Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 05, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | Enservco Corporation | |
Entity Central Index Key | 319,458 | |
Trading Symbol | ensv | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 51,067,660 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 620,635 | $ 620,764 |
Accounts receivable, net | 3,950,781 | 4,814,276 |
Prepaid expenses and other current assets | 783,979 | 970,802 |
Inventories | 410,017 | 407,379 |
Income tax receivable | 223,847 | |
Total current assets | 5,765,412 | 7,037,068 |
Property and Equipment, net | 32,270,514 | 34,617,961 |
Deferred Tax Asset, net | 547,248 | |
Other Assets | 506,091 | 714,967 |
TOTAL ASSETS | 39,089,265 | 42,369,996 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 3,300,089 | 3,682,599 |
Current portion of long-term debt | 176,403 | 318,499 |
Total current liabilities | 3,476,492 | 4,001,098 |
Long-Term Liabilities | ||
Senior revolving credit facility | 20,445,049 | 23,180,514 |
Subordinated debt | 2,198,463 | |
Long-term debt, less current portion | 278,412 | 304,373 |
Deferred income taxes, net | 468,565 | |
Warrant liability | 306,648 | |
Total long-term liabilities | 23,228,572 | 23,953,452 |
Total liabilities | 26,705,064 | 27,954,550 |
Commitments and Contingencies (Note 9) | ||
Stockholders' Equity | ||
Preferred stock, $.005 par value, 10,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $.005 par value, 100,000,000 shares authorized, 51,171,260 and 51,171,260 shares issued, respectively; 103,600 shares of treasury stock; and 51,067,660 and 51,067,660 shares outstanding, respectively | 255,337 | 255,337 |
Additional paid-in capital | 19,313,457 | 18,867,702 |
Accumulated deficit | (7,184,593) | (4,707,593) |
Total stockholders' equity | 12,384,201 | 14,415,446 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 39,089,265 | $ 42,369,996 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 51,171,260 | 51,171,260 |
Common stock, shares outstanding (in shares) | 51,067,660 | 51,067,660 |
Treasury stock, shares (in shares) | 103,600 | 103,600 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenue | |||||
Revenues | $ 7,106,041 | $ 4,138,352 | $ 20,880,942 | $ 12,445,411 | |
Expenses | |||||
Cost of Revenue | 6,432,753 | 4,938,181 | 16,811,157 | 11,708,266 | |
General and administrative expenses | 1,289,616 | 901,321 | 2,284,299 | 1,927,896 | |
Patent litigation and defense costs | 24,542 | 39,446 | 67,230 | 75,612 | |
Severance and Transition Costs (1) | [1] | 767,755 | 767,755 | ||
Depreciation and amortization | 1,674,875 | 1,617,620 | 3,251,304 | 3,365,592 | |
Total operating expenses | 10,189,541 | 7,496,568 | 23,181,745 | 17,075,366 | |
Income (loss) from Operations | (3,083,501) | (3,358,216) | (2,300,803) | (4,631,955) | |
Other Income (Expense) | |||||
Interest expense | (499,288) | (500,783) | (1,209,705) | (873,451) | |
Gain (Loss) on disposals of equipment | 233,473 | 233,473 | |||
Other income | 36,787 | 5,010 | 41,979 | 7,006 | |
Total other expense | (462,501) | (262,300) | (1,167,726) | (632,972) | |
Income (Loss) Before Tax Expense | (3,546,001) | (3,620,516) | (3,468,529) | (5,264,927) | |
Income Tax Benefit (Expense) | 1,018,644 | 1,239,865 | 991,529 | 1,808,707 | |
Net Loss | $ (2,527,357) | $ (2,380,651) | $ (2,477,000) | $ (3,456,220) | |
Earnings (Loss) per Common Share - Basic (in dollars per share) | $ (0.05) | $ (0.06) | $ (0.05) | $ (0.09) | |
Earnings (Loss) per Common Share – Diluted (in dollars per share) | $ (0.05) | $ (0.06) | $ (0.05) | $ (0.09) | |
Basic weighted average number of common shares outstanding (in shares) | 51,067,660 | 38,130,160 | 51,067,660 | 38,129,910 | |
Add: Dilutive shares assuming exercise of options and warrants (in shares) | |||||
Diluted weighted average number of common shares outstanding (in shares) | 51,067,660 | 38,130,160 | 51,067,660 | 38,129,910 | |
Well Enhancement [Member] | |||||
Revenue | |||||
Revenues | $ 5,819,435 | $ 2,660,526 | $ 17,803,064 | $ 9,820,349 | |
Expenses | |||||
Cost of Revenue | 4,324,845 | 2,790,690 | 12,773,391 | 7,747,146 | |
Depreciation and amortization | 1,252,801 | 1,224,851 | 2,424,124 | 2,577,218 | |
Water Transfer Services [Member] | |||||
Revenue | |||||
Revenues | 305,994 | 1,058,006 | 31,688 | ||
Expenses | |||||
Cost of Revenue | 616,468 | 420,316 | 1,292,256 | 879,252 | |
Water Hauling [Member] | |||||
Revenue | |||||
Revenues | 880,801 | 888,892 | 1,765,806 | 2,004,440 | |
Expenses | |||||
Cost of Revenue | 1,192,372 | 830,872 | 2,105,057 | 2,020,876 | |
Depreciation and amortization | 167,866 | 169,396 | 333,487 | 338,198 | |
Construction Services [Member] | |||||
Revenue | |||||
Revenues | 99,811 | 588,934 | 254,066 | 588,934 | |
Expenses | |||||
Cost of Revenue | 67,483 | 712,326 | 211,644 | 712,326 | |
Depreciation and amortization | |||||
Unallocated and Other Segments [Member] | |||||
Revenue | |||||
Revenues | |||||
Expenses | |||||
Cost of Revenue | 231,585 | 183,977 | 428,809 | 348,666 | |
Depreciation and amortization | $ 8,071 | $ 7,427 | $ 15,897 | $ 18,283 | |
[1] | Severance and transition costs comprise (i) payments and accruals for future payments to our former Chief Executive Officer and Chielf Financial Officer and (ii) legal fees directly related to separation and transition activities. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
OPERATING ACTIVITIES | |||
Net loss | $ (2,477,000) | $ (3,456,220) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 3,251,304 | 3,365,592 | |
(Gain) loss on disposal of equipment | (233,473) | ||
Deferred income taxes | (878,657) | (1,808,707) | |
Stock-based compensation | 445,755 | 317,504 | |
Stock issued for services | 1,714 | ||
Amortization of debt issuance costs and warrants | 297,557 | 74,694 | |
Bad debt expense | 49,402 | 86,949 | |
Changes in operating assets and liabilities | |||
Accounts receivable | 729,113 | 4,247,742 | |
Inventories | (2,638) | (49,834) | |
Prepaid expense and other current assets | 151,843 | (35,030) | |
Income taxes receivable | 223,847 | (1,400) | |
Other assets | (32,335) | ||
Accounts payable and accrued liabilities | 260,025 | (336,229) | |
Net cash provided by operating activities | 2,018,216 | 2,173,302 | |
INVESTING ACTIVITIES | |||
Purchases of property and equipment | (970,825) | (4,572,318) | |
Proceeds from disposal of equipment | 120,537 | 321,725 | |
Net cash used in investing activities | (850,288) | (4,250,593) | |
FINANCING ACTIVITIES | |||
Net line of credit (repayments) borrowings | (2,000,000) | 1,911,099 | |
Proceeds from issuance of long-term debt | 1,000,000 | ||
Repayment of long-term debt | (168,057) | (71,359) | |
Net cash (used in) provided by financing activities | (1,168,057) | 1,839,740 | |
Net Decrease in Cash and Cash Equivalents | (129) | (237,551) | |
Cash and Cash Equivalents, beginning of period | 620,764 | 804,737 | |
Cash and Cash Equivalents, end of period | 620,635 | 567,186 | |
Supplemental cash flow information: | |||
Cash paid for interest | 35,967 | 38,430 | |
Cash (received) paid for taxes | (222,110) | 1,400 | |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | |||
Non-cash proceeds from subordinated debt borrowings (1) | [1] | 1,500,000 | |
Non-cash proceeds from revolving credit facility (2) | [2] | 814,535 | 584,029 |
Non-cash repayment of revolving credit facility (1) | [1] | $ (1,500,000) | |
[1] | As discussed in more detail in Note 5, during the six months ended June 30, 2017, we received proceeds from two subordinated promissory notes issued by our largest shareholder. Proceeds from such borrowings were remitted directly to our lender to reduce the outstanding balance under our senior revolving credit facility. | ||
