418,851

9. Accounts Payable and Accru32

9. Accounts Payable and Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Accounts Payable And Accrued Liabilities Tables
Summary of Accounts Payable and Accrued Liabilities	June 30, 2015 $ December 31, 2014 $ Trade accounts payable 1,310,517 1,202,012 Accrued liabilities 134,492 63,095 GST payable 38,624 61,165 Income taxes payable 6,591 16,896 Payroll payable 117,900 44,910 Other payable 6,013 6,465 1,614,137 1,394,543

10. Long-term Debt (Tables)

10. Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Long-term Debt Tables
Summary of long-term debt	June 30, 2015 $ December 31, 2014 $ Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,000 plus interest at 7%, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 168,364 212,051 Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,667 plus interest at 8%, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 187,080 235,624 John Deere Finance, repayable in monthly installments of Cdn$1,262 including interest at 0%, maturing on January 1, 2018, secured by specific equipment. 31,364 40,248 386,808 487,923 Less: current portion (134,007 ) (144,080 ) Long-term portion 252,801 343,843
Principal repayments on long-term debt	Year $ $ 2015 83,574 67,004 2016 167,147 134,007 2017 167,147 134,007 2018 64,597 51,790 482,465 386,808

12. Capital Lease Obligations (

12. Capital Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2015
Capital Lease Obligations Tables
Capital Lease Obligations	June 30, $ December 31, 2014 $ Treadco Inc., equipment lease repayable in monthly installments of Cdn$5,000 including interest at 12% per annum, due in February 2015, secured by specific field equipment. – 23,707 Coast Capital, equipment lease repayable in monthly instalments of Cdn$1,186 including interest at 8.23% per annum, due in July 2017, secured by production equipment. 21,772 28,456 Coast Capital, equipment lease repayable in monthly instalments of Cdn$1,067 including interest at 8.23% per annum, due in July 2017, secured by production equipment. 28,971 34,988 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$823, due in June 2019, secured by plant equipment. 20,963 25,060 Roynat Inc., equipment lease repayable in monthly installments of Cdn$1,464, due in March 2020, secured by specific field equipment. 57,416 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,093, due in June 2016, secured by transportation equipment. 19,216 30,335 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,123, due in September 2016, secured by transportation equipment. 25,633 37,104 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,188, due in June 2018, secured by transportation equipment. 107,098 131,733 Mercado Capital Corporation, equipment lease repayable in monthly installments of Cdn $1,745, due in June 2019, secured by transportation equipment. 56,045 66,649 Blue Chip Leasing Corporation, equipment lease repayable in monthly installments of Cdn$819, due in June 2019, secured by transportation equipment. 20,364 24,630 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$783, due in June 2019, secured by transportation equipment. 19,202 22,871 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 49,140 57,467 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 49,140 57,467 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$3,674, due in February 2020, secured by transportation equipment. 131,012 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,070, due in March 2020, secured by transportation equipment. 150,494 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$6,109 for the first six payments and thereafter to decrease to Cdn$4,345, due in March 2019, secured by transportation equipment. 134,949 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$1,943, due in August 2016, secured by transportation equipment. 19,306 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,875, due in January 2018, secured by transportation equipment. 62,134 – 972,855 540,467 Less: current portion (274,288 ) (163,373 ) Long-term portion 698,567 377,094
Payments related to capital lease obligations	$ 2015 187,500 2016 341,823 2017 297,516 2018 235,167 2019 102,941 2020 16,137 1,181,084 Less: imputed interest (208,229 ) 972,855 Less: current portion (274,288 ) Long-term portion 698,567

16. Stock Options (Tables)

16. Stock Options (Tables)	6 Months Ended
	Jun. 30, 2015
Stock Options Tables
Stock Options	Number of options Weighted average exercise price $ Aggregate $ Outstanding, December 31, 2014 and June 30, 2015 3,100,000 0.10 1,953,000
Outstanding stock options	Outstanding and exercisable Range of exercise prices $ Number of shares Weighted average remaining contractual life (years) Weighted average exercise price $ 0.10 3,100,000 3.6 0.10

17. Share Purchase Warrants (Ta

17. Share Purchase Warrants (Tables)	6 Months Ended
	Jun. 30, 2015
Share Purchase Warrants Tables
Share purchase warrants	Number of warrants Weighted average exercise price $ Balance, December 31, 2014 527,333 2.00 Issued 2,050,000 0.50 Balance, June 30, 2015 2,577,333 0.81
Share purchase warrants exercise price	Number of warrants Exercise price $ Expiry date 60,000 2.00 September 16, 2015 34,000 2.00 September 17, 2015 333,333 2.00 November 15, 2015 100,000 2.00 April 15, 2017 2,050,000 0.50 90 days from when the Company's shares resume trading 2,577,333

