Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Enservco Corporation | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 37,786,158 | |
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-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $778,446 | $954,058 |
Accounts receivable, net | 15,206,723 | 14,679,858 |
Prepaid expenses and other current assets | 1,155,024 | 1,540,667 |
Inventories | 343,837 | 390,081 |
Income tax receivable | 1,776,035 | 1,776,035 |
Deferred tax asset | 135,055 | 135,055 |
Total current assets | 19,395,120 | 19,475,754 |
Property and Equipment, net | 38,818,449 | 37,789,004 |
Goodwill | 301,087 | 301,087 |
Other Assets | 687,944 | 716,836 |
TOTAL ASSETS | 59,202,600 | 58,282,681 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 5,686,355 | 5,472,163 |
Income taxes payable | 56,205 | |
Current portion of long-term debt | 339,724 | 340,520 |
Total current liabilities | 6,082,284 | 5,812,683 |
Long-Term Liabilities | ||
Senior revolving credit facility | 24,540,897 | 28,634,037 |
Long-term debt, less current portion | 672,239 | 801,968 |
Deferred income taxes, net | 6,654,363 | 4,992,681 |
Total long-term liabilities | 31,867,499 | 34,428,686 |
Total liabilities | 37,949,783 | 40,241,369 |
Commitments and Contingencies (Note 7) | ||
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 shares authorized, 37,753,380 and 37,159,815 shares issued, respectively; 103,600 shares of treasury stock; and 37,649,780 and 37,056,215 shares outstanding, respectively | 188,250 | 185,282 |
Additional paid-in-capital | 13,068,046 | 12,751,389 |
Accumulated earnings | 7,996,521 | 5,104,641 |
Total stockholders’ equity | 21,252,817 | 18,041,312 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $59,202,600 | $58,282,681 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 37,753,380 | 37,159,815 |
Common stock, shares outstanding | 37,649,780 | 37,056,215 |
Treasury stock | 103,600 | 103,600 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | $19,139,497 | $25,242,045 |
Cost of Revenue | 11,264,286 | 16,422,471 |
Gross Profit | 7,875,211 | 8,819,574 |
Operating Expenses | ||
General and administrative expenses | 1,220,353 | 957,382 |
Patent litigation and defense costs | 339,017 | 72,150 |
Depreciation and amortization | 1,322,934 | 677,463 |
Total operating expenses | 2,882,304 | 1,706,995 |
Income from Operations | 4,992,907 | 7,112,579 |
Other Income (Expense) | ||
Interest expense | -253,210 | -253,524 |
Gain on disposals of equipment | 14,365 | |
Other income | 6,900 | 6,900 |
Total Other Expense | -246,310 | -232,259 |
Income Before Tax Expense | 4,746,597 | 6,880,320 |
Income Tax Expense | -1,854,717 | -2,694,364 |
Net Income | 2,891,880 | 4,185,956 |
Other Comprehensive Income (Loss) | ||
Unrealized loss on interest rate swaps, net of tax | -3,773 | |
Settlements – interest rate swap | 6,599 | |
Reclassified into earnings – interest rate swap | -6,599 | |
Total Other Comprehensive Loss | -3,773 | |
Comprehensive Income | $2,891,880 | $4,182,183 |
Earnings per Common Share – Basic (in Dollars per share) | $0.08 | $0.12 |
Earnings per Common Share – Diluted (in Dollars per share) | $0.07 | $0.11 |
Basic weighted average number of common shares outstanding (in Shares) | 37,350,668 | 35,734,091 |
Add: Dilutive shares assuming exercise of options and warrants (in Shares) | 1,859,527 | 2,613,082 |
Diluted weighted average number of common shares outstanding (in Shares) | 39,210,195 | 38,347,173 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $2,891,880 | $4,185,956 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,322,934 | 677,463 |
Gain on disposal of equipment | -14,365 | |
Deferred income taxes | 1,661,682 | 51 |
Stock-based compensation | 91,060 | 76,344 |
Amortization of debt issuance costs | 28,892 | 81,324 |
Bad debt expense | 4,255 | 10,000 |
Changes in operating assets and liabilities | ||
Accounts receivable | -531,120 | -6,139,062 |
Inventories | 46,244 | -52,809 |
Prepaid expense and other current assets | 385,643 | -369,896 |
Other non-current assets | -14,001 | |
Accounts payable and accrued liabilities | 214,192 | 64,511 |
Income taxes payable | 56,205 | 1,484,314 |
Net cash provided by (used in) operating activities | 6,171,867 | -10,170 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | -2,352,379 | -1,505,149 |
Proceeds from sale and disposal of equipment | 50,000 | |
Net cash used in investing activities | -2,352,379 | -1,455,149 |
FINANCING ACTIVITIES | ||
Net line of credit (payments) borrowings | -4,093,140 | 1,158,971 |
Repayment of long-term debt | -130,525 | -578,274 |
Proceeds from exercise of warrants | 77,100 | 89,630 |
Proceeds from exercise of options | 14,634 | 41,250 |
Excess tax benefits from exercise of options and warrants | 136,831 | |
Net cash (used in) provided by financing activities | -3,995,100 | 711,577 |
Net (Decrease) in Cash and Cash Equivalents | -175,612 | -753,742 |
Cash and Cash Equivalents, Beginning of Period | 954,058 | 1,868,190 |
Cash and Cash Equivalents, End of Period | 778,446 | 1,114,448 |
Supplemental cash flow information: | ||
Cash paid for interest | 221,594 | 212,928 |
Cash paid for taxes | 0 | 1,210,000 |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ||
Cashless exercise of stock options and warrants | $2,968 | $5,596 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Disclosure Text Block [Abstract] | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Basis of Presentation | |||
The accompanying condensed 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”), HE Services LLC, and Real GC, LLC (collectively, the “Company”) as of December 31, 2014 and March 31, 2015 and the results of operations for the three months ended March 31, 2015 and 2014. | ||||
The below table provides an overview of the Company’s current ownership hierarchy: | ||||
Name | State of Formation | Ownership | Business | |
Heat Waves Hot Oil Service LLC | Colorado | 100% by Enservco | Oil and natural gas well services, including logistics and stimulation. | |
Dillco Fluid Service, Inc. | Kansas | 100% by Enservco | Oil and natural gas field fluid logistic services. | |
HE Services LLC | Nevada | 100% by Heat Waves | No active business operations. Owns construction equipment used by Heat Waves. | |
Real GC, LLC | Colorado | 100% by Heat Waves | No active business operations. Owns real property in Garden City, Kansas that is utilized by Heat Waves. | |