[2] | Interest and other charges incurred pursuant to our senior revolving credit facility are calculated periodically and added to the principal balance of the loan. As such, we do not make cash payments for interest charges related to this facility. |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Basis of Presentation Enservco Corporation (“Enservco”) through its wholly-owned subsidiaries (collectively referred to as the “Company”, “we” or “us”) provides various services to the domestic onshore oil and natural gas industry. These services include frac water heating, hot oiling and acidizing (well enhancement services); water transfer and water treatment services (water transfer services); water hauling, fluid disposal, frac tank rental (water hauling services); and dirt hauling and other general oilfield services (construction services). The accompanying unaudited condensed consolidated financial statements have been derived from the accounting records of Enservco Corporation, Heat Waves Hot Oil Service LLC (“Heat Waves”), Dillco Fluid Service, Inc. (“Dillco”), Heat Waves Water Management LLC (“HWWM”), HE Services LLC (“HES”), and Real GC LLC (“Real GC”) (collectively, the “Company”) as of June 30, 2017 December 31, 2016 three six June 30, 2017 2016. The below table provides an overview of the Company ’s current ownership hierarchy: Name State of Formation Ownership Business Dillco Fluid Service, Inc. (“Dillco”) Kansas 100% by Enservco Oil and natural gas field fluid logistic services. Heat Waves Hot Oil Service LLC (“Heat Waves”) Colorado 100% by Enservco Oil and natural gas well services, including logistics and stimulation. Heat Waves Water Management LLC (“HWWM”) Colorado 100% by Enservco Water Transfer and Water Treatment Services. HE Services LLC (“HES”) Nevada 100% by Heat Waves No active business operations. Owns construction equipment used by Heat Waves. Real GC, LLC (“Real GC”) Colorado 100% by Heat Waves No active business operations. Owns real property in Garden City, Kansas that is utilized by Heat Waves. 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 8 X. not not 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 December 31, 2016. The accompanying unaudited condensed consolidated balance sheet at December 31, 2016 not 10 December 31, 2016. |
Note 2 - Liquidity and Manageme
Note 2 - Liquidity and Managements' Plans | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] | Note 2 – Liquidity and Managements’ Plans As of June 30, 2017, $2.1 $1.5 “2014 $621,000 six June 30, 2017, $3.5 On March 31, 2017, 2014 $1.5 March 31, 2017; ( $1 May 15, 2017; ( September 12, 2019 April 30, 2018; ( four December 31, 2016. 5, not not 2014 April 2018. 10th six June 30, 2017, As described in more detail in Note 13, Subsequent Events June 30, 2017, (the "2017 ("East West Bank"), three $30 . On August 10, 2017 $20.4 2017 2014 $4.7 |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 3 - Summary of Significant Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three may Accounts Receivable Accounts receivable are stated at the amounts billed to customers, net of an allowance for uncollectible accounts. The Company provides an allowance for uncollectable accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The allowance 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 June 30, 2017 December 31, 2016, $83,000 $34,000, three six June 30, 2017, $20,000 $49,000, three six June 30, 2016, $48,000 $87,000, Inventories Inventory consists primarily of propane, diesel fuel and chemicals that are used in the servicing of oil wells and is carried at the lower of cost or market in accordance with the first first three six June 30, 2017 2016, no Property and Equipment Property and equipment consists of ( 1 2 3 4 5 30 Any difference between net book value of the property and equipment and the proceeds of an assets’ sale or settlement of an insurance claim is recorded as a gain or loss in the Company’s earnings. 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 ’s facility leases contain renewal clauses and expire through June 2022. The Company has leased equipment in the normal course of business, which are recorded as operating leases. The Company recorded rental expense on equipment under operating leases over the lease term as it becomes payable; there were no no June 30, 2017. 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 not No three six June 30, 2017 2016. 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 (Loss) Per Share Earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income (loss) 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 As of June 30, 2017 2016, of 5,749,433 5,120,669 , respectively, which have a potentially dilutive impact on earnings per share. For the three six June 30, 2017, not not not not three six June 30, 2017 2016. 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. All other costs not June 30, 2017, $197,000 2014 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. A deferred tax asset or liability that is not not 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 50% may not Interest and penalties associated with tax positions are recorded in the period assessed as general and administrative expenses. The Company files tax returns in the United States and in the states in which it conducts its business operations. The tax years 2012 2016 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 six June 30, 2017. The hierarchy is broken down into three 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 Stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award as described below, and is recognized over the requisite service period, which is generally the vesting period of the equity grant. The Company uses the Black-Scholes pricing model as a method for determining the estimated grant date fair value for all stock options awarded to employees, independent contractors, 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 not 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 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, the valuation of derivative financial instruments (warrants and interest rate swaps), and the valuation of deferred taxes. Actual results could differ from those estimates. Reclassifications Certain prior-period amounts have been reclassified for comparative purposes to conform to the fiscal 201 7 no Accounting Pronouncements In May 2014, No. 2014 09, August 2015 one January 1, 2018. not January 1, 2018. In February 2016, 2016 02 842 12 December 15, 2018, one In August 2016, 2016 15, 230 2016 15 one December 15, 2017 2016 15 Recently Adopted In March 2016, 2016 09 718 not |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4 - Property and Equipment Property and equipment consists of the following: June 30, December 31, 201 7 2016 Trucks and vehicles $ 54,855,287 $ 54,353,632 Water transfer equipment 4,906,505 4,520,155 Other equipment 2,913,112 2,898,457 Buildings and improvements 3,896,865 3,896,865 Land 784,636 784,636 Disposal wells 391,003 391,003 Total property and equipment 67,747,408 66,844,748 Accumulated depreciation (35,476,894 ) (32,226,787 ) Property and equipment – net $ 32,270,514 $ 34,617,961 Effective January 1, 2016, $4 805, |
Note 5 - PNC Credit Facility
