Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 12, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Enservco Corporation | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 37,619,913 | ||
Entity Public Float | $45,405,810 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 319458 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets | ||
Cash and cash equivalents | $954,058 | $1,868,190 |
Accounts receivable, net | 14,679,858 | 11,685,866 |
Prepaid expenses and other current assets | 1,540,667 | 923,758 |
Inventories | 390,081 | 315,004 |
Income tax receivable | 1,776,035 | |
Deferred tax assets | 135,055 | 336,561 |
Total current assets | 19,475,754 | 15,129,379 |
Property and equipment, net | 37,789,004 | 17,425,828 |
Goodwill | 301,087 | 301,087 |
Long-term portion of interest rate swap | 0 | 18,616 |
Other assets | 716,836 | 547,338 |
TOTAL ASSETS | 58,282,681 | 33,422,248 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 5,462,268 | 3,102,912 |
Income taxes payable | 1,278,599 | |
Current portion of long-term debt | 340,520 | 2,562,141 |
Current portion of interest rate swap | 9,895 | 11,966 |
Total current liabilities | 5,812,683 | 6,955,618 |
Long-Term Liabilities | ||
Senior revolving credit facility | 28,634,037 | |
Long-term debt, less current portion | 801,968 | 11,200,048 |
Deferred income taxes, net | 4,992,681 | 2,421,466 |
Total long-term liabilities | 34,428,686 | 13,621,514 |
Total liabilities | 40,241,369 | 20,577,132 |
Commitments and Contingencies (Note 10) | ||
Stockholders’ Equity | ||
Preferred stock, $.005 par value, 10,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $.005 par value, 100,000,000 common shares authorized, 37,159,815 and 34,926,136 shares issued, respectively; 103,600 shares of treasury stock; and 37,056,215 and 34,822,536 shares outstanding, respectively | 185,282 | 174,113 |
Additional paid-in-capital | 12,751,389 | 11,568,033 |
Accumulated earnings | 5,104,641 | 1,098,900 |
Accumulated other comprehensive income | 4,070 | |
Total stockholders’ equity | 18,041,312 | 12,845,116 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $58,282,681 | $33,422,248 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 37,159,815 | 34,926,136 |
Common stock, shares outstanding | 37,056,215 | 34,822,536 |
Treasury stock | 103,600 | 103,600 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive (Loss) Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $56,563,944 | $46,472,677 |
Cost of Revenue | 41,257,600 | 31,869,312 |
Gross Profit | 15,306,344 | 14,603,365 |
Operating Expenses | ||
General and administrative expenses | 4,393,129 | 4,076,088 |
Patent litigation and defense expenses | 562,486 | 189,645 |
Depreciation and amortization | 3,402,330 | 2,088,767 |
Total operating expenses | 8,357,945 | 6,354,500 |
Income from Operations | 6,948,399 | 8,248,865 |
Other Income (Expense) | ||
Interest expense | -791,159 | -1,073,875 |
Gain on sale and disposal of equipment | 179,903 | 169,194 |
Other income | 40,470 | 36,383 |
Total other expense | -570,786 | -868,298 |
Income Before Tax Expense | 6,377,613 | 7,380,567 |
Income Tax Expense | -2,371,872 | -3,079,330 |
Net Income | 4,005,741 | 4,301,237 |
Other Comprehensive (Loss) Income | ||
Unrealized (loss) gain on interest rate swap, net of tax | -7,025 | 8,875 |
Settlements – interest rate swap | 19,368 | 27,331 |
Reclassification into earnings | -16,413 | -27,331 |
Total other comprehensive (loss) income | -4,070 | 8,875 |
Comprehensive income | $4,001,671 | $4,310,112 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders’ Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at at Dec. 31, 2012 | $159,127 | $9,864,363 | ($3,202,337) | ($4,805) | $6,816,348 |
Balance at (in Shares) at Dec. 31, 2012 | 31,825,294 | ||||
Exercise of warrants | 11,330 | 1,234,970 | 1,246,300 | ||
Exercise of warrants (in Shares) | 2,266,000 | 2,266,000 | |||
Exercise of stock options (in Shares) | 38,332 | ||||
Cashless exercise of warrants | 3,580 | -3,580 | |||
Cashless exercise of warrants (in Shares) | 716,028 | 1,236,456 | |||
Cashless exercise of stock options, Value | 76 | -76 | |||
Cashless exercise of stock options, Shares (in Shares) | 15,214 | ||||
Stock-based compensation | 472,356 | 472,356 | |||
Net income | 4,301,237 | 4,301,237 | |||
Other comprehensive income | 8,875 | 8,875 | |||
Balance at at Dec. 31, 2013 | 174,113 | 11,568,033 | 1,098,900 | 4,070 | 12,845,116 |
Balance at (in Shares) at Dec. 31, 2013 | 34,822,536 | ||||
Exercise of warrants | 2,413 | 262,885 | 265,298 | ||
Exercise of warrants (in Shares) | 482,357 | 482,356 | |||
Exercise of stock options | 1,225 | 126,762 | 127,987 | ||
Exercise of stock options (in Shares) | 244,999 | 273,332 | |||
Cashless exercise of warrants | 7,410 | -7,410 | |||
Cashless exercise of warrants (in Shares) | 1,482,041 | 1,925,357 | |||
Cashless exercise of stock options, Value | 121 | -121 | |||
Cashless exercise of stock options, Shares (in Shares) | 24,282 | ||||
Stock-based compensation | 562,903 | 562,903 | |||
Tax benefits related to exercise of options and warrants | 238,337 | 238,337 | |||
Net income | 4,005,741 | 4,005,741 | |||
Other comprehensive income | -4,070 | -4,070 | |||
Balance at at Dec. 31, 2014 | $185,282 | $12,751,389 | $5,104,641 | $18,041,312 | |
Balance at (in Shares) at Dec. 31, 2014 | 37,056,215 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | ||
Net income | $4,005,741 | $4,301,237 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,402,330 | 2,088,767 |
Gain on disposal of equipment | -179,903 | -169,194 |
Deferred income taxes | 2,785,196 | 1,781,057 |
Stock-based compensation | 562,903 | 472,356 |
Amortization of debt issuance costs | 253,803 | 309,236 |
Bad debt expense | 96,592 | 249,809 |
Changes in operating assets and liabilities | ||
Accounts receivable | -3,090,584 | -4,144,333 |
Inventories | -75,077 | -41,901 |
Prepaid expense and other current assets | -417,084 | -121,738 |
Income taxes receivable | -1,776,035 | |
Other non-current assets | -423,301 | -175,262 |
Accounts payable and accrued expenses | 2,359,356 | -503,733 |
Income taxes payable | -1,278,599 | 1,278,599 |
Net cash provided by operating activities | 6,225,338 | 5,324,900 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | -23,955,603 | -5,837,126 |
Proceeds from sale and disposal of equipment | 370,000 | 2,053,568 |
Net cash used in investing activities | -23,585,603 | -3,783,558 |
FINANCING ACTIVITIES | ||
Net line of credit borrowings (repayments) | 28,634,037 | -2,151,052 |
Proceeds from issuance of long-term debt | 3,720,000 | |
Repayment of long-term debt | -12,619,701 | -2,971,605 |
Payment of debt issuance costs | -199,825 | -50,422 |
Proceeds from exercise of warrants | 265,298 | 1,246,300 |
Proceeds from exercise of stock options | 127,987 | |
Excess tax benefits from exercise of options and warrants | 238,337 | |
Net cash provided by (used in) financing activities | 16,446,133 | -206,779 |
Net (Decrease) Increase in Cash and Cash Equivalents | -914,132 | 1,334,563 |
Cash and Cash Equivalents, Beginning of Year | 1,868,190 | 533,627 |
Cash and Cash Equivalents, End of Year | 954,058 | 1,868,190 |
Supplemental cash flow information: | ||
Cash paid for interest | 519,050 | 764,667 |
Cash paid for taxes | 2,412,681 | 19,672 |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ||
Equipment purchased through installment loans | 206,523 | |
Cashless exercise of stock options and warrants | $7,531 | $3,656 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Disclosure Text Block [Abstract] | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Basis of Presentation | |||
The accompanying consolidated financial statements have been derived from the accounting records of Enservco Corporation (formerly Aspen Exploration Corporation), Heat Waves Hot Oil Service LLC (“Heat Waves”), Dillco Fluid Service, Inc. (“Dillco”), Trinidad Housing LLC, HE Services LLC, and Real GC LLC (collectively, the “Company”) as of December 31, 2014 and 2013 and the results of operations for the years then ended. | ||||
The below table provides an overview of the Company’s current ownership hierarchy: | ||||
Name | State of Formation | Ownership | Business | |
Dillco Fluid Service, Inc. (“Dillco”) | Kansas | 100% by Enservco | Oil and natural gas field fluid logistic services. | |
Heat Waves Hot Oil Service LLC (“Heat Waves”) | Colorado | 100% by Enservco | Oil and natural gas well services, including logistics and stimulation. | |
HE Services LLC (“HES”) | Nevada | 100% by Heat Waves | No active business operations. Owns construction equipment used by Heat Waves. | |
Real GC, LLC (“Real GC”) | Colorado | 100% by Heat Waves | No active business operations. Owns real property in Garden City, Kansas that is utilized by Heat Waves. | |
On May 29, 2013, three of the Company’s former subsidiaries not included in the above table (Trinidad Housing, LLC, Aspen Gold Mining Company, and Heat Waves, LLC) were dissolved. The charter of another subsidiary, Enservco Frac Services, LLC, was forfeited by operation of law in 2013. None of these dissolved subsidiaries was engaged in active business operations prior to dissolution. As part of a corporate reorganization in May 2013, Dillco transferred its ownership in Heat Waves to Enservco through a tax free exchange. | ||||
The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Significant Accounting Policies [Text Block] | Note 2 - Summary of Significant Accounting Policies | ||
Cash and Cash Equivalents | |||
The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. | |||
Accounts Receivable | |||
Accounts receivable are stated at the amount billed to customers. The Company provides a reserve for doubtful accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The provision for uncollectible amounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management's best estimate of uncollectible amounts and is determined based on historical collection experience related to accounts receivable coupled with a review of the current status of existing receivables. The losses ultimately incurred could differ materially in the near term from the amounts estimated in determining the allowance. As of December 31, 2014 and December 31, 2013, the Company had an allowance for doubtful accounts of $100,000 and $245,000, respectively. For the years ended December 31, 2014 and 2013 the Company has recorded bad debt expense (net of recoveries) of $96,592 and $249,809, respectively. | |||
Concentrations | |||
As of December 31, 2014, three customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 12%, 12% and 10%, respectively. Revenues from these three customers represented 18%, 6% and 8% of total revenues, respectively, for the year ended December 31, 2014. No other customer exceeded 10% of total revenues for the year ended December 31, 2014. | |||
As of December 31, 2013, two customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 13% and 12%, respectively. Revenues from these two customers represented 17% and 9% of total revenues, respectively, for the year ended December 31, 2013. No other customer exceeded 10% of total revenues for the year ended December 31, 2013 | |||
Inventories | |||
Inventory consists primarily of propane, diesel fuel and chemicals that are used in the servicing of oil wells and is carried at the lower of cost or market in accordance with the first in, first out method. The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. | |||
Property and Equipment | |||
Property and equipment consists of (1) trucks, trailers and pickups; (2) trucks that are in various stages of fabrication; (3) real property which includes land and buildings used for office and shop facilities and wells used for the disposal of water; and (4) other equipment such as tools used for maintaining and repairing vehicles, office furniture and fixtures, and computer equipment. Property and equipment is stated at cost less accumulated depreciation. The Company capitalizes interest on certain qualifying assets that are undergoing activities to prepare them for their intended use. Interest costs incurred during the fabrication period are capitalized and amortized over the life of the assets. The Company charges repairs and maintenance against income when incurred and capitalizes renewals and betterments, which extend the remaining useful life, expand the capacity or efficiency of the assets. Depreciation is recorded on a straight-line basis over estimated useful lives of 5 to 30 years. | |||
Leases | |||
The Company conducts a major part of its operations from leased facilities. Each of these leases is accounted for as operating leases. Normally, the Company records rental expense on its operating leases over the lease term as it becomes payable. If rental payments are not made on a straight-line basis, per terms of the agreement, the Company records a deferred rent expense and recognizes the rental expense on a straight-line basis throughout the lease term. The majority of the Company’s facility leases contain renewal clauses and expire through August 2017. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. | |||
The Company is leasing a number of trucks and equipment in the normal course of business, which is recorded as an operating lease. The Company records rental expense on its equipment operating lease over the lease term as it becomes payable; there are no rent escalation terms associated with these equipment leases. On the equipment lease, a purchase options exist allowing the Company to purchase the leased equipment at the end of the lease term, based on the market price of the equipment at the time of the lease termination and exercised purchase option. | |||
The Company enters into capital leases in order to acquire trucks and equipment. Each of these leases allow the Company to obtain title of the equipment leased through the lease agreements upon final payment of all principal and interest due. The Company records the assets and liabilities associated with these leases at the present value of the minimum lease payments per the lease agreement. The assets and associated liabilities are classified as Property and Equipment and the liabilities are classified as current and long-term liabilities based on the contractual terms of the agreements and their associated maturities. There are no outstanding capital leases as of December 31, 2014 and 2013. | |||
Long-Lived Assets | |||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired. No impairments were recorded during the years ended December 31, 2014 or 2013. | |||
Earnings Per Share | |||
Earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average number of common shares. The diluted weighted average number of common shares is computed using the treasury stock method for common stock that may be issued for outstanding stock options and warrants. | |||
As of December 31, 2014 and 2013, there were outstanding stock options and warrants to acquire an aggregate of 3,750,169 and 6,032,714 shares of Company common stock, respectively, which have a potentially dilutive impact on earnings per share. For the year ended December 31, 2014 and 2013, the incremental shares of the options and warrants to be included in the calculation of diluted earnings per share had a dilutive impact on the Company’s earnings per share of 2,469,099 and 4,658,052 shares, respectively. | |||
Intangible Assets | |||
Non-Competition Agreements | |||
The non-competition agreements with the sellers of Heat Waves and Dillco have finite lives and are being amortized over the five-year contractual periods. All non-competition agreements were fully amortized as of December 31, 2013. Amortization expense for the years ended December 31, 2014 and 2013 totaled $0 and $30,000, respectively. | |||
Goodwill | |||
Goodwill represents the excess of the cost over the fair value of net assets acquired, including identified intangible assets, recorded in connection with the acquisitions of Heat Waves. Goodwill is not amortized but is assessed for impairment at least annually. | |||
Impairment | |||
The Company assesses goodwill and intangible assets with indefinite lives for impairment at the reporting unit level on an annual basis and between annual tests if events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount. Guidance allows a qualitative assessment of impairment to determine whether it is more-likely-than-not that the intangible asset is impaired. If it is determined that it is more-likely-than-not that and impairment exists, accounting guidance requires that the impairment test be performed through the application of a two-step fair value test. The Company utilizes this method and recognizes a goodwill impairment loss in the event that the fair value of the reporting unit does not exceed its carrying value. During fiscal years ending December 31, 2014 and 2013, the Company performed the annual impairment test as of the date ending at each of these fiscal years and determined in both fiscal years that no impairment existed. | |||
Derivative Instruments | |||
The Company has swap agreements in place to hedge against changes in interest rates. The fair value of the Company’s derivative instruments is reflected as assets or liabilities on the balance sheets. The effective portion of changes in the fair value of the derivative instruments are deferred in Accumulated other comprehensive loss and are reclassified to income when the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivative instrument is recorded in earnings. Transactions related to the Company’s derivative instruments accounted for as hedges are classified in the same category as the item hedged in the statement of cash flows. The Company does not hold derivative instruments for trading purposes. | |||
The Company assesses the retrospective and prospective effectiveness of its derivative instruments on a quarterly basis to determine whether the hedging instruments have been highly effective in offsetting changes in fair value of the hedged items. The Company also assesses on a quarterly basis whether the hedging instruments are expected to be highly effective in the future. If a hedging instrument is not expected to be highly effective, the Company will stop cash flow hedge accounting prospectively. In those instances, the gains or losses remain in Accumulated other comprehensive loss until the hedged item affects earnings. As a result of the Amended and Restated Revolving Credit and Security Agreement with PNC Bank, National Association in September 2014 (Note 4), effective October 2014 the Company is no longer using cash flow hedge accounting therefore changes in the fair value of the derivative instruments are reported in current earnings. | |||
Income Taxes | |||
The Company recognizes deferred tax liabilities and assets (Note 7) based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities will be recognized in income in the period that includes the enactment date. Deferred income taxes are classified as a net current or non-current asset or liability based on the classification of the related asset or liability for financial reporting purposes. A deferred tax asset or liability that is not related to an asset or liability for financial reporting is classified according to the expected reversal date. The Company records a valuation allowance to reduce deferred tax assets to an amount that it believes is more likely than not expected to be realized. | |||
The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized in the financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, the Company is required to make many subjective assumptions and judgments regarding income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to the Company’s subjective assumptions and judgments which can materially affect amounts recognized in the consolidated balance sheets and consolidated statements of income. The result of the reassessment of the Company’s tax positions did not have an impact on the consolidated financial statements. | |||
Interest and penalties associated with tax positions are recorded in the period assessed as income tax expense. The Company files income tax returns in the United States and in the states in which it conducts its business operations. The Company’s United States federal income tax filings for tax years 2011 through 2014 remain open to examination. In general, the Company’s various state tax filings remain open for tax years 2010 to 2014 | |||
Fair Value | |||
The Company follows authoritative guidance that applies to all financial assets and liabilities required to be measured and reported on a fair value basis. The Company also applies the guidance to non-financial assets and liabilities measured at fair value on a nonrecurring basis, including non-competition agreements and goodwill. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. During the year ended December 31, 2014, the Company did not change any of its valuation techniques. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. | |||
Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. | |||
The hierarchy is broken down into three levels based on the reliability of the inputs as follows: | |||
Level 1: | Quoted prices are available in active markets for identical assets or liabilities; | ||
Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or | ||
Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. | ||
Stock-based Compensation | |||
The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for all stock options awarded to employees, officers, and directors. The expected term of the options is based upon evaluation of historical and expected further exercise behavior. The risk-free interest rate is based upon U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life of the grant. Volatility is determined upon historical volatility of our stock and adjusted if future volatility is expected to vary from historical experience. The dividend yield is assumed to be none as we have not paid dividends nor do we anticipate paying any dividends in the foreseeable future. | |||
The Company also uses the Black-Scholes valuation model to determine the fair value of warrants. Expected volatility is based upon the weighted average of historical volatility over the contractual term of the warrant and implied volatility. The risk-free interest rate is based upon implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the contractual term of the warrants. The dividend yield is assumed to be none. | |||
Loan Fees and Other Deferred Costs | |||
In the normal course of business, the Company often enters into loan agreements with its primary lending institutions. The majority of these lending agreements require origination fees and other fees in the course of executing the agreements. For all costs associated with the execution of the lending agreements, the Company defers these costs and amortizes them as interest expense over the term of the loan agreement using the effective interest method. These deferred costs are classified on the balance sheet as current or long-term assets based on the contractual terms of the loan agreements. All other costs not associated with the execution of the loan agreements are expensed as incurred. See Note 4 for loan fees recorded in the current period. | |||
Revenue Recognition | |||
The Company recognizes revenue when evidence of an arrangement exists, the fee is fixed or determinable, services are provided and collection is reasonably assured. | |||
Reclassifications | |||
Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. The Company reclassified $25,975 of site personnel costs from general and administrative expenses to cost of revenues on the consolidated statement of operations and comprehensive (loss) income for the year ended December 31, 2013 to conform to 2014 presentation. The Company reclassified $189,645 of patent defense costs from general and administrative expenses to patent litigation and defense costs on the consolidated statement of operations and comprehensive income for the year ended December 31, 2013 to conform to 2014 presentation. | |||
Management Estimates | |||
The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the realization of accounts receivable, stock based compensation expense, income tax provision, the valuation of deferred taxes, and the valuation of the Company’s interest rate swap. Actual results could differ from those estimates. | |||
Accounting Pronouncements | |||
Recently Adopted | |||
In July 2013 the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” to provide guidance on the presentation of unrecognized tax benefits. This ASU requires that companies net their unrecognized tax benefits against all same-jurisdiction net operating losses or tax credit carryforwards that would be used to settle the position with a tax authority. This pronouncement was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not impact the Company’s consolidated financial position, results of operations, or cash flows | |||
Recently Issued | |||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The standard requires an entity's management to evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Public entities are required to apply the standard for annual reporting periods ending after December 15, 2016, and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial position, results of operations, or cash flows. | |||
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption of this guidance is not expected to impact the Company’s consolidated financial position, results of operations, or cash flows. | |||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 provides a framework that replaces the existing revenue recognition guidance. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, ASU 2014-09 requires enhanced financial statement disclosures over revenue recognition as part of the new accounting guidance. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. We are currently evaluating the provisions of ASU 2014-09 and awaiting implementation guidance to determine the impact, if any, it may have on our consolidated financial position, results of operations and cash flows. |
Note_3_Property_and_Equipment
Note 3 - Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | Note 3- Property and Equipment | ||||||||
Property and equipment consists of the following at: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Trucks and vehicles | $ | 48,020,268 | $ | 27,240,551 | |||||
Other equipment | 3,135,916 | 2,820,674 | |||||||
Buildings and improvements | 3,396,280 | 2,364,353 | |||||||
Trucks in process | 2,366,758 | 1,205,936 | |||||||
Land | 776,420 | 596,420 | |||||||
Disposal wells | 367,330 | 367,330 | |||||||
Total property and equipment | 58,062,972 | 34,595,264 | |||||||
Accumulated depreciation | (20,273,968 | ) | (17,169,436 | ) | |||||
Property and equipment – net | $ | 37,789,004 | $ | 17,425,828 | |||||
Depreciation expense on property and equipment for the year ended December 31, 2014 and 2013 totaled $3,402,330 and $2,058,767, respectively. |
Note_4_PNC_Credit_Facility
Note 4 - PNC Credit Facility | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 4– PNC Credit Facility |
2014 PNC Credit Facility | |
In September 2014, the Company entered into an Amended and Restated Revolving Credit and Security Agreement (the "2014 Credit Agreement") with PNC Bank, National Association ("PNC") which provides for a five-year $30 million senior secured revolving credit facility which replaced a prior revolving credit facility and term loan with PNC that totaled $16 million (the "2012 Credit Agreement"). The 2014 Credit Agreement allows the Company to borrow up to 85% of eligible receivables and 85% of the appraised value of trucks and equipment. The commitment amount may be increased to $40 million, subject to certain conditions and approvals set forth in the 2014 Credit Agreement. In December 2014, the Company exercised the option to increase the commitment amount to $40 million. Under the 2014 Credit Agreement, there are no required principal payments until maturity and the Company has the option to pay variable interest rate based on (i) 1, 2 or 3 month LIBOR plus an applicable margin ranging from 2.50% to 3.50% for LIBOR Rate Loans or (ii) interest at PNC Base Rate plus an applicable margin of 1.00% to 2.00% for Domestic Rate Loans. Interest is calculated monthly and added to the principal balance of the loan. Additionally, the Company incurs an unused credit line fee of 0.375%. The revolving credit facility is collateralized by substantially all of the Company’s assets and subject to financial covenants. The interest rate at December 31, 2014 ranged from 2.65% to 2.67% for the $27,400,000 of outstanding LIBOR Rate Loans and 4.25% for the $1,234,037 of outstanding Domestic Rate Loans. | |
As of December 31, 2014, the Company had an outstanding loan balance of $28,634,037. The outstanding loan balance matures in September 2019. As of December 31, 2014, approximately $11,100,000 was available under the revolving credit facility. | |
At December 31, 2014, the Company did not meet one of the financial covenants imposed by the PNC loan agreements which resulted in an event of default under the loan documents. PNC has waived the effect of this event of default for the period. As a result of the waiver, no default was declared. | |