19. Segmented Information (Tabl

19. Segmented Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segmented Information Tables
Summarizes the financial performance of the Company's reportable segments	2015 $ 2014 $ Recycling services 1,367,570 2,117,110 Services rig and software revenue 73,606 83,847 Transportation services 1,233,340 787,609 Elimination of inter-segment net revenue (30,767 ) (78,252 ) Total consolidated net revenue 2,643,749 2,910,314
Reconciliation to the Company's consolidated operating results	2015 $ 2014 $ Recycling services (715,803 ) (54,041 ) Services rig and software revenue 679 43,070 Transportation services 108,034 5,544 Corporate and other (1,095,804 ) (685,496 ) Total consolidated operating loss (1,702,894 ) (690,923 )

1. Basis of Presentation (Detai

1. Basis of Presentation (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Basis Of Presentation Details Narrative
Working capital deficiency	$ (2,288,245)
Accumulated losses	$ (4,915,101)	$ (2,662,441)

3. Accounts Receivable (Details

3. Accounts Receivable (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accounts Receivable Details
Trade accounts receivable	$ 794,703	$ 898,141
GST receivable	23,981	9,411
Other receivable	1,764	2,522
Total	$ 820,448	$ 910,074

4. Inventory (Details)

4. Inventory (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Inventory Details
Tire mulch	$ 15,778	$ 15,727
Tire shred	386,971	513,000
Total	$ 402,749	$ 528,727

5. Property and Equipment (Deta

5. Property and Equipment (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Cost	$ 3,324,347
Accumulated amortization	629,134
Net book value	2,695,213	$ 2,372,021
Building [Member]
Cost	88,142
Accumulated amortization	1,705
Net book value	86,437	94,768
Computer Equipment [Member]
Cost	34,315
Accumulated amortization	17,681
Net book value	16,634	21,168
Field and production equipment [Member]
Cost	1,749,598
Accumulated amortization	475,826
Net book value	1,273,772	1,427,784
Furniture [Member]
Cost	54,146
Accumulated amortization	13,230
Net book value	40,916	12,781
Land [Member]
Cost	$ 68,810
Accumulated amortization
Net book value	$ 68,810	73,982
Transportation Equipment [Member]
Cost	1,265,336
Accumulated amortization	105,518
Net book value	1,159,818	685,737
Truck [Member]
Cost	64,000
Accumulated amortization	15,174
Net book value	$ 48,826	$ 55,801

5. Property and Equipment (De42

5. Property and Equipment (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property And Equipment Details Narrative
Field and production equipment are assets under capital lease	$ 170,226		$ 224,515
Accumulated amortization	9,895		35,898
Transportation equipment are assets under capital lease	1,173,938		586,669
Accumulated amortization	84,748		$ 51,727
Amortization expense	$ 37,985	$ 27,692

8. Goodwill (Details)

8. Goodwill (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Cost	$ 410,319
Foreign currency translation adjustment	47,255
Impairment	(68,005)
Net carrying value	389,569	$ 418,851
Coole Immersive Inc.
Cost	137,095
Foreign currency translation adjustment	$ (26,346)
Impairment
Net carrying value	$ 110,749	119,073
Werkman Transport Inc.
Cost	273,224
Foreign currency translation adjustment	73,601
Impairment	(68,005)
Net carrying value	$ 278,820	$ 299,778

9. Accounts Payable and Accru44

9. Accounts Payable and Accrued Liabilities (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accounts Payable And Accrued Liabilities Details
Trade accounts payable	$ 1,310,517	$ 1,202,012
Accrued liabilities	134,492	63,095
GST payable	38,624	61,165
Income taxes payable	6,591	16,896
Payroll payable	117,900	44,910
Other payable	6,013	6,465
Total	$ 1,614,137	$ 1,394,543

10. Long-term Debt (Details)

10. Long-term Debt (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Long-term Debt Details
Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,000 plus interest at 7%, maturing May 17, 2018, secured by a general interest in all present and after acquired property.	$ 168,364	$ 212,051
Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,667 plus interest at 8%, maturing May 17, 2018, secured by a general interest in all present and after acquired property.	187,080	235,624
John Deere Finance, repayable in monthly installments of Cdn$1,262 including interest at 0%, maturing on January 1, 2018, secured by specific equipment.	31,364	40,248
Long-term Debt	386,808	487,923
Less: current portion	(134,007)	(144,080)
Long-term portion	$ 252,801	$ 343,843

