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 stockholdersÂ’ 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 |