2012 PNC Credit Facility | |
On November 2, 2012, the Company entered into a Revolving Line of Credit, Term Loan and Security Agreement (the “2012 Credit Agreement”) with PNC Bank, National Association (“PNC”) which included a $5.0 million revolving line of credit and an $11.0 million term loan note. | |
As part of the 2012 Credit Agreement, the Company entered into a three year revolving credit note which provided for borrowings up to maximum of $5,000,000 based upon 85% of defined eligible accounts receivable. The revolving line of credit had a variable interest rate that was based, at the Company’s discretion, on a) LIBOR plus 3.25% or b) PNC bank rate plus 1.25%. The revolving line of credit was secured with inventory and accounts of the company and had a maturity date of November 2, 2015. The revolving line of credit also had a facility fee of .375% per annum, which is applied to any undrawn portion of the maximum revolving advance amount. The Company’s borrowing base availability as of December 31, 2014 was $0 due to the replacement by the 2014 Credit Agreement. As of December 31, 2014 and 2013, the outstanding balance on this revolving line of credit was $0. | |
On November 2, 2012, the Company entered into an $11,000,000 term note with PNC, payable in thirty five fixed monthly principal installments of $130,952 beginning in November 2012 with the remaining principal balance due November 2, 2015. The term loan had a variable interest rate that was based, at the Company’s discretion of LIBOR plus 4.25% for Eurodollar Rate Loans or PNC Base Rate plus 2.25% for Domestic Rate Loans. The term loan was collateralized by equipment, inventory, and accounts of the Company and subject to financial covenants. As discussed in Note 6, the Company entered into an interest rate swap to hedge the interest rate of the original term loan at an effective rate of 4.89% through the term of the loan. | |
In November 2013, the Borrowers and PNC entered into an amendment to the Credit Agreement increasing the then-current principal balance of the term loan by $3,000,000 to $12,428,576. The amended term loan was payable in twenty-three fixed monthly principal payments of $172,620 beginning November 30, 2013 with the remaining principal balance due on November 2, 2015. As of December 31, 2014, the principal balance of the term note was $0 due to the replacement by the 2014 Credit Agreement. | |
Debt Issuance Costs | |
In November 2012, the Company incurred $922,685 of debt issuance costs related to the 2012 Credit Agreement and these costs were being amortized to interest expense over the term of the credit facility using the effective interest method. An additional $50,422 of debt issuance costs was incurred in connection with the 2012 Credit Agreement loan amendment in November 2013. | |
In September 2014, the Company incurred an additional $199,825 of debt issuance costs related to the 2014 Credit Agreement. Due to the debt modification in September 2014 with the 2014 Credit Agreement the unamortized debt issuance costs associated with the 2012 Credit Agreement in the amount of $378,023 and additional debt issuance costs of $199,825 are amortized over the 60 month term of the 2014 Credit Agreement. As of December 31, 2014 and 2013, $115,670 and $324,012, respectively of unamortized debt issuance costs were included in Prepaid expenses and other current assets in the accompanying consolidated balance sheet. The remaining long-term portion of debt issuance costs of $424,482 and $270,019 is included in Other Assets in the accompanying consolidated balance sheet for December 31, 2014 and 2013, respectively. During the year ended December 31, 2014 and 2013, the Company amortized $253,803 and $309,236 of these costs to Interest Expense. | |
Interest Rate Swap | |
On November 13, 2012 the Company entered into an Interest Rate Swap Agreement (“swap”) with PNC with a nominal value of $11,000,000 in order to hedge the cash flow requirements for the variable interest rate associated with the PNC Term Loan. The floating variable interest rate associated with the Term Loan debt of 4.25% plus LIBOR was swapped for a fixed rate of 4.25% plus 0.64% for the duration of the PNC Term Loan. | |
At December 31, 2014 and 2013, updated valuations were performed and the Company recorded current liabilities of $9,895 and $11,966 (classified as Accounts payable and accrued liabilities), and long-term assets of $0 and $18,616 (classified as Other Assets), respectively, associated with the swap. | |
As a result of the Amended and Restated Revolving Credit and Security Agreement with PNC Bank, National Association in September 2014, effective October 2014 the Company is no longer using cash flow hedge accounting therefore changes in the fair value of the derivative instruments are reported in current earnings. |
Note_5_Longterm_Debt
Note 5 - Long-term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Long-term Debt [Text Block] | Note 5– Long-Term Debt | ||||||||
Long-term debt consists of the following at December 31, 2014 and 2013: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
PNC Term Loan, original principal balance of $11,000,000 at issuance, amended to $12,428,576 in November 2013, payable in twenty-three fixed monthly principal installments of $172,620 beginning November 2013, with the remaining principal due November 2, 2015. Variable interest rate based of 4.25% plus 1 month LIBOR for Eurodollar Rate Loans and interest at PNC Base Rate plus 2.25% for Domestic Rate Loans, collateralized by equipment, inventory, and accounts of the Company and subject to financial covenants. (See Note 4.) | $ | - | $ | 12,083,336 | |||||
Real Estate Loan for facility in North Dakota, interest at 3.75%, monthly principal and interest payment of $5,255 ending October 3, 2028. Collateralized by land and property purchased with the loan. $100,000 of loan guaranteed by the Company’s former Chairman and Chief Executive Officer. | 677,204 | 713,756 | |||||||
Note payable to the seller of Heat Waves. The note was garnished by the Internal Revenue Service (“IRS”) in 2009 and is due on demand; payable in monthly installments of $3,000 per agreement with the IRS. | 242,000 | 281,000 | |||||||
Mortgage payable to a bank; interest at 7.25%, due in monthly principal and interest payments of $4,555 through February 2017, secured by land. | 107,967 | 153,018 | |||||||
Mortgage payable to a bank, interest at 5.9%, monthly principal and interest payments of $1,550 through January 2017 with a balloon payment of $88,118 on February 1, 2017; secured by land. | 115,317 | 126,750 | |||||||
Note payable to vehicle finance companies, interest rates ranging from 4.74% to 8.2%. Paid in full during 2014. | - | 404,329 | |||||||
Total | 1,142,488 | 13,762,189 | |||||||
Total current portion | (340,520 | ) | (2,562,141 | ) | |||||
Long term debt, net of current portion | 801,968 | 11,200,048 | |||||||
Aggregate maturities of debt, excluding the Senior Revolving Credit Facility described in Note 4, are as follows: | |||||||||
Year Ended December 31, | |||||||||
2015 | $ | 340,520 | |||||||
2016 | 104,258 | ||||||||
2017 | 138,796 | ||||||||
2018 | 42,542 | ||||||||
2019 | 44,188 | ||||||||
Thereafter | 472,184 | ||||||||
Total | $ | 1,142,488 | |||||||
Note_6_Fair_Value_Measurements
Note 6 - Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | Note 6 - Fair Value Measurements | ||||||||||||||||
The following tables present the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Quoted | Significant Other | Significant | Fair Value | ||||||||||||||
Prices in | Observable | Unobservable | Measurement | ||||||||||||||
Active Markets (Level 1) | Inputs | Inputs | |||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
Derivative Instrument | |||||||||||||||||
Interest rate swap, net liability* | $ | - | $ | 9,895 | $ | - | $ | - | |||||||||
31-Dec-13 | |||||||||||||||||
Derivative Instrument | |||||||||||||||||
Interest rate swap, net asset* | $ | - | $ | 6,650 | $ | - | $ | 6,650 | |||||||||
*Note: The interest rate swap as of December 31, 2014 consists of long-term assets of $0 and current liabilities of $9,895 (classified as Current portion of interest rate swap). The interest rate swap as of December 31, 2013 consists of current liabilities of $11,966 (classified as Current portion of interest rate swap), and long-term assets of $18,616 (classified as Long-term portion of interest rate swap). | |||||||||||||||||
The Company’s derivative instrument (e.g. interest rate swap, or “swap”) is valued using models which require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, and correlations of such inputs. Some of the model inputs used in valuing the derivative instruments trade in liquid markets. However, there are certain variables used which are observable and based on market data obtained from sources independent of the Company. As such, since these observable variables require more objectivity, the derivative instruments are classified within Level 2 of the fair value hierarchy and are included in other assets, non-current, and other liabilities, current. The fair value of derivative instruments reflected in the table above and on the Consolidated Balance Sheets has been adjusted for non-performance risk. For applicable financial assets carried at fair value, the credit standing of the counterparties is analyzed and factored into the fair value measurement of those assets. Using prevailing interest rates on similar investments and foreign currency forward rates, the estimated fair value of the swap was $9,895 and $6,650 at the years ended December 31, 2014 and 2013, respectively. The fair value estimate of the swap does not reflect its actual trading value. |
Note_7_Income_Taxes
Note 7 - Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Tax Disclosure [Text Block] | Note 7– Income Taxes | ||||||||||||||||
The sources of income from operations before income taxes are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 6,377,613 | $ | 7,380,567 | |||||||||||||
Income before income taxes | 6,377,613 | 7,380,567 | |||||||||||||||
The income tax provision from operations consists of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current | |||||||||||||||||
Federal | $ | (431,810 | ) | $ | 1,082,402 | ||||||||||||
State | - | 220,900 | |||||||||||||||
(431,810 | ) | 1,303,302 | |||||||||||||||
Deferred | |||||||||||||||||
Federal | 2,603,115 | 1,548,332 | |||||||||||||||
State | 200,567 | 227,696 | |||||||||||||||
2,803,682 | 1,776,028 | ||||||||||||||||
Total Income Tax Provision | $ | 2,371,872 | $ | 3,079,330 | |||||||||||||
A reconciliation of computed income taxes by applying the statutory federal income tax rate of 34% to income from operations before taxes to the provision for income taxes for the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Computed income taxes at 34% | $ | 2,168,389 | $ | 2,509,393 | |||||||||||||
Increase in income taxes resulting from: | |||||||||||||||||
State and local income taxes, net of federal impact | 191,328 | 469,029 | |||||||||||||||
Change in tax rate | (97,350 | ) | - | ||||||||||||||
Stock-based compensation | 79,841 | 74,943 | |||||||||||||||
Other | 29,664 | 25,965 | |||||||||||||||
Provision for income taxes | $ | 2,371,872 | $ | 3,079,330 | |||||||||||||
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. | |||||||||||||||||
Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. | |||||||||||||||||
We have a requirement of reporting of taxes based on tax positions which meet a more likely than not standard and which are measured at the amount that is more likely than not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. This standard also provides guidance on the presentation of tax matters and the recognition of potential IRS interest and penalties. As of December 31, 2014 and 2013, the Company does not have an unrecognized tax liability. | |||||||||||||||||
The components of deferred income taxes for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Current | Long-Term | Current | Long-Term | ||||||||||||||
Deferred tax assets | |||||||||||||||||
Reserves and accruals | $ | 135,055 | $ | - | $ | 336,561 | $ | - | |||||||||
Amortization | - | 173,700 | - | 222,117 | |||||||||||||
Capital losses | - | 3,661 | - | (1,982 | ) | ||||||||||||
Non-qualified stock option expense | - | 400,009 | - | 514,659 | |||||||||||||
Loss Carryforwards | - | 71,710 | - | 26,700 | |||||||||||||
Total deferred tax assets | 135,055 | 649,080 | 336,561 | 761,494 | |||||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation | - | (5,641,761 | ) | - | (3,182,960 | ) | |||||||||||
Total deferred tax liabilities | - | (5,641,761 | ) | - | (3,182,960 | ) | |||||||||||
Net deferred tax assets (liabilities) | $ | 135,055 | $ | (4,992,681 | ) | $ | 336,561 | $ | (2,421,466 | ) | |||||||
As of December 31, 2014 and 2013, the Company did not record any valuation allowances. | |||||||||||||||||
The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. Interest and penalties of $19,760 and $0 were recognized in the statement of operations for the fiscal year ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
The Company files tax returns in the United States, in various states including Colorado, Kansas, North Dakota, Ohio and Pennsylvania. The Company’s United States federal income tax filings for tax years 2011 through 2014 remain open to examination. In general, the Company’s various state tax filings remain open for tax years 2010 to 2014. |
Note_8_Stockholders_Equity
Note 8 - Stockholders Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Note 8– Stockholders Equity | ||||||||||||||||
Private Placement. | |||||||||||||||||
In November 2012, the Company completed a Private Placement transaction of 5,699 Units to accredited investors at a price of $350 per Unit for total proceeds of $1,994,800. Each Unit was comprised of 1,000 shares of the Company’s common stock and warrants to purchase 500 shares of the Company’s common stock at $0.55 per share for up to 5 years from the date of closing. This resulted in the issuance of 5,699,428 shares of common stock and warrants to purchase 2,849,714 shares of common stock. In connection with this transaction, the Company issued 449,456 warrants as compensation to third parties for services performed for the Company in connection with the Private Placement on the same terms as the other warrants issued in the Private Placement. | |||||||||||||||||
Conversion of Subordinated Debt | |||||||||||||||||