Note 5 - PNC Credit Facility | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 5 – Revolving Credit Facilities PNC Revolving Credit Facility In September 2014, "2014 five $30 2014 85% 75% 2014 no 1, 2 3 4.50% 5.50% 3.00% 4.00% 0.375%. April 30, 2018. The Company has entered into various amendments to the 2014 (i) modified certain financial covenants, (ii) increased the then applicable margin for Domestic Rate Loans and LIBOR Rate Loans; (iii) modified the advance rates on appraised equipment (iv) reinstated a full cash dominion requirement; and (iv) change various administrative terms under the agreement. As of June 30, 2017, ( 1 To maintain a Fixed Charge Coverage Ratio of not 1.25 1.00 2014 four fourth 2016. ( 2 To maintain of leverage ratio as follows: Fiscal Quarter Ending: Maximum Leverage Ratio June 30, 2017 4.50 : 1.00 September 30, 2017 4.50 : 1.00 December 31, 2017 7.00 : 1.00 March 31, 2018 5.50 : 1.00 On March 31, 2017, 2014 $1.5 March 31, 2017; ( $1 May 15, 2017; ( September 12, 2019 April 30, 2018; ( four December 31, 2016. March 31, 2017, $1.5 June 28, 2022 10% five 967,741 $.31 May 10, 2017, $1.0 10% June 28, 2022. five 645,161 $0.31 June 30, 2017. As of June 30, 2017, 2014 $20.4 June 30, 2017 5.55% 5.72% $18.5 7.25% $1.9 June 30, 2017, $1.5 2014 As of December 31, 2016, 2014 $23.2 December 31, 2016 5.21% 5.27% $21.3 6.75% $1.9 December 31, 2016, $4.5 2014 As of June 30, 2017 December 31, 2016, 2014 As described in more detail in Note 13, Subsequent Events June 30, 2017, "2017 August 10, 2017 2014 2017 $20.4 2014 Debt Issuance Costs The Company has capitalized certain debt issuance costs incurred in connection with the PNC senior revolving credit facility discussed above and these costs are being amortized to interest expense over the term of the credit facility on a straight-line basis. As of June 30, 2017 December 31, 2016, $147,000 $171,000, $51,000 $259,000 June 30, 2017 December 31, 2016, three six June 30, 2017, $37,000 $292,000 three six June 30, 2016, $39,000 $74,000 September 12, 2019 April 30, 2018, $217,000 six June 30, 2017. Upon the repayment of the 2014 June 30, 2017, $197,000 June 30, 2017. Interest Rate Swap On September 17, 2015, 2014 $10.0 1.88% 4.50% 5.50% 4.50% 5.50% During the three June 30, 2017, $11,000 six June 30, 2017, $19,000 three six June 30, 2016, $74,000 $172,000, June 30, 2017 December 31, 2016 $72,000 $91,000, In connection with the termination of the 2014 June 30, 2017, 2017 |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | Note 6 – Long-Term Debt Long-term debt (excluding borrowings under our 2014 5 June 30, December 31, 201 7 2016 Real Estate Loan for facility in North Dakota, interest at 3.75%, monthly principal and interest payment of $5,255 ending October 3, 2028. Collateralized by land and property purchased with the loan. $ 329,815 $ 355,033 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 annual installments of $36,000 per agreement with the IRS. 125,000 170,000 Mortgages payable to banks, interest ranging from 5.9% to 7.25%, due in monthly principal and interest payments of $6,105, secured by land. Remaining principal balances were paid in February 2017. - 97,839 Total 454,815 622,872 Less current portion (176,403 ) (318,499 ) Long-term debt, net of current portion $ 278,412 $ 304,373 Aggregate maturities of debt, (excluding borrowings under our 2014 5 Twelve Months Ending June 30 , 2017 $ 176,403 2018 53,392 2019 55,438 2020 57,602 2021 59,831 Thereafter 52,149 Total $ 454,815 |
Note 7 - Fair Value Measurement
Note 7 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 7 – Fair Value Measurements The following table presents the Company ’s financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy: Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurement June 30 , 2017 Derivative Instrument Warrant liability $ - $ - $ 306,648 $ 306,648 Interest rate swap $ - $ 72,000 $ - $ 72,000 December 31, 201 6 Derivative Instrument Interest rate swap $ - $ 91,000 $ - $ 91,000 The warrant liability as of June 30, 2017 $307,000 Warrant liability June 30, 2017 $72,000 Accounts payable and accrued liabilities The Company's warrant liability was valued June 30, 2017 using the Black-Scholes option pricing model, using observable market inputs and management judgment based on the following assumptions: a risk-free interest rate of 1.51%, 0%, 2.5 96.39%. ’s Chief Executive Officer, as deemed appropriate. The Company ’s interest rate swap is valued using models which require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, and correlations of such inputs. Some of the model inputs used in valuing the derivative instruments trade in liquid markets, and therefore the derivative instrument is classified within Level 2 not |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 8 – 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 June 30, 2017 2016 34 The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not The accounting estimates used to compute the provision for income taxes may During the three six June 30, 2017, $1.0 $992,000, three six June 30, 2017. June 30, 2017, $547,000. |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 9 – Commitments and Contingencies Operating Leases As of June 30, 2017, June 2022. Twelve Months Ending June 30, 2018 $ 622,242 2019 562,518 2020 569,194 2021 381,370 2022 290,046 Thereafter - Total $ 2,425,370 Rent expense under operating leases, including month-to-month leases, for the three and six June 30, 2017 $191,000 $405,000, three six June 30, 2016 $200,000 $404,000 HydroFLOW Agreement Pursuant to a Sales Agreement with HydroFLOW USA, HWWM has the exclusive right to sell or rent patented hydropath devices in connection with bacteria deactivation and scale treatment services for treating injection and disposal wells, fracking water and recycled water in the oil and gas industry to HWWM customers in the United States. Pursuant to the sales agreement, HWWM is required to pay 3.5% is required to purchase approximately $655,000 2016 2025. November 2016, $220,000 2016 2017, 2017 $875,000. six June 30, 2017, $280,000 2016 three six June 30, 2017 2016, not 2016 2017 2017. Self-Insurance In June 2015, first $75,000 $63,000 $23,000 June 30, 2017 December 31, 2016, Effective April 1, 2015, ’ compensation and employer’s liability insurance policy with a term through March 31, 2018. $1.5 June, 2017, one June 30, 2017, $612,000 not three six June 30, 2017, $ 250,000 $362,000 $250,000 Expenses, Water hauling services June 30, 2017, $1.4 $1.5 $163,000. Litigation Enservco Corporation (“Enservco”) and its subsidiary Heat Waves Hot Oil Service LLC (“Heat Waves”) are defendants in a civil lawsuit in federal court in Colorado, Civil Action No. 1:15 00983 two ‘993 The ‘993 February 2015, 99 ‘993 May 2016, 99 September 2016 February 2017, two ‘993 In the event that HOTF’s appeal is successful and the ‘993 may may not |
Note 10 - Stockholders Equity
Note 10 - Stockholders Equity | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 10 – Stockholders ’ Equity Warrants In conjunction with a private placement transaction and subordinated debt conversion in November 2012, pany granted warrants to purchase shares of the Company’s common stock, exercisable at $0.55 five may may June 30, 2017, 150,001 In June 2016, 30,000 $0.36 one 15,000 December 21, 2016 15,000 June 21, 2017. June 30, 2017, 30,000 In June 2017, 2 5, two five 1,612,902 $0.31 20 May 11, 2017. $0.19 June 28, 2017. June 30, 2017, A summary of warrant activity for the six June 30, 2017 Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Warrants Shares Price Life (Years) Value Outstanding at December 31, 2016 180,001 $ 0.57 1.51 $ - Issued 1,612,902 0.31 5.00 - Exercised - - Forfeited/Cancelled - - Outstanding at June 30, 2017 1,792,903 $ 0.34 4.60 - Exercisable at June 30, 2017 1,792,903 $ 0.34 4.60 - Stock Issued for Services During the six June 30, 2016, 3,031 2010 six June 30, 2016, $1,700 |
Note 11 - Stock Options
