Strategic Environmental & Energy Resources (SENR) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document And Entity Information
Entity Registrant Name	Strategic Environmental & Energy Resources, Inc.
Entity Central Index Key	1,576,197
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		52,726,015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)		Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash		$ 204,600	$ 229,200	[1]
Cash - restricted		564,100	213,800	[1]
Accounts receivable, net of allowance for doubtful accounts of $246,500 and $263,600, respectively		1,645,400	3,017,800	[1]
Costs and estimated earnings in excess of billings on uncompleted contracts		419,500	61,100	[1]
Prepaid expenses and other current assets		324,900	202,500	[1]
Total current assets		3,158,500	3,724,400	[1]
Property and equipment, net		5,131,700	4,848,800	[1]
Intangible assets, net		370,200	371,400	[1]
Other assets		53,500	52,500	[1]
TOTAL ASSETS		8,713,900	8,997,100	[1]
Current liabilities:
Accounts payable		1,530,200	1,675,900	[1]
Accrued liabilities		874,700	925,700	[1]
Billings in excess of costs and estimated earnings on uncompleted contracts		401,500	308,500	[1]
Deferred revenue		1,127,100	456,600	[1]
Payroll taxes payable		964,800	947,700	[1]
Customer deposits		330,000	380,000	[1]
Current portion of notes payable and capital lease obligations		199,400	363,000	[1]
Notes payable - related parties, including accrued interest		31,800	73,800	[1]
Total current liabilities		5,459,500	5,131,200	[1]
Notes payable, convertible debt and capital lease obligations, net of current portion		1,118,800	60,900	[1]
Total liabilities		$ 6,578,300	$ 5,192,100	[1]
Commitments and contingencies				[1]
Stockholders' Equity:
Preferred stock; $.001 par value; 5,000,000 shares authorized; -0- shares issued	[1]
Common stock; $.001 par value; 70,000,000 shares authorized; 52,362,015 and 51,726,316 shares issued and outstanding 2015 and 2014, respectively		$ 52,400	$ 51,700	[1]
Common stock subscribed		50,000	50,000	[1]
Additional paid-in capital		17,555,200	17,108,100	[1]
Stock subscription receivable		(25,000)	(25,000)	[1]
Accumulated deficit		(14,236,500)	(12,499,800)	[1]
Total stockholders' equity		3,396,100	4,685,000	[1]
Non-controlling interest		(1,260,500)	(880,000)	[1]
Total equity		2,135,600	3,805,000	[1]
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 8,713,900	$ 8,997,100	[1]
[1]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 246,500	$ 263,600
Preferred stock, par value (in dollars per shares)	$ 0.001	$ 0.001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Common stock, par value (in dollars per shares)	$ 0.001	$ 0.001
Common stock, authorized	70,000,000	70,000,000
Common stock, issued	52,362,015	51,726,316
Common stock, outstanding	52,362,015	51,726,316

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Products	$ 965,500	$ 1,192,900	$ 2,796,000	$ 2,774,400
Services	1,891,200	3,640,600	6,461,700	9,039,100
Solid waste	111,500	20,600	183,400	99,300
Total revenue	2,968,200	4,854,100	9,441,100	11,912,800
Operating expenses:
Products costs	674,600	902,000	1,929,300	2,029,600
Services costs	1,423,800	2,300,600	5,030,900	5,870,800
Solid waste costs	194,900	104,200	490,400	227,700
Selling, general and administrative expenses	1,354,400	1,265,600	4,106,100	4,237,200
Total operating expenses	3,647,700	4,572,400	11,556,700	12,365,300
Income (loss) from operations	(679,500)	281,700	(2,115,600)	(452,500)
Other income (expense):
Interest expense	(5,500)	(16,800)	(45,000)	(59,500)
Gain on debt settlements	42,400		42,400	24,400
Other	(1,900)	(1,200)	1,000	14,800
Total non-operating expense, net	35,000	(18,000)	(1,600)	(20,300)
Net income (loss)	(644,500)	263,700	(2,117,200)	(472,800)
Less: Net loss attributable to non-controlling interest	107,700	115,800	380,500	281,700
Net income (loss) attributable to SEER common stockholders	$ (536,800)	$ 379,500	$ (1,736,700)	$ (191,100)
Net income (loss) per share, basic and diluted	$ (.01)	$ 0.01	$ (.04)	$ (.01)
Weighted average shares outstanding - basic	52,362,015	52,116,247	52,304,573	50,850,983
Weighted average shares outstanding - diluted	52,362,015	56,553,634	52,304,573	50,850,983

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)		9 Months Ended
		Sep. 30, 2015		Sep. 30, 2014
Cash flows from operating activities:
Net loss		$ (2,117,200)		$ (472,800)
Adjustments to reconcile net loss to net cash provided by operating activities:
Provision for doubtful accounts receivable		(17,100)		(1,400)
Depreciation and amortization	[1]	439,800		357,700
Stock-based compensation expense		175,800		$ 760,000
Non-cash interest expense, amortization of debt discount		400
Gain on extinguishment of debt		(45,400)		$ (24,400)
Changes in operating assets and liabilities:
Cash - restricted		(350,300)
Accounts receivable		1,389,500		(1,130,200)
Costs in excess of billings on uncompleted contracts		(358,400)		(141,800)
Prepaid expenses and other assets		150,500		(85,700)
Accounts payable and accrued liabilities		(118,900)		(198,100)
Billings in excess of revenue on uncompleted contracts		93,000		201,900
Deferred revenue		620,500		353,800
Customer deposits				331,100
Payroll taxes payable		17,100		14,200
Net cash used in operating activities		(120,600)		(35,700)
Cash flows from investing activities:
Purchase of property and equipment		(448,300)		(2,853,900)
Purchase of intangibles		(58,900)		(64,900)
Net cash used in investing activities		(507,200)		(2,918,800)
Cash flows from financing activities:
Payments of notes payments and capital lease obligations		(354,800)		(157,400)
Payments of related party notes payable and accrued interest		(42,000)		$ (34,400)
Proceeds from convertible debt		$ 1,000,000
Proceeds from subscription receivable				$ 25,000
Proceeds from exercise of warrants				662,000
Proceeds from the sale of common stock and warrants, net of expenses				776,000
Net cash provided by (used in) financing activities		$ 603,200		1,271,200
Net increase (decrease) in cash		(24,600)		(1,683,300)
Cash at the beginning of period		229,200	[2]	2,419,100
Cash at the end of period		204,600		735,800
Supplemental disclosures of cash flow information:
Cash paid for interest		32,400		$ 69,000
Discount on convertible debt		14,600
Conversion of debt and accrued interest to equity		257,400
Financing of prepaid insurance premiums		273,900
Capital lease additions		$ 214,400
[1]	Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles
[2]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