On November 2, 2012, pursuant to conditions within the PNC Revolving Credit, Term Loan, and Security Agreement, Mr. Michael D. Herman (the Company’s former Chairman and CEO) converted his $1,477,760 of outstanding subordinated debt into 4,222,000 shares of the Company’s common stock and warrants to purchase 2,111,000 additional shares of common stock on the same terms and conditions as those of the Private Placement transaction above. In November 2013, Mr. Herman exercised all of his warrants for cash proceeds of $1,161,050. | |||||||||||||||||
In conjunction with the stock subscription agreements executed by the Private Placement investors, the Company and each investor also entered into a registration rights agreement; which agreement requires the payment of penalty fees to the equity investor in the event the Company is unable to timely register the shares of common stock acquired by the equity investor pursuant to the stock subscription agreement. The Company filed a registration statement for these shares which was declared effective June 21, 2013. If the Company fails to maintain the effectiveness of this registration statement, it may be subject to a penalty in cash or shares equal to 1.0% per month (prorated for any partial months), for the period(s) of time that the Company fails to maintain effectiveness of the registration statement underlying these shares. Liquidated Damages shall not exceed 8% of the original purchase price of such shares. The Company has not recorded an obligation for liquidated damages as the possibility of failing to maintain effectiveness is remote. | |||||||||||||||||
Warrants | |||||||||||||||||
In conjunction with the Private Placement and subordinated debt conversion in November 2012, the Company granted a one-half share warrant for every full share of common stock acquired by the equity investors or converted by Mr. Herman. As such, the Company granted warrants to purchase 4,960,714 shares of the Company’s common stock, exercisable at $0.55 per share for a five year term. Each of the warrants may be exercised on a cashless basis. The warrants also provide that subject to various conditions, the holders have piggy-back registration rights with respect to the shares of common stock that may be acquired upon the exercise of the warrants. | |||||||||||||||||
In November 2012, the Company granted each of the principals of an existing investor relations firm warrants to acquire 112,500 shares of the Company’s common stock (a total of 225,000 shares) for the firms assistance in creating awareness for the Company’s Private Placement. The warrants are exercisable at $0.55 per share and expire 5 years from date of grant. | |||||||||||||||||
On November 29, 2012, the Company entered into an investor relations agreement with an unaffiliated firm. Pursuant to this agreement and in lieu of cash fees, the Company issued the firm 125,000 shares of common stock at $0.40 per share and granted the firm a warrant to purchase 200,000 shares of common stock at $0.40 per share through June 1, 2016. The warrants vest based on performance criteria and may be exercised on a cashless basis. The warrants also provide that subject to various conditions, the holders have piggy-back registration rights with respect to the shares of common stock that may be acquired upon the exercise of the warrants. During the year ended December 31, 2013, the Company recognized stock-based compensation (through operating expense as general and administrative expense) of $60,046 attributable to warrants issued on November 29, 2012. | |||||||||||||||||
A summary of warrant activity for the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Warrants | Shares | Price | Life (Years) | Value | |||||||||||||
Outstanding at January 1, 2013 | 6,160,170 | $ | 0.55 | 4.7 | $ | 1,194,932 | |||||||||||
Issued | - | - | |||||||||||||||
Exercised | (3,502,456 | ) | 0.55 | ||||||||||||||
Forfeited/cancelled | - | - | |||||||||||||||
Outstanding at December 31, 2013 | 2,657,714 | $ | 0.55 | 3.7 | $ | 3,359,170 | |||||||||||
Issued | - | - | |||||||||||||||
Exercised | (2,407,713 | ) | 0.54 | ||||||||||||||
Forfeited/Cancelled | - | - | |||||||||||||||
Outstanding at December 31, 2014 | 250,001 | $ | 0.64 | 2.3 | $ | 242,901 | |||||||||||
Exercisable at December 31, 2014 | 250,001 | $ | 0.64 | 2.3 | $ | 242,901 | |||||||||||
During the year ended December 31, 2014, warrants to acquire 1,925,357 shares of common stock were exercised by way of cashless exercise whereby the warrant holders elected to receive 1,482,041 shares without payment of the exercise price and the remaining warrants for 443,316 shares were cancelled. In addition, warrants to acquire 482,356 shares were exercised for cash payments totaling $265,298. The warrants exercised had a total intrinsic value of $4,425,344 at the time of exercise. | |||||||||||||||||
During the year ended December 31, 2013 warrants to acquire 1,236,456 shares of common stock were exercised by way of cashless exercise whereby the warrant holders elected to receive 716,028 shares without payment of the exercise price and the remaining warrants for 520,428 shares were cancelled. In addition, warrants to acquire 2,266,000 shares were exercised for cash payments totaling $1,246,300. The warrants exercised had a total intrinsic value of $2,662,347 at the time of exercise. |
Note_9_Stock_Options
Note 9 - Stock Options | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9– Stock Options | ||||||||||||||||
On July 27, 2010 the Company’s board of directors adopted the 2010 Stock Incentive Plan (the “2010 Plan”). The aggregate number of shares of common stock that may be granted under the 2010 Plan is reset at the beginning of each year based on 15% of the number of shares of common stock then outstanding. As such, on January 1, 2014, the 2010 plan was reset to 5,223,380 shares based upon 34,822,536 shares outstanding on that date. Options are typically granted with an exercise price equal to the estimated fair value of the Company's common stock at the date of grant with a vesting schedule of one to three years and a contractual term of 5 years. As of December 31, 2014, there were 3,350,168 options outstanding under the 2010 Plan. | |||||||||||||||||
The “2008 Equity Plan” was established by Aspen Exploration in February 2008 and was terminated by the Company on July 27, 2010, although such termination did not terminate or otherwise affect the contractual rights of persons who then held options to acquire common stock under the 2008 Equity Plan. An aggregate of 1,000,000 common shares were reserved for issuance under the 2008 Equity Plan. As of December 31, 2014, there were 150,000 options outstanding under the 2008 Plan, all of which have been subsequently exercised. | |||||||||||||||||
A summary of the range of assumptions used to value stock options granted for the years ended December, 2014 and 2013 are as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 114 - 124% | 125% - 139% | |||||||||||||||
Risk-free interest rate | 0.72- 0.99% | 0.32% - 0.66% | |||||||||||||||
Dividend yield | - | - | |||||||||||||||
Expected term (in years) | 2.5- 3.5 | 2.5- 3.5 | |||||||||||||||
During the year ended December 31, 2014, the Company granted options to acquire 462,500 shares of common stock with a weighted-average grant-date fair value of $1.67 per share. During the year ended December 31, 2014, options to acquire 28,333 shares of common stock were exercised by way of a cashless exercise whereby the option holder elected to receive 24,282 shares of common stock without payment of the exercise price and the remaining options for 4,051 shares were cancelled. The options had an intrinsic value of $75,837 at the time of exercise. In addition, options to acquire 244,999 shares of common stock were exercised for cash payments of $127,987. The options had an intrinsic value of $531,609 at the time of exercise. | |||||||||||||||||
During the year ended December 31, 2013, the Company granted options to acquire 658,000 shares of common stock with a weighted-average grant-date fair value of $0.84 per share. During the year ended December 31, 2013, options to acquire 38,332 shares of common stock were exercised by way of a cashless exercise whereby the option holders elected to receive 15,214 shares of common stock without payment of the exercise price and the remaining options for 23,118 shares were cancelled. The options had an intrinsic value of $13,383 at the time of exercise. | |||||||||||||||||
The following is a summary of stock option activity for all equity plans for the years ended December 31, 2014 and 2013: | |||||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at January 1, 2013 | 3,075,431 | $ | 0.71 | 2.3 | $ | 106,051 | |||||||||||
Granted | 658,000 | 1.1 | |||||||||||||||
Exercised | (38,332 | ) | 0.72 | ||||||||||||||
Forfeited or Expired | (320,099 | ) | 1.42 | ||||||||||||||
Outstanding at December 31, 2013 | 3,375,000 | $ | 0.7 | 2.6 | $ | 3,760,325 | |||||||||||
Granted | 462,500 | 2.37 | |||||||||||||||
Exercised | (273,332 | ) | 0.51 | ||||||||||||||
Forfeited or Expired | (64,000 | ) | 2.27 | ||||||||||||||
Outstanding at December 31, 2014 | 3,500,168 | $ | 0.9 | 2.02 | $ | 2,785,893 | |||||||||||
Vested or Expected to Vest at December 31, 2014 | 3,500,168 | $ | 0.9 | 2.02 | $ | 2,785,893 | |||||||||||
Exercisable at December 31, 2014 | 3,001,664 | $ | 0.82 | 1.79 | $ | 2,540,289 | |||||||||||
The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the estimated fair value of the Company’s common stock and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they exercised their options on December 31, 2014. | |||||||||||||||||
During the year ended December 31, 2014 and 2013, the Company recognized stock-based compensation costs for stock options of $562,903 and $472,356, respectively in general and administrative expenses. The Company currently expects all outstanding options to vest. Compensation cost is revised if subsequent information indicates that the actual number of options vested is likely to differ from previous estimates. | |||||||||||||||||
A summary of the status of non-vested shares underlying the options are presented below: | |||||||||||||||||
Number of Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||||||
Non-vested at January 1, 2013 | 810,000 | $ | 0.37 | ||||||||||||||
Granted | 658,000 | 0.84 | |||||||||||||||
Vested | (638,330 | ) | 0.6 | ||||||||||||||
Forfeited | (163,002 | ) | 0.67 | ||||||||||||||
Non-vested at December 31, 2013 | 666,668 | $ | 0.54 | ||||||||||||||
Granted | 462,500 | 1.67 | |||||||||||||||
Vested | (566,664 | ) | 0.87 | ||||||||||||||
Forfeited | (64,000 | ) | 1.74 | ||||||||||||||
Non-vested at December 31, 2014 | 498,504 | $ | 1.05 | ||||||||||||||
As of December 31, 2014 there was $344,976 of total unrecognized compensation costs related to non-vested shares under the qualified stock option plans which will be recognized over the remaining weighted-average period of 1.40 years. |
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | Note 10–Commitments and Contingencies | ||||
Operating Leases | |||||
As of December 31, 2014, the Company leases facilities and certain trucks and equipment under lease commitments that expire through January 2021. All of these facility leases are accounted for as operating leases. Future minimum lease commitments for these facilities and other operating leases are as follows: | |||||
Year Ended December 31, | |||||
2015 | $ | 664,257 | |||
2016 | 362,318 | ||||
2017 | 151,000 | ||||
2018 | 96,000 | ||||
2019 | 96,000 | ||||
Thereafter | 104,000 | ||||
Total | $ | 1,473,575 | |||
Rent expense under operating leases for the year ended December 31, 2014 and 2013 was $1,113,581 and $994,940, respectively. | |||||
Equipment Purchase Commitments | |||||
As of December 31, 2014, the Company had approximately $1.9 million in outstanding purchase commitments that are necessary to complete the purchase and fabrication of eight hot oil trucks and one acid truck included in the Company’s 2014 CAPEX program. The Company intends to finance the purchase and fabrication of this equipment through cash flow from operations and through its revolving credit facility. | |||||
Litigation | |||||
On October 10, 2014, the Company received service of a complaint filed in the United States District Court for the Northern District of Texas, Dallas Division (Civil Action No. 3:14-cv-03631) by Heat-On-The-Fly, LLC (“HOTF”) naming the Enservco Corporation (“Enservco”) and its subsidiary Heat Waves Hot Oil Service, LLC (“Heat Waves”) as defendants. The complaint alleges that Enservco and Heat Waves, in offering and selling frac water heating services, infringed and induced others to infringe two patents owned by HOTF (U.S. Patent Nos. 8,171,993 (“the ‘993 Patent”) and 8,739,875 (“the ‘875 Patent”)). The complaint seeks various remedies including injunctive relief and unspecified damages and relates to only a portion of Heat Waves’ frac water heating services. The case is still in its early stages. Heat Waves has filed a motion to transfer the case to Colorado and Enservco has filed a motion to dismiss the case against it based on a lack of personal jurisdiction. A hearing on these motions is set for April 6, 2015. | |||||
Enservco and Heat Waves deny that they are infringing any valid, enforceable claims of the asserted patents and intend to vigorously defend themselves against the lawsuit. Heat Waves has offered on demand water heating services well before these patents were even filed. | |||||
The Company previously reported in its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 that it was aware of the HOTF ‘993 Patent relating, in part, to the heating of frac water, but also reported that the Company did not believe at that time, and still does not believe, that Heat Waves’ operations infringed any valid claim of that patent. The Company is aware that HOTF has been involved in litigation dating back to January of 2013 with a group of energy companies that are seeking to, among other things, invalidate the ‘993 Patent. Further, the Company is aware of another claim filed by a third party against HOTF in August 2014 also seeking to, among other things, invalidate the ‘993 Patent. | |||||
