Sunvault Energy (SVLT) 10-Q 23 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 20, 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	Sep. 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	Q3
Document Fiscal Year Focus	2,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 120,418	$ 547,936
Accounts receivable, net of allowance for doubtful accounts of $98,463 (2014 - $90,864) (Note 3)	563,049	910,074
Inventory (Note 4)	419,742	528,727
Due from related parties (Note 15)	684,595	219,707
Prepaid expenses and deposits	147,518	69,060
Total current assets	1,935,322	2,275,504
Restricted cash	7,443	12,930
Deferred financing costs	90,854	34,024
Property and equipment (Note 5)	2,417,942	2,372,021
Assets held for sale (Note 6)	482,044	$ 482,044
Investment (Note 7)	170,576
Goodwill (Note 8)	362,727	$ 418,851
Total assets	5,466,908	5,595,374
Current liabilities:
Line of credit	146,560	151,141
Accounts payable and accrued liabilities (Note 9)	1,883,439	1,518,846
Grant payable (Note 14)	723,467	835,408
Current portion of capital lease obligations (Note 12)	249,951	163,373
Current portion of long-term debt (Note 10)	124,774	$ 144,080
Current portion of convertible debt (Note 13)	219,391
Loan payable (Note 11)	303,731	$ 115,281
Due to related parties (Note 15)	400,778	327,080
Deferred revenue	1,254,913	1,277,787
Total current liabilities	5,307,004	4,532,996
Site retirement obligation	56,920	65,727
Capital lease obligations (Note 12)	589,255	377,094
Long-term debt (Note 10)	204,189	343,843
Convertible debt, less unamortized discount of $48,202 (2014 - $156,692) (Note 13)	1,353,933	371,503
Total liabilities	$ 7,511,301	$ 5,691,163
Going concern (Note 1)
Commitments and contingencies (Note 19)
Subsequent events (Note 22)
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
Common stock issuable (Note 16)	658,062	171,395
Additional paid-in capital	4,707,190	4,085,266
Deferred compensation (Note 16)	(12,411)	(30,000)
Accumulated other comprehensive income	241,188	168,679
Deficit	(7,928,731)	(5,091,794)
Total Sunvault Energy, Inc. stockholders' deficit	(2,227,823)	(589,575)
Non-controlling interest	183,430	493,786
Total stockholders' deficit	(2,044,393)	(95,789)
Total liabilities and stockholders' deficit	$ 5,466,908	$ 5,595,374

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Accounts receivable, net of allowance	$ 98,463	$ 90,864
Current liabilities:
Convertible debt, less unamortized discount	$ 48,202	$ 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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Non-program service revenue	$ 141,196	$ 256,953	$ 482,724	$ 720,249
Recycling fee revenue	(3,313)	467,257	165,016	971,703
Scrap metal revenue	6,782	32,073	23,315	55,282
Services rig and software revenue	25,011	46,969	98,617	130,816
Tire collections revenue	106,288	333,558	287,667	856,556
Tire shred revenue	226,845	629,977	886,646	1,233,138
Transportation revenue	532,918	524,592	1,735,491	1,233,949
Total revenue	1,035,727	2,291,379	3,679,476	5,201,693
Direct costs
Amortization	84,292	66,397	238,653	176,690
Equipment rental and maintenance	177,050	174,991	548,515	504,670
Freight and transportation	157,014	271,032	533,751	796,569
Labour and subcontractors (Note 15)	474,040	891,124	1,784,746	1,763,798
Materials	(4,326)	215,295	120,626	127,250
Site operating costs	64,242	49,097	168,937	160,040
Tire processing costs	44,748	88,842	195,667	274,463
Total direct costs	997,060	1,756,778	3,590,895	3,803,480
Gross profit	38,667	534,601	88,581	1,398,213
Operating expenses
Amortization	15,011	13,222	46,293	28,231
Bad debt	70,274	58,537	82,688	80,195
Consulting fees (Note 15)	90,449	154,700	265,538	645,521
Equipment rental and maintenance	(572)	86,682	28,478	134,403
General and administrative	(6,770)	145,786	288,269	243,811
Management fees (Note 15)	88,407	190,313	769,892	518,211
Professional fees	87,807	119,155	241,712	341,587
Rent	9,331	36,961	53,162	128,330
Salaries and subcontracting fees (Note 15)	117,695	116,120	340,959	282,439
Travel and promotion	60,020	27,707	167,469	100,850
Total operating expenses	531,652	949,183	2,284,460	2,503,578
Net loss before other income (expense)	(492,985)	$ (414,582)	(2,195,879)	$ (1,105,365)
Other income (expense)
Gain (loss) on sale of property and equipment	$ (148)		$ 7,360
Gain on settlement of debt				$ 13,900
Interest expense	$ (166,354)	$ (37,832)	$ (958,774)	(87,072)
Total other income (expense)	(166,502)	(37,832)	(951,414)	(73,172)
Net loss	(659,487)	(452,414)	(3,147,293)	(1,178,537)
Less: net loss (income) attributable to non-controlling interest	88,077	(48,027)	310,356	74,860
Net loss attributable to Sunvault Energy, Inc.	(571,410)	(500,441)	(2,836,937)	(1,103,677)
Comprehensive income
Foreign currency translation gain	12,781	27,982	72,509	33,500
Comprehensive loss attributable to Sunvault Energy, Inc.	$ (558,629)	$ (472,459)	$ (2,764,428)	$ (1,070,177)
Loss per share attributable to Sunvault Energy, Inc. shareholders, basic and diluted	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.01)
Weighted average shares outstanding used in the calculation of net loss attributable to Sunvault Energy, Inc. per common share	106,878,613	99,746,983	106,878,613	79,572,814