10. Long-term Debt (Details 1)

10. Long-term Debt (Details 1) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Long-term Debt Details 1
2,015	$ 83,574	$ 67,004
2,016	167,147	134,007
2,017	167,147	134,007
2,018	64,597	51,790
Long-term Debt	$ 482,465	$ 386,808

11. Capital Lease Obligations (

11. Capital Lease Obligations (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Capital Lease Obligations Details
Treadco Inc., equipment lease repayable in monthly installments of Cdn$5,000 including interest at 12% per annum, due in February 2015, secured by specific field equipment.		$ 23,707
Coast Capital, equipment lease repayable in monthly instalments of Cdn$1,186 including interest at 8.23% per annum, due in July 2017, secured by production equipment.	$ 21,772	28,456
Coast Capital, equipment lease repayable in monthly instalments of Cdn$1,067 including interest at 8.23% per annum, due in July 2017, secured by production equipment.	28,971	34,988
National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$823, due in June 2019, secured by transportation equipment.	20,963	$ 25,060
Roynat Inc., equipment lease repayable in monthly installments of Cdn$1,464, due in March 2020, secured by specific field equipment.	57,416
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,093, due in June 2016, secured by transportation equipment.	19,216	$ 30,335
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,123, due in September 2016, secured by transportation equipment.	25,633	37,104
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,188, due in June 2018, secured by transportation equipment.	107,098	131,733
Mercado Capital Corporation, equipment lease repayable in monthly installments of Cdn $1,745, due in June 2019, secured by transportation equipment.	56,045	66,649
Blue Chip Leasing Corporation, equipment lease repayable in monthly installments of Cdn$819, due in June 2019, secured by transportation equipment.	20,364	24,630
National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$783, due in June 2019, secured by transportation equipment.	19,202	22,871
Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment.	49,140	57,467
Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment.	49,140	$ 57,467
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$3,674, due in February 2020, secured by transportation equipment.	131,012
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,070, due in March 2020, secured by transportation equipment.	150,494
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$6,109 for the first six payments and thereafter to decrease to Cdn$4,345, due in March 2019, secured by transportation equipment.	134,949
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$1,943, due in August 2016, secured by transportation equipment.	19,306
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,875, due in January 2018, secured by transportation equipment.	62,134
Capital Lease Obligations	972,855	$ 540,467
Less: current portion	(274,288)	(163,373)
Long-term portion	$ 698,567	$ 377,094

11. Capital Lease Obligations48

11. Capital Lease Obligations (Details 1) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Capital Lease Obligations Details 1
2,015	$ 187,500
2,016	341,823
2,017	297,516
2,018	235,167
2,019	102,941
2,020	16,137
Capital Leases Gross	1,181,084
Less: imputed interest	(208,229)
Capital Leases Net	972,855
Less: current portion	(274,288)	$ (163,373)
Long-term portion	$ 698,567	$ 377,094

12. Loans Payable (Details Narr

12. Loans Payable (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Loan payable	$ 227,581	$ 115,281
Loans Payable [Member]
Loan payable	115,281	$ 115,281
Loans Payable One [Member]
Loan payable	$ 112,300

13. Convertible Debt (Details N

13. Convertible Debt (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Stock Price	$ 0.75
Convertible Debt [Member]
Deferred financing costs amortized	$ 5,806	$ 2,246
Convertible Debt One [Member]
Deferred financing costs amortized	9,456
Company accreted debt discount	414,452
Carrying values of the convertible debentures	725,990		$ 146,048
Proceeds from additional amount	42,331
Convertible Debt Two [Member]
Deferred financing costs amortized	3,690
Company accreted debt discount	231,164
Carrying values of the convertible debentures	396,800
Carrying values of the convertible debentures additional	$ 16,035

14. Related Party Transactions

14. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Management fees	$ 84,942	$ 201,055	$ 681,485	$ 327,898
Freight and transportation expenses	245,756	$ 218,071	376,737	$ 525,537
President of 1454004
Amount owed to related party	19,349		$ 19,349		$ 20,804
Management fees
Labour expense			$ 9,842		3,574
Consulting fees					19,146
Son of President of 1454004
Management fees			$ 11,556		23,249
Labour expense			28,368		$ 22,805
Consulting fees			4,000
Director 1,454,004
Amount owed to related party	19,547		$ 19,547
Management fees					$ 40,787
Chief Executive Officer
Management fees			$ 530,417
Consulting fees					$ 60,000
Directors
Amount owed to related party	149,412		$ 149,412		107,232
Amount owed from related party	4,009		4,009		4,310
Management fees			$ 90,893		10,000
Consulting fees					7,245
President
Amount owed to related party	27,708		$ 27,708		10,286
Amount owed from related party	80,573		80,573		56,511
Management fees			$ 60,000		55,000
Consulting fees					25,984
Salaries and subcontracting fees			$ 11,400		0
Chief Technology Officer
Amount owed to related party	37,500		$ 37,500		19,500
Management fees					$ 16,500
Consulting fees			$ 20,460
President of WTI
Amount owed to related party	87,110		87,110		$ 154,209
Management fees			48,315		$ 22,793
Labour expense			$ 110,058
Daughter of the President of 1454004
Management fees					$ 39,283
Labour expense			$ 11,284		4,567
Significant Shareholder
Amount owed from related party	380,496		380,496		158,886
Consulting fees					36,223
Treasurer and Secretary
Amount owed to related party	14,980		14,980		14,980
Shareholder of Coole
Amount owed from related party	$ 21,921		$ 21,921		69
Spouse [Member]
Freight and transportation expenses					63,378
Formar Directors
Management fees					$ 82,054