Although the first 12 claims of the ‘993 Patent survived a prior reexamination, the United States Patent and Trademark Office (“USPTO”) granted a second request on July 1, 2014, to reexamine the ‘993 Patent in its entirety (all 99 claims, including the prior 12 claims that survived the prior, limited reexamination) based on different reasoning. On February 11, 2015, the USPTO issued initial findings in the second reexamination proceeding that rejected all 99 claims of the ‘993 Patent as being unpatentable. HOTF has until April 11, 2015, to file a response with the USPTO, but can request an extension of the deadline if it shows good cause. The timing of HOTF’s response and any decision resulting therefrom is uncertain, is subject to appeal, and may be a year or more in the future. Further, HOTF has at least two additional pending patent applications that are based on the ‘993 Patent and ‘875 Patents that if granted could be asserted against the Company. As the ‘993 Patent and the ‘875 Patent are based on the same subject matter, management believes that a finding of invalidity of the ‘993 Patent could serve as a basis to affect the validity of the ‘875 Patent. If the Patents are found to be invalid, the litigation would become moot. | |||||
Until such time as the validity of the Patents is finalized and the case is dismissed, the Company will be expending funds for its defense. To the extent that the Company and Heat Waves are unsuccessful in their defense, they could be liable for damages (which may be significant) and possibly an injunction preventing them from using any infringing technology. Either result could negatively impact the Company’s business and operations. At this time, the Company is unable to predict the outcome of this case, and accordingly has not recorded an accrual for any potential loss. |
Note_11_Related_Party_Transact
Note 11 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 11– Related Party Transactions |
The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. | |
Loan Guaranty: | |
On October 3, 2013, the Company refinanced its real estate loan for its facility in North Dakota as described in Note 5. Under the terms of the agreement, $100,000 of the loan is guaranteed by Mike Herman, the Company’s former Chairman and Chief Executive Officer, and the Company had agreed to pay Mr. Herman a fee for so long as he guaranteed Company indebtedness of $12,500 per month ($150,000 annually). The agreement with the lender provided that if the Company makes a principal payment equal to or greater than $100,000, the guaranty is released in full. The Company made that payment in March 2015 and is no longer obligated to pay Mr. Herman the guaranty fee. | |
Sale of Equipment: | |
On February 3, 2014, the Board of Directors approved the sale of two trucks and a trailer to an entity owned 50% by the Company’s former Chairman and Chief Executive Officer for $50,000. The equipment had not been in service for over two years and was not economically feasible to repair and return to service. The Company was holding this equipment primarily for salvage purposes. At the time of the sale, the equipment had a net book value of $38,000 which resulted in a gain of $12,000. The Company believes the price paid was at least equal to the fair market value of the units had they been sold through auction or in the open market. |
Note_12_Subsequent_Events
Note 12 - Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 12– Subsequent Events |
In January 2015, the Company awarded each of its two new Board members 100,000 stock options under the Company’s 2010 Stock Incentive Plan for a total of 200,000 stock options. The stock options vest 50% upon the first anniversary as a Board member and 50% upon the second anniversary, and are exercisable until January 15, 2020 at a strike price of $1.79 per share (being the closing price on January 15, 2015, the date the options were granted). |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||
The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. | |||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable | ||
Accounts receivable are stated at the amount billed to customers. The Company provides a reserve for doubtful accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The provision for uncollectible amounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management's best estimate of uncollectible amounts and is determined based on historical collection experience related to accounts receivable coupled with a review of the current status of existing receivables. The losses ultimately incurred could differ materially in the near term from the amounts estimated in determining the allowance. As of December 31, 2014 and December 31, 2013, the Company had an allowance for doubtful accounts of $100,000 and $245,000, respectively. For the years ended December 31, 2014 and 2013 the Company has recorded bad debt expense (net of recoveries) of $96,592 and $249,809, respectively. | |||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations | ||
As of December 31, 2014, three customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 12%, 12% and 10%, respectively. Revenues from these three customers represented 18%, 6% and 8% of total revenues, respectively, for the year ended December 31, 2014. No other customer exceeded 10% of total revenues for the year ended December 31, 2014. | |||
As of December 31, 2013, two customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 13% and 12%, respectively. Revenues from these two customers represented 17% and 9% of total revenues, respectively, for the year ended December 31, 2013. No other customer exceeded 10% of total revenues for the year ended December 31, 2013 | |||
Inventory, Policy [Policy Text Block] | Inventories | ||
Inventory consists primarily of propane, diesel fuel and chemicals that are used in the servicing of oil wells and is carried at the lower of cost or market in accordance with the first in, first out method. The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. | |||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | ||
Property and equipment consists of (1) trucks, trailers and pickups; (2) trucks that are in various stages of fabrication; (3) real property which includes land and buildings used for office and shop facilities and wells used for the disposal of water; and (4) other equipment such as tools used for maintaining and repairing vehicles, office furniture and fixtures, and computer equipment. Property and equipment is stated at cost less accumulated depreciation. The Company capitalizes interest on certain qualifying assets that are undergoing activities to prepare them for their intended use. Interest costs incurred during the fabrication period are capitalized and amortized over the life of the assets. The Company charges repairs and maintenance against income when incurred and capitalizes renewals and betterments, which extend the remaining useful life, expand the capacity or efficiency of the assets. Depreciation is recorded on a straight-line basis over estimated useful lives of 5 to 30 years. | |||
Lease, Policy [Policy Text Block] | Leases | ||
The Company conducts a major part of its operations from leased facilities. Each of these leases is accounted for as operating leases. Normally, the Company records rental expense on its operating leases over the lease term as it becomes payable. If rental payments are not made on a straight-line basis, per terms of the agreement, the Company records a deferred rent expense and recognizes the rental expense on a straight-line basis throughout the lease term. The majority of the Company’s facility leases contain renewal clauses and expire through August 2017. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. | |||
The Company is leasing a number of trucks and equipment in the normal course of business, which is recorded as an operating lease. The Company records rental expense on its equipment operating lease over the lease term as it becomes payable; there are no rent escalation terms associated with these equipment leases. On the equipment lease, a purchase options exist allowing the Company to purchase the leased equipment at the end of the lease term, based on the market price of the equipment at the time of the lease termination and exercised purchase option. | |||
The Company enters into capital leases in order to acquire trucks and equipment. Each of these leases allow the Company to obtain title of the equipment leased through the lease agreements upon final payment of all principal and interest due. The Company records the assets and liabilities associated with these leases at the present value of the minimum lease payments per the lease agreement. The assets and associated liabilities are classified as Property and Equipment and the liabilities are classified as current and long-term liabilities based on the contractual terms of the agreements and their associated maturities. There are no outstanding capital leases as of December 31, 2014 and 2013. | |||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets | ||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired. No impairments were recorded during the years ended December 31, 2014 or 2013. | |||
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share | ||
Earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average number of common shares. The diluted weighted average number of common shares is computed using the treasury stock method for common stock that may be issued for outstanding stock options and warrants. | |||
As of December 31, 2014 and 2013, there were outstanding stock options and warrants to acquire an aggregate of 3,750,169 and 6,032,714 shares of Company common stock, respectively, which have a potentially dilutive impact on earnings per share. For the year ended December 31, 2014 and 2013, the incremental shares of the options and warrants to be included in the calculation of diluted earnings per share had a dilutive impact on the Company’s earnings per share of 2,469,099 and 4,658,052 shares, respectively. | |||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets | ||
Non-Competition Agreements | |||
The non-competition agreements with the sellers of Heat Waves and Dillco have finite lives and are being amortized over the five-year contractual periods. All non-competition agreements were fully amortized as of December 31, 2013. Amortization expense for the years ended December 31, 2014 and 2013 totaled $0 and $30,000, respectively. | |||
Goodwill | |||
Goodwill represents the excess of the cost over the fair value of net assets acquired, including identified intangible assets, recorded in connection with the acquisitions of Heat Waves. Goodwill is not amortized but is assessed for impairment at least annually. | |||
Impairment | |||
The Company assesses goodwill and intangible assets with indefinite lives for impairment at the reporting unit level on an annual basis and between annual tests if events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount. Guidance allows a qualitative assessment of impairment to determine whether it is more-likely-than-not that the intangible asset is impaired. If it is determined that it is more-likely-than-not that and impairment exists, accounting guidance requires that the impairment test be performed through the application of a two-step fair value test. The Company utilizes this method and recognizes a goodwill impairment loss in the event that the fair value of the reporting unit does not exceed its carrying value. During fiscal years ending December 31, 2014 and 2013, the Company performed the annual impairment test as of the date ending at each of these fiscal years and determined in both fiscal years that no impairment existed. | |||
Derivatives, Policy [Policy Text Block] | Derivative Instruments | ||
The Company has swap agreements in place to hedge against changes in interest rates. The fair value of the Company’s derivative instruments is reflected as assets or liabilities on the balance sheets. The effective portion of changes in the fair value of the derivative instruments are deferred in Accumulated other comprehensive loss and are reclassified to income when the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivative instrument is recorded in earnings. Transactions related to the Company’s derivative instruments accounted for as hedges are classified in the same category as the item hedged in the statement of cash flows. The Company does not hold derivative instruments for trading purposes. | |||
The Company assesses the retrospective and prospective effectiveness of its derivative instruments on a quarterly basis to determine whether the hedging instruments have been highly effective in offsetting changes in fair value of the hedged items. The Company also assesses on a quarterly basis whether the hedging instruments are expected to be highly effective in the future. If a hedging instrument is not expected to be highly effective, the Company will stop cash flow hedge accounting prospectively. In those instances, the gains or losses remain in Accumulated other comprehensive loss until the hedged item affects earnings. As a result of the Amended and Restated Revolving Credit and Security Agreement with PNC Bank, National Association in September 2014 (Note 4), effective October 2014 the Company is no longer using cash flow hedge accounting therefore changes in the fair value of the derivative instruments are reported in current earnings. | |||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||
The Company recognizes deferred tax liabilities and assets (Note 7) based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities will be recognized in income in the period that includes the enactment date. Deferred income taxes are classified as a net current or non-current asset or liability based on the classification of the related asset or liability for financial reporting purposes. A deferred tax asset or liability that is not related to an asset or liability for financial reporting is classified according to the expected reversal date. The Company records a valuation allowance to reduce deferred tax assets to an amount that it believes is more likely than not expected to be realized. | |||
The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized in the financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, the Company is required to make many subjective assumptions and judgments regarding income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to the Company’s subjective assumptions and judgments which can materially affect amounts recognized in the consolidated balance sheets and consolidated statements of income. The result of the reassessment of the Company’s tax positions did not have an impact on the consolidated financial statements. | |||
Interest and penalties associated with tax positions are recorded in the period assessed as income tax expense. The Company files income tax returns in the United States and in the states in which it conducts its business operations. The Company’s United States federal income tax filings for tax years 2011 through 2014 remain open to examination. In general, the Company’s various state tax filings remain open for tax years 2010 to 2014 | |||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value | ||