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (3,147,293)	$ (1,178,537)
Adjustments to reconcile net loss to net cash provided by operating activities:
Accretion of discounts on convertible debt	621,924
Amortization of property and equipment	284,946	$ 204,921
Amortization of deferred financing costs	31,675	$ 5,197
Gain on sale of property and equipment	$ (7,360)
Gain on settlement of debt		$ (13,900)
Stock-based compensation	$ 504,256	422,964
Changes in operating assets and liabilities:
Accounts receivable	347,025	(204,689)
Inventory	108,985	40,047
Due from related parties	(60,167)	(100,609)
Prepaid expenses and deposits	(78,458)	(39,589)
Accounts payable and accrued liabilities	364,593	458,263
Deferred revenue	(22,874)	255,494
Due to related parties	71,151	74,291
Net cash used in operating activities	(981,597)	$ (76,147)
Investing activities
Advances to related parties	$ (443,721)
Cash acquired on recapitalization		$ 562
License costs		$ (21,690)
Proceeds from related parties	$ 39,000
Proceeds from sale of property and equipment	9,012
Purchase of investment	(170,576)
Purchase of property and equipment	(39,627)	$ (370,951)
Purchase of term deposit	(3,729)
Redemption of term deposit	8,213
Net cash used in investing activities	(601,428)	$ (392,079)
Financing activities
Line of credit	(4,581)	131,518
Deferred financing costs	(73,388)	(23,450)
Proceeds from convertible debt	1,103,280	$ 235,802
Proceeds from loans payable	188,450
Proceeds from related parties	$ 2,547	$ 26,769
Repayment of loans payable		(24,676)
Repayment of long-term debt	$ (99,461)	(114,571)
Repayment of capital lease obligations	(244,505)	(78,114)
Net cash provided by financing activities	872,342	153,278
Effect of foreign exchange rate changes on cash	283,165	(8,709)
Decrease in cash	(427,518)	(323,657)
Cash, beginning of period	547,936	547,288
Cash, end of period	$ 120,418	$ 223,631
Supplemental Cash Flow Information (Note 21)

1. Basis of Presentation

1. Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Basis of Presentation	The accompanying interim consolidated 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 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 September 30, 2015, the Company has a working capital deficiency of $3,371,682 and has accumulated losses of $7,928,731 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Accounts Receivable	September 30, 2015 $ December 31, 2014 $ Trade accounts receivable 536,804 898,141 GST receivable 20,173 9,411 Other receivable 6,072 2,522 563,049 910,074

4. Inventory

4. Inventory	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Inventory	September 30, 2015 $ December 31, 2014 $ Agriculture water tanks 114 – Tire mulch 14,847 15,727 Tire shred 404,781 513,000 419,742 528,727

5. Property and Equipment

5. Property and Equipment	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Property and Equipment	Cost $ Accumulated amortization $ Net book value as at September 30, 2015 $ Net book value as at December 31, 2014 $ Building 82,069 2,357 79,712 94,768 Computer equipment 31,950 17,858 14,092 21,168 Field and production equipment 1,629,049 512,164 1,116,885 1,427,784 Furniture 52,812 15,489 37,323 12,781 Land 64,069 – 64,069 73,982 Transportation equipment 1,178,152 117,630 1,060,522 685,737 Truck 64,000 18,661 45,339 55,801 3,102,101 684,159 2,417,942 2,372,021 As at September 30, 2015, included in field and production equipment are assets under capital lease with an original cost of $158,497 (December 31, 2014 - $224,515) and accumulated amortization of $16,137 (December 31, 2014 - $35,898). Included in transportation equipment are assets under capital lease with an original cost of $1,093,053 (December 31, 2014 - $586,669) and accumulated amortization of $95,896 (December 31, 2014 - $51,727). During the nine months ended September 30, 2015, amortization expense includes $59,279 (2014 - $46,827) related to assets under capital leases.

6. Assets Held For Sale

6. Assets Held For Sale	9 Months Ended
	Sep. 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.

7. Investment

7. Investment	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
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	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Goodwill	Cost $ Foreign currency translation adjustment $ Impairment $ Net carrying value as at September 30, 2015 $ Net carrying value as at December 31, 2014 $ Coole Immersive Inc. 137,095 (33,977 ) – 103,118 119,073 Werkman Transport Inc. 2,470,915 40,475 (2,251,781 ) 259,609 299,778 2,608,010 6,498 (2,251,781 ) 362,727 418,851

9. Accounts Payable and Accrued

9. Accounts Payable and Accrued Liabilities	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Accounts Payable and Accrued Liabilities	September 30, 2015 $ December 31, 2014 $ Trade accounts payable 1,493,538 1,202,012 Accrued liabilities 108,298 63,095 Accrued interest (Note 14) 125,308 124,303 GST payable 16,089 61,165 Income taxes payable 4,521 16,896 Payroll payable 76,823 44,910 Other payable 58,862 6,465 1,883,439 1,518,846

10. Long-term Debt

10. Long-term Debt	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Long-term Debt	September 30, 2015 $ December 31, 2014 $ Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,000 plus interest at 7% per annum, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 143,327 212,051 Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,667 plus interest at 8% per annum, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 159,259 235,624 John Deere Finance, repayable in monthly installments of Cdn$1,262 including interest at 0%, maturing on January 1, 2018, secured by specific equipment. 26,377 40,248 328,963 487,923 Less: current portion (124,774 ) (144,080 ) Long-term portion 204,189 343,843 Principal repayments on long-term debt in each of the next four years are as follows: Year Cdn$ $ 2015 41,787 31,194 2016 167,147 124,774 2017 167,147 124,774 2018 64,597 48,221 440,678 328,963

11. Loans Payable

11. Loans Payable	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Loans Payable	(a) As at September 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 September 30, 2015, the Company owed $188,450 (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 on demand.