ORGANIZATION AND FINANCIAL COND

ORGANIZATION AND FINANCIAL CONDITION	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND FINANCIAL CONDITION	NOTE 1 - ORGANIZATION AND FINANCIAL CONDITION Organization Strategic Environmental & Energy Resources, Inc. (“SEER,” “we,” or the “Company”), a Nevada corporation, is a provider of next-generation clean-technologies, waste management innovations and related services. SEER has three wholly-owned operating subsidiaries and two majority-owned subsidiaries, all of which together provide technology solutions and services to companies in the oil and gas, refining, landfill, food, beverage & agriculture and renewable fuel industries. The four wholly-owned subsidiaries include: 1) REGS, LLC (d/b/a Resource Environmental Group Services (“REGS”)) provides industrial and cleaning services to refineries, oil fields and other private and governmental entities; 2) Tactical Cleaning Company, LLC (“Tactical”), provides cleaning services related to railcar tankers, tank trucks and frac tanks to customers from its sites in Colorado and Kansas; 3) MV, LLC (d/b/a MV Technologies) (“MV”), designs and builds biogas conditioning solutions for the production of renewable natural gas, odor control systems and natural gas vapor capture for landfill operations, waste-water treatment facilities, oil and gas fields, refineries, municipalities and food, beverage & agriculture operations throughout the U.S and 4) SEER Environmental Materials, LLC (“SEM”), a newly non-operating entity as of September 30, 2015. The two majority-owned subsidiaries include; PWS is developing specific opportunities to deploy and commercialize patented technologies for a non-thermal plasma-assisted oxidation process that makes possible the clean and efficient destruction of solid hazardous chemical and biological waste ( i.e etc i.e Reach (the trade name for BeneFuels, LLC), focuses specifically on treating biogas for conversion to pipeline quality gas and/or renewable compressed natural gas (“R-CNG”) for fleet vehicle fuel. Reach had minimal operations for the three months and nine month ended September 30, 2015 and 2014. Financial Condition From inception or acquisition of the various operating entities, the Company has experienced recurring losses, and has accumulated a deficit of approximately $14.2 million as of September 30, 2015. For the three months ended September 30, 2015 we incurred a net loss, before non-controlling interest, of $644,600 and for the nine months ended September 30, 2015 we incurred a net loss, before non-controlling interest, of $2,117,200. As of September 30, 2015 our current liabilities exceed our current assets by approximately $2.3 million and our total assets exceeded our total liabilities by approximately $2.1 million. As of December 31, 2014, our current liabilities exceeded our current assets by approximately $1.4 and our total assets exceeded our total liabilities by $3.8 million. Realization of a major portion of our assets as of September 30, 2015, is dependent upon our continued operations. The Company is dependent on obtaining adequate capital to fund operating losses until it becomes profitable. In addition, we have undertaken a number of specific steps to continue to operate as a going concern. We continue to focus on developing organic growth in our operating companies and improving gross and net margins through increased attention to pricing, aggressive cost management and overhead reductions. We’ve increased our business development efforts to address opportunities identified in expanding markets attributable to increased interest in energy conservation and emission control regulations. In addition, the Company is evaluating various forms of financing which may be available to it. There can be no assurance that the Company will secure additional financing for working capital, achieve the desired result of net income and positive cash flow from operations in future years. These financial statements do not give any effect to any adjustments that would be necessary should the Company be unable to report on a going concern basis.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principals of Consolidation The accompanying consolidated financial statements include the accounts of SEER, its wholly-owned subsidiaries, REGS, TCC, MV and SEM and its majority-owned subsidiaries PWS and Reach, since their respective acquisition or formation dates. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. Basis of presentation Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all of the normal recurring adjustments necessary to present fairly the financial position and results of operations as of and for the periods presented. The interim results are not necessarily indicative of the results to be expected for the full year or any future period Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company believes that the disclosures are adequate to make the interim information presented not misleading. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Report on Form 10-K filed on April 14, 2015 for the years ended December 31, 2014 and 2013. Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make a number of estimates and assumptions related to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of tangible assets; valuation allowances and reserves for receivables; revenue recognition related to contracts accounted for under the percentage of completion method; share-based compensation. Actual results could differ from those estimates. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net income (loss). Research and Development Research and development (“R&D”) costs are charged to expense as incurred. R&D expenses consist primarily of salaries, project materials, contract labor and other costs associated with ongoing product development and enhancement efforts. R&D expenses were $80,900 and $59,500 for the three months ended September 30, 2015 and 2014, respectively and were $279,700 and $205,900 for the nine months ended September 30, 2015 and 2014, respectively. Income Taxes The Company accounts for income taxes pursuant to Accounting Standards Codification Income Taxes, ASC 740 also provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized. During the three months and nine months ended September 30, 2014 and 2013 the Company recognized no adjustments for uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties related to uncertain tax positions were recognized at September 30, 2015 and December 31, 2014. The Company expects no material changes to unrecognized tax positions within the next twelve months. The Company has filed federal and state tax returns through December 31, 2014. The tax periods for the years ending December 31, 2008 through 2014 are open to examination by federal and state authorities. Recently issued accounting pronouncements Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU’s) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all new or revised ASU’s. In May 2014, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers”. The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance was effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. On July 9, 2015, the FASB approved a one year delay of the effective date. The Company will now adopt the new provisions of this accounting standard at the beginning of fiscal year 2018, given that early adoption is not an option. The Company will further study the implications of this statement in order to evaluate the expected impact on the consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments when the terms of an award provide that a performance target could be achieved after the requisite service period,” (“ASU 2014-12”). Current U.S. GAAP does not contain explicit guidance on whether to treat a performance target that could be achieved after the requisite service period as a performance condition that affects vesting or as a nonvesting condition that affects the grant-date fair value of an award. The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. The updated guidance will be effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating this guidance; however, it is not expected to have a material effect on the consolidated financial statements upon adoption. In April 2015, the FASB issued ASU 2015-03, ”Simplifying the Presentation of Debt Issuance Costs,” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the first interim period for fiscal years beginning after December 15, 2015. The adoption of this ASU will not have any impact on the Company’s consolidated financial position, liquidity, or results of operations. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption of ASU 2015-11 will have on the Company’s financial position or results of operations In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments”. The new guidance eliminates the requirement to retrospectively account for adjustments to provisional amounts recognized in a business combination. Under the ASU, the adjustments to the provisional amounts will be recognized in the reporting period in which the adjustment amounts are determined. The updated guidance will be effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Early adoption is permitted, and the ASU should be applied prospectively. The Company is in process of evaluating this guidance.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 3 - PROPERTY AND EQUIPMENT Property and equipment was comprised of the following: September 30, 2015 December 31, 2014 Field and shop equipment $ 2,074,600 $ 1,690,900 Vehicles 750,800 672,300 Waste destruction equipment, leased 1,216,200 1,145,600 Waste destruction equipment, not placed in service 2,432,400 2,325,900 Furniture and office equipment 314,700 291,300 Leasehold improvements 65,400 65,400 6,854,100 6,191,400 Less: accumulated depreciation and amortization (1,722,400 ) (1,342,600 ) Property and equipment, net $ 5,131,700 $ 4,848,800 Three Month Ended Nine months ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Cost of Goods Sold $ 106,900 $ 91,800 $ 320,800 $ 250,200 General & Administrative 19,600 9,700 58,900 24,700 Total Depreciation Expense $ 126,500 $ 101,500 $ 379,700 $ 274,900 Accumulated depreciation on leased waste destruction equipment included in accumulated depreciation and amortization above is $234,000 and $148,800 as of September 30, 2015 and December 31, 2014. Property and equipment included the following amounts for leases that have been capitalized at: September 30, December 31 2015 2014 Vehicles, field and shop equipment $ 462,700 $ 229,400 Less: accumulated amortization (106,700 ) (36,800 ) $ 356,000 $ 192.600