The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the disclosures required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all of the normal and recurring adjustments necessary to fairly present the interim financial information set forth herein have been included. The results of operations for interim periods are not necessarily indicative of the operating results of a full year or of future years. | ||||
The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and follow the same accounting policies and methods of their application as the most recent annual financial statements. These interim financial statements should be read in conjunction with the financial statements and related footnotes included in the Annual Report on Form 10-K of Enservco Corporation for the year ended December 31, 2014. All significant inter-company balances and transactions have been eliminated in the accompanying consolidated financial statements. | ||||
The accompanying Condensed Consolidated Balance Sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended | ||
Mar. 31, 2015 | |||
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 amounts 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 March 31, 2015 and December 31, 2014, the Company had an allowance for doubtful accounts of $100,000. For the three months ended March 31, 2015 and 2014, the Company recorded bad debt expense (net of recoveries) of $4,255 and $10,000, respectively. | |||
Inventory | |||
Inventory consists primarily of propane, diesel fuel and chemicals 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. | |||
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 three month periods ended March 31, 2015 and 2014. | |||
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 charges repairs and maintenance against income when incurred and capitalizes renewals and betterments that extend the remaining useful life or expands 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 an operating lease. 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, in accordance with the 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 are recorded as operating leases. The Company records rental expense on its equipment operating leases over the lease term as it becomes payable; there are no rent escalation terms associated with these equipment leases. On a number of the equipment leases, 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 majority of the Company’s equipment leases contain renewal clauses and expire through February 2017. | |||
The Company has also in the past entered into several capital leases in order to acquire trucks and equipment. Each of these leases allows the Company to retain 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 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 March 31, 2015. | |||
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. | |||
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. | |||
As of March 31, 2015 and 2014, there were outstanding stock options and warrants to acquire an aggregate of 3,250,302 and 4,532,895 shares of Company common stock, respectively, which have a potentially dilutive impact on earnings per share. For the three months ended March 31, 2015 and 2014, 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 1,859,527 and 2,613,082 shares, respectively. | |||
Intangible Assets | |||
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 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 goodwill is impaired. If it is determined that it is more-likely-than-not that an 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 year ended December 31, 2014, the Company performed the annual impairment test and determined that no impairment existed. For the three month periods ended March 31, 2015 and 2014, the Company did not note any events that occurred, nor did any circumstances change, that would require goodwill to be assessed for impairment. | |||
Loan Fees and Other Deferred Costs | |||
In the normal course of business, the Company enters into loan agreements and amendments thereto with its primary lending institutions. The majority of these lending agreements and amendments 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 recognizes these as capitalized costs and amortizes these costs 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. | |||
Income Taxes | |||
The Company recognizes deferred tax liabilities and assets 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 to be realized. | |||
The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if, in the Company’s opinion, 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 general and administrative expenses. No interest or penalties have been assessed as of March 31, 2015. The Company files tax returns in the United States and in the states in which it conducts its business operations. The tax years 2011 through 2014 remain open to examination in the taxing jurisdictions to which the Company is subject. | |||
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. 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 Company did not change its valuation techniques nor were there any transfers between hierarchy levels during the three months ended March 31, 2015. 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. | |||
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, and the valuation of deferred taxes. Actual results could differ from those estimates. | |||
Reclassifications | |||
Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. The Company reclassified $130,453 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 three months ended March 31, 2014 to conform to 2015 presentation. The Company reclassified $72,150 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 three months ended March 31, 2014 to conform to 2015 presentation. | |||
Accounting Pronouncements | |||
Recently Issued | |||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard becomes effective for us on January 1, 2017. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. Recent tentative decisions by the FASB may delay the effective date of this ASU and some of its other provisions. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |||