12. Capital Lease Obligations

12. Capital Lease Obligations	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Capital Lease Obligations	September 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. 18,018 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. 25,249 34,988 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$823, due in June 2019, secured by transportation equipment. 18,365 25,060 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,093, due in June 2016, secured by transportation equipment. 13,565 30,335 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,123, due in September 2016, secured by transportation equipment. 19,599 37,104 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,188, due in June 2018, secured by transportation equipment. 92,317 131,733 Mercado Capital Corporation, equipment lease repayable in monthly installments of Cdn $1,745, due in June 2019, secured by transportation equipment. 49,326 66,649 Blue Chip Leasing Corporation, equipment lease repayable in monthly installments of Cdn$819, due in June 2019, secured by transportation equipment. 17,716 24,630 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$783, due in June 2019, secured by transportation equipment. 16,855 22,871 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 43,556 57,467 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 43,556 57,467 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$3,674, due in February 2020, secured by transportation equipment. 116,603 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,070, due in March 2020, secured by transportation equipment. 133,947 – 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. 115,787 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$1,943, due in August 2016, secured by transportation equipment. 14,467 – Roynat -Takeuchi Mini Excavator, equipment lease repayable in monthly instalments of $1,173 including interest at 6.5% per annum, due in March 2020, secured by specific field equipment. 51,038 – Travelers Financial Corporation, equipment lease repayable in monthly instalments of $2,327, due in January 2018, secured by transportation equipment. 49,242 – 839,206 540,467 Less: current portion (249,951 ) (163,373 ) Long-term portion 589,255 377,094 Future minimum lease payments related to capital lease obligations are as follows: $ 2015 79,961 2016 318,271 2017 277,017 2018 218,963 2019 95,848 2020 15,025 1,005,085 Less: imputed interest (165,879 ) 839,206 Less: current portion (249,951 ) Long-term portion 589,255

13. Convertible Debt

13. Convertible Debt	9 Months Ended
	Sep. 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 $39,191 (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 is being amortized over the term of the debt. During the nine months ended September 30, 2015, the Company amortized $8,757 (2014 - $5,197) of the deferred financing costs. In accordance with ASC 470-20, " Debt with Conversion and Other Options (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 $39,415 (Cdn$52,800). The convertible debentures are unsecured, bear interest at 10% per annum and 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 common shares, the holder is entitled to one full warrant with an exercise price of $0.50 for a period of two years. The Company must pay back the principal amount outstanding and accrued and unpaid interest any time before or at the maturity date, which is two years from the date of issuance. The Company incurred financing costs of $40,568 in connection with the financing, which was deferred and is being amortized over the term of the debt. During the nine months ended September 30, 2015, the Company amortized $14,827 (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 $446,800 and $14,930 (Cdn$20,000). The convertible debentures are unsecured, bear interest at 8.5% per annum and paid quarterly, 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 common shares, the holder is entitled to one full warrant with an exercise price of $1.00 for a period of two years. The Company must pay back the principal amount outstanding and accrued and unpaid interest any time before or at the maturity date, which is two years from the date of issuance. The Company incurred financing costs of $32,820 in connection with the financing, which was deferred and is being amortized over the term of the debt. During the nine months ended September 30, 2015, the Company amortized $8,091 (2014 - $nil) of the deferred financing costs. In accordance with ASC 470-20, " Debt with Conversion and Other Options (d) Effective June 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 $175,000. The convertible debentures are unsecured, bear interest at 8.5% per annum and paid quarterly, and may be converted into shares of the Company's common stock, after six months from issuance or if the stock trades above $1.00 for a 14 calendar day period, at a conversion price of $0.50 per share. If converted into common shares, the holder is entitled to one full warrant with an exercise price of $1.00 for a period of two years. The Company must pay back the principal amount outstanding and accrued and unpaid interest any time before or at the maturity date, which is two years from the date of issuance. In accordance with ASC 470-20, " Debt with Conversion and Other Options

14. Grant Payable

14. Grant Payable	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Grant Payable	On March 31, 2014, CleanGen Power Corp. received a demand for payment 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 interest earned on the grant funds calculated at the CIBC prime rate per annum. As at September 30, 2015, $723,467 (Cdn$969,157) (December 31, 2014 - $835,408 (Cdn$969,157)) is owed. As at September 30, 2015, accrued interest of $125,308 (December 31, 2014 - $124,303) is included in accounts payable and accrued liabilities.