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 4 – INTANGIBLE ASSETS Intangible assets were comprised of the following: September 30, 2015 Gross carrying amount Accumulated amortization Net carrying value Customer list $ 42,500 $ (42,500 ) $ 0 Technology 864,600 (494,400 ) 370,200 Trade name 54,600 (54,600 ) 0 $ 961,700 $ (591,500 ) $ 370,200 December 31, 2014 Gross carrying amount Accumulated amortization Net carrying value Customer list $ 42,500 $ (40,000 ) $ 2,500 Technology 805,700 (440,000 ) 365,700 Trade name 54,600 (51,400 ) 3,200 $ 902,800 $ (531,400 ) $ 371,400 The estimated useful lives of the intangible assets range from seven to ten years. Amortization expense was $20,000 and $39,600 for the three months ended September 30, 2015 and 2014, respectively and was $60,100 and $83,400 for the nine months ended September 30, 2015 and 2014, respectively.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	NOTE 5 - ACCRUED LIABILITIES Accrued liabilities were comprised of the following: September 30, December 31, 2014 Accrued compensation and related taxes $ 597,800 $ 616,600 Accrued interest 29,300 56,600 Other 247,600 252,500 Total Accrued Liabilities $ 874,700 $ 925,700

UNCOMPLETED CONTRACTS

UNCOMPLETED CONTRACTS	9 Months Ended
	Sep. 30, 2015
Contractors [Abstract]
UNCOMPLETED CONTRACTS	NOTE 6 - UNCOMPLETED CONTRACTS Costs, estimated earnings and billings on uncompleted contracts are as follows: September 30, December 31, 2015 2014 Revenue Recognized $ 746,400 $ 168,700 Less: Billings to date (326,900 ) (107,600 ) Costs and estimated earnings in excess of $ 419,500 $ 61,100 Billings to date $ 3,059,100 $ 1,250,900 Revenue recognized (2,657,600 ) (942,400 ) Billings in excess of costs and estimated $ 401,500 $ 308,500

PARAGON WASTE SOLUTIONS LLC

PARAGON WASTE SOLUTIONS LLC	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
PARAGON WASTE SOLUTIONS LLC	NOTE 7– INVESTMENT IN PARAGON WASTE SOLUTIONS LLC In February 2015, PWS entered into a License Agreement with Xinhua Energy Environmental Technology Co., Ltd, a large multi-national environmental company based in China (“Xinhua”). The agreement provides for the exclusive rights to distribute PWS’s patented technology in China, Hong Kong, Macau and the Taiwan territories (“Territory”). The grant was for both the medical waste, as well as the refinery vertical markets within the Territory. The Agreement calls for, among other things, the formation of a U.S. joint venture company, (“P&P Company”), to be owned 50/50 by PWS and Xinhua or its designee (“JV Entity”) and an obligation by Xinhua to fund all necessary and reasonable capital requirements to permit and roll out the PWS technology in the Territory as well as staff and manage the JV Entity’s operations. The Agreement also calls for the payment of a $430,000 placement fee for the first PWS CoronaLux™ unit to be commissioned in China of which $322,500 was paid March 31, 2015 and the remaining $107,500 was paid on July 31, 2015. Upon the occurrence of certain events and timely performance by Xinhua, a second placement fee of $350,000 is required to be paid and, upon that second payment, it will then be granted exclusive manufacturing rights to produce the units to be deployed in the Territory. Payments received for licensing and placement fees have been recorded as deferred revenue in the accompanying condensed consolidated balance sheets at September 30, 2015 and December 31, 2014 and are recognized as revenue ratably over the term of their respective contracts.

PAYROLL TAXES PAYABLE

PAYROLL TAXES PAYABLE	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
PAYROLL TAXES PAYABLE	NOTE 8 - PAYROLL TAXES PAYABLE In 2009 and 2010, REGS, a subsidiary of the Company, became delinquent for unpaid federal employer and employee payroll taxes and accrued interest and penalties related to the unpaid payroll taxes. The IRS has filed a notice of federal tax lien against certain of our assets to satisfy the obligation. The IRS is to release this lien if and when we pay the full amount due. Two of the officers of REGS also have liability exposure for a portion of the taxes if REGS does not pay them. In May 2013, REGS filed an Offer in Compromise with the IRS. While the Offer in Compromise was under review by the IRS, the requirement to pay $25,000 a month under the Installment Plan was suspended. REGS received a letter from the IRS, dated March 27, 2014, rejecting our Offer in Compromise and in accordance with the rejection letter the Company has submitted a written appeal. As a result of the IRS rejection of the Offer in Compromise, the Installment Plan, mentioned above, is terminated. In June 2014, the Company received notices of intent to levy property or rights to property from the IRS for the amounts owed for the past due payroll taxes, penalty and interest. Currently our appeal is pending and as such the IRS cannot levy our property while the appeal process is still pending. As of September 30, 2015 and December 31, 2014, the outstanding balance due to the IRS was $964,800, and $947,700, respectively.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
DEBT	NOTE 9 – DEBT The Company entered into a loan agreement evidenced by a convertible secured promissory note with Advanced Technology Materials, Inc. (“ATMI”) on February 14, 2012. The amount of the convertible secured promissory note was $225,000. The entire loan and/or unpaid balance of the loan and accrued interest can be converted into the Company’s common stock at $0.50 per share at any time at the option of the holder. In December 2014, the promissory note and accrued interest was purchased by two shareholders of the Company from ATMI. In January 2015 the convertible promissory note and accrued interest totaling $257,400 was converted into 514,750 shares of common stock in accordance with the terms on the original convertible note. Debt as of September 30, 2015 and December 31, 2014, was comprised of the following: 2015 2014 June 2011 Note - In Default $ 68,000 $ 68,000 Convertible note payable, interest at 8% per annum, $320,000 principal payment due December 31, 2016, remaining unpaid principal and interest due August 20, 2018, convertible into common stock at the option of the lenders at a rate of $1.10 per share 1,000,000 — Debt discount (14,200 ) — Note payable dated February 2012, interest at 5% per annum, $112,500 is due December 31, 2014, convertible in whole or in part to common stock at $.50 per share. (see Note 11) — 225,000 Note payable insurance premium financing, interest at 4.25% per annum, payable in 10 installments of $27,927, due November 1, 2015 27,800 — Capital lease obligations, secured by certain assets, maturing through March 2019 236,600 130,900 Total notes payable and capital lease obligations 1,318,200 423,900 Less: current portion (199,400 ) (363,000 ) Notes payable and capital lease obligations, long-term, including debt discount $ 1,118,800 $ 60,900