In January 2015, the FASB issued ASU 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from U.S. GAAP the concept of an extraordinary item. The Board released the new guidance as part of its simplification initiative, which is intended to “identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements.” The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements. | |||
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The simplification of the presentation of debt issuance costs is expected to have an immaterial impact on the Company’s total assets and debt. |
Note_3_Property_and_Equipment
Note 3 - Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | Note 3 - Property and Equipment | ||||||||
Property and equipment consists of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Trucks and vehicles | $ | 52,093,849 | $ | 48,020,268 | |||||
Other equipment | 3,135,916 | 3,135,916 | |||||||
Buildings and improvements | 3,530,808 | 3,396,280 | |||||||
Trucks in process | 415,670 | 2,366,758 | |||||||
Land | 871,778 | 776,420 | |||||||
Disposal wells | 367,330 | 367,330 | |||||||
Total property and equipment | 60,415,351 | 58,062,972 | |||||||
Accumulated depreciation | (21,596,902 | ) | (20,273,968 | ) | |||||
Property and equipment - net | $ | 38,818,449 | $ | 37,789,004 | |||||
Depreciation expense on property and equipment for the three months ended March 31, 2015 and 2014 totaled $1,322,934 and $677,463, respectively. |
Note_4_PNC_Credit_Facility
Note 4 - PNC Credit Facility | 3 Months Ended |
Mar. 31, 2015 | |
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 in September 2019 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 March 31, 2015 was 2.67% for the $23,000,000 of outstanding LIBOR Rate Loans and 4.25% for the $1,540,897 of outstanding Domestic Rate Loans. | |
Effective February 27, 2015, the Company entered into a Consent and First Amendment (the “Consent and Amendment”) with respect to the 2014 Credit Agreement. The Consent and Amendment, among other things, (i) modified certain financial covenants, and (ii) consented to a $100,000 principal prepayment by the Company to a third party bank that eliminated a monthly fee of $12,500 paid to the guarantor of that indebtedness. Effective March 29, 2015, the Company entered into a second amendment to the 2014 Credit Agreement with PNC to increase the Company’s leverage ratio, as defined from 2.75 to 1 to 3.50 to 1 and to exclude certain capital expenditures from the calculation of the fixed charge ratio. | |
As of March 31, 2015 and December 31, 2014, the Company had an outstanding loan balance of $24,540,897 and $28,634,037, respectively. The outstanding loan balance matures in September 2019. As of March 31, 2015, approximately $15,200,000 was available under the revolving credit facility. |
Note_5_LongTerm_Debt
Note 5 - Long-Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Long-term Debt [Text Block] | Note 5 – Long-Term Debt | ||||||||
Long-term debt consists of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Real Estate Loan for our 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. | $ | 567,470 | $ | 677,204 | |||||
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; paid in monthly installments of $3,000 per agreement with the IRS. | 236,000 | 242,000 | |||||||
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. | 112,330 | 115,317 | |||||||
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. | 96,163 | 107,967 | |||||||
Total | 1,011,963 | 1,142,488 | |||||||
Less current portion | (339,724 | ) | (340,520 | ) | |||||
Long-term debt, net of current portion | $ | 672,239 | $ | 801,968 | |||||
Aggregate maturities of debt, excluding the 2014 Credit Agreement described in Note 4, are as follows: | |||||||||
Twelve Months Ending March 31, | |||||||||
2016 | $ | 339,724 | |||||||
2017 | 190,751 | ||||||||
2018 | 45,530 | ||||||||
2019 | 47,291 | ||||||||
2020 | 49,085 | ||||||||
Thereafter | 339,582 | ||||||||
Total | $ | 1,011,963 | |||||||
Note_6_Income_Taxes
Note 6 - Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 6 – Income Taxes |
Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provision for income taxes for the three months ended March 31, 2015 and 2014 differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of 34% to pre-tax income primarily because of state income taxes and estimated permanent differences. | |
The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. |
Note_7_Commitments_and_Conting
Note 7 - Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | Note 7 – Commitments and Contingencies | ||||
Operating Leases | |||||
As of March 31, 2015, the Company leases facilities and certain trucks and equipment under lease commitments that expire through August 2017. Future minimum lease commitments for these operating lease commitments are as follows: | |||||
Twelve Months Ending March 31, | |||||
2016 | $ | 709,313 | |||
2017 | 382,918 | ||||
2018 | 146,500 | ||||
2019 | 96,000 | ||||
2020 | 96,000 | ||||
Thereafter | 80,000 | ||||
Total | $ | 1,510,731 | |||
Equipment Purchase Commitments | |||||
As of March 31, 2015, the Company had approximately $180,000 in outstanding purchase commitments related to the purchase of equipment and construction of building facilities. | |||||
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. Heat Waves filed a motion to transfer the case to Colorado and Enservco filed a motion to dismiss the case against it based on a lack of personal jurisdiction. On April 28, 2015, the Court in the Northern District of Texas found that it did not have personal jurisdiction over Enservco in Texas. The Court also granted Heat Wave’s motion and ordered that the case, which still includes Enservco as a co-defendant, be transferred to the District of Colorado. On May 8, 2015, the case was transferred to the U.S. District Court for the District of Colorado, where it is currently pending (“Colorado Case”). The Colorado Case, Civil Action No. 1:15-cv-009830-NYW, is still in its early stages. The same complaint from Texas has been entered in the Colorado Case. Heat Waves has answered the complaint, denied HOTF’s allegations of infringement and asserted counterclaims asking the Court to find, among other things, that it does not infringe either patent and that both patents are invalid. HOTF has replied to and denied those counterclaims. | |||||