Note 11 - Stock Options | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 1 1 – Stock Options Stock Option Plans On July 27, 2010, 2010 “2010 2010 15% January 1, 2016 2010 5,719,069 38,127,129 Options were 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 three 5 2010 no 2010 June 30, 2016, 2,251,168 2010 On July 18, 2016, 2016 “2016 September 29, 2016. may 2016 8,000,000 2010 2,391,711 10,391,711 June 30, 2016, 1,960,000 2016 A summary of the range of assumptions used to value stock options granted for the three six June 30, 2017 2016 For the Three Months Ended For the Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected volatility 89% - 93% 81% - 84% 89% - 93% 81% - 102% Risk-free interest rate 1.4% 0.9% 1.4% 0.9% - 1.2% Forfeiture rate 0% 0% 0% 0% Dividend yield 0% 0% 0% 0% Expected term (in years) 3.0 - 3.5 3.1 - 3.5 3.0 3.5 3.1 - 3.5 During the six June 30, 2017, 2,171,600 $0.18 six June 30, 2017, no six June 30, 2016, 1,565,000 $0.33 July 18, 2016, 875,000 875,000 2016 The following is a summary of stock option activity for all equity plans for the six June 30, 2017: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31 , 2016 4,211,168 $ 1.09 2.85 $ 46,233 Granted 2,171,600 0.31 4.93 24,000 Exercised - - - - Forfeited or Expired (533,335 ) 1.38 1.55 Outstanding at June 30, 2017 5,849,433 $ 0.78 2.81 24,000 Vested or Expected to Vest at June 30, 2017 3,732,666 $ 0.99 1.82 8,333 Exercisable at June 30, 2017 3,732,666 $ 0.99 1.82 $ 8,333 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 June 30, 2017, June 30, 2017. During the three six June 30, 2017, $311,000 $446,000 three six June 30, 2016, $167,000 $318,000, A summary of the status of non-vested shares underlying the options are presented below: Number of Shares Weighted-Average Grant- Date Fair Value Non-vested at December 31, 2016 1,659,834 $ 0.58 Granted 2,171,600 0.18 Vested (1,651,333 ) 0.45 Forfeited (70,001 ) 0.35 Non-vested at June 30, 2017 2,110,100 $ 0.26 As of June 30, 2017, $492,000 1.87 |
Note 12 - Segment Reporting
Note 12 - Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 1 2 - Segment Reporting Enservco’s reportable business segments are Well Enhancement Services, Water Transfer Services, Water Hauling Services, and Construction Services. These segments have been selected based on changes in management’s resource allocation and performance assessment in making decisions regarding the Company. The following is a description of the segments. Well Enhancement Services : This segment utilizes a fleet of frac water heating units, hot oil trucks and acidizing units to provide well enhancement and completion services to the domestic oil and gas industry. These services include frac water heating, hot oil services, pressure testing, and acidizing services. Water Transfer Services : This segment utilizes high and low volume pumps, lay flat hose, aluminum pipe and manifolds and related equipment to move fresh and/or recycled water from a water source such as a pond, lake, river, stream, or water storage facility to frac tanks at drilling locations to be used in connection with well completion activities. Also included in this segment are water treatment services whereby the Company uses patented hydropath technology under a sales agreement with HydroFLOW USA to remove bacteria and scale from water. Water Hauling Services : This segment utilizes a fleet of trucks and related assets, including specialized tank trucks, vacuum trailers, storage tanks, and disposal facilities to provide various water hauling services. These services are primarily provided by Dillco in the Hugoton Field in Kansas. Construction Services : This segment utilizes a fleet of trucks and equipment to provide excavation grading, and dirt hauling services to the oil and gas and construction industry. In 2016, Unallocated and other includes general overhead expenses and assets associated with managing all reportable operating segments which have not The following tables set forth certain financial information with respect to Enservco’s reportable segments: Well Enhancement Water Transfer Services Water Hauling Construction Services Unallocated & Other Total Three Months Ended June 30, 2017: Revenues $ 5,819,435 $ 305,994 $ 880,801 $ 99,811 $ - $ 7,106,041 Cost of Revenue 4,324,845 616,468 1,192,372 67,483 231,585 6,432,753 Segment Profit $ 1,494,590 $ (310,474 ) $ (311,572 ) $ 32,328 $ (231,585 ) $ 673,288 Depreciation and $ 1,252,801 $ 246,137 $ 167,866 $ - $ 8,071 $ 1,674,875 Capital Expenditures $ 140,287 $ 139,983 $ 69,043 $ - $ 528 $ 349,841 Three Months Ended June 30, 2016: Revenues $ 2,660,526 $ - $ 888,892 $ 588,934 $ - $ 4,138,352 Cost of Revenue 2,790,690 420,316 830,872 712,326 183,977 $ 4,938,181 Segment Profit $ (130,164 ) $ (420,316 ) $ 58,020 $ (123,392 ) $ (183,977 ) $ (799,829 ) Depreciation and $ 1,224,851 $ 215,946 $ 169,396 $ - $ 7,427 $ 1,617,620 Capital Expenditures $ 50,545 $ 11,359 $ 5,739 $ - $ - $ 67,643 Well Enhancement Water Transfer Services Water Hauling Construction Services Unallocated & Other Total Six Months Ended June 30, 2017: Revenues $ 17,803,064 $ 1,058,006 $ 1,765,806 $ 254,066 $ - $ 20,880,942 Cost of Revenue 12,773,391 1,292,256 2,105,057 211,644 428,809 16,811,157 Segment Profit $ 5,029,673 $ (234,250 ) $ (339,252 ) $ 42,422 $ (428,809 ) $ 4,069,785 Depreciation and $ 2,424,124 $ 477,796 $ 333,487 $ - $ 15,897 $ 3,251,304 Capital Expenditures $ 404,316 $ 454,518 $ 106,431 $ - $ 5,561 $ 970,826 Identifiable assets (1) $ 30,974,297 $ 3,885,676 $ 1,932,607 $ - $ 344,823 $ 37,137,403 Six Months Ended June 30, 2016: Revenues $ 9,820,349 $ 31,688 $ 2,004,440 $ 588,934 $ - $ 12,445,411 Cost of Revenue 7,747,146 879,252 2,020,876 712,326 348,666 $ 11,708,266 Segment Profit $ 2,073,203 $ (847,564 ) $ (16,436 ) $ (123,392 ) $ (348,666 ) $ 737,145 Depreciation and $ 2,577,218 $ 431,893 $ 338,198 $ - $ 18,283 $ 3,365,592 Capital Expenditures $ 369,281 $ 164,045 $ 27,473 $ - $ 16,331 $ 577,130 Identifiable assets (1) $ 34,399,312 $ 3,903,753 $ 2,526,981 $ - $ 325,765 $ 41,155,811 ( 1 Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; and other assets. The following table reconciles the segment profits reported above to the loss from operations reported in the consolidated statements of operations: Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Segment profit (loss) $ 673,288 $ (799,829 ) $ 4,069,785 $ 737,145 General and administrative expenses (1,289,616 ) (901,321 ) (2,284,299 ) (1,927,896 ) Patent litigation and defense costs (24,542 ) (39,446 ) (67,230 ) (75,612 ) Severance and Transition Costs (767,755 ) - (767,755 ) - Depreciation and amortization (1,674,875 ) (1,617,620 ) (3,251,304 ) (3,365,592 ) Income (loss) from Operations $ (3,083,501 ) $ (3,358,216 ) $ (2,300,803 ) $ (4,631,955 ) |
Note 13 - Subsequent Event
Note 13 - Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 1 3 - Subsequent Event s East West Bank Revolving Credit Facility On August 10, 2017, the 2017 three $30 2017 85% 85% 2017 no 1 3.5% 1.75%. 0.5% August 10, 2020. 2017 one Related to the 2017 ( 1 Fixed Charge Coverage Ratio (“FCCR”) of not 1.10 1.00 January 1, 2017, December 31, 2017, twelve ( 2 12 1.20x, o maintain minimum liquidity of $1,500,000 2017 On August 10, 2017, $21.7 was made under the New Credit Facility to repay in full all obligations outstanding under the Prior Credit Facility including fees and expenses incurred in connection with the termination of the 2014 August 10, 2017, 2017 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 may |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are stated at the amounts billed to customers, net of an allowance for uncollectible accounts. The Company provides an allowance for uncollectable accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The allowance 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 June 30, 2017 December 31, 2016, $83,000 $34,000, three six June 30, 2017, $20,000 $49,000, three six June 30, 2016, $48,000 $87,000, |