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10 – RELATED PARTY TRANSACTIONS Notes payable, related parties Notes payable, related parties and accrued interest due to certain related parties as of September 30, 2015 and December 31, 2014 are as follows: 2015 2014 Unsecured note payable dated February 2004, bearing interest at 8% per annum, originally due January 2008; assigned to CEO by a third party in 2010; due June 1, 2016 $ 5,000 $ 37,000 Accrued interest 26,800 36,800 $ 31,800 $ 73,800 We believe the stated interest rates on the related party notes payable represent reasonable market rates based on the note payable arrangements we have executed with third parties. In March 2012, the Company entered into an Irrevocable License & Royalty Agreement with PWS that grants PWS an irrevocable world-wide license to the IP in exchange for a 5% royalty on all revenues from PWS and its affiliates. The term shall commence as of the date of this Agreement and shall continue for a period not to exceed the life of the patent or patents filed by the Company. PWS may sub license the IP and any revenue derived from sub licensing shall be included in the calculation of Gross Revenue for purposes of determining royalty payments due the Company. Royalty payments are due 30 days after the end of each calendar quarter. PWS generated revenues of approximately $183,400 and $99,300 for the nine months ended September 30, 2015 and 2014, as such, royalties of $14,200 and $5,000 are due September 30, 2015 and 2014. In August 2014, the Company entered into a second Exchange and Acquisition Agreement (“New Technologies Agreement”) with Black Stone for the acquisition of additional intellectual property (“IP”) from Black Stone in exchange for 1,000,000 shares of common stock valued at $1,050,000. In March 2015 the Company and Black Stone executed a rescission agreement of the New Technologies Agreement noted above that was effective December 31, 2014. The shares issued by the Company in accordance with the agreement were returned to the Company and were cancelled and all acquired IP returned to Black Stone. In September 2014, the Company entered into an Equity Purchase Agreement (“Equity Agreement”) with a third party (“Seller”) whereby the Company issued 1,200,000 shares of the Company’s common stock, valued at $1,212,000, in exchange for 22.5 membership interest units, representing 15% ownership interest in Sterall, LLC, a Delaware corporation. In March 2015 the Company and the Seller entered into a revised agreement whereby the 1,200,000 shares issued by the Company would be held by the Seller until the completion of an independent third party valuation. Based on the fair market value of the Purchased Units from the valuation obtained by the Company, an amount of Consideration Shares will be returned to the Company to the extent that the fair market value of the Consideration Shares issued (see below) are greater than the fair market value of the Purchased Units. In no event shall the Company be obligated to issue additional shares as consideration for the Purchased Units. For purposes of this amendment, the fair market value of each Consideration Share will be $0.83333. In the event the parties are unwilling to accept the fair market value of the Purchased Units, as determined by the independent valuation specialist, on or before the Closing Date this Agreement, (December 31, 2015), the transaction covered by this Agreement (the “Contemplated Transaction”) may be rescinded by either Party in writing. Due to the ability of the Company to rescind the shares issued at the commencement of the transaction the shares held by the Seller are considered contingently issuable shares and as such the 1,200,000 share not considered issued and outstanding at December 31, 2014. In December 2014, PWS, Sterall, Inc and Sterall LLC entered into a Successor-In-Interest Agreement. The Successor-In-Interest Agreement states that Sterall Inc and Sterall LLC are in the process of consolidating their business under Sterall LLC and all agreements between PWS and Sterall Inc shall be binding in all regards Sterall LLC.

EQUITY TRANSACTIONS

EQUITY TRANSACTIONS	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
EQUITY TRANSACTIONS	NOTE 11- EQUITY TRANSACTIONS During the nine months ended September 30, 2014 we sold a total of 4.125 Units (consisting of 1,155,000 shares of common stock and 577,500 warrants) for gross proceeds of $825,000 less $49,000 in offering costs for net proceeds of $776,000. During the nine months ended September 30, 2015, the Company issued 120,949 shares of $.001 par value common stock upon the cashless exercise of 200,000 warrants. During the nine months ended September 30, 2014 the Company issued 396,934 shares of common stock in connection with the cashless exercise of 669,600 common stock options. In connection with the issuance of convertible debt in September 2015, the Company issued 200,000 warrants as an inducement to enter into the transaction. The warrants exercisable for three years at $1.25 per share were valued at $14,600 using the Black Scholes valuation method. During the nine months ended September 30, 2014 the Company issued 610,000 shares of common stock in connection with the exercise of warrants at $.50 per share, resulting in proceeds of $305,000. During the nine months ended September 30, 2014, we issued 500,000 shares of common stock for consulting services valued at $550,000. The consulting services are related to financial advisory services, potential strategic acquisition evaluations, strategic planning and market evaluations. As noted in Note 9, in January 2015 a convertible promissory note and accrued interest totaling $257,400 was converted into 514,750 shares on common stock in accordance with the terms on the original convertible note. Non-controlling Interest The non-controlling interest presented in our condensed consolidated financial statements reflects a 46% non-controlling equity interest in PWS (see Note 7) and a 15% non-controlling interest in Reach. Net loss attributable to non-controlling interest, as reported on our condensed consolidated statements of operations, represents the net loss of PWS and Reach attributable to the non-controlling equity interest. The non-controlling interest is reflected within stockholders’ equity on the condensed consolidated balance sheet.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NOTE 12 – NET LOSS PER SHARE Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted net loss per share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares. Potentially dilutive securities are excluded from the calculation when their effect would be anti-dilutive. For all years presented in the consolidated financial statements, all potentially dilutive securities have been excluded from the diluted share calculations as they were anti-dilutive as a result of the net losses incurred for the respective years. Accordingly, basic shares equal diluted shares for all years presented. Potentially dilutive securities were comprised of the following: Nine months ended 2015 2014 Warrants 9,689,430 9,678,750 Options 1,974,950 2,062,500 Convertible debt 909,091 225,000 Contingently issuable shares upon equity purchase 1,200,000 — 13,773,471 11,966,250

CUSTOMER CONCENTRATIONS

CUSTOMER CONCENTRATIONS	9 Months Ended
	Sep. 30, 2015
Risks and Uncertainties [Abstract]
CUSTOMER CONCENTRATIONS	NOTE 13 – CUSTOMER CONCENTRATIONS The Company had sales from operations to two customers for the three months and nine months ended September 30, 2015 that represented approximately 34% and 49%, respectively, of our total sales. The Company had sales from operations to three customers for the three months and nine months ended September 30, 2014 that represented approximately 61% and 64%, respectively, of our total sales. The concentration of the Company’s business with a relatively small number of customers may expose us to a material adverse effect if one or more of these large customers were to experience financial difficulty or were to cease being a customer for non-financial related issues.