Enservco and Heat Waves deny that they are infringing any valid, enforceable claims of the asserted patents and intend to vigorously defend themselves in the Colorado Case. Heat Waves offered on demand water heating services to the industry 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. In January 2014, several of the energy companies filed a summary judgment motion to invalidate the ‘993 Patent. On March 31, 2015, the Court granted their summary judgment motion and found that the ‘993 Patent was invalid. Thereafter, the North Dakota Court entered a judgment on this issue in favor of these companies. In response, HOTF has filed an appeal with the United States Court of Appeals for the Federal Circuit contesting this judgment as well as earlier orders entered by the Court. Several of the energy companies have filed a motion to dismiss the appeal. No decision by the appellate court has been reached yet. | |||||
The Company is also aware of another lawsuit in Texas in which a third party claimed that the ‘993 Patent was invalid. In light of the appeal, HOTF and the other parties in that action jointly asked the Texas Court to stay the case pending resolution of the appeal. On April 20, 2015, the Court granted their request and stayed the case. | |||||
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 filed a lengthy response with the USPTO on April 13, 2015 seeking to overcome these pending rejections, but no subsequent decision has been made by the USPTO. The timing of a response from the USPTO and any decision resulting therefrom is uncertain, is subject to appeal by HOTF, 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 final 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. | |||||
As noted above, the Texas case against Enservco and Heat Waves has been transferred to the U.S. District Court for the District of Colorado. To the extent that Enservco and Heat Waves are unsuccessful in their defense, they could be liable for damages (which may be significant) and Heat Waves could possibly be enjoined from using any technology that is determined to be infringing. 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_8_Stockholders_Equity
Note 8 - Stockholders Equity | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Note 8 – Stockholders Equity | ||||||||||||||||
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 firm’s 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. | |||||||||||||||||
A summary of warrant activity for the three months ended March 31, 2015 is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||
Warrants | Shares | Price | Life (Years) | Value | |||||||||||||
Outstanding at December 31, 2014 | 250,001 | $ | 0.64 | 2.29 | $ | 242,901 | |||||||||||
Issued for Services | - | - | |||||||||||||||
Exercised | (100,000 | ) | 0.77 | ||||||||||||||
Forfeited/Cancelled | - | ||||||||||||||||
Outstanding at March 31, 2015 | 150,001 | $ | 0.55 | 2.67 | $ | 180,001 | |||||||||||
Exercisable at March 31, 2015 | 150,001 | $ | 0.55 | 2.67 | $ | 180,001 | |||||||||||
During the three months ended March 31, 2015, warrants to acquire 100,000 shares were exercised for cash payments totaling $77,100. The warrants exercised had a total intrinsic value of $102,000 at the time of exercise. | |||||||||||||||||
During the three months ended March 31, 2014, warrants to acquire 1,469,357 shares of common stock were exercised by way of cashless exercise whereby the warrant holders elected to receive 1,119,173 shares without payment of the exercise price and the remaining warrants for 350,184 shares were cancelled. In addition, warrants to acquire 162,962 shares were exercised for cash payments totaling $89,630. The warrants exercised had a total intrinsic value of $2,795,175 at the time of exercise. |
Note_9_Stock_Options
Note 9 - Stock Options | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9 – Stock Options | ||||||||||||||||
Stock Option Plans | |||||||||||||||||
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 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, 2015 the number of shares of common stock available under the 2010 Plan was reset to 5,558,432 shares based upon 37,056,215 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 March 31, 2015, there were 3,100,301 options outstanding under the 2010 Plan. | |||||||||||||||||
A summary of the range of assumptions used to value stock options granted for the three months ended March 31, 2015 and 2014 are as follows: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected volatility | 109 | % | 124 | % | |||||||||||||
Risk-free interest rate | 0.75 | % | 0.72 | % | |||||||||||||
Dividend yield | - | - | |||||||||||||||
Expected term (in years) | 3.28 | 3.5 | |||||||||||||||
During the three months ended March 31, 2015, the Company granted options to acquire 230,000 shares of common stock with a weighted-average grant-date fair value of $1.22 per share. During the three months ended March 31, 2015, options to acquire 600,000 shares of common stock were exercised by way of a cashless exercise whereby the option holders elected to receive 463,698 shares of common stock without payment of the exercise price and the remaining options for 136,302 shares were cancelled. The options had an intrinsic value of $970,125 at the time of exercise. In addition, options to acquire 29,867 shares of common stock were exercised for cash payments of $14,634. The options had an intrinsic value of $40,951 at the time of exercise. | |||||||||||||||||
During the three months ended March 31, 2014, the Company granted options to acquire 232,500 shares of common stock with a weighted-average grant-date fair value of $1.71 per share. During the three months ended March 31, 2014, options to acquire 100,000 shares of common stock were exercised for cash payments of $41,250. The options had an intrinsic value of $134,750 at the time of exercise. | |||||||||||||||||
The following is a summary of stock option activity for all equity plans for the three months ended March 31, 2015: | |||||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at December 31, 2014 | 3,500,168 | $ | 0.9 | 2.02 | $ | 2,785,893 | |||||||||||
Granted | 230,000 | 1.77 | |||||||||||||||
Exercised | (629,867 | ) | 0.47 | ||||||||||||||
Forfeited or Expired | - | - | |||||||||||||||
Outstanding at March 31, 2015 | 3,100,301 | $ | 1.05 | 2.31 | $ | 2,418,169 | |||||||||||
Vested or Expected to Vest at March 31, 2015 | 3,100,301 | $ | 1.05 | 2.31 | $ | 2,418,169 | |||||||||||