15. Related Party Transactions

15. Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Related Party Transactions	(a) As at September 30, 2015, the Company owed $48,108 (December 31, 2014 - $10,286) to a company controlled by the Chief Executive Officer of the Company for unpaid management fees. The amount due is unsecured, non-interest bearing, and due on demand. (b) As at September 30, 2015, the Company was owed $82,675 (December 31, 2014 - $56,511) from a company under common control for cash advances. The amount due is unsecured, non-interest bearing, and due on demand. (c) As at September 30, 2015, the Company owed $46,500 (December 31, 2014 - $19,500) to the Chief Technology Officer of the Company for unpaid consulting fees. The amount due is unsecured, non-interest bearing, and due on demand. (d) As at September 30, 2015, the Company owed $14,980 (December 31, 2014 - $14,980) to the Secretary of the Company for expenses paid on behalf of the Company. The amount due is unsecured, non-interest bearing, and due on demand. (e) As at September 30, 2015, the Company owed $163,062 (December 31, 2014 - $107,232) to a company controlled by a director of the Company for expenses paid on behalf of the Company and unpaid management fees. The amount due is unsecured, non-interest bearing, and due on demand. (f) As at September 30, 2015, the Company owed $57,047 (December 31, 2014 - $nil) to a company controlled by the President of the Company for unpaid management fees. The amount due is unsecured, non-interest bearing, and due on demand. (g) As at September 30, 2015, the Company was owed $466,967 (December 31, 2014 - $158,886) from a company controlled by a significant shareholder of the Company for cash advances. The amount due is unsecured, non-interest bearing, and due on demand. (h) As at September 30, 2015, the Company was owed $111,000 (December 31, 2014 - $nil) from a company under common control for cash advances. The amount due is unsecured, non-interest bearing, and due on demand. (i) As at September 30, 2015, the Company was owed $3,733 (Cdn$5,000) (December 31, 2014 - $4,310 (Cdn$5,000)) from a director of the Company for cash advanced. The amount due is unsecured, non-interest bearing, and due on demand. (j) As at September 30, 2015, the Company owed $2,986 (Cdn$4,000) (December 31, 2014 - $20,804 (Cdn$24,134)) to the former President and companies controlled by the former President of 1454004 for cash advances. The amounts due are unsecured, non-interest bearing, and due on demand. (k) As at September 30, 2015, the Company was owed $20,220 (Cdn$27,087) from (December 31, 2014 – owed $69 (Cdn$80) to) a shareholder of Coole for cash advances. The amount due is unsecured, non-interest bearing, and due on demand. (l) As at September 30, 2015, the Company owed $68,095 (Cdn$91,220) (December 31, 2014 – $154,209 (Cdn$178,898)) to the President of WTI for cash advances. The amount due is unsecured, non-interest bearing, and due on demand. (m) For the nine months ended September 30, 2015, the Company incurred management fees of $12,893 (2014 - $102,567) and consulting fees of $nil (2014 - $25,984) to the former President and companies controlled by the former President of 1454004. (n) For the nine months ended September 30, 2015, the Company incurred labour costs of $108,438 (2014 - $214,585) to a company controlled by the brother of the President of WTI. (o) For the nine months ended September 30, 2015, the Company incurred consulting fees of $36,960 (2014 - $nil) and management fees of $nil (2014 - $25,500) to the Chief Technology Officer of the Company. (p) For the nine months ended September 30, 2015, the Company incurred consulting fees of $4,000 (2014 - $nil) to a director of the Company. (q) For the nine months ended September 30, 2015, the Company incurred salaries and subcontracting fees of $35,468 (2014 - $nil) to the President of Coole. (r) For the nine months ended September 30, 2015, the Company incurred consulting fees of $nil (2014 - $36,468) to and management fees recovery of $69,375 (2014 - $nil) from a company controlled by a significant shareholder of the Company. (s) For the nine months ended September 30, 2015, included in management fees are the following amounts: · $90,000 (2014 - $85,000) incurred to a company controlled by the Chief Executive Officer of the Company; · $124,783 (2014 - $20,000) incurred to a director of the Company; · $71,406 (2014 - $50,144) incurred to the President of WTI; · $567,917 (2014 - $nil) incurred to a company controlled by the President of the Company; · $nil (2014 - $59,569) incurred to the daughter of the former President of 1454004; · $nil (2014 - $34,873) incurred to the son of the former President of 1454004; and · $nil (2014 - $119,824) incurred to a director of 1454004. (t) For the nine months ended September 30, 2015, included in labour costs is $27,950 (2014 - $30,076) incurred to the son of the former President of 1454004.

16. Common Stock

16. Common Stock	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Common Stock	(a) As at September 30, 2015, the Company had $171,395 (December 31, 2014 – $171,395) 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 September 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 19(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 nine months ended September 30, 2015, the Company expensed $17,589 of the deferred compensation as consulting fees, which reflects the pro-rata portion of the services provided to September 30, 2015.

17. Stock Options

17. Stock Options	9 Months Ended
	Sep. 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 September 30, 2015 3,100,000 0.10 1,426,000 Additional information regarding stock options outstanding as at September 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 3.4 0.10

18. Share Purchase Warrants

18. Share Purchase Warrants	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Share Purchase Warrants	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 Expired (94,000 ) 2.00 Balance, September 30, 2015 2,483,333 0.76 As at September 30, 2015, the following share purchase warrants were outstanding: Number of warrants Exercise price $ Expiry date 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 cease trade order in Canada has been lifted 2,483,333

19. Commitments and Contingenci

19. Commitments and Contingencies	9 Months Ended
	Sep. 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 the date that no licensed patent remains a pending application or an unforceable patent, or 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 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. (e) 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. (f) 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. (g) On March 18, 2015, the Company entered into a management agreement with AFSC for services to be rendered 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 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 16(b)); ii) The Company agrees to pay to AFSC a monthly fee of $12,500, plus applicable taxes, in equal semi-monthly installmentswhich 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 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. (h) On April 30, 2015, the Company filed a Notice of Claim with the Court of Queen's Bench of Alberta against Albert Klyne, Norma Klyne, 1804164 Alberta Inc., and Margaret Ward (collectively, "Klyne et al"). The Company seeks rescission of the share purchase agreement to acquire 100% of the shares of 1454004 Alberta Ltd. (the "Agreement") or damages in the amount of Cdn$10,000,000 due to fraudulent misrepresentations made by Klyne et al. On July 24, 2015, the Court of Queen's Bench of Alberta issued an order to prevent Klyne et al from transferring, encumbering, pledging or in any way alienating the common shares of the Company received under the Agreement. On September 4, 2015, the Company received a Statement of Defense from Klyne et al. which stated that pursuant to the Agreement, any dispute will be resolved by arbitration and the facts set forth in the Statement of Claim were denied. As the Company did not take the dispute to arbitration, Klyne et al is seeking dismissal of the action due to substantial breaches of the terms of the Agreement by the Company. On September 4, 2015, the Company received a Notice of Counterclaim from Klyne et al. The Company is being sued for not taking the dispute to arbitration in accordance with the Agreement and Klyne et al is seeking the delivery of the common shares to be provided pursuant to the Agreement.