Inventory, Policy [Policy Text Block] | Inventories Inventory consists primarily of propane, diesel fuel and chemicals that are used in the servicing of oil wells and is carried at the lower of cost or market in accordance with the first first three six June 30, 2017 2016, no |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment consists of ( 1 2 3 4 5 30 Any difference between net book value of the property and equipment and the proceeds of an assets’ sale or settlement of an insurance claim is recorded as a gain or loss in the Company’s earnings. |
Lessee, Leases [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 ’s facility leases contain renewal clauses and expire through June 2022. The Company has leased equipment in the normal course of business, which are recorded as operating leases. The Company recorded rental expense on equipment under operating leases over the lease term as it becomes payable; there were no no June 30, 2017. |
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 not No three six June 30, 2017 2016. |
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 (Loss) Per Share Earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income (loss) 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 As of June 30, 2017 2016, of 5,749,433 5,120,669 , respectively, which have a potentially dilutive impact on earnings per share. For the three six June 30, 2017, not not not not three six June 30, 2017 2016. |
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. All other costs not June 30, 2017, $197,000 2014 |
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. A deferred tax asset or liability that is not not 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 50% may not Interest and penalties associated with tax positions are recorded in the period assessed as general and administrative expenses. The Company files tax returns in the United States and in the states in which it conducts its business operations. The tax years 2012 2016 |
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 six June 30, 2017. The hierarchy is broken down into three 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 Stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award as described below, and is recognized over the requisite service period, which is generally the vesting period of the equity grant. The Company uses the Black-Scholes pricing model as a method for determining the estimated grant date fair value for all stock options awarded to employees, independent contractors, 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 not 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 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, the valuation of derivative financial instruments (warrants and interest rate swaps), and the valuation of deferred taxes. Actual results could differ from those estimates. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior-period amounts have been reclassified for comparative purposes to conform to the fiscal 201 7 no |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements In May 2014, No. 2014 09, August 2015 one January 1, 2018. not January 1, 2018. In February 2016, 2016 02 842 12 December 15, 2018, one In August 2016, 2016 15, 230 2016 15 one December 15, 2017 2016 15 Recently Adopted In March 2016, 2016 09 718 not |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Current Ownership Hierarchy [Table Text Block] | Name State of Formation Ownership Business Dillco Fluid Service, Inc. (“Dillco”) Kansas 100% by Enservco Oil and natural gas field fluid logistic services. Heat Waves Hot Oil Service LLC (“Heat Waves”) Colorado 100% by Enservco Oil and natural gas well services, including logistics and stimulation. Heat Waves Water Management LLC (“HWWM”) Colorado 100% by Enservco Water Transfer and Water Treatment Services. HE Services LLC (“HES”) Nevada 100% by Heat Waves No active business operations. Owns construction equipment used by Heat Waves. Real GC, LLC (“Real GC”) Colorado 100% by Heat Waves No active business operations. Owns real property in Garden City, Kansas that is utilized by Heat Waves. |
Note 4 - Property and Equipme21
Note 4 - Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, December 31, 201 7 2016 Trucks and vehicles $ 54,855,287 $ 54,353,632 Water transfer equipment 4,906,505 4,520,155 Other equipment 2,913,112 2,898,457 Buildings and improvements 3,896,865 3,896,865 Land 784,636 784,636 Disposal wells 391,003 391,003 Total property and equipment 67,747,408 66,844,748 Accumulated depreciation (35,476,894 ) (32,226,787 ) Property and equipment – net $ 32,270,514 $ 34,617,961 |
Note 5 - PNC Credit Facility (T
Note 5 - PNC Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Leverage Ratio [Table Text Block] | Fiscal Quarter Ending: Maximum Leverage Ratio June 30, 2017 4.50 : 1.00 September 30, 2017 4.50 : 1.00 December 31, 2017 7.00 : 1.00 March 31, 2018 5.50 : 1.00 |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | June 30, December 31, 201 7 2016 Real Estate Loan for facility in North Dakota, interest at 3.75%, monthly principal and interest payment of $5,255 ending October 3, 2028. Collateralized by land and property purchased with the loan. $ 329,815 $ 355,033 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 annual installments of $36,000 per agreement with the IRS. 125,000 170,000 Mortgages payable to banks, interest ranging from 5.9% to 7.25%, due in monthly principal and interest payments of $6,105, secured by land. Remaining principal balances were paid in February 2017. - 97,839 Total 454,815 622,872 Less current portion (176,403 ) (318,499 ) Long-term debt, net of current portion $ 278,412 $ 304,373 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Twelve Months Ending June 30 , 2017 $ 176,403 2018 53,392 2019 55,438 2020 57,602 2021 59,831 Thereafter 52,149 Total $ 454,815 |
Note 7 - Fair Value Measureme24
Note 7 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurement June 30 , 2017 Derivative Instrument Warrant liability $ - $ - $ 306,648 $ 306,648 Interest rate swap $ - $ 72,000 $ - $ 72,000 December 31, 201 6 Derivative Instrument Interest rate swap $ - $ 91,000 $ - $ 91,000 |
Note 9 - Commitments and Cont25
Note 9 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Twelve Months Ending June 30, 2018 $ 622,242 2019 562,518 2020 569,194 2021 381,370 2022 290,046 Thereafter - Total $ 2,425,370 |
Note 10 - Stockholders Equity (
Note 10 - Stockholders Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
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, 2016 180,001 $ 0.57 1.51 $ - Issued 1,612,902 0.31 5.00 - Exercised - - Forfeited/Cancelled - - Outstanding at June 30, 2017 1,792,903 $ 0.34 4.60 - Exercisable at June 30, 2017 1,792,903 $ 0.34 4.60 - |
Note 11 - Stock Options (Tables
Note 11 - Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the Three Months Ended For the Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected volatility 89% - 93% 81% - 84% 89% - 93% 81% - 102% Risk-free interest rate 1.4% 0.9% 1.4% 0.9% - 1.2% Forfeiture rate 0% 0% 0% 0% Dividend yield 0% 0% 0% 0% Expected term (in years) 3.0 - 3.5 3.1 - 3.5 3.0 3.5 3.1 - 3.5 |
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 , 2016 4,211,168 $ 1.09 2.85 $ 46,233 Granted 2,171,600 0.31 4.93 24,000 Exercised - - - - Forfeited or Expired (533,335 ) 1.38 1.55 Outstanding at June 30, 2017 5,849,433 $ 0.78 2.81 24,000 Vested or Expected to Vest at June 30, 2017 3,732,666 $ 0.99 1.82 8,333 Exercisable at June 30, 2017 3,732,666 $ 0.99 1.82 $ 8,333 |