Exercisable at March 31, 2015 | 2,466,296 | $ | 0.94 | 1.95 | $ | 2,167,513 | |||||||||||
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 on March 31, 2015, 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 March 31, 2015. | |||||||||||||||||
During the three months ended March 31, 2015 and 2014, the Company recognized stock-based compensation costs for stock options of $91,060 and $76,344, 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 | Weighted-Average Grant-Date Fair Value | ||||||||||||||||
Shares | |||||||||||||||||
Non-vested at December 31, 2014 | 498,504 | $ | 1.05 | ||||||||||||||
Granted | 230,000 | 1.22 | |||||||||||||||
Vested | (94,499 | ) | 1.24 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at March 31, 2015 | 634,005 | $ | 1.08 | ||||||||||||||
As of March 31, 2015 there was $534,204 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 1.4 years. |
Note_10_Related_Party_Transact
Note 10 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 10 – Related Party Transactions |
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 was 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 made a principal payment equal to or greater than $100,000, the guaranty would be 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 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_11_Subsequent_Events
Note 11 - Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 11 – Subsequent Events |
In April 2015, the Board of Directors granted stock options to acquire 878,000 shares of common stock to management and key employees. The stock options are exercisable until April 2020 at a strike price of $1.74 per share (being the closing price on April 8, 2015, the date the options were granted) and vest one-third each January beginning January 2016 and are fully vested in January 2018. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||
Mar. 31, 2015 | |||
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 amounts 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 March 31, 2015 and December 31, 2014, the Company had an allowance for doubtful accounts of $100,000. For the three months ended March 31, 2015 and 2014, the Company recorded bad debt expense (net of recoveries) of $4,255 and $10,000, respectively. | |||
Inventory, Policy [Policy Text Block] | Inventory | ||
Inventory consists primarily of propane, diesel fuel and chemicals 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. | |||
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 three month periods ended March 31, 2015 and 2014. | |||
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 charges repairs and maintenance against income when incurred and capitalizes renewals and betterments that extend the remaining useful life or expands 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 an operating lease. 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, in accordance with the 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 are recorded as operating leases. The Company records rental expense on its equipment operating leases over the lease term as it becomes payable; there are no rent escalation terms associated with these equipment leases. On a number of the equipment leases, 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 majority of the Company’s equipment leases contain renewal clauses and expire through February 2017. | |||
The Company has also in the past entered into several capital leases in order to acquire trucks and equipment. Each of these leases allows the Company to retain 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 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 March 31, 2015. | |||
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. | |||
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. | |||
As of March 31, 2015 and 2014, there were outstanding stock options and warrants to acquire an aggregate of 3,250,302 and 4,532,895 shares of Company common stock, respectively, which have a potentially dilutive impact on earnings per share. For the three months ended March 31, 2015 and 2014, 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 1,859,527 and 2,613,082 shares, respectively. | |||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets | ||
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 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 goodwill is impaired. If it is determined that it is more-likely-than-not that an 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 year ended December 31, 2014, the Company performed the annual impairment test and determined that no impairment existed. For the three month periods ended March 31, 2015 and 2014, the Company did not note any events that occurred, nor did any circumstances change, that would require goodwill to be assessed for impairment. | |||
Loan Fees and Other Deferred Costs [Policy Text Block] | Loan Fees and Other Deferred Costs | ||
In the normal course of business, the Company enters into loan agreements and amendments thereto with its primary lending institutions. The majority of these lending agreements and amendments 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 recognizes these as capitalized costs and amortizes these costs 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. | |||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||
The Company recognizes deferred tax liabilities and assets 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 to be realized. | |||
The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if, in the Company’s opinion, 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 general and administrative expenses. No interest or penalties have been assessed as of March 31, 2015. The Company files tax returns in the United States and in the states in which it conducts its business operations. The tax years 2011 through 2014 remain open to examination in the taxing jurisdictions to which the Company is subject. | |||
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. 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 Company did not change its valuation techniques nor were there any transfers between hierarchy levels during the three months ended March 31, 2015. 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. | |||
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, and the valuation of deferred taxes. Actual results could differ from those estimates. | |||