20. Segmented Information

20. Segmented Information	9 Months Ended
	Sep. 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: Nine Months Ended September 30, 2015 $ Nine Months Ended September 30, 2014 $ Recycling services 1,845,368 3,836,928 Services rig and software revenue 98,617 130,816 Transportation services 1,825,951 1,523,440 Elimination of inter-segment net revenue (90,460 ) (289,491 ) Total consolidated net revenue 3,679,476 5,201,693 The following table provides a reconciliation to the Company's consolidated operating results: Nine Months Ended September 30, 2015 $ Nine Months Ended September 30, 2014 $ Recycling services (985,098 ) (21,816 ) Services rig and software revenue (12,102 ) 57,473 Transportation services 179,082 (231,949 ) Corporate and other (1,377,761 ) (909,073 ) Total consolidated operating loss (2,195,879 ) (1,105,365 ) 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.

21. Supplemental Cash Flow Info

21. Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Supplemental Cash Flow Information	Nine Months Ended September 30, Nine Months Ended September 30, 2015 2014 $ $ Non-cash Investing and Financing Activities: Property and equipment financed under capital lease 629,978 – Shares issued to acquire property and equipment – 234,000 Shares issued to settle convertible debt – 22,167 Shares issued to settle related party debt – 820,000 Shares issued to settle accounts payable and accrued liabilities – 15,666 Supplemental Disclosures: Interest paid 96,594 50,113 Income taxes paid 9,029 –

22. Subsequent Events

22. Subsequent Events	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Subsequent Events	(a) Subsequent to September 30, 2015, the Company entered into private placement subscription agreements with investors pursuant to which the Company issued convertible debentures totaling $133,200. The convertible debentures are unsecured, due two years from the date of issuance, and bear interest at the rate of 8.5% per annum, calculated annually and paid quarterly. The debentures may be converted into units after six months from the date of issuance or if the shares trade above $1.00 for a 14 day period at a conversion price of $0.50 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 September 30, 2015, the Company received proceeds in the amount of $6,000 pursuant to the future exercise of shares 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 cease trade order in Canada has been lifted. 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 Pol28

2. Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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.

3. Accounts Receivable (Tables)

3. Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2015
Accounts Receivable Tables
Accounts Receivable	September 30, 2015 $ December 31, 2014 $ Trade accounts receivable 536,804 898,141 GST receivable 20,173 9,411 Other receivable 6,072 2,522 563,049 910,074

4. Inventory (Tables)

4. Inventory (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Tables
Inventory	September 30, 2015 $ December 31, 2014 $ Agriculture water tanks 114 – Tire mulch 14,847 15,727 Tire shred 404,781 513,000 419,742 528,727

5. Property and Equipment (Tabl

5. Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property And Equipment Tables
Property and Equipment	Cost $ Accumulated amortization $ Net book value as at September 30, 2015 $ Net book value as at December 31, 2014 $ Building 82,069 2,357 79,712 94,768 Computer equipment 31,950 17,858 14,092 21,168 Field and production equipment 1,629,049 512,164 1,116,885 1,427,784 Furniture 52,812 15,489 37,323 12,781 Land 64,069 – 64,069 73,982 Transportation equipment 1,178,152 117,630 1,060,522 685,737 Truck 64,000 18,661 45,339 55,801 3,102,101 684,159 2,417,942 2,372,021

8. Goodwill (Tables)

8. Goodwill (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill Tables
Summary of Goodwill	Cost $ Foreign currency translation adjustment $ Impairment $ Net carrying value as at September 30, 2015 $ Net carrying value as at December 31, 2014 $ Coole Immersive Inc. 137,095 (33,977 ) – 103,118 119,073 Werkman Transport Inc. 2,470,915 40,475 (2,251,781 ) 259,609 299,778 2,608,010 6,498 (2,251,781 ) 362,727 418,851

9. Accounts Payable and Accru33

9. Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Accounts Payable And Accrued Liabilities Tables
Summary of Accounts Payable and Accrued Liabilities	September 30, 2015 $ December 31, 2014 $ Trade accounts payable 1,493,538 1,202,012 Accrued liabilities 108,298 63,095 Accrued interest (Note 14) 125,308 124,303 GST payable 16,089 61,165 Income taxes payable 4,521 16,896 Payroll payable 76,823 44,910 Other payable 58,862 6,465 1,883,439 1,518,846

10. Long-term Debt (Tables)

10. Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Long-term Debt Tables
Summary of long-term debt	September 30, 2015 $ December 31, 2014 $ Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,000 plus interest at 7% per annum, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 143,327 212,051 Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,667 plus interest at 8% per annum, maturing May 17, 2018, secured by a general interest in all present and after acquired property. 159,259 235,624 John Deere Finance, repayable in monthly installments of Cdn$1,262 including interest at 0%, maturing on January 1, 2018, secured by specific equipment. 26,377 40,248 328,963 487,923 Less: current portion (124,774 ) (144,080 ) Long-term portion 204,189 343,843
Principal repayments on long-term debt	Principal repayments on long-term debt in each of the next four years are as follows: Year Cdn$ $ 2015 41,787 31,194 2016 167,147 124,774 2017 167,147 124,774 2018 64,597 48,221 440,678 328,963