ENVIRONMENTAL MATTERS AND REGUL

ENVIRONMENTAL MATTERS AND REGULATION	9 Months Ended
	Sep. 30, 2015
Environmental Remediation Obligations [Abstract]
ENVIRONMENTAL MATTERS AND REGULATION	NOTE 14 - ENVIRONMENTAL MATTERS AND REGULATION Significant federal environmental laws affecting us are the Resource Conservation and Recovery Act (“RCRA”), the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), also known as the “Superfund Act”, the Clean Air Act, the Clean Water Act, and the Toxic Substances Control Act (“TSCA”). Pursuant to the EPA’s authorization of their RCRA equivalent programs, a number of states have regulatory programs governing the operations and permitting of hazardous waste facilities. Our facilities are regulated pursuant to state statutes, including those addressing clean water and clean air. Our facilities are also subject to local siting, zoning and land use restrictions. Although our facilities occasionally have been cited for regulatory violations, we believe we are in substantial compliance with all federal, state and local laws regulating our business.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 15 - SEGMENT INFORMATION The Company currently has identified four segments as follows: REGS Industrial Cleaning Tactical Rail Car Cleaning MV, Reach and SEM Environmental Solutions PWS Solid Waste Reach and SEM has had minimal operations through September 30, 2015. The composition of our reportable segments is consistent with that used by our Chief Operating Decision Maker (“CODM”) to evaluate performance and allocate resources. All of our operations are located in the U.S. We have not allocated corporate selling, general and administrative expenses, and stock-based compensation to the segments. All intercompany transactions have been eliminated. Segment information for the three months ended September 30, 2015 and 2014 is as follows: 2015 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 1,049,100 $ 842,100 $ 965,500 $ 111,500 — $ 2,968,200 Depreciation and amortization (1) 65,700 6,400 30,300 25,500 18,700 146,600 Interest expense 6,400 (5,100 ) — 300 3,900 5,500 Stock-based compensation — — — — 27,300 27,300 Net income (loss) (74,900 ) 172,600 (61,900 ) (234,000 ) (446,300 ) (644,500 ) Capital expenditures (cash and 10,500 15,500 11,400 60,100 — 97,500 Total assets $ 1,741,800 $ 635,700 $ 1,418,800 $ 3,766,400 $ 1,151,200 $ 8,713,900 2014 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 2,916,700 $ 723,900 $ 1,192,800 $ 20,700 — $ 4,854,100 Depreciation and amortization (1) 60,600 5,500 32,100 17,400 25,500 141,100 Interest expense 8,300 3,300 1,800 400 3,000 16,800 Stock-based compensation — — — — 75,000 75,000 Net income (loss) 871,600 75,800 21,800 (244,500 ) (461,000 ) 263,700 Capital expenditures (cash and noncash) 36,300 4,300 6,000 443,700 58,600 548,900 Total assets $ 2,174,500 $ 518,600 $ 1,445,000 $ 3,252,700 $ 3,480,300 $ 10,871,100 (1) Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles Segment information for the nine months ended September 30, 2015 and 2014 is as follows: 2015 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 4,198,300 $ 2,263,400 $ 2,796,000 $ 183,400 — $ 9,441,100 Depreciation and amortization (1) 197,100 19,200 91,000 76,400 56,100 439,800 Interest expense 29,000 5,100 500 300 10,100 45,000 Stock-based compensation — — — — 176,100 176,100 Net income (loss) 195,600 201,000 (78,800 ) (824,400 ) (1,610,600 ) (2,117,200 ) Capital expenditures (cash and 313,100 45,000 43,600 179,400 81,600 662,700 Total assets $ 1,741,800 $ 635,700 $ 1,418,800 $ 3,766,400 $ 1,151,200 $ 8,713,900 2014 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 7,120,300 $ 1,918,900 $ 2,774,300 $ 99,300 $ — $ 11,912,800 Depreciation and amortization (1) 168,600 15,700 100,000 34,600 38,800 357,700 Interest expense 28,600 15,000 4,600 800 10,500 59,500 Stock-based compensation — — — — 760,000 760,000 Net income (loss) 1,986,900 87,300 (26,400 ) (601,300 ) (1,919,300 ) (472,800 ) Capital expenditures (cash and noncash) 72,200 11,400 89,200 2,556,000 125,100 2,853,900 Total assets $ 2,174,500 $ 518,600 $ 1,445,000 $ 3,252,700 $ 3,480,300 $ 10,871,100 (1) Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 16 - SUBSEQUENT EVENTS On October 12, 2015, the Company acquired certain tangible and intangible assets for $700,000, issuing cash of $375,000 and executing seller financed notes payable of $325,000.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Use of estimates	Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make a number of estimates and assumptions related to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of tangible assets; valuation allowances and reserves for receivables; revenue recognition related to contracts accounted for under the percentage of completion method; share-based compensation. Actual results could differ from those estimates.
Reclassifications	Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net income (loss).
Research and Development	Research and Development Research and development (“R&D”) costs are charged to expense as incurred. R&D expenses consist primarily of salaries, project materials, contract labor and other costs associated with ongoing product development and enhancement efforts. R&D expenses were $80,900 and $59,500 for the three months ended September 30, 2015 and 2014, respectively and were $279,700 and $205,900 for the nine months ended September 30, 2015 and 2014, respectively.
Income Taxes	Income Taxes The Company accounts for income taxes pursuant to Accounting Standards Codification Income Taxes, ASC 740 also provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized. During the three months and nine months ended September 30, 2014 and 2013 the Company recognized no adjustments for uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties related to uncertain tax positions were recognized at September 30, 2015 and December 31, 2014. The Company expects no material changes to unrecognized tax positions within the next twelve months. The Company has filed federal and state tax returns through December 31, 2014. The tax periods for the years ending December 31, 2008 through 2014 are open to examination by federal and state authorities.
Recently issued accounting pronouncements	Recently issued accounting pronouncements Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASU’s) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all new or revised ASU’s. In May 2014, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers”. The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance was effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. On July 9, 2015, the FASB approved a one year delay of the effective date. The Company will now adopt the new provisions of this accounting standard at the beginning of fiscal year 2018, given that early adoption is not an option. The Company will further study the implications of this statement in order to evaluate the expected impact on the consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments when the terms of an award provide that a performance target could be achieved after the requisite service period,” (“ASU 2014-12”). Current U.S. GAAP does not contain explicit guidance on whether to treat a performance target that could be achieved after the requisite service period as a performance condition that affects vesting or as a nonvesting condition that affects the grant-date fair value of an award. The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. The updated guidance will be effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating this guidance; however, it is not expected to have a material effect on the consolidated financial statements upon adoption. In April 2015, the FASB issued ASU 2015-03, ”Simplifying the Presentation of Debt Issuance Costs,” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the first interim period for fiscal years beginning after December 15, 2015. The adoption of this ASU will not have any impact on the Company’s consolidated financial position, liquidity, or results of operations. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption of ASU 2015-11 will have on the Company’s financial position or results of operations In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments”. The new guidance eliminates the requirement to retrospectively account for adjustments to provisional amounts recognized in a business combination. Under the ASU, the adjustments to the provisional amounts will be recognized in the reporting period in which the adjustment amounts are determined. The updated guidance will be effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Early adoption is permitted, and the ASU should be applied prospectively. The Company is in process of evaluating this guidance.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Schedule of property plant and equipment	Property and equipment was comprised of the following: September 30, 2015 December 31, 2014 Field and shop equipment $ 2,074,600 $ 1,690,900 Vehicles 750,800 672,300 Waste destruction equipment, leased 1,216,200 1,145,600 Waste destruction equipment, not placed in service 2,432,400 2,325,900 Furniture and office equipment 314,700 291,300 Leasehold improvements 65,400 65,400 6,854,100 6,191,400 Less: accumulated depreciation and amortization (1,722,400 ) (1,342,600 ) Property and equipment, net $ 5,131,700 $ 4,848,800 Three Month Ended Nine months ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Cost of Goods Sold $ 106,900 $ 91,800 $ 320,800 $ 250,200 General & Administrative 19,600 9,700 58,900 24,700 Total Depreciation Expense $ 126,500 $ 101,500 $ 379,700 $ 274,900
Schedule of capital leased assets	Property and equipment included the following amounts for leases that have been capitalized at: September 30, December 31 2015 2014 Vehicles, field and shop equipment $ 462,700 $ 229,400 Less: accumulated amortization (106,700 ) (36,800 ) $ 356,000 $ 192.600