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 $130,453 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 three months ended March 31, 2014 to conform to 2015 presentation. The Company reclassified $72,150 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 three months ended March 31, 2014 to conform to 2015 presentation. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements | ||
Recently Issued | |||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard becomes effective for us on January 1, 2017. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. Recent tentative decisions by the FASB may delay the effective date of this ASU and some of its other provisions. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |||
In January 2015, the FASB issued ASU 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from U.S. GAAP the concept of an extraordinary item. The Board released the new guidance as part of its simplification initiative, which is intended to “identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements.” The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements. | |||
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The simplification of the presentation of debt issuance costs is expected to have an immaterial impact on the Company’s total assets and debt. |
Note_1_Basis_of_Presentation_T
Note 1 - Basis of Presentation (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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 | |
Heat Waves Hot Oil Service LLC | Colorado | 100% by Enservco | Oil and natural gas well services, including logistics and stimulation. | |
Dillco Fluid Service, Inc. | Kansas | 100% by Enservco | Oil and natural gas field fluid logistic services. | |
HE Services LLC | Nevada | 100% by Heat Waves | No active business operations. Owns construction equipment used by Heat Waves. | |
Real GC, LLC | 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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Trucks and vehicles | $ | 52,093,849 | $ | 48,020,268 | |||||
Other equipment | 3,135,916 | 3,135,916 | |||||||
Buildings and improvements | 3,530,808 | 3,396,280 | |||||||
Trucks in process | 415,670 | 2,366,758 | |||||||
Land | 871,778 | 776,420 | |||||||
Disposal wells | 367,330 | 367,330 | |||||||
Total property and equipment | 60,415,351 | 58,062,972 | |||||||
Accumulated depreciation | (21,596,902 | ) | (20,273,968 | ) | |||||
Property and equipment - net | $ | 38,818,449 | $ | 37,789,004 |
Note_5_LongTerm_Debt_Tables
Note 5 - Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Real Estate Loan for our 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. | $ | 567,470 | $ | 677,204 | |||||
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; paid in monthly installments of $3,000 per agreement with the IRS. | 236,000 | 242,000 | |||||||
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. | 112,330 | 115,317 | |||||||
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. | 96,163 | 107,967 | |||||||
Total | 1,011,963 | 1,142,488 | |||||||
Less current portion | (339,724 | ) | (340,520 | ) | |||||
Long-term debt, net of current portion | $ | 672,239 | $ | 801,968 | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Twelve Months Ending March 31, | ||||||||
2016 | $ | 339,724 | |||||||
2017 | 190,751 | ||||||||
2018 | 45,530 | ||||||||
2019 | 47,291 | ||||||||
2020 | 49,085 | ||||||||
Thereafter | 339,582 | ||||||||
Total | $ | 1,011,963 |
Note_7_Commitments_and_Conting1
Note 7 - Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Twelve Months Ending March 31, | ||||
2016 | $ | 709,313 | |||
2017 | 382,918 | ||||
2018 | 146,500 | ||||
2019 | 96,000 | ||||
2020 | 96,000 | ||||
Thereafter | 80,000 | ||||
Total | $ | 1,510,731 |
Note_8_Stockholders_Equity_Tab
Note 8 - Stockholders Equity (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 December 31, 2014 | 250,001 | $ | 0.64 | 2.29 | $ | 242,901 | |||||||||||
Issued for Services | - | - | |||||||||||||||
Exercised | (100,000 | ) | 0.77 | ||||||||||||||
Forfeited/Cancelled | - | ||||||||||||||||
Outstanding at March 31, 2015 | 150,001 | $ | 0.55 | 2.67 | $ | 180,001 | |||||||||||
Exercisable at March 31, 2015 | 150,001 | $ | 0.55 | 2.67 | $ | 180,001 |
Note_9_Stock_Options_Tables
Note 9 - Stock Options (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the Three Months Ended | ||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected volatility | 109 | % | 124 | % | |||||||||||||
Risk-free interest rate | 0.75 | % | 0.72 | % | |||||||||||||
Dividend yield | - | - | |||||||||||||||
Expected term (in years) | 3.28 | 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 December 31, 2014 | 3,500,168 | $ | 0.9 | 2.02 | $ | 2,785,893 | |||||||||||
Granted | 230,000 | 1.77 | |||||||||||||||
Exercised | (629,867 | ) | 0.47 | ||||||||||||||
Forfeited or Expired | - | - | |||||||||||||||
Outstanding at March 31, 2015 | 3,100,301 | $ | 1.05 | 2.31 | $ | 2,418,169 | |||||||||||
Vested or Expected to Vest at March 31, 2015 | 3,100,301 | $ | 1.05 | 2.31 | $ | 2,418,169 | |||||||||||
Exercisable at March 31, 2015 | 2,466,296 | $ | 0.94 | 1.95 | $ | 2,167,513 | |||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | Number of | Weighted-Average Grant-Date Fair Value | |||||||||||||||
Shares | |||||||||||||||||
Non-vested at December 31, 2014 | 498,504 | $ | 1.05 | ||||||||||||||
Granted | 230,000 | 1.22 | |||||||||||||||
Vested | (94,499 | ) | 1.24 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested at March 31, 2015 | 634,005 | $ | 1.08 |
Note_1_Basis_of_Presentation_D
Note 1 - Basis of Presentation (Details) - Current Ownership Hierarchy | 3 Months Ended |
Mar. 31, 2015 | |
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% |
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% |
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 $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||
Allowance for Doubtful Accounts Receivable, Current | $100,000 | $100,000 | |
Provision for Doubtful Accounts | 4,255 | 10,000 | |
Asset Impairment Charges | 0 | 0 | |
Capital Lease Obligations | 0 | ||
Number of Outstanding, Stock-Based Option Awards and Warrants (in Shares) | 3,250,302 | 4,532,895 | |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants (in Shares) | 1,859,527 | 2,613,082 | |