The Company follows authoritative guidance that applies to all financial assets and liabilities required to be measured and reported on a fair value basis. The Company also applies the guidance to non-financial assets and liabilities measured at fair value on a nonrecurring basis, including non-competition agreements and goodwill. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. During the year ended December 31, 2014, the Company did not change any of its valuation techniques. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. | |||
Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. | |||
The hierarchy is broken down into three levels based on the reliability of the inputs as follows: | |||
Level 1: | Quoted prices are available in active markets for identical assets or liabilities; | ||
Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or | ||
Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. | ||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation | ||
The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for all stock options awarded to employees, officers, and directors. The expected term of the options is based upon evaluation of historical and expected further exercise behavior. The risk-free interest rate is based upon U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life of the grant. Volatility is determined upon historical volatility of our stock and adjusted if future volatility is expected to vary from historical experience. The dividend yield is assumed to be none as we have not paid dividends nor do we anticipate paying any dividends in the foreseeable future. | |||
The Company also uses the Black-Scholes valuation model to determine the fair value of warrants. Expected volatility is based upon the weighted average of historical volatility over the contractual term of the warrant and implied volatility. The risk-free interest rate is based upon implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the contractual term of the warrants. The dividend yield is assumed to be none. | |||
Loan Fees and Other Deferred Costs [Policy Text Block] | Loan Fees and Other Deferred Costs | ||
In the normal course of business, the Company often enters into loan agreements with its primary lending institutions. The majority of these lending agreements require origination fees and other fees in the course of executing the agreements. For all costs associated with the execution of the lending agreements, the Company defers these costs and amortizes them as interest expense over the term of the loan agreement using the effective interest method. These deferred costs are classified on the balance sheet as current or long-term assets based on the contractual terms of the loan agreements. All other costs not associated with the execution of the loan agreements are expensed as incurred. See Note 4 for loan fees recorded in the current period. | |||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||
The Company recognizes revenue when evidence of an arrangement exists, the fee is fixed or determinable, services are provided and collection is reasonably assured. | |||
Reclassification, Policy [Policy Text Block] | Reclassifications | ||
Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. The Company reclassified $25,975 of site personnel costs from general and administrative expenses to cost of revenues on the consolidated statement of operations and comprehensive (loss) income for the year ended December 31, 2013 to conform to 2014 presentation. The Company reclassified $189,645 of patent defense costs from general and administrative expenses to patent litigation and defense costs on the consolidated statement of operations and comprehensive income for the year ended December 31, 2013 to conform to 2014 presentation. | |||
Use of Estimates, Policy [Policy Text Block] | Management Estimates | ||
The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the realization of accounts receivable, stock based compensation expense, income tax provision, the valuation of deferred taxes, and the valuation of the Company’s interest rate swap. Actual results could differ from those estimates. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements | ||
Recently Adopted | |||
In July 2013 the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” to provide guidance on the presentation of unrecognized tax benefits. This ASU requires that companies net their unrecognized tax benefits against all same-jurisdiction net operating losses or tax credit carryforwards that would be used to settle the position with a tax authority. This pronouncement was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not impact the Company’s consolidated financial position, results of operations, or cash flows | |||
Recently Issued | |||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The standard requires an entity's management to evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Public entities are required to apply the standard for annual reporting periods ending after December 15, 2016, and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial position, results of operations, or cash flows. | |||
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The adoption of this guidance is not expected to impact the Company’s consolidated financial position, results of operations, or cash flows. | |||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 provides a framework that replaces the existing revenue recognition guidance. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, ASU 2014-09 requires enhanced financial statement disclosures over revenue recognition as part of the new accounting guidance. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. We are currently evaluating the provisions of ASU 2014-09 and awaiting implementation guidance to determine the impact, if any, it may have on our consolidated financial position, results of operations and cash flows. |
Note_1_Basis_of_Presentation_T
Note 1 - Basis of Presentation (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Disclosure Text Block [Abstract] | ||||
Schedule of Current Ownership Hierarchy [Table Text Block] | The below table provides an overview of the Company’s current ownership hierarchy: | |||
Name | State of Formation | Ownership | Business | |
Dillco Fluid Service, Inc. (“Dillco”) | Kansas | 100% by Enservco | Oil and natural gas field fluid logistic services. | |
Heat Waves Hot Oil Service LLC (“Heat Waves”) | Colorado | 100% by Enservco | Oil and natural gas well services, including logistics and stimulation. | |
HE Services LLC (“HES”) | Nevada | 100% by Heat Waves | No active business operations. Owns construction equipment used by Heat Waves. | |
Real GC, LLC (“Real GC”) | Colorado | 100% by Heat Waves | No active business operations. Owns real property in Garden City, Kansas that is utilized by Heat Waves. |
Note_3_Property_and_Equipment_
Note 3 - Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | December 31, | ||||||||
2014 | 2013 | ||||||||
Trucks and vehicles | $ | 48,020,268 | $ | 27,240,551 | |||||
Other equipment | 3,135,916 | 2,820,674 | |||||||
Buildings and improvements | 3,396,280 | 2,364,353 | |||||||
Trucks in process | 2,366,758 | 1,205,936 | |||||||
Land | 776,420 | 596,420 | |||||||
Disposal wells | 367,330 | 367,330 | |||||||
Total property and equipment | 58,062,972 | 34,595,264 | |||||||
Accumulated depreciation | (20,273,968 | ) | (17,169,436 | ) | |||||
Property and equipment – net | $ | 37,789,004 | $ | 17,425,828 |
Note_5_Longterm_Debt_Tables
Note 5 - Long-term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, | ||||||||
2014 | 2013 | ||||||||
PNC Term Loan, original principal balance of $11,000,000 at issuance, amended to $12,428,576 in November 2013, payable in twenty-three fixed monthly principal installments of $172,620 beginning November 2013, with the remaining principal due November 2, 2015. Variable interest rate based of 4.25% plus 1 month LIBOR for Eurodollar Rate Loans and interest at PNC Base Rate plus 2.25% for Domestic Rate Loans, collateralized by equipment, inventory, and accounts of the Company and subject to financial covenants. (See Note 4.) | $ | - | $ | 12,083,336 | |||||
Real Estate Loan for facility in North Dakota, interest at 3.75%, monthly principal and interest payment of $5,255 ending October 3, 2028. Collateralized by land and property purchased with the loan. $100,000 of loan guaranteed by the Company’s former Chairman and Chief Executive Officer. | 677,204 | 713,756 | |||||||
Note payable to the seller of Heat Waves. The note was garnished by the Internal Revenue Service (“IRS”) in 2009 and is due on demand; payable in monthly installments of $3,000 per agreement with the IRS. | 242,000 | 281,000 | |||||||
Mortgage payable to a bank; interest at 7.25%, due in monthly principal and interest payments of $4,555 through February 2017, secured by land. | 107,967 | 153,018 | |||||||
Mortgage payable to a bank, interest at 5.9%, monthly principal and interest payments of $1,550 through January 2017 with a balloon payment of $88,118 on February 1, 2017; secured by land. | 115,317 | 126,750 | |||||||
Note payable to vehicle finance companies, interest rates ranging from 4.74% to 8.2%. Paid in full during 2014. | - | 404,329 | |||||||
Total | 1,142,488 | 13,762,189 | |||||||
Total current portion | (340,520 | ) | (2,562,141 | ) | |||||
Long term debt, net of current portion | 801,968 | 11,200,048 | |||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Year Ended December 31, | ||||||||
2015 | $ | 340,520 | |||||||
2016 | 104,258 | ||||||||
2017 | 138,796 | ||||||||
2018 | 42,542 | ||||||||
2019 | 44,188 | ||||||||
Thereafter | 472,184 | ||||||||
Total | $ | 1,142,488 |
Note_6_Fair_Value_Measurements1
Note 6 - Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurement Using | ||||||||||||||||
Quoted | Significant Other | Significant | Fair Value | ||||||||||||||
Prices in | Observable | Unobservable | Measurement | ||||||||||||||
Active Markets (Level 1) | Inputs | Inputs | |||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
Derivative Instrument | |||||||||||||||||
Interest rate swap, net liability* | $ | - | $ | 9,895 | $ | - | $ | - | |||||||||
31-Dec-13 | |||||||||||||||||
Derivative Instrument | |||||||||||||||||
Interest rate swap, net asset* | $ | - | $ | 6,650 | $ | - | $ | 6,650 |
Note_7_Income_Taxes_Tables
Note 7 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 6,377,613 | $ | 7,380,567 | |||||||||||||
Income before income taxes | 6,377,613 | 7,380,567 | |||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current | |||||||||||||||||
Federal | $ | (431,810 | ) | $ | 1,082,402 | ||||||||||||
State | - | 220,900 | |||||||||||||||
(431,810 | ) | 1,303,302 | |||||||||||||||
Deferred | |||||||||||||||||
Federal | 2,603,115 | 1,548,332 | |||||||||||||||
State | 200,567 | 227,696 | |||||||||||||||
2,803,682 | 1,776,028 | ||||||||||||||||
Total Income Tax Provision | $ | 2,371,872 | $ | 3,079,330 | |||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Computed income taxes at 34% | $ | 2,168,389 | $ | 2,509,393 | |||||||||||||
Increase in income taxes resulting from: | |||||||||||||||||
State and local income taxes, net of federal impact | 191,328 | 469,029 | |||||||||||||||
Change in tax rate | (97,350 | ) | - | ||||||||||||||
Stock-based compensation | 79,841 | 74,943 | |||||||||||||||
Other | 29,664 | 25,965 | |||||||||||||||
Provision for income taxes | $ | 2,371,872 | $ | 3,079,330 | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
Current | Long-Term | Current | Long-Term | ||||||||||||||
Deferred tax assets | |||||||||||||||||
Reserves and accruals | $ | 135,055 | $ | - | $ | 336,561 | $ | - | |||||||||
Amortization | - | 173,700 | - | 222,117 | |||||||||||||
Capital losses | - | 3,661 | - | (1,982 | ) | ||||||||||||
Non-qualified stock option expense | - | 400,009 | - | 514,659 | |||||||||||||
Loss Carryforwards | - | 71,710 | - | 26,700 | |||||||||||||
Total deferred tax assets | 135,055 | 649,080 | 336,561 | 761,494 | |||||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation | - | (5,641,761 | ) | - | (3,182,960 | ) | |||||||||||
Total deferred tax liabilities | - | (5,641,761 | ) | - | (3,182,960 | ) | |||||||||||
Net deferred tax assets (liabilities) | $ | 135,055 | $ | (4,992,681 | ) | $ | 336,561 | $ | (2,421,466 | ) |
Note_8_Stockholders_Equity_Tab
Note 8 - Stockholders Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Weighted | ||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Warrants | Shares | Price | Life (Years) | Value | |||||||||||||
Outstanding at January 1, 2013 | 6,160,170 | $ | 0.55 | 4.7 | $ | 1,194,932 | |||||||||||
Issued | - | - | |||||||||||||||
Exercised | (3,502,456 | ) | 0.55 | ||||||||||||||
Forfeited/cancelled | - | - | |||||||||||||||
Outstanding at December 31, 2013 | 2,657,714 | $ | 0.55 | 3.7 | $ | 3,359,170 | |||||||||||
Issued | - | - | |||||||||||||||
Exercised | (2,407,713 | ) | 0.54 | ||||||||||||||
Forfeited/Cancelled | - | - | |||||||||||||||
Outstanding at December 31, 2014 | 250,001 | $ | 0.64 | 2.3 | $ | 242,901 | |||||||||||
Exercisable at December 31, 2014 | 250,001 | $ | 0.64 | 2.3 | $ | 242,901 |
Note_9_Stock_Options_Tables
Note 9 - Stock Options (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the Years Ended December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 114 - 124% | 125% - 139% | |||||||||||||||
Risk-free interest rate | 0.72- 0.99% | 0.32% - 0.66% | |||||||||||||||
Dividend yield | - | - | |||||||||||||||
Expected term (in years) | 2.5- 3.5 | 2.5- 3.5 | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at January 1, 2013 | 3,075,431 | $ | 0.71 | 2.3 | $ | 106,051 | |||||||||||
Granted | 658,000 | 1.1 | |||||||||||||||
Exercised | (38,332 | ) | 0.72 | ||||||||||||||
Forfeited or Expired | (320,099 | ) | 1.42 | ||||||||||||||
Outstanding at December 31, 2013 | 3,375,000 | $ | 0.7 | 2.6 | $ | 3,760,325 | |||||||||||
Granted | 462,500 | 2.37 | |||||||||||||||
Exercised | (273,332 | ) | 0.51 | ||||||||||||||
Forfeited or Expired | (64,000 | ) | 2.27 | ||||||||||||||
Outstanding at December 31, 2014 | 3,500,168 | $ | 0.9 | 2.02 | $ | 2,785,893 | |||||||||||
Vested or Expected to Vest at December 31, 2014 | 3,500,168 | $ | 0.9 | 2.02 | $ | 2,785,893 | |||||||||||
Exercisable at December 31, 2014 | 3,001,664 | $ | 0.82 | 1.79 | $ | 2,540,289 | |||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | Number of Shares | Weighted-Average Grant-Date Fair Value | |||||||||||||||
Non-vested at January 1, 2013 | 810,000 | $ | 0.37 | ||||||||||||||