Schedule of Nonvested Share Activity [Table Text Block] | Number of Shares Weighted-Average Grant- Date Fair Value Non-vested at December 31, 2016 1,659,834 $ 0.58 Granted 2,171,600 0.18 Vested (1,651,333 ) 0.45 Forfeited (70,001 ) 0.35 Non-vested at June 30, 2017 2,110,100 $ 0.26 |
Note 12 - Segment Reporting (Ta
Note 12 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Well Enhancement Water Transfer Services Water Hauling Construction Services Unallocated & Other Total Three Months Ended June 30, 2017: Revenues $ 5,819,435 $ 305,994 $ 880,801 $ 99,811 $ - $ 7,106,041 Cost of Revenue 4,324,845 616,468 1,192,372 67,483 231,585 6,432,753 Segment Profit $ 1,494,590 $ (310,474 ) $ (311,572 ) $ 32,328 $ (231,585 ) $ 673,288 Depreciation and $ 1,252,801 $ 246,137 $ 167,866 $ - $ 8,071 $ 1,674,875 Capital Expenditures $ 140,287 $ 139,983 $ 69,043 $ - $ 528 $ 349,841 Three Months Ended June 30, 2016: Revenues $ 2,660,526 $ - $ 888,892 $ 588,934 $ - $ 4,138,352 Cost of Revenue 2,790,690 420,316 830,872 712,326 183,977 $ 4,938,181 Segment Profit $ (130,164 ) $ (420,316 ) $ 58,020 $ (123,392 ) $ (183,977 ) $ (799,829 ) Depreciation and $ 1,224,851 $ 215,946 $ 169,396 $ - $ 7,427 $ 1,617,620 Capital Expenditures $ 50,545 $ 11,359 $ 5,739 $ - $ - $ 67,643 Well Enhancement Water Transfer Services Water Hauling Construction Services Unallocated & Other Total Six Months Ended June 30, 2017: Revenues $ 17,803,064 $ 1,058,006 $ 1,765,806 $ 254,066 $ - $ 20,880,942 Cost of Revenue 12,773,391 1,292,256 2,105,057 211,644 428,809 16,811,157 Segment Profit $ 5,029,673 $ (234,250 ) $ (339,252 ) $ 42,422 $ (428,809 ) $ 4,069,785 Depreciation and $ 2,424,124 $ 477,796 $ 333,487 $ - $ 15,897 $ 3,251,304 Capital Expenditures $ 404,316 $ 454,518 $ 106,431 $ - $ 5,561 $ 970,826 Identifiable assets (1) $ 30,974,297 $ 3,885,676 $ 1,932,607 $ - $ 344,823 $ 37,137,403 Six Months Ended June 30, 2016: Revenues $ 9,820,349 $ 31,688 $ 2,004,440 $ 588,934 $ - $ 12,445,411 Cost of Revenue 7,747,146 879,252 2,020,876 712,326 348,666 $ 11,708,266 Segment Profit $ 2,073,203 $ (847,564 ) $ (16,436 ) $ (123,392 ) $ (348,666 ) $ 737,145 Depreciation and $ 2,577,218 $ 431,893 $ 338,198 $ - $ 18,283 $ 3,365,592 Capital Expenditures $ 369,281 $ 164,045 $ 27,473 $ - $ 16,331 $ 577,130 Identifiable assets (1) $ 34,399,312 $ 3,903,753 $ 2,526,981 $ - $ 325,765 $ 41,155,811 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Segment profit (loss) $ 673,288 $ (799,829 ) $ 4,069,785 $ 737,145 General and administrative expenses (1,289,616 ) (901,321 ) (2,284,299 ) (1,927,896 ) Patent litigation and defense costs (24,542 ) (39,446 ) (67,230 ) (75,612 ) Severance and Transition Costs (767,755 ) - (767,755 ) - Depreciation and amortization (1,674,875 ) (1,617,620 ) (3,251,304 ) (3,365,592 ) Income (loss) from Operations $ (3,083,501 ) $ (3,358,216 ) $ (2,300,803 ) $ (4,631,955 ) |
Note 1 - Basis of Presentatio29
Note 1 - Basis of Presentation - Current Ownership Hierarchy (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Dillco Fluid Service Inc at Kansas [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Heat Waves Hot Oil Service LLC at Colorado [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Heat Waves Water Management LLC at Colorado [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
HE Services LLC at Nevada [Member] | Heat Waves [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Real GC LLC at Colorado [Member] | Heat Waves [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Note 2 - Liquidity and Manage30
Note 2 - Liquidity and Managements' Plans (Details Textual) - USD ($) | Aug. 10, 2017 | Aug. 08, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2014 |
Available Liquidity | $ 2,100,000 | |||||
Long-term Debt | 454,815 | $ 622,872 | ||||
Cash | 621,000 | |||||
The 2017 Credit Agreement [Member] | East West Bank [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility, Expiration Period | 3 years | 3 years | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | $ 30,000,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 4,700,000 | |||||
Two Thousand Fourteen Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Repayments of Lines of Credit | 3.50 | |||||
Debt Instrument, Required Funds to be Raised | $ 1,500,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | |||||
Long-term Debt | 20,400,000 | 23,200,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,500,000 | $ 4,500,000 | ||||
Two Thousand Fourteen Credit Agreement [Member] | Revolving Credit Facility [Member] | Subordinated Debt [Member] | ||||||
Debt Instrument, Required Additional Funds to be Raised | $ 1,000,000 |
Note 3 - Summary of Significa31
Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable, Current | $ 83,000 | $ 83,000 | $ 34,000 | ||
Provision for Doubtful Accounts | 20,000 | $ 48,000 | 49,402 | $ 86,949 | |
Inventory Write-down | 0 | 0 | 0 | 0 | |
Asset Impairment Charges | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of Outstanding Stock Based Option Awards and Warrants | 5,749,433 | 5,120,669 | 5,749,433 | 5,120,669 | |
Diluted Share Instruments, Intrinsic Value | $ 0 | $ 0 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 | |
Revolving Credit Facility [Member] | Two Thousand Fourteen Credit Agreement [Member] | |||||
Unamortized Debt Issuance Expense | $ 197,000 | $ 197,000 | |||
Minimum [Member] | |||||
Property, Plant and Equipment, Useful Life | 5 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment, Useful Life | 30 years |
Note 4 - Property and Equipme32
Note 4 - Property and Equipment (Details Textual) $ in Millions | Jan. 01, 2016USD ($) |
Water Management Assets of HII Technologies and Wet Oilfield Services, LLC [Member] | HWWM [Member] | |
Payments to Acquire Productive Assets | $ 4 |
Note 4 - Property and Equipme33
Note 4 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Property and equipment - gross | $ 67,747,408 | $ 66,844,748 |
Accumulated depreciation | (35,476,894) | (32,226,787) |
Property and equipment – net | 32,270,514 | 34,617,961 |
Vehicles [Member] | ||
Property and equipment - gross | 54,855,287 | 54,353,632 |
Water Transfer Equipment [Member] | ||
Property and equipment - gross | 4,906,505 | 4,520,155 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and equipment - gross | 2,913,112 | 2,898,457 |
Building and Building Improvements [Member] | ||
Property and equipment - gross | 3,896,865 | 3,896,865 |
Land [Member] | ||
Property and equipment - gross | 784,636 | 784,636 |
Disposal Wells [Member] | ||
Property and equipment - gross | $ 391,003 | $ 391,003 |
Note 5 - PNC Credit Facility (D
Note 5 - PNC Credit Facility (Details Textual) | May 10, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Sep. 17, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2016USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2019 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.34 | $ 0.34 | $ 0.57 | ||||||||
Long-term Debt | $ 454,815 | $ 454,815 | $ 622,872 | ||||||||
Amortization of Debt Issuance Costs | 37,000 | $ 39,000 | 297,557 | $ 74,694 | |||||||
Fair Value Hedging [Member] | Interest Rate Swap [Member] | |||||||||||
Derivative, Notional Amount | $ 10,000,000 | ||||||||||
Derivative, Swaption Interest Rate | 1.88% | ||||||||||
Derivative Liability | 72,000 | 72,000 | 91,000 | ||||||||
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||||||||||
Unrealized Gain (Loss) on Derivatives | (11,000) | $ (74,000) | 19,000 | $ (172,000) | |||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||||||
Unamortized Debt Issuance Expense | 147,000 | 147,000 | 171,000 | ||||||||
Other Assets [Member] | |||||||||||
Unamortized Debt Issuance Expense | $ 51,000 | $ 51,000 | $ 259,000 | ||||||||
Cross River Partners, L.P. [Member] | |||||||||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 1,000,000 | ||||||||||