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets were comprised of the following: September 30, 2015 Gross carrying amount Accumulated amortization Net carrying value Customer list $ 42,500 $ (42,500 ) $ 0 Technology 864,600 (494,400 ) 370,200 Trade name 54,600 (54,600 ) 0 $ 961,700 $ (591,500 ) $ 370,200 December 31, 2014 Gross carrying amount Accumulated amortization Net carrying value Customer list $ 42,500 $ (40,000 ) $ 2,500 Technology 805,700 (440,000 ) 365,700 Trade name 54,600 (51,400 ) 3,200 $ 902,800 $ (531,400 ) $ 371,400

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities were comprised of the following: September 30, December 31, 2014 Accrued compensation and related taxes $ 597,800 $ 616,600 Accrued interest 29,300 56,600 Other 247,600 252,500 Total Accrued Liabilities $ 874,700 $ 925,700

UNCOMPLETED CONTRACTS (Tables)

UNCOMPLETED CONTRACTS (Tables)	9 Months Ended
	Sep. 30, 2015
Contractors [Abstract]
Schedule of uncompleted contracts	Costs, estimated earnings and billings on uncompleted contracts are as follows: September 30, December 31, 2015 2014 Revenue Recognized $ 746,400 $ 168,700 Less: Billings to date (326,900 ) (107,600 ) Costs and estimated earnings in excess of $ 419,500 $ 61,100 Billings to date $ 3,059,100 $ 1,250,900 Revenue recognized (2,657,600 ) (942,400 ) Billings in excess of costs and estimated $ 401,500 $ 308,500

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of debt	Debt as of September 30, 2015 and December 31, 2014, was comprised of the following: 2015 2014 June 2011 Note - In Default $ 68,000 $ 68,000 Convertible note payable, interest at 8% per annum, $320,000 principal payment due December 31, 2016, remaining unpaid principal and interest due August 20, 2018, convertible into common stock at the option of the lenders at a rate of $1.10 per share 1,000,000 — Debt discount (14,200 ) — Note payable dated February 2012, interest at 5% per annum, $112,500 is due December 31, 2014, convertible in whole or in part to common stock at $.50 per share. (see Note 11) — 225,000 Note payable insurance premium financing, interest at 4.25% per annum, payable in 10 installments of $27,927, due November 1, 2015 27,800 — Capital lease obligations, secured by certain assets, maturing through March 2019 236,600 130,900 Total notes payable and capital lease obligations 1,318,200 423,900 Less: current portion (199,400 ) (363,000 ) Notes payable and capital lease obligations, long-term, including debt discount $ 1,118,800 $ 60,900

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Schedule of notes payable and accrued interest, related parties	Notes payable, related parties and accrued interest due to certain related parties as of September 30, 2015 and December 31, 2014 are as follows: 2015 2014 Unsecured note payable dated February 2004, bearing interest at 8% per annum, originally due January 2008; assigned to CEO by a third party in 2010; due June 1, 2016 $ 5,000 $ 37,000 Accrued interest 26,800 36,800 $ 31,800 $ 73,800

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of potentially dilutive securities	Potentially dilutive securities were comprised of the following: Nine months ended 2015 2014 Warrants 9,689,430 9,678,750 Options 1,974,950 2,062,500 Convertible debt 909,091 225,000 Contingently issuable shares upon equity purchase 1,200,000 — 13,773,471 11,966,250

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of segment information	Segment information for the three months ended September 30, 2015 and 2014 is as follows: 2015 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 1,049,100 $ 842,100 $ 965,500 $ 111,500 — $ 2,968,200 Depreciation and amortization (1) 65,700 6,400 30,300 25,500 18,700 146,600 Interest expense 6,400 (5,100 ) — 300 3,900 5,500 Stock-based compensation — — — — 27,300 27,300 Net income (loss) (74,900 ) 172,600 (61,900 ) (234,000 ) (446,300 ) (644,500 ) Capital expenditures (cash and 10,500 15,500 11,400 60,100 — 97,500 Total assets $ 1,741,800 $ 635,700 $ 1,418,800 $ 3,766,400 $ 1,151,200 $ 8,713,900 2014 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 2,916,700 $ 723,900 $ 1,192,800 $ 20,700 — $ 4,854,100 Depreciation and amortization (1) 60,600 5,500 32,100 17,400 25,500 141,100 Interest expense 8,300 3,300 1,800 400 3,000 16,800 Stock-based compensation — — — — 75,000 75,000 Net income (loss) 871,600 75,800 21,800 (244,500 ) (461,000 ) 263,700 Capital expenditures (cash and noncash) 36,300 4,300 6,000 443,700 58,600 548,900 Total assets $ 2,174,500 $ 518,600 $ 1,445,000 $ 3,252,700 $ 3,480,300 $ 10,871,100 (1) Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles Segment information for the nine months ended September 30, 2015 and 2014 is as follows: 2015 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 4,198,300 $ 2,263,400 $ 2,796,000 $ 183,400 — $ 9,441,100 Depreciation and amortization (1) 197,100 19,200 91,000 76,400 56,100 439,800 Interest expense 29,000 5,100 500 300 10,100 45,000 Stock-based compensation — — — — 176,100 176,100 Net income (loss) 195,600 201,000 (78,800 ) (824,400 ) (1,610,600 ) (2,117,200 ) Capital expenditures (cash and 313,100 45,000 43,600 179,400 81,600 662,700 Total assets $ 1,741,800 $ 635,700 $ 1,418,800 $ 3,766,400 $ 1,151,200 $ 8,713,900 2014 Industrial Railcar Environmental Solid Cleaning Cleaning Solutions Waste Corporate Total Revenue $ 7,120,300 $ 1,918,900 $ 2,774,300 $ 99,300 $ — $ 11,912,800 Depreciation and amortization (1) 168,600 15,700 100,000 34,600 38,800 357,700 Interest expense 28,600 15,000 4,600 800 10,500 59,500 Stock-based compensation — — — — 760,000 760,000 Net income (loss) 1,986,900 87,300 (26,400 ) (601,300 ) (1,919,300 ) (472,800 ) Capital expenditures (cash and noncash) 72,200 11,400 89,200 2,556,000 125,100 2,853,900 Total assets $ 2,174,500 $ 518,600 $ 1,445,000 $ 3,252,700 $ 3,480,300 $ 10,871,100 (1) Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles

ORGANIZATION AND FINANCIAL CO31

ORGANIZATION AND FINANCIAL CONDITION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accumulated deficit	$ (14,236,500)		$ (14,236,500)		$ (12,499,800)	[1]
Net loss, before non-controlling interest	(644,500)	$ 263,700	(2,117,200)	$ (472,800)
Working capial	(2,300,000)		(2,300,000)		(1,400,000)
Amount of net assets (liabilities)	$ 2,100,000		$ 2,100,000		$ 3,800,000
BeneFuels, LLC [Member]
Percentage ownership	85.00%		85.00%
Paragon Waste Solutions, LLC [Member]
Percentage ownership	54.00%		54.00%
[1]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accounting Policies [Abstract]
Research and development expenses	$ 80,900	$ 59,500	$ 279,700	$ 205,900

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accumulated depreciation and amortization	$ (1,722,400)	$ (1,342,600)
Waste Destruction Equipment Leased [Member]
Accumulated depreciation and amortization	$ 234,000	$ 148,800

PROPERTY AND EQUIPMENT (Detai34

PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 6,756,600	$ 6,191,400
Less: accumulated depreciation and amortization	(1,722,400)	(1,342,600)
Property and equipment, net	5,131,700	4,848,800	[1]
Field and Shop Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,074,600	1,690,900
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	750,800	672,300
Waste Destruction Equipment Leased [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,216,200	1,145,600
Less: accumulated depreciation and amortization	234,000	148,800
Waste destruction equipment not placed in service [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,432,400
Furniture and office equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	314,700	291,300
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 65,400	65,400
Waste destruction equipment in progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross		$ 2,325,900
[1]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

PROPERTY AND EQUIPMENT (Detai35

PROPERTY AND EQUIPMENT (Details1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Total Depreciation Expense	$ 126,500	$ 101,500	$ 379,700	$ 274,900
Cost of Goods Sold [Member]
Total Depreciation Expense	106,900	93,800	320,800	250,200
General and Administrative [Member]
Total Depreciation Expense	$ 19,600	$ 9,700	$ 58,900	$ 24,700

PROPERTY AND EQUIPMENT (Detai36

PROPERTY AND EQUIPMENT (Details 2) - Field and Shop Equipment [Member] - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Capital leased assets, gross	$ 462,700	$ 229,400
Less: accumulated amortization	(106,700)	(36,800)
Capital leased assets, net	$ 356,000	$ 192,600

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Amortization expense	$ 20,000	$ 39,600	$ 60,100	$ 83,400
Upper Range [Member]
Estimated useful lives			10 years
Lower Range [Member]
Estimated useful lives			7 years

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Intangible assets, gross	$ 961,700	$ 902,800
Accumulated amortization	(591,500)	(531,400)
Intangible assets, net	370,200	371,400	[1]
Customer Lists [Member]
Intangible assets, gross	42,500	42,500
Accumulated amortization	$ (42,500)	(40,000)
Intangible assets, net		2,500
Technology [Member]
Intangible assets, gross	$ 864,600	805,700
Accumulated amortization	(494,400)	(440,000)
Intangible assets, net	370,200	365,700
Trade Name [Member]
Intangible assets, gross	54,600	54,600
Accumulated amortization	$ (54,600)	(51,400)
Intangible assets, net		$ 3,200
[1]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accrued Liabilities Details
Accrued compensation and related taxes	$ 597,800	$ 616,600
Accrued interest	29,300	56,600
Other	247,600	252,500
Total Accrued Liabilities	$ 874,700	$ 925,700

UNCOMPLETED CONTRACTS (Details)

UNCOMPLETED CONTRACTS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Revenue Recognized	$ (2,657,600)	$ (942,400)
Less: Billings to date	3,059,100	1,250,900
Costs and estimated earnings in excess of billings on uncompleted contracts	419,500	61,100	[1]
Billings in excess of costs and estimated earnings on uncompleted contracts	401,500	308,500
Contracts Receivable [Member]
Revenue Recognized	746,400	168,700
Less: Billings to date	(326,900)	(107,600)
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 419,500	$ 61,100
[1]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

PARAGON WASTE SOLUTIONS LLC (De

PARAGON WASTE SOLUTIONS LLC (Details Narrative) - Xinhua Energy Environmental Technology - USD ($)	1 Months Ended
	Feb. 28, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Initial fees paid	$ 322,500
First phase royalty fees payment	430,000
Second phase royalty fees payment	$ 350,000
Remaining Portion of fee		$ 107,500

PAYROLL TAXES PAYABLE (Details

PAYROLL TAXES PAYABLE (Details Narrative) - IRS [Member] - USD ($)	9 Months Ended
	May. 31, 2013	Sep. 30, 2015	Dec. 31, 2014
Past due payroll taxes		$ 964,800	$ 947,700
Monthly installment payments, payroll taxes	$ 25,000

DEBT (Details Narrative)

DEBT (Details Narrative) - Convertible Secured Promissory Note [Member] - USD ($)	1 Months Ended	9 Months Ended
	Jan. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Debt, face amount			$ 225,000
Debt, issue date		Feb. 14, 2012
Debt, interest rate			5.00%
Debt conversion, price			$ .50
Debt, principal amount due if not converted			$ 257,400
Shares Converted	514,750

DEBT (Details)