12. Capital Lease Obligations (

12. Capital Lease Obligations (Tables)	9 Months Ended
	Sep. 30, 2015
Capital Lease Obligations Tables
Capital Lease Obligations	September 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. 18,018 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. 25,249 34,988 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$823, due in June 2019, secured by transportation equipment. 18,365 25,060 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,093, due in June 2016, secured by transportation equipment. 13,565 30,335 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,123, due in September 2016, secured by transportation equipment. 19,599 37,104 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,188, due in June 2018, secured by transportation equipment. 92,317 131,733 Mercado Capital Corporation, equipment lease repayable in monthly installments of Cdn $1,745, due in June 2019, secured by transportation equipment. 49,326 66,649 Blue Chip Leasing Corporation, equipment lease repayable in monthly installments of Cdn$819, due in June 2019, secured by transportation equipment. 17,716 24,630 National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$783, due in June 2019, secured by transportation equipment. 16,855 22,871 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 43,556 57,467 Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment. 43,556 57,467 Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$3,674, due in February 2020, secured by transportation equipment. 116,603 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,070, due in March 2020, secured by transportation equipment. 133,947 – 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. 115,787 – Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$1,943, due in August 2016, secured by transportation equipment. 14,467 – Roynat -Takeuchi Mini Excavator, equipment lease repayable in monthly instalments of $1,173 including interest at 6.5% per annum, due in March 2020, secured by specific field equipment. 51,038 – Travelers Financial Corporation, equipment lease repayable in monthly instalments of $2,327, due in January 2018, secured by transportation equipment. 49,242 – 839,206 540,467 Less: current portion (249,951 ) (163,373 ) Long-term portion 589,255 377,094
Payments related to capital lease obligations	Future minimum lease payments related to capital lease obligations are as follows: $ 2015 79,961 2016 318,271 2017 277,017 2018 218,963 2019 95,848 2020 15,025 1,005,085 Less: imputed interest (165,879 ) 839,206 Less: current portion (249,951 ) Long-term portion 589,255

17. Stock Options (Tables)

17. Stock Options (Tables)	9 Months Ended
	Sep. 30, 2015
Stock Options Tables
Stock Options	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 September 30, 2015 3,100,000 0.10 1,426,000
Outstanding stock options	Additional information regarding stock options outstanding as at September 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 3.4 0.10

18. Share Purchase Warrants (Ta

18. Share Purchase Warrants (Tables)	9 Months Ended
	Sep. 30, 2015
Share Purchase Warrants Tables
Share purchase warrants	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 Expired (94,000 ) 2.00 Balance, September 30, 2015 2,483,333 0.76
Share purchase warrants exercise price	As at September 30, 2015, the following share purchase warrants were outstanding: Number of warrants Exercise price $ Expiry date 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 cease trade order in Canada has been lifted 2,483,333

20. Segmented Information (Tabl

20. Segmented Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segmented Information Tables
Summarizes the financial performance of the Company's reportable segments	The following table summarizes the financial performance of the Company's reportable segments: Nine Months Ended September 30, 2015 $ Nine Months Ended September 30, 2014 $ Recycling services 1,845,368 3,836,928 Services rig and software revenue 98,617 130,816 Transportation services 1,825,951 1,523,440 Elimination of inter-segment net revenue (90,460 ) (289,491 ) Total consolidated net revenue 3,679,476 5,201,693
Reconciliation to the Company's consolidated operating results	The following table provides a reconciliation to the Company's consolidated operating results: Nine Months Ended September 30, 2015 $ Nine Months Ended September 30, 2014 $ Recycling services (985,098 ) (21,816 ) Services rig and software revenue (12,102 ) 57,473 Transportation services 179,082 (231,949 ) Corporate and other (1,377,761 ) (909,073 ) Total consolidated operating loss (2,195,879 ) (1,105,365 )

21. Supplemental Cash Flow In39

21. Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2015
Supplemental Cash Flow Information Tables
Supplemental Cash Flow Information	Nine Months Ended September 30, Nine Months Ended September 30, 2015 2014 $ $ Non-cash Investing and Financing Activities: Property and equipment financed under capital lease 629,978 – Shares issued to acquire property and equipment – 234,000 Shares issued to settle convertible debt – 22,167 Shares issued to settle related party debt – 820,000 Shares issued to settle accounts payable and accrued liabilities – 15,666 Supplemental Disclosures: Interest paid 96,594 50,113 Income taxes paid 9,029 –

1. Basis of Presentation (Detai

1. Basis of Presentation (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Basis Of Presentation Details Narrative
Working capital deficiency	$ (3,371,682)
Accumulated losses	$ (7,928,731)	$ (5,091,794)

3. Accounts Receivable (Details

3. Accounts Receivable (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accounts Receivable Details
Trade accounts receivable	$ 536,804	$ 898,141
GST receivable	20,173	9,411
Other receivable	6,072	2,522
Total	$ 563,049	$ 910,074

4. Inventory (Details)

4. Inventory (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Inventory Details
Agriculture water tanks	$ 114
Tire mulch	14,847	$ 15,727
Tire shred	404,781	513,000
Total	$ 419,742	$ 528,727

5. Property and Equipment (Deta

5. Property and Equipment (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Cost	$ 3,102,101
Accumulated amortization	684,159
Net book value	2,417,942	$ 2,372,021
Building [Member]
Cost	82,069
Accumulated amortization	2,357
Net book value	79,712	94,768
Computer Equipment [Member]
Cost	31,950
Accumulated amortization	17,858
Net book value	14,092	21,168
Field and production equipment [Member]
Cost	1,629,049
Accumulated amortization	512,164
Net book value	1,116,885	1,427,784
Furniture [Member]
Cost	52,812
Accumulated amortization	15,489
Net book value	37,323	12,781
Land [Member]
Cost	$ 64,069
Accumulated amortization
Net book value	$ 64,069	73,982
Transportation Equipment [Member]
Cost	1,178,152
Accumulated amortization	117,630
Net book value	1,060,522	685,737
Truck [Member]
Cost	64,000
Accumulated amortization	18,661
Net book value	$ 45,339	$ 55,801