Income Tax Examination, Likelihood of Unfavorable Settlement | 50% | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | ||
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 | ||
Site Personnel Costs [Member] | |||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||
Prior Period Reclassification Adjustment | 130,453 | ||
Patent Defense Costs [Member] | |||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||
Prior Period Reclassification Adjustment | $72,150 |
Note_3_Property_and_Equipment_1
Note 3 - Property and Equipment (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $1,322,934 | $677,463 |
Note_3_Property_and_Equipment_2
Note 3 - Property and Equipment (Details) - Summary of Property and Equipment (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | $60,415,351 | $58,062,972 |
Accumulated depreciation | -21,596,902 | -20,273,968 |
Property and equipment - net | 38,818,449 | 37,789,004 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 52,093,849 | 48,020,268 |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 3,135,916 | 3,135,916 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 3,530,808 | 3,396,280 |
Trucks in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 415,670 | 2,366,758 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, or Equipment | 871,778 | 776,420 |
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 $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | ||
Feb. 27, 2015 | Oct. 03, 2013 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 28, 2015 | Dec. 31, 2014 | |
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Long-term Debt | $1,011,963 | $1,142,488 | ||||
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 | |||||
Chief Executive Officer [Member] | Guaranteed Loan [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Debt Instrument, Monthly Payment | 12,500 | 12,500 | ||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2014 Credit Agreement [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||
Minimum [Member] | Base Rate [Member] | Domestic Rate Loans [Member] | 2014 Credit Agreement [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2014 Credit Agreement [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||
Maximum [Member] | Base Rate [Member] | Domestic Rate Loans [Member] | 2014 Credit Agreement [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||
Maximum [Member] | LIBOR Based Loans [Member] | 2014 Credit Agreement [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.67% | |||||
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 | 1,540,897 | |||||
LIBOR Based Loans [Member] | 2014 Credit Agreement [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Long-term Debt | 23,000,000 | |||||
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 | |||||
Line of Credit Facility, Limitation on Borrowings, Percentage of Eligible Receivables | 85.00% | |||||
Line of Credit Facility, Limitation on Borrowings, Percentage of Appraised Value of Trucks and Equipment | 85.00% | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 15,200,000 | |||||
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% | |||||
Long-term Debt | 24,540,897 | 28,634,037 | ||||
Leverage Ratio | 3.50% | 2.75% | ||||
2012 Credit Agreement [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 16,000,000 | |||||
Guaranteed Loan [Member] | ||||||
Note 4 - PNC Credit Facility (Details) [Line Items] | ||||||
Principal Prepayment, Eliminate Monthly Fee | $100,000 |
Note_5_LongTerm_Debt_Details_S
Note 5 - Long-Term Debt (Details) - Summary of Long-Term Debt Instruments (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $1,011,963 | $1,142,488 |
Less current portion | -339,724 | -340,520 |
Long-term debt, net of current portion | 672,239 | 801,968 |
Real Estate Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 567,470 | 677,204 |
Note Payable To Seller Of Heat Waves [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 236,000 | 242,000 |
Mortgage Payable Through February 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 112,330 | 115,317 |
Mortgage Payable Through February 2017 Without Balloon Payment [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $96,163 | $107,967 |
Note_5_LongTerm_Debt_Details_S1
Note 5 - Long-Term Debt (Details) - Summary of Long-Term Debt Instruments (Parentheticals) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Real Estate Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Periodic Payment | $5,255 | $5,255 |
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 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 |
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% |
Note_5_LongTerm_Debt_Details_S2
Note 5 - Long-Term Debt (Details) - Summary of Maturities of Long-Term Debt (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Summary of Maturities of Long-Term Debt [Abstract] | ||
2016 | $339,724 | |
2017 | 190,751 | |
2018 | 45,530 | |
2019 | 47,291 | |
2020 | 49,085 | |
Thereafter | 339,582 | |
Total | $1,011,963 | $1,142,488 |
Note_6_Income_Taxes_Details
Note 6 - Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Note_7_Commitments_and_Conting2
Note 7 - Commitments and Contingencies (Details) (USD $) | 0 Months Ended | 6 Months Ended | ||
Feb. 11, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | |
Subsequent Event [Member] | Reexamination [Member] | Patent '993 [Member] | ||||
Note 7 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Claims Dismissed, Number | 99 | |||
Prior Reexamination [Member] | Patent '993 [Member] | ||||
Note 7 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Claims Settled, Number | 12 | |||
Reexamination [Member] | Patent '993 [Member] | ||||
Note 7 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Pending Claims, Number | 99 | |||
Unasserted Claim [Member] | Patent '993 and Patent '875 [Member] | ||||
Note 7 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Pending Claims, Number | 2 | |||
Capital Addition Purchase Commitments [Member] | ||||
Note 7 - Commitments and Contingencies (Details) [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation (in Dollars) | 180,000 |
Note_7_Commitments_and_Conting3
Note 7 - Commitments and Contingencies (Details) - Summary of Future Minimum Operating Lease Commitments (USD $) | Mar. 31, 2015 |
Summary of Future Minimum Operating Lease Commitments [Abstract] | |
2016 | $709,313 |
2017 | 382,918 |
2018 | 146,500 |
2019 | 96,000 |