DEBT (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2015USD ($)Number$ / shares	Dec. 31, 2014USD ($)$ / shares
Notes and capital lease obligation, total	$ 1,318,200	$ 423,900
Notes and capital lease obligation, current	(199,400)	(363,000)	[1]
Notes and capital lease obligation, long-term	1,118,800	60,900	[1]
Notes Payable, June 2011 New Note [Member]
Long term debt, carrying amount	68,000	68,000
Convertible Secured Promissory Note 2 [Member]
Long term debt, carrying amount	$ 1,000,000
Interest rate	8.00%
Payment amount	$ 320,000
Debt, maturity date	Dec. 31, 2016
Debt discount	$ 14,200
Debt conversion, price | $ / shares	$ 1.10
Note Payable Insurance Premium Financing [Member]
Long term debt, carrying amount	$ 27,800
Interest rate	4.25%
Payment amount	$ 27,927
Number of payments | Number	10
Debt, maturity date	Nov. 1, 2015
Capital lease obligations [Member]
Capital lease obligation, carrying amount	$ 236,600	130,900
Convertible Secured Promissory Note [Member]
Long term debt, carrying amount		$ 225,000
Interest rate		5.00%
Payment amount		$ 112,500
Debt, maturity date		Dec. 31, 2014
Debt conversion, price | $ / shares		$ .50
[1]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Reveune from customer	$ 442,700	$ 494,700
New Technologies Agreement with Black Stone [Member]
Issuance of common stock for intangible assets	$ 1,050,000
Number of shares of common stock issued for intangible asset	1,000,000
Equity Agreement With Third Party [Member]
Issuance of common stock for investment in unconsolidated subsidaiary	$ 1,212,000
Ownership Interests Units	22.5
Number of shares issued for investment in unconsolidated affiliate	1,200,000
Common stock, fair value (in dollars per shares)			$ 0.83333
Irrevocable License & Royalty Agreement with PWS [Member]
Percentage of royalty revenue	5.00%	5.00%
Reveune from customer	$ 183,400	$ 99,300
Royalty Revenue	$ 14,200	$ 5,000

RELATED PARTY TRANSACTIONS (D46

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accrued interest	$ 26,800	$ 36,800
Notes payable - related parties, including accrued interest	31,800	73,800	[1]
Chief Executive Officer [Member] | Promissory Note [Member]
Notes Payable	$ 5,000	$ 37,000
Interest rate	8.00%	8.00%
[1]	These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes

EQUITY TRANSACTIONS (Details Na

EQUITY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Jan. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Net proceeds from private placement			$ 776,000
Number of units sold in private placement			4,125
Number of shares sold in private placement			1,155,000
Gross proceeds from private placement			$ 825,000
Number of warrant sold in private placement			577,500
Commission paid			$ 49,000
Shares issued in warrant exercise		120,949	610,000
Proceeds from warrant exercise			$ 305,000
Options exercised in cashless option exercise		200,000	669,600
Common stock shares issued for services, value			$ 550,000
Common stock shares issued for services			500,000
Warrants issued for services			396,934
Warrant exercise price		$ 1.25	$ 0.50
Convertible Secured Promissory Note [Member]
Debt, principal amount due if not converted				$ 257,400
Shares Converted	514,750
PWS [Member]
Noncontrolling ownership percentage		46.00%
Reach [Member]
Noncontrolling ownership percentage		15.00%

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	13,773,471	11,966,250
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	9,489,430	9,678,750
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	1,974,950	2,062,500
Convertible Debt [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	909,091	225,000
Contingently issuable shares upon equity purchase [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	1,200,000

CUSTOMER CONCENTRATIONS (Detail

CUSTOMER CONCENTRATIONS (Detail Narratives)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Risks and Uncertainties [Abstract]
Number of customers	Two customers	Three customers	Two customers	Three customers
Percentage of concentration risk	34.00%	61.00%	49.00%	64.00%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Total revenue		$ 2,968,200	$ 4,854,100	$ 9,441,100	$ 11,912,800
Depreciation and amortization	[1]	146,600	141,100	439,800	357,700
Interest expense		5,500	16,800	45,000	59,500
Stock-based compensation expense		27,300	75,000	176,100	760,000
Net income (loss)		(644,500)	263,700	(2,117,200)	(472,800)
Capital expenditures (cash and noncash)		97,500	548,900	662,700	2,853,900
Total assets		8,713,900	10,871,100	8,713,900	10,871,100
Industrial Cleaning [Member]
Total revenue		1,049,100	2,916,700	4,198,300	7,120,300
Depreciation and amortization	[1]	65,700	60,600	197,100	168,600
Interest expense		$ 6,400	$ 8,300	$ 29,000	$ 28,600
Stock-based compensation expense
Net income (loss)		$ (74,900)	$ 871,600	$ 195,600	$ 1,986,900
Capital expenditures (cash and noncash)		10,500	36,300	313,100	72,200
Total assets		1,741,800	2,174,500	1,741,800	2,174,500
Railcar Cleaning [Member]
Total revenue		842,100	723,900	2,263,400	1,918,900
Depreciation and amortization	[1]	6,400	5,500	19,200	15,700
Interest expense		$ (5,100)	$ 3,300	$ 5,100	$ 15,000
Stock-based compensation expense
Net income (loss)		$ 172,600	$ 75,800	$ 201,000	$ 87,300
Capital expenditures (cash and noncash)		15,500	4,300	45,000	11,400
Total assets		635,700	518,600	635,700	518,600
Environmental Solutions [Member]
Total revenue		965,500	1,192,800	2,796,000	2,774,300
Depreciation and amortization	[1]	$ 30,300	32,100	91,000	100,000
Interest expense			$ 1,800	$ 500	$ 4,600
Stock-based compensation expense
Net income (loss)		$ (61,900)	$ 21,800	$ (78,800)	$ (26,400)
Capital expenditures (cash and noncash)		11,400	6,000	43,600	89,200
Total assets		1,418,800	1,445,000	1,418,800	1,445,000
Solid Waste [Member]
Total revenue		111,500	20,700	183,400	99,300
Depreciation and amortization	[1]	25,500	17,400	76,400	34,600
Interest expense		$ 300	$ 400	$ 300	$ 800
Stock-based compensation expense
Net income (loss)		$ (234,000)	$ (244,500)	$ (824,400)	$ (601,300)
Capital expenditures (cash and noncash)		60,100	443,700	179,400	2,556,000
Total assets		$ 3,766,400	$ 3,252,700	$ 3,766,400	$ 3,252,700
Corporate [Member]
Total revenue
Depreciation and amortization	[1]	$ 18,700	$ 25,500	$ 56,100	$ 38,800
Interest expense		3,900	3,000	10,100	10,500
Stock-based compensation expense		27,300	75,000	176,100	760,000
Net income (loss)		$ (446,300)	(461,000)	(1,610,600)	(1,919,300)
Capital expenditures (cash and noncash)			58,600	81,600	125,100
Total assets		$ 1,151,200	$ 3,480,300	$ 1,151,200	$ 3,480,300
[1]	Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Oct. 16, 2015	Sep. 30, 2015	Sep. 30, 2014
Cash payments to acquire assets		$ 448,300	$ 2,853,900
Subsequent Event [Member]
Assets Acquired	$ 700,000
Cash payments to acquire assets	375,000
Notes issued to acquire asssets	$ 325,000