15. Common Stock (Details Narra

15. Common Stock (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Deferred compensation as consulting fees	$ 10,027
President of WTI
Common stock issuable	134,916	$ 134,916
Common stock issued to Director	$ 486,667

16. Stock Options (Details)

16. Stock Options (Details) - Jun. 30, 2015 - USD ($)	Total
Number of Options
Outstanding Beginning, Balance	3,100,000
Outstanding Ending, Balance	3,100,000
Weighted Average Exercise Price
Outstanding Beginning, Balance	$ 0.10
Outstanding Ending, Balance	$ 0.10
Aggregate Intrinsic Value
Outstanding Beginning, Balance	$ 1,953,000
Outstanding Ending, Balance	$ 1,953,000

16. Stock Options (Details 1)

16. Stock Options (Details 1) - 6 months ended Jun. 30, 2015 - $ / shares	Total
Stock Options Details 1
Range of exercise prices	$ 0.10
Number of shares	3,100,000
Weighted average remaining contractual life(years)	3 years 7 months 6 days
Weighted average exercise price	$ 0.10

17. Share Purchase Warrants (De

17. Share Purchase Warrants (Details) - 6 months ended Jun. 30, 2015 - $ / shares	Total
Share Purchase Warrants Details
Number of warrants, Beginning Balance	527,333
Number of warrants, Issued	2,050,000
Number of warrants, Ending Balance	2,577,333
Weighted average exercise price, Beginning Balance	$ 2
Weighted average exercise price, Issued	0.50
Weighted average exercise price, Ending Balance	$ 0.81

17. Share Purchase Warrants (56

17. Share Purchase Warrants (Details 1) - $ / shares	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Number of Warrants	2,577,333
Exercise Price	$ 0.10	$ 0.10
Warrant One [Member]
Number of Warrants	60,000
Exercise Price	$ 2
Expiry date	Sep. 16, 2015
Warrant Two [Member]
Number of Warrants	34,000
Exercise Price	$ 2
Expiry date	Sep. 17, 2015
Warrant Three [Member]
Number of Warrants	333,333
Exercise Price	$ 2
Expiry date	Nov. 15, 2015
Warrant Four [Member]
Number of Warrants	100,000
Exercise Price	$ 2
Expiry date	Apr. 15, 2017
Warrant Five [Member]
Number of Warrants	2,050,000
Exercise Price	$ 0.50
Expiry date	90 days from when the Company's shares resume trading

19. Segmented Information (Deta

19. Segmented Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Segmented Information Details
Recycling services	$ 1,367,570	$ 2,117,110
Services rig and software revenue	73,606	83,847
Transportation services	1,233,340	787,609
Elimination of inter-segment net revenue	(30,767)	(78,252)
Total consolidated net revenue	$ 2,643,749	$ 2,910,314

19. Segmented Information (De58

19. Segmented Information (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Segmented Information Details 1
Recycling services	$ (715,803)	$ (54,041)
Services rig and software revenue	679	43,070
Transportation services	108,034	5,544
Corporate and other	(1,095,804)	(685,496)
Total consolidated operating income (loss)	$ (1,702,894)	$ (690,923)

Uncategorized Items - svlt-2015

Label	Element	Value
Gain on settlement of debt	us-gaap_GainLossRelatedToLitigationSettlement
Gain on settlement of debt	us-gaap_GainLossRelatedToLitigationSettlement	$ 20,400
Gain on sale of equipment	us-gaap_GainLossOnSaleOfPropertyPlantEquipment
Gain on sale of equipment	us-gaap_GainLossOnSaleOfPropertyPlantEquipment	$ 7,508
Net loss	us-gaap_NetIncomeLoss	(1,017,849)
Net loss	us-gaap_NetIncomeLoss	$ (581,117)