5. Property and Equipment (De44

5. Property and Equipment (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property And Equipment Details Narrative
Field and production equipment are assets under capital lease	$ 158,497		$ 224,515
Accumulated amortization	16,137		35,898
Transportation equipment are assets under capital lease	1,093,053		586,669
Accumulated amortization	95,896		$ 51,727
Amortization expense	$ 59,279	$ 46,827

8. Goodwill (Details)

8. Goodwill (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Cost	$ 2,608,010
Foreign currency translation adjustment	6,498
Impairment	(2,251,781)
Net carrying value	362,727	$ 418,851
Coole Immersive Inc.
Cost	137,095
Foreign currency translation adjustment	$ (33,977)
Impairment
Net carrying value	$ 103,118	119,073
Werkman Transport Inc.
Cost	2,470,915
Foreign currency translation adjustment	40,475
Impairment	(2,251,781)
Net carrying value	$ 259,609	$ 299,778

9. Accounts Payable and Accru46

9. Accounts Payable and Accrued Liabilities (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accounts Payable And Accrued Liabilities Details
Trade accounts payable	$ 1,493,538	$ 1,202,012
Accrued liabilities	108,298	63,095
Accrued interest (Note 14)	125,308	124,303
GST payable	16,089	61,165
Income taxes payable	4,521	16,896
Payroll payable	76,823	44,910
Other payable	58,862	6,465
Total	$ 1,883,439	$ 1,518,846

10. Long-term Debt (Details)

10. Long-term Debt (Details) - USD ($)	Sep. 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% per annum, maturing May 17, 2018, secured by a general interest in all present and after acquired property.	$ 143,327	$ 212,051
Business Development Bank of Canada, repayable in monthly instalments of Cdn$6,667 plus interest at 8% per annum, maturing May 17, 2018, secured by a general interest in all present and after acquired property.	159,259	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.	26,377	40,248
Long-term Debt	328,963	487,923
Less: current portion	(124,774)	(144,080)
Long-term portion	$ 204,189	$ 343,843

10. Long-term Debt (Details 1)

10. Long-term Debt (Details 1)	Sep. 30, 2015USD ($)
2,015	$ 31,194
2,016	124,774
2,017	124,774
2,018	48,221
Long-term Debt	328,963
CDN [Member]
2,015	41,787
2,016	167,147
2,017	167,147
2,018	64,597
Long-term Debt	$ 440,678

11. Loans Payable (Details Narr

11. Loans Payable (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Loan payable	$ 303,731	$ 115,281
Loans Payable [Member]
Loan payable	115,281	$ 115,281
Loans Payable One [Member]
Loan payable	$ 188,450

12. Capital Lease Obligations50

12. Capital Lease Obligations (Details) - USD ($)	Sep. 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.	$ 18,018	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.	25,249	34,988
National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$823, due in June 2019, secured by transportation equipment.	18,365	25,060
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,093, due in June 2016, secured by transportation equipment.	13,565	30,335
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$2,123, due in September 2016, secured by transportation equipment.	19,599	37,104
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,188, due in June 2018, secured by transportation equipment.	92,317	131,733
Mercado Capital Corporation, equipment lease repayable in monthly installments of Cdn $1,745, due in June 2019, secured by transportation equipment.	49,326	66,649
Blue Chip Leasing Corporation, equipment lease repayable in monthly installments of Cdn$819, due in June 2019, secured by transportation equipment.	17,716	24,630
National Leasing Group Inc., equipment lease repayable in monthly installments of Cdn$783, due in June 2019, secured by transportation equipment.	16,855	22,871
Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment.	43,556	57,467
Westana Equipment Leasing Inc., equipment lease repayable in monthly installments of Cdn$2,190, due in June 2019, secured by transportation equipment.	43,556	$ 57,467
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$3,674, due in February 2020, secured by transportation equipment.	116,603
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$4,070, due in March 2020, secured by transportation equipment.	133,947
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.	115,787
Travelers Financial Corporation, equipment lease repayable in monthly installments of Cdn$1,943, due in August 2016, secured by transportation equipment.	14,467
Roynat -Takeuchi Mini Excavator, equipment lease repayable in monthly instalments of $1,173 including interest at 6.5% per annum, due in March 2020, secured by specific field equipment.	51,038
Travelers Financial Corporation, equipment lease repayable in monthly instalments of $2,327, due in January 2018, secured by transportation equipment.	49,242
Capital Lease Obligations	839,206	$ 540,467
Less: current portion	(249,951)	(163,373)
Long-term portion	$ 589,255	$ 377,094

12. Capital Lease Obligations51

12. Capital Lease Obligations (Details 1) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Capital Lease Obligations Details 1
2,015	$ 79,961
2,016	318,271
2,017	277,017
2,018	218,963
2,019	95,848
2,020	15,025
Capital Leases Gross	1,005,085
Less: imputed interest	(165,879)
Capital Leases Net	839,206
Less: current portion	(249,951)	$ (163,373)
Long-term portion	$ 589,255	$ 377,094

13. Convertible Debt (Details N

13. Convertible Debt (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Interest expense	$ 621,924
Stock Price	$ 0.75
Convertible Debt [Member]
Deferred financing costs amortized	$ 8,757	$ 5,197
Convertible Debt One [Member]
Deferred financing costs amortized	14,827	0
Additional paid-in capital	166,507
Interest expense	414,452	0
Carrying values of convertible debentures	725,990	146,048
Convertible Debt Two [Member]
Deferred financing costs amortized	8,091	0
Interest expense	259,164	0
Carrying values of convertible debentures	446,800	146,048
Convertible Debt Three [Member]
Interest expense	56,798	0
Carrying values of convertible debentures	$ 126,798	$ 0