Class of Warrant or Right, Expiration Period | 5 years | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 645,161 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.31 | ||||||||||
Subordinated Debt [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||
Subordinated Debt [Member] | Cross River Partners, L.P. [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||
Two Thousand Fourteen Credit Agreement [Member] | |||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Warrants Purchased in Credit Agreement [Member] | |||||||||||
Class of Warrant or Right, Expiration Period | 5 years | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 967,741 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.31 | ||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Domestic Rate Loans [Member] | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.25% | 7.25% | 6.75% | ||||||||
Long-term Debt | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 | ||||||||
Two Thousand Fourteen Credit Agreement [Member] | LIBOR Based Loans [Member] | |||||||||||
Long-term Debt | 18,500,000 | $ 18,500,000 | $ 21,300,000 | ||||||||
Two Thousand Fourteen Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | 5.55% | 4.50% | 5.21% | |||||||
Two Thousand Fourteen Credit Agreement [Member] | Minimum [Member] | Base Rate [Member] | Domestic Rate Loans [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | 3.00% | |||||||||
Two Thousand Fourteen Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.50% | 5.72% | 5.50% | 5.27% | |||||||
Two Thousand Fourteen Credit Agreement [Member] | Maximum [Member] | Base Rate [Member] | Domestic Rate Loans [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.50% | 4.00% | |||||||||
Two Thousand Fourteen Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,500,000 | $ 1,500,000 | $ 4,500,000 | ||||||||
Debt Instrument, Required Funds to be Raised | $ 1,500,000 | ||||||||||
Debt Instrument, Letters of Credit Issued | 1,500,000 | ||||||||||
Long-term Debt | 20,400,000 | 20,400,000 | $ 23,200,000 | ||||||||
Amortization of Debt Issuance Costs Due to Change in Maturity Date | 217,000 | ||||||||||
Unamortized Debt Issuance Expense | $ 197,000 | $ 197,000 | |||||||||
Debt Instrument, Term | 5 years | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | $ 30,000,000 | |||||||||
Line of Credit Facility Limitation on Borrowings Percentage of Eligible Receivables | 85.00% | 85.00% | |||||||||
Line of Credit Facility Limitation on Borrowings Percentage of Appraised Value of Trucks and Equipment | 75.00% | 75.00% | |||||||||
Two Thousand Fourteen Credit Agreement [Member] | Revolving Credit Facility [Member] | Scenario, Forecast [Member] | |||||||||||
Debt Covenant, Minimum Fixed Charge Coverage Ratio | 1.25 | ||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Revolving Credit Facility [Member] | Subordinated Debt [Member] | |||||||||||
Debt Instrument, Required Additional Funds to be Raised | $ 1,000,000 |
Note 5 - PNC Credit Facility -
Note 5 - PNC Credit Facility - Summary of Quarterly Leverage Ratio (Details) - Two Thousand Fourteen Credit Agreement [Member] | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | |
Minimum [Member] | ||||
Maximum leverage ratio | 4.5 | |||
Minimum [Member] | Scenario, Forecast [Member] | ||||
Maximum leverage ratio | 5.5 | 7 | 4.5 | |
Maximum [Member] | ||||
Maximum leverage ratio | 1 | |||
Maximum [Member] | Scenario, Forecast [Member] | ||||
Maximum leverage ratio | 1 | 1 | 1 |
Note 6 - Long-term Debt - Summa
Note 6 - Long-term Debt - Summary of Long-term Debt Instruments (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Long-term debt | $ 454,815 | $ 622,872 |
Less current portion | (176,403) | (318,499) |
Long-term debt, net of current portion | 278,412 | 304,373 |
Real Estate Loan 1 [Member] | ||
Long-term debt | 329,815 | 355,033 |
Note Payable To Seller Of Heat Waves [Member] | ||
Long-term debt | 125,000 | 170,000 |
Mortgage Payable Through February 2017 [Member] | ||
Long-term debt | $ 97,839 |
Note 6 - Long-term Debt - Sum37
Note 6 - Long-term Debt - Summary of Long-term Debt Instruments (Details) (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Real Estate Loan 1 [Member] | ||
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 | Oct. 3, 2028 | Oct. 3, 2028 |
Note Payable To Seller Of Heat Waves [Member] | ||
Debt Instrument, Periodic Payment | $ 36,000 | $ 36,000 |
Mortgage Payable Through February 2017 [Member] | ||
Debt Instrument, Periodic Payment | $ 6,105 | |
Mortgage Payable Through February 2017 [Member] | Minimum [Member] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.90% | |
Mortgage Payable Through February 2017 [Member] | Maximum [Member] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.25% |
Note 6 - Long-term Debt - Sum38
Note 6 - Long-term Debt - Summary of Maturities of Long-term Debt (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
2,017 | $ 176,403 | |
2,018 | 53,392 | |
2,019 | 55,438 | |
2,020 | 57,602 | |
2,021 | 59,831 | |
Thereafter | 52,149 | |
Total | $ 454,815 | $ 622,872 |
Note 7 - Fair Value Measureme39
Note 7 - Fair Value Measurements (Details Textual) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Warrants [Member] | |
Fair Value Assumptions, Risk Free Interest Rate | 1.51% |
Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Fair Value Assumptions, Expected Term | 2 years 182 days |
Fair Value Assumptions, Expected Volatility Rate | 96.39% |
Warrant Liability [Member] | Warrants [Member] | |
Derivative Liability | $ 307,000 |
Accounts Payable and Accrued Liabilities [Member] | Interest Rate Swap [Member] | |
Derivative Liability | $ 72,000 |
Note 7 - Fair Value Measureme40
Note 7 - Fair Value Measurements - Financial Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Warrants [Member] | ||
Derivative instrument | $ 306,648 | |
Interest Rate Swap [Member] | ||
Derivative instrument | 72,000 | $ 91,000 |
Fair Value, Inputs, Level 3 [Member] | Warrants [Member] | ||
Derivative instrument | 306,648 | |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
Derivative instrument | $ 72,000 | $ 91,000 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Deferred Tax Assets, Net, Noncurrent | $ 547,248 | $ 547,248 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | |||
Income Tax Expense (Benefit) | $ (1,018,644) | $ (1,239,865) | $ (991,529) | $ (1,808,707) |
Note 9 - Commitments and Cont42
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 08, 2017 | Nov. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Apr. 01, 2015 | |
Operating Leases, Rent Expense | $ 191,000 | $ 200,000 | $ 405,000 | $ 404,000 | |||||
Self Insurance Reserve | 63,000 | 63,000 | $ 23,000 | ||||||
Workers' Compensation, Maximum Coverage Policy | $ 1,500,000 | ||||||||
Self-insured Amount per Individual Claim | $ 75,000 | ||||||||
Other Noncurrent Assets [Member] | |||||||||
Worker's Compensation, Prepaid Amount | 362,000 | 362,000 | |||||||
Expenses, Water Hauling Services [Member] | |||||||||
Workers' Compensation, Estimated Accruals | 250,000 | 250,000 | |||||||
Subsequent Event [Member] | |||||||||
Payments on Workers' Compensation Claims | $ 612,000 | ||||||||
Workers' Compensation, Accumulated Payments on Claims | 1,400,000 | ||||||||
Workers' Compensation, Remaining Policy Premiums | $ 163,000 | ||||||||
Sales Agreement with HydroFLOW USA [Member] | |||||||||
Licencing Agreement, Royalties on Gross Revenues Payable, Percentage | 3.50% | ||||||||
Purchase Commitment, Minimum Amount Committed Per Year | $ 655,000 | ||||||||
Purchase Commitment, Current Period Obligation Payment Allocated to Following Fiscal Year | $ 220,000 | ||||||||
Purchase Commitment, Minimum Amount Committed, Next Twelve Months | $ 875,000 | ||||||||