Granted | 658,000 | 0.84 | |||||||||||||||
Vested | (638,330 | ) | 0.6 | ||||||||||||||
Forfeited | (163,002 | ) | 0.67 | ||||||||||||||
Non-vested at December 31, 2013 | 666,668 | $ | 0.54 | ||||||||||||||
Granted | 462,500 | 1.67 | |||||||||||||||
Vested | (566,664 | ) | 0.87 | ||||||||||||||
Forfeited | (64,000 | ) | 1.74 | ||||||||||||||
Non-vested at December 31, 2014 | 498,504 | $ | 1.05 |
Note_10_Commitments_and_Contin1
Note 10 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Ended December 31, | ||||
2015 | $ | 664,257 | |||
2016 | 362,318 | ||||
2017 | 151,000 | ||||
2018 | 96,000 | ||||
2019 | 96,000 | ||||
Thereafter | 104,000 | ||||
Total | $ | 1,473,575 |
Note_1_Basis_of_Presentation_D
Note 1 - Basis of Presentation (Details) - Current Ownership Hierarchy | 12 Months Ended |
Dec. 31, 2014 | |
Dillco Fluid Service, Inc. at Kansas [Member] | |
Note 1 - Basis of Presentation (Details) - Current Ownership Hierarchy [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership After All Transactions | 100.00% |
Heat Waves Hot Oil Service, LLC at Colorado [Member] | |
Note 1 - Basis of Presentation (Details) - Current Ownership Hierarchy [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership After All Transactions | 100.00% |
HE Services, LLC at Nevada [Member] | |
Note 1 - Basis of Presentation (Details) - Current Ownership Hierarchy [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership After All Transactions | 100.00% |
Real GC, LLC at Colorado [Member] | |
Note 1 - Basis of Presentation (Details) - Current Ownership Hierarchy [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership After All Transactions | 100.00% |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current (in Dollars) | $100,000 | $245,000 |
Provision for Doubtful Accounts (in Dollars) | 96,592 | 249,809 |
Capital Lease Obligations, Current (in Dollars) | 0 | |
Asset Impairment Charges (in Dollars) | 0 | 0 |
Number of Outstanding, Stock-Based Option Awards and Warrants (in Shares) | 3,750,169 | 6,032,714 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants (in Shares) | 2,469,099 | 4,658,052 |
Amortization of Intangible Assets (in Dollars) | 0 | 30,000 |
Income Tax Examination, Likelihood of Unfavorable Settlement | 50% | |
Prior Period Reclassification Adjustment (in Dollars) | $25,975 | $189,645 |
Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 13.00% |
Customer A [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Concentration Risk, Percentage | 18.00% | 17.00% |
Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 12.00% |
Customer B [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Concentration Risk, Percentage | 6.00% | 9.00% |
Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Concentration Risk, Percentage | 10.00% | |
Customer C [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Concentration Risk, Percentage | 8.00% | |
Noncompete Agreements [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Number of Customers | 2 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Number of Customers | 3 | 2 |
Minimum [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum [Member] | ||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years |
Note_3_Property_and_Equipment_1
Note 3 - Property and Equipment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $3,402,330 | $2,058,767 |
Note_3_Property_and_Equipment_2
Note 3 - Property and Equipment (Details) - Summary of Property and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | $58,062,972 | $34,595,264 |
Accumulated depreciation | -20,273,968 | -17,169,436 |
Property and equipment b net | 37,789,004 | 17,425,828 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 48,020,268 | 27,240,551 |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 3,135,916 | 2,820,674 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 3,396,280 | 2,364,353 |
Trucks in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 2,366,758 | 1,205,936 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 776,420 | 596,420 |
Disposal Wells [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | $367,330 | $367,330 |
Note_4_PNC_Credit_Facility_Det
Note 4 - PNC Credit Facility (Details) (USD $) | 12 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 10 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Nov. 30, 2013 | Sep. 30, 2014 | Nov. 02, 2012 | Nov. 13, 2012 | Nov. 02, 2012 | Nov. 30, 2012 | |||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Long-term Debt | $1,142,488 | $13,762,189 | |||||||||
Amortization of Financing Costs | 253,803 | 309,236 | |||||||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Derivative, Notional Amount | 11,000,000 | ||||||||||
Subject to Certain Conditions and Approvals [Member] | 2014 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 40,000,000 | 40,000,000 | |||||||||
Additional Costs [Member] | 2014 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Issuance Cost | 199,825 | ||||||||||
Additional Costs [Member] | 2012 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Issuance Cost | 199,825 | 50,422 | |||||||||
Domestic Rate Loans [Member] | 2014 Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||||
Domestic Rate Loans [Member] | 2014 Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||
Domestic Rate Loans [Member] | 2014 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||||||||
Long-term Debt | 1,234,037 | ||||||||||
Domestic Rate Loans [Member] | 2012 Credit Agreement [Member] | Base Rate [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||
LIBOR Based Loans [Member] | 2014 Credit Agreement [Member] | Minimum [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||||||||||
LIBOR Based Loans [Member] | 2014 Credit Agreement [Member] | Maximum [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.67% | ||||||||||
LIBOR Based Loans [Member] | 2014 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Long-term Debt | 27,400,000 | ||||||||||
Term Loan [Member] | 2014 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Long-term Debt | 28,634,037 | ||||||||||
Term Loan [Member] | 2012 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Long-term Debt | 0 | 12,428,576 | |||||||||
Debt Instrument, Face Amount | 11,000,000 | 11,000,000 | |||||||||
Debt Instrument, Monthly Payment | 172,620 | 130,952 | |||||||||
Debt Instrument, Increase (Decrease), Net | 3,000,000 | ||||||||||
Term Loan [Member] | Interest Rate Swap [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.64% | ||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.25% | ||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.25% | ||||||||||
Term Loan [Member] | Base Rate [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||
Term Loan [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||||||||
Long-term Debt | 12,083,336 | ||||||||||
Eurodollar Rate Loans [Member] | 2012 Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | ||||||||||
2014 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Term | 5 years | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | 30,000,000 | |||||||||
Line of Credit Facility, Limitation on Borrowings, Percentage of Eligible Receivables | 85.00% | 85.00% | |||||||||
Line of Credit Facility, Limitation on Borrowings, Percentage of Appraised Value of Trucks and Equipment | 85.00% | 85.00% | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 11,100,000 | ||||||||||
2014 Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||||||
2014 Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||||||
2014 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 40,000,000 | ||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.38% | ||||||||||
2012 Credit Agreement [Member] | Interest Rate Swap [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.89% | 4.89% | |||||||||
2012 Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||||||
2012 Credit Agreement [Member] | Revolving Credit Facility [Member] | PNC Bank Rate [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||
2012 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 0 | 5,000,000 | 5,000,000 | ||||||||
Line of Credit Facility, Limitation on Borrowings, Percentage of Eligible Receivables | 85.00% | 85.00% | |||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.38% | ||||||||||
Long-term Line of Credit | 0 | 0 | |||||||||
2012 Credit Agreement [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 16,000,000 | 16,000,000 | |||||||||
Debt Issuance Cost | 922,685 | ||||||||||
Unamortized Debt Issuance Expense | 378,023 | 378,023 | |||||||||
Interest Rate Swap [Member] | Other Assets [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Derivative Asset | 0 | 18,616 | |||||||||
Interest Rate Swap [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Derivative Liability | 9,895 | 11,966 | |||||||||
Interest Rate Swap [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Derivative Liability | 6,650 | [1] | |||||||||
Derivative Asset | [1] | ||||||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Unamortized Debt Issuance Expense | 115,670 | 324,012 | |||||||||
Other Assets [Member] | |||||||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | |||||||||||
Unamortized Debt Issuance Expense | $424,482 | $270,019 | |||||||||
[1] | Note: The interest rate swap as of December 31, 2014 consists of long-term assets of $0 and current liabilities of $9,895 (classified as Current portion of interest rate swap). The interest rate swap as of December 31, 2013 consists of current liabilities of $11,966 (classified as Current portion of interest rate swap), and long-term assets of $18,616 (classified as Long-term portion of interest rate swap). |
Note_5_Longterm_Debt_Details_S
Note 5 - Long-term Debt (Details) - Summary of Long-term Debt Instruments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $1,142,488 | $13,762,189 |
Total current portion | -340,520 | -2,562,141 |
Long term debt, net of current portion | 801,968 | 11,200,048 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 12,083,336 | |
Real Estate Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 677,204 | 713,756 |
Note Payable To Seller Of Heat Waves [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 242,000 | 281,000 |
Mortgage Payable Through February 2017 Without Balloon Payment [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 107,967 | 153,018 |
Mortgage Payable Through February 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 115,317 | 126,750 |
Note Payable to Vehicle Finance Companies [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $404,329 |
Note_5_Longterm_Debt_Details_S1
Note 5 - Long-term Debt (Details) - Summary of Long-term Debt Instruments (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Term Loan [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
PNC Term Loan, addition to base rate for Domestic Rate Loans | 2.25% | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Equipment Loan, Original Principal Balance | $11,000,000 | |
Amended Principal Balance | 12,428,576 | |
Debt Instrument, Periodic Payment | 172,620 | |
PNC Term Loan: Variable interest rate base | 4.25% | |
Real Estate Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Periodic Payment | 5,255 | 5,255 |
Guarantee Provided By Related Party | 100,000 | 100,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.75% | 3.75% |
Debt Instrument, Maturity Date | 3-Oct-28 | 3-Oct-28 |
Note Payable To Seller Of Heat Waves [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Periodic Payment | 3,000 | 3,000 |
Mortgage Payable Through February 2017 Without Balloon Payment [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Periodic Payment | 4,555 | 4,555 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.25% | 7.25% |
Mortgage Payable Through February 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Periodic Payment | 1,550 | 1,550 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.90% | 5.90% |
Debt Instrument, Maturity Date | 1-Feb-17 | 1-Feb-17 |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $88,118 | $88,118 |
Note Payable to Vehicle Finance Companies [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.74% | |
Note Payable to Vehicle Finance Companies [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 8.20% |
Note_5_Longterm_Debt_Details_S2
Note 5 - Long-term Debt (Details) - Summary of Maturities of Long-term Debt (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Maturities of Long-term Debt [Abstract] | ||
2015 | $340,520 | |
2016 | 104,258 | |
2017 | 138,796 | |
2018 | 42,542 | |
2019 | 44,188 | |
Thereafter | 472,184 | |
Total | $1,142,488 | $13,762,189 |
Note_6_Fair_Value_Measurements2
Note 6 - Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 6 - Fair Value Measurements (Details) [Line Items] | ||
Hedging Assets, Noncurrent | $0 | $18,616 |
Hedging Liabilities, Current | 9,895 | 11,966 |
Fair Value, Inputs, Level 2 [Member] | ||
Note 6 - Fair Value Measurements (Details) [Line Items] | ||
Derivative Asset | 9,895 | |
Derivative Liability | $6,650 |
Note_6_Fair_Value_Measurements3
Note 6 - Fair Value Measurements (Details) - Financial Assets and Liabilities Measured on Recurring Basis (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||||
Derivative Instrument | ||||
Interest rate swap, net liability* | [1] | |||
Derivative Instrument | ||||
Interest rate swap, net asset* | [1] | |||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||||
Derivative Instrument | ||||
Interest rate swap, net liability* | 9,895 | [1] | ||
Derivative Instrument | ||||
Interest rate swap, net asset* | 6,650 | [1] | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Derivative Instrument | ||||
Interest rate swap, net liability* | 9,895 | |||
Derivative Instrument | ||||
Interest rate swap, net asset* | 6,650 | |||
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||||
Derivative Instrument | ||||
Interest rate swap, net liability* | [1] | |||
Derivative Instrument | ||||
Interest rate swap, net asset* | [1] | |||
Interest Rate Swap [Member] | ||||
Derivative Instrument | ||||
Interest rate swap, net liability* | [1] | |||
Derivative Instrument | ||||
Interest rate swap, net asset* | $6,650 | [1] | ||
[1] | Note: The interest rate swap as of December 31, 2014 consists of long-term assets of $0 and current liabilities of $9,895 (classified as Current portion of interest rate swap). The interest rate swap as of December 31, 2013 consists of current liabilities of $11,966 (classified as Current portion of interest rate swap), and long-term assets of $18,616 (classified as Long-term portion of interest rate swap). |
Note_7_Income_Taxes_Details
Note 7 - Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Deferred Tax Assets, Valuation Allowance | $0 | $0 |