2020 | 96,000 |
Thereafter | 80,000 |
Total | $1,510,731 |
Note_8_Stockholders_Equity_Det
Note 8 - Stockholders Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Nov. 29, 2012 | Nov. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | |
Note 8 - Stockholders Equity (Details) [Line Items] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 200,000 | 162,962 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.40 | $0.55 | ||
Warrants, Expiration Period | 5 years | |||
Stock Issued During Period, Shares, Issued for Services | 125,000 | |||
Stock Issued From Cashless Exercise Of Warrants | 100,000 | 1,119,173 | ||
Stock Issued During Period, Shares, Warrants Cancelled | 77,100 | 350,184 | ||
Aggregate Intrinsic Value Of Warrants Exercised (in Dollars) | $102,000 | $2,795,175 | ||
Stock Issued During Period, Shares, Cashless exercise of warrants | 1,469,357 | |||
Stock Issued During Period, Shares, Warrants Exercised | 89,630 | |||
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] | ||||
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 | |||
Warrants, Expiration Period | 5 years | |||
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 $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Warrant [Member] | ||
Class of Warrant or Right [Line Items] | ||
Outstanding Shares | 150,001 | 250,001 |
Outstanding Weighted Average Exercise Price | 0.55 | 0.64 |
Outstanding Weighted Average Remaining Contractual Life (Years) | 2 years 244 days | 2 years 105 days |
Outstanding Aggregate Intrinsic Value | $180,001 | $242,901 |
Exercisable at March 31, 2015 | 150,001 | |
Exercisable at March 31, 2015 | 0.55 | |
Exercisable at March 31, 2015 | 2 years 244 days | |
Exercisable at March 31, 2015 | $180,001 | |
Exercised | -100,000 | |
Exercised | 0.77 |
Note_9_Stock_Options_Details
Note 9 - Stock Options (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 02, 2015 | Dec. 31, 2014 | |
Note 9 - Stock Options (Details) [Line Items] | ||||
Common Stock, Shares, Outstanding | 37,649,780 | 37,056,215 | 37,056,215 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,100,301 | 3,500,168 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 230,000 | 232,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $1.22 | $1.71 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 629,867 | |||
Proceeds from Stock Options Exercised (in Dollars) | $14,634 | $41,250 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 534,204 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 146 days | |||
Cashless Exercise [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Number of Common Shares, Options Exercised | 600,000 | 100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 463,698 | 41,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 136,302 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | 970,125 | 134,750 | ||
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 | 29,867 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | 40,951 | |||
Proceeds from Stock Options Exercised (in Dollars) | 14,634 | |||
General and Administrative Expense [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense (in Dollars) | $91,060 | $76,344 | ||
Option Plan 2010 [Member] | Minimum [Member] | ||||
Note 9 - Stock Options (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Option Plan 2010 [Member] | Maximum [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 | 5,558,432 | |||
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 | 3,100,301 |
Note_9_Stock_Options_Details_S
Note 9 - Stock Options (Details) - Summary of Stock Valuation Assumptions | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of Stock Valuation Assumptions [Abstract] | ||
Expected volatility | 109.00% | 124.00% |
Risk-free interest rate | 0.75% | 0.72% |
Expected term (in years) | 3 years 102 days | 3 years 6 months |
Note_9_Stock_Options_Details_S1
Note 9 - Stock Options (Details) - Summary of Stock Option Activity (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Summary of Stock Option Activity [Abstract] | ||
Shares | 3,100,301 | 3,500,168 |
Weighted Average Exercise Price | $1.05 | $0.90 |
Weighted Average Remaining Contractual Term | 2 years 113 days | 2 years 7 days |
Aggregate Intrinsic Value | $2,418,169 | $2,785,893 |
Vested or Expected to Vest at March 31, 2015 | 3,100,301 | |
Vested or Expected to Vest at March 31, 2015 | $1.05 | |
Vested or Expected to Vest at March 31, 2015 | 2 years 113 days | |
Vested or Expected to Vest at March 31, 2015 | 2,418,169 | |
Exercisable at March 31, 2015 | 2,466,296 | |
Exercisable at March 31, 2015 | $0.94 | |
Exercisable at March 31, 2015 | 1 year 346 days | |
Exercisable at March 31, 2015 | $2,167,513 | |
Granted | 230,000 | |
Granted | $1.77 | |
Exercised | -629,867 | |
Exercised | $0.47 |
Note_9_Stock_Options_Details_S2
Note 9 - Stock Options (Details) - Summary of the Status of Non-vested Shares (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Summary of the Status of Non-vested Shares [Abstract] | |||
Non-vested, Number of Shares | 634,005 | 498,504 | |
Non-vested, Weighted-Average Grant-Date Fair Value | $1.08 | $1.05 | |
Granted | 230,000 | ||
Granted | $1.22 | $1.71 | |
Vested | -94,499 | ||
Vested | $1.24 |
Note_10_Related_Party_Transact1
Note 10 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||
Mar. 31, 2014 | Feb. 27, 2015 | Oct. 03, 2013 | Feb. 03, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Note 10 - Related Party Transactions (Details) [Line Items] | ||||||
Proceeds from Sale of Machinery and Equipment | $50,000 | |||||
Property, Plant and Equipment, Net | 38,818,449 | 37,789,004 | ||||
Chief Executive Officer [Member] | Guaranteed Loan [Member] | ||||||
Note 10 - Related Party Transactions (Details) [Line Items] | ||||||
Long-term Debt, Gross | 100,000 | |||||
Debt Instrument, Monthly Payment | 12,500 | 12,500 | ||||
Debt Instrument, Annual Payments | 150,000 | |||||
Board of Directors Chairman [Member] | ||||||
Note 10 - 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_11_Subsequent_Events_Deta
Note 11 - Subsequent Events (Details) (USD $) | 3 Months Ended | 1 Months Ended |
Mar. 31, 2015 | Apr. 30, 2015 | |
Note 11 - Subsequent Events (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 230,000 | |
Subsequent Event [Member] | ||
Note 11 - Subsequent Events (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 878,000 | |
Share Price | $1.74 |