14. Grant Payable (Details Narr

14. Grant Payable (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Grant Payable Details Narrative
Grant payable (Note 14)	$ 723,467	$ 835,408
Accrued interest	$ 125,308	$ 124,303

15. Related Party Transactions

15. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Management fees	$ 88,407	$ 190,313	$ 769,892	$ 518,211
Chief Executive Officer [Member]
Amount owed to related party	48,108		48,108		$ 10,286
Management fees			90,000	85,000
Chief Technology Officer
Amount owed to related party	46,500		$ 46,500		19,500
Management fees				$ 25,500
Consulting fees			$ 36,960
President
Amount owed from related party	57,047		57,047		0
Management fees			$ 567,917
Consulting fees				$ 25,984
Treasurer and Secretary
Amount owed to related party	14,980		$ 14,980		14,980
Directors
Amount owed to related party	163,062		163,062		107,232
Management fees			124,783	$ 20,000
Consulting fees			4,000
Significant Shareholder
Amount owed from related party	466,967		466,967		158,886
Management fees			$ 69,375
Consulting fees				$ 36,468
Common Control [Member]
Amount owed to related party	82,675		$ 82,675		$ 56,511
Amount owed from related party	111,000		111,000
Director One [Member]
Amount owed from related party	3,733		3,733		$ 4,310
Former President of 1454004
Amount owed to related party	2,986		2,986		20,804
Shareholder of Coole
Amount owed from related party	20,220		20,220		69
President of WTI
Amount owed to related party	$ 68,095		68,095		$ 154,209
Management fees			71,406	50,144
Former President And Companies [Member]
Management fees			$ 12,893	102,567
Consulting fees				25,984
President of 1454004
Management fees				34,873
Brother of the President of WTI
Labour expense			$ 108,438	214,585
Son of the former President of 1454004
Management fees				34,873
Labour expense			$ 27,950	$ 30,076
President of Coole [Member]
Salaries and subcontracting fees			$ 35,468
Daughter of the former President of 1454004
Management fees				$ 59,569
Labour expense			$ 11,284	4,567
Director of 1454004
Management fees				$ 119,824

16. Common Stock (Details Narra

16. Common Stock (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Common stock issued to Director	$ 486,667
Deferred compensation as consulting fees	17,589
President of WTI
Common stock issuable	$ 171,395	$ 171,395

17. Stock Options (Details)

17. Stock Options (Details)	Sep. 30, 2015USD ($)$ / sharesshares
Number of Options
Outstanding Beginning, Balance | shares	3,100,000
Outstanding Ending, Balance | shares	3,100,000
Weighted Average Exercise Price
Outstanding Beginning, Balance	$ 0.10
Outstanding Ending, Balance	$ 0.10
Aggregate Intrinsic Value
Outstanding Beginning, Balance | $	$ 1,426,000
Outstanding Ending, Balance | $	$ 1,426,000

17. Stock Options (Details 1)

17. Stock Options (Details 1)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Stock Options Details 1
Range of exercise prices	$ 0.10
Number of shares | shares	3,100,000
Weighted average remaining contractual life(years)	3 years 4 months 24 days
Weighted average exercise price	$ 0.10

18. Share Purchase Warrants (De

18. Share Purchase Warrants (Details)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Number of Warrants
Outstanding Beginning, Balance | shares	3,100,000
Outstanding Ending, Balance | shares	3,100,000
Weighted Average Exercise Price
Outstanding Beginning, Balance	$ 0.10
Outstanding Ending, Balance	$ 0.10
Share purchase warrant
Number of Warrants
Outstanding Beginning, Balance | shares	527,333
Issued | shares	2,050,000
Expired | shares	(94,000)
Outstanding Ending, Balance | shares	2,483,333
Weighted Average Exercise Price
Outstanding Beginning, Balance	$ 2
Issued	0.50
Expired	2
Outstanding Ending, Balance	$ 0.76

18. Share Purchase Warrants (59

18. Share Purchase Warrants (Details 1) - $ / shares	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Number of Warrants	3,100,000	3,100,000
Exercise Price	$ 0.10	$ 0.10
Warrant One [Member]
Number of Warrants	333,333
Exercise Price	$ 2
Expiry date	November 15, 2015
Warrant Two [Member]
Number of Warrants	100,000
Exercise Price	$ 2
Expiry date	April 15, 2017
Warrant Three [Member]
Number of Warrants	2,050,000
Exercise Price	$ 0.50
Expiry date	90 days from when the Company's cease trade order in Canada has been lifted
Warrant [Member]
Number of Warrants	2,483,333
Exercise Price	$ 0.76

20. Segmented Information (Deta

20. Segmented Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Segmented Information Details
Recycling services	$ 1,845,368	$ 3,836,928
Services rig and software revenue	98,617	130,816
Transportation services	1,825,951	1,523,440
Elimination of inter-segment net revenue	(90,460)	(289,491)
Total consolidated net revenue	$ 3,679,476	$ 5,201,693

20. Segmented Information (De61

20. Segmented Information (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Segmented Information Details 1
Recycling services	$ (985,098)	$ (21,816)
Services rig and software revenue	(12,102)	57,473
Transportation services	179,082	(231,949)
Corporate and other	(1,377,761)	(909,073)
Total consolidated operating income (loss)	$ (2,195,879)	$ (1,105,365)

21. Supplemental Cash Flow In62

21. Supplemental Cash Flow Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Non-cash Investing and Financing Activities:
Property and equipment financed under capital lease	$ 629,978
Shares issued to acquire property and equipment		$ 234,000
Shares issued to settle convertible debt		22,167
Shares issued to settle related party debt		820,000
Shares issued to settle accounts payable and accrued liabilities		15,666
Supplemental Disclosures:
Interest paid	$ 96,594	$ 50,113
Income taxes paid	$ 9,029