Income Tax Examination, Penalties and Interest Expense | $19,760 | $0 |
Note_7_Income_Taxes_Details_In
Note 7 - Income Taxes (Details) - Income from Operations Before Income Taxes (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 7 - Income Taxes (Details) - Income from Operations Before Income Taxes [Line Items] | ||
Income from operations, before income taxes | $6,377,613 | $7,380,567 |
UNITED STATES | ||
Note 7 - Income Taxes (Details) - Income from Operations Before Income Taxes [Line Items] | ||
Income from operations, before income taxes | $6,377,613 | $7,380,567 |
Note_7_Income_Taxes_Details_Co
Note 7 - Income Taxes (Details) - Components of Income Tax Provision (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current | ||
Federal | ($431,810) | $1,082,402 |
State | 220,900 | |
-431,810 | 1,303,302 | |
Deferred | ||
Federal | 2,603,115 | 1,548,332 |
State | 200,567 | 227,696 |
2,785,196 | 1,781,057 | |
Total Income Tax Provision | $2,371,872 | $3,079,330 |
Note_7_Income_Taxes_Details_Re
Note 7 - Income Taxes (Details) - Reconciliation of Computed Income Tax (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Computed Income Tax [Abstract] | ||
Computed income taxes at 34% | $2,168,389 | $2,509,393 |
Increase in income taxes resulting from: | ||
State and local income taxes, net of federal impact | 191,328 | 469,029 |
Change in tax rate | -97,350 | |
Stock-based compensation | 79,841 | 74,943 |
Other | 29,664 | 25,965 |
Provision for income taxes | $2,371,872 | $3,079,330 |
Note_7_Income_Taxes_Details_De
Note 7 - Income Taxes (Details) - Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax liabilities | ||
Net deferred tax assets (liabilities) | $135,055 | $336,561 |
Net deferred tax assets (liabilities) | -4,992,681 | -2,421,466 |
Deferred Tax, Current [Member] | ||
Deferred tax assets | ||
Reserves and accruals | 135,055 | 336,561 |
Total deferred tax assets | 135,055 | 336,561 |
Deferred tax liabilities | ||
Net deferred tax assets (liabilities) | 135,055 | 336,561 |
Deferred Tax, Noncurrent [Member] | ||
Deferred tax assets | ||
Amortization | 173,700 | 222,117 |
Capital losses | 3,661 | -1,982 |
Non-qualified stock option expense | 400,009 | 514,659 |
Loss Carryforwards | 71,710 | 26,700 |
Total deferred tax assets | 649,080 | 761,494 |
Deferred tax liabilities | ||
Depreciation | -5,641,761 | -3,182,960 |
Total deferred tax liabilities | -5,641,761 | -3,182,960 |
Net deferred tax assets (liabilities) | ($4,992,681) | ($2,421,466) |
Note_8_Stockholders_Equity_Det
Note 8 - Stockholders Equity (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||
Nov. 29, 2012 | Nov. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 02, 2012 | Nov. 30, 2013 | |
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Warrants, Expiration Period | 5 years | |||||
Proceeds from Issuance of Warrants (in Dollars) | $265,298 | $1,246,300 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 200,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.40 | $0.55 | ||||
Stock Issued During Period, Shares, Issued for Services | 125,000 | |||||
Stock Issued During Period, Shares, Cashless exercise of warrants | 1,925,357 | 1,236,456 | ||||
Stock Issued From Cashless Exercise Of Warrants | 1,482,041 | 716,028 | ||||
Stock Issued During Period, Shares, Warrants Cancelled | 443,316 | 520,428 | ||||
Stock Issued During Period, Shares, Warrants Exercised | 482,356 | 2,266,000 | ||||
Proceeds from Warrant Exercises (in Dollars) | 265,298 | 1,246,300 | ||||
Aggregate Intrinsic Value Of Warrants Exercised (in Dollars) | 4,425,344 | 2,662,347 | ||||
General and Administrative Expense [Member] | ||||||
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Share-Based Compensation Expense, Warrants (in Dollars) | 60,046 | |||||
Common Stock [Member] | ||||||
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Sale of Stock, Price Per Share (in Dollars per share) | $0.40 | |||||
Mr. Herman [Member] | ||||||
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Warrants, Expiration Period | 5 years | |||||
Due to Related Parties, Noncurrent (in Dollars) | 1,477,760 | |||||
Number Of Shares Projected To Be Issued To Convert Debt | 4,222,000 | |||||
Number Of Warrants Projected To Be Issued To Convert Debt | 2,111,000 | |||||
Proceeds from Issuance of Warrants (in Dollars) | 1,161,050 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 4,960,714 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.55 | |||||
Private Placement [Member] | ||||||
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Number Of Units Issued To Convert Debt | 5,699 | |||||
Per Unit Price ssued To Convert Debt (in Dollars per share) | $350 | |||||
Proceeds from Issuance of Private Placement (in Dollars) | 1,994,800 | |||||
Number Of Shares Comprised In 1 Unit Issued To Convert Debt (in Dollars) | $1,000 | |||||
Number Of Warrants Comprised In 1 Unit Issued To Convert Debt | 500 | |||||
0.55 | ||||||
Warrants, Expiration Period | 5 years | |||||
Number of Shares Issued To Convert Debt | 5,699,428 | |||||
Number Of Warrants Issued To Convert Debt | 2,849,714 | |||||
Purchase of Warrants | 449,456 | |||||
Maximum [Member] | ||||||
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Liquidated Damages Percentage | 8.00% | |||||
Each Principal of Existing Investor Relations Firm [Member] | ||||||
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 112,500 | |||||
Principals of Existing Investor Relations Firm [Member] | ||||||
Note 8 - Stockholders Equity (Details) [Line Items] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 225,000 |
Note_8_Stockholders_Equity_Det1
Note 8 - Stockholders Equity (Details) - Summary of Warrant Activity (Warrant [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Warrant [Member] | |||
Class of Warrant or Right [Line Items] | |||
Outstanding at January 1, 2013 | 2,657,714 | 6,160,170 | |
Outstanding at January 1, 2013 | 0.55 | 0.55 | |
Outstanding at January 1, 2013 | 2 years 109 days | 3 years 255 days | 4 years 255 days |
Outstanding at January 1, 2013 | $3,359,170 | $1,194,932 | |
Shares | 250,001 | 2,657,714 | |
Weighted Average Exercise Price | 0.64 | 0.55 | |
Weighted Average Remaining Contractual Life (Years) | 2 years 109 days | 3 years 255 days | 4 years 255 days |
Aggregate Intrinsic Value | 242,901 | 3,359,170 | |
Exercisable at December 31, 2014 | 250,001 | ||
Exercisable at December 31, 2014 | 0.64 | ||
Exercisable at December 31, 2014 | 2 years 109 days | ||
Exercisable at December 31, 2014 | $242,901 | ||
Shares, Exercised | -2,407,713 | -3,502,456 | |
Weighted Average Exercise Price, Exercised | 0.54 | 0.55 |
Note_9_Stock_Options_Details
Note 9 - Stock Options (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 02, 2014 | Dec. 31, 2011 | |
Note 9 - Stock Options (Details) [Line Items] | ||||
Common Stock, Shares, Outstanding | 37,056,215 | 34,822,536 | 34,822,536 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,500,168 | 3,375,000 | 3,075,431 | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 462,500 | 658,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $1.67 | $0.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 273,332 | 38,332 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | $531,609 | $13,383 | ||
Proceeds from Stock Options Exercised (in Dollars) | 127,987 | |||
Allocated Share-based Compensation Expense (in Dollars) | 562,903 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 146 days | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 344,976 | |||
General and Administrative Expense [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense (in Dollars) | 472,356 | |||
Cashless Exercise [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Number of Common Shares, Options Exercised | 28,333 | 38,332 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 24,282 | 15,214 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 4,051 | 23,118 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | $75,837 | |||
Exercised for Cash Payments [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 244,999 | |||
Minimum [Member] | Option Plan 2010 [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Maximum [Member] | Option Plan 2010 [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Option Plan 2010 [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 15.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,223,380 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,350,168 | |||
Option Plan 2008 [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 150,000 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,000,000 |
Note_9_Stock_Options_Details_S
Note 9 - Stock Options (Details) - Summary of Stock Valuation Assumptions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum [Member] | ||
Note 9 - Stock Options (Details) - Summary of Stock Valuation Assumptions [Line Items] | ||
Expected volatility | 114.00% | 125.00% |
Risk-free interest rate | 0.72% | 0.32% |
Expected term (in years) | 2 years 6 months | 2 years 6 months |
Maximum [Member] | ||
Note 9 - Stock Options (Details) - Summary of Stock Valuation Assumptions [Line Items] | ||
Expected volatility | 124.00% | 139.00% |
Risk-free interest rate | 0.99% | 0.66% |
Expected term (in years) | 3 years 6 months | 3 years 6 months |
Note_9_Stock_Options_Details_S1
Note 9 - Stock Options (Details) - Summary of Stock Option Activity for the Six Months Ended June 30, 2014 (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Stock Option Activity for the Six Months Ended June 30, 2014 [Abstract] | |||
Outstanding | 3,375,000 | 3,075,431 | |
Outstanding | $0.70 | $0.71 | |
Outstanding | 2 years 7 days | 2 years 219 days | 2 years 109 days |
Outstanding | $3,760,325 | $106,051 | |
Vested or Expected to Vest at December 31, 2014 | 3,500,168 | ||
Vested or Expected to Vest at December 31, 2014 | $0.90 | ||
Vested or Expected to Vest at December 31, 2014 | 2 years 7 days | ||
Vested or Expected to Vest at December 31, 2014 | 2,785,893 | ||
Exercisable at December 31, 2014 | 3,001,664 | ||
Exercisable at December 31, 2014 | $0.82 | ||
Exercisable at December 31, 2014 | 1 year 288 days | ||
Exercisable at December 31, 2014 | 2,540,289 | ||
Granted | 462,500 | 658,000 | |
Granted | $2.37 | $1.10 | |
Exercised | -273,332 | -38,332 | |
Exercised | $0.51 | $0.72 | |
Forfeited or Expired | -64,000 | -320,099 | |
Forfeited or Expired | $2.27 | $1.42 | |
Outstanding | 3,500,168 | 3,375,000 | |
Outstanding | $0.90 | $0.70 | |
Outstanding | 2 years 7 days | 2 years 219 days | 2 years 109 days |
Outstanding | $2,785,893 | $3,760,325 |
Note_9_Stock_Options_Details_S2
Note 9 - Stock Options (Details) - Summary of the Status of Non-Vested Shares (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of the Status of Non-Vested Shares [Abstract] | ||
Non-vested at January 1, 2013 | 666,668 | 810,000 |
Non-vested at January 1, 2013 | $0.54 | $0.37 |
Non-vested, Number of Shares | 498,504 | 666,668 |
Non-vested, Weighted-Average Grant-Date Fair Value | $1.05 | $0.54 |
Granted, Shares | 462,500 | 658,000 |
Granted, Weighted-Average Grant-Date Fair Value | $1.67 | $0.84 |
Vested, Shares | -566,664 | -638,330 |
Vested, Weighted-Average Grant-Date Fair Value | $0.87 | $0.60 |
Forfeited, Shares | -64,000 | -163,002 |
Forfeited, Weighted-Average Grant-Date Fair Value | $1.74 | $0.67 |
Note_10_Commitments_and_Contin2
Note 10 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 0 Months Ended | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Feb. 11, 2015 | Jun. 30, 2014 | |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||||
Operating Leases, Rent Expense (in Dollars) | $1,113,581 | $994,940 | ||
Capital Addition Purchase Commitments [Member] | ||||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation (in Dollars) | $1,900,000 | |||
Unasserted Claim [Member] | Patent '993 and Patent '875 [Member] | ||||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Pending Claims, Number | 2 | |||
Subsequent Event [Member] | Reexamination [Member] | Patent '993 [Member] | ||||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Claims Dismissed, Number | 99 | |||
Prior Reexamination [Member] | Patent '993 [Member] | ||||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Claims Settled, Number | 12 | |||
Reexamination [Member] | Patent '993 [Member] | ||||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Pending Claims, Number | 99 |
Note_10_Commitments_and_Contin3
Note 10 - Commitments and Contingencies (Details) - Summary of Future Minimum Operating Lease Commitments (USD $) | Dec. 31, 2014 |
Summary of Future Minimum Operating Lease Commitments [Abstract] | |
2015 | $664,257 |
2016 | 362,318 |
2017 | 151,000 |
2018 | 96,000 |
2019 | 96,000 |
Thereafter | 104,000 |
Total | $1,473,575 |
Note_11_Related_Party_Transact1
Note 11 - Related Party Transactions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 03, 2013 | Feb. 03, 2014 | |
Note 11 - Related Party Transactions (Details) [Line Items] | ||||
Proceeds from Sale of Machinery and Equipment | $370,000 | $2,053,568 | ||
Property, Plant and Equipment, Net | 37,789,004 | 17,425,828 | ||
Chief Executive Officer [Member] | Guaranteed Loan [Member] | ||||
Note 11 - Related Party Transactions (Details) [Line Items] | ||||
Long-term Debt, Gross | 100,000 | |||
Debt Instrument, Monthly Payment | 12,500 | |||
Debt Instrument, Annual Payments | 150,000 | |||
Board of Directors Chairman [Member] | ||||
Note 11 - Related Party Transactions (Details) [Line Items] | ||||
Proceeds from Sale of Machinery and Equipment | 50,000 | |||
Property, Plant and Equipment, Net | 38,000 | |||
Gain (Loss) on Disposition of Assets | $12,000 |
Note_12_Subsequent_Events_Deta
Note 12 - Subsequent Events (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 | |
Note 12 - Subsequent Events (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 462,500 | 658,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $2.37 | $1.10 | |
Subsequent Event [Member] | 1st Anniversary [Member] | Board Members [Member] | Option Plan 2010 [Member] | |||
Note 12 - Subsequent Events (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Subsequent Event [Member] | 2nd Anniversary [Member] | Board Members [Member] | Option Plan 2010 [Member] | |||
Note 12 - Subsequent Events (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Subsequent Event [Member] | Each Board Member [Member] | Option Plan 2010 [Member] | |||
Note 12 - Subsequent Events (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | ||
Subsequent Event [Member] | Board Members [Member] | Option Plan 2010 [Member] | |||
Note 12 - Subsequent Events (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 1.79 |