Purchase Commitment, Amount Ordered | 280,000 | ||||||||
Payments for Royalties | 0 | 0 | 0 | 0 | |||||
Accrued Royalties | $ 0 | $ 0 | $ 0 | $ 0 |
Note 9 - Commitments and Cont43
Note 9 - Commitments and Contingencies - Summary of Future Minimum Operating Lease Commitments (Details) | Jun. 30, 2017USD ($) |
2,018 | $ 622,242 |
2,019 | 562,518 |
2,020 | 569,194 |
2,021 | 381,370 |
2,022 | 290,046 |
Thereafter | |
Total | $ 2,425,370 |
Note 10 - Stockholders Equity44
Note 10 - Stockholders Equity (Details Textual) - USD ($) | Jun. 21, 2017 | Dec. 21, 2016 | Nov. 30, 2012 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | May 10, 2017 | Dec. 31, 2016 |
Class of Warrant or Right, Outstanding | 1,792,903 | 1,792,903 | 1,792,903 | 180,001 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.57 | |||||||
Class of Warrant or Right, Issued During Period | 1,612,902 | ||||||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ 0.31 | ||||||||||
Allocated Share-based Compensation Expense | $ 311,000 | $ 167,000 | $ 446,000 | $ 318,000 | |||||||
Option Plan 2010 Member | Consultant [Member] | |||||||||||
Stock Issued During Period, Shares, Issued for Services | 3,031 | ||||||||||
Allocated Share-based Compensation Expense | $ 1,700 | ||||||||||
Warrants Issued in June 2016 [Member] | |||||||||||
Class of Warrants or Rights, Vesting Period | 1 year | ||||||||||
Class of Warrants or Rights, Vested During the Period | 15,000 | 15,000 | |||||||||
Class of Warrant or Right, Outstanding | 30,000 | 30,000 | 30,000 | ||||||||
Class of Warrant or Right, Issued During Period | 30,000 | ||||||||||
Class of Warrant or Right, Grants in Period, Grant-date Fair Value | $ 0.36 | ||||||||||
Warrant [Member] | |||||||||||
Share Based Compensation Warrants Outstanding | 150,001 | 150,001 | 150,001 | ||||||||
Investors [Member] | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.55 | ||||||||||
Warrants Expiration Period | 5 years | ||||||||||
Cross River Partners, L.P. [Member] | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.31 | ||||||||||
Warrants Expiration Period | 5 years | ||||||||||
Class of Warrant or Right, Issued During Period | 1,612,902 | ||||||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ 0.31 | ||||||||||
Class of Warrant or Right, Grants in Period, Grant-date Fair Value | $ 0.19 |
Note 10 - Stockholders Equity -
Note 10 - Stockholders Equity - Summary of Warrant Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Outstanding (in shares) | 180,001 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.57 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.34 | $ 0.57 | |
Outstanding, weighted average remaining contractual life (Year) | 4 years 219 days | 1 year 186 days | |
Outstanding, aggregate intrinsic value | |||
Issued (in shares) | 1,612,902 | ||
Issued (in dollars per share) | $ 0.31 | ||
Issued, weighted average remaining contractual life (Year) | 5 years | ||
Exercised (in shares) | |||
Exercised, weighted average exercise price (in dollars per share) | |||
Forfeited/Cancelled (in shares) | |||
Exercisable (in shares) | 1,792,903 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 0.34 | ||
Exercisable, weighted average remaining contractual life (Year) | 4 years 219 days | ||
Exercisable, aggregate intrinsic value | |||
Forfeited/Cancelled, weighted average exercise price (in dollars per share) | |||
Outstanding (in shares) | 1,792,903 | 180,001 |
Note 11 - Stock Options (Detail
Note 11 - Stock Options (Details Textual) - USD ($) | Jul. 18, 2016 | Jan. 02, 2016 | Jul. 27, 2010 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10,391,711 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,849,433 | 5,849,433 | 4,211,168 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,171,600 | 1,565,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.18 | $ 0.33 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 533,335 | |||||||
Allocated Share-based Compensation Expense | $ 311,000 | $ 167,000 | $ 446,000 | $ 318,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 492,000 | $ 492,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 317 days | |||||||
Option Plan 2010 Member | ||||||||
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, Expiration Period | 5 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,719,069 | 0 | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 38,127,129 | 2,251,168 | 2,251,168 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 875,000 | |||||||
Option Plan 2010 Member | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||
Option Plan 2010 Member | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
The 2016 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,391,711 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 8,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,960,000 | 1,960,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 875,000 |
Note 11 - Stock Options - Summa
Note 11 - Stock Options - Summary of Stock Valuation Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Risk-free interest rate | 1.40% | 0.90% | 1.40% | |
Forfeiture rate | 0.00% | 0.00% | 0.00% | 0.00% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ||||
Expected volatility | 89.00% | 81.00% | 89.00% | 81.00% |
Risk-free interest rate | 0.90% | |||
Expected term (Year) | 3 years | 3 years 36 days | 3 years | 3 years 36 days |
Maximum [Member] | ||||
Expected volatility | 93.00% | 84.00% | 93.00% | 102.00% |
Risk-free interest rate | 1.20% | |||
Expected term (Year) | 3 years 182 days | 3 years 182 days | 3 years 182 days | 3 years 182 days |
Note 11 - Stock Options - Sum48
Note 11 - Stock Options - Summary of Stock Option Activity (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Outstanding (in shares) | 4,211,168 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 1.09 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 1.09 | $ 0.78 | |
Outstanding, weighted average remaining contractual life (Year) | 2 years 310 days | 2 years 295 days | |
Outstanding, aggregate intrinsic value | $ 46,233 | $ 24,000 | |
Granted (in shares) | 2,171,600 | 1,565,000 | |
Granted, weighted average exercise price (in dollars per share) | $ 0.31 | ||
Granted, weighted average remaining contractual life (Year) | 4 years 339 days | ||
Granted | $ 24,000 | ||
Exercised (in shares) | 0 | ||
Exercised, weighted average exercise price (in dollars per share) | |||
Forfeited or Expired (in shares) | (533,335) | ||
Forfeited or Expired, weighted average exercise price (in dollars per share) | $ 1.38 | ||
Forfeited or Expired (Year) | 1 year 200 days | ||
Vested or Expected to Vest (in shares) | 3,732,666 | ||
Vested or Expected to Vest, weighted average exercise price (in dollars per share) | $ 0.99 | ||
Vested or Expected to Vest, weighted average remaining contractual life (Year) | 1 year 299 days | ||
Vested or Expected to Vest, aggregate intrinsic value | $ 8,333 | ||
Exercisable (in shares) | 3,732,666 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 0.99 | ||
Outstanding (in shares) | 4,211,168 | 5,849,433 | |
Exercisable, weighted average remaining contractual life (Year) | 1 year 299 days | ||
Exercisable, aggregate intrinsic value | $ 8,333 |
Note 11 - Stock Options - Sum49
Note 11 - Stock Options - Summary of the Status of Non-vested Shares (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Balance, non-vested (in shares) | 1,659,834 | |
Balance, non-vested, weighted average grant date fair value (in dollars per share) | $ 0.58 | |
Granted, non-vested (in shares) | 2,171,600 | 1,565,000 |
Granted, weighted average grant date fair value (in dollars per share) | $ 0.18 | $ 0.33 |
Vested, non-vested (in shares) | (1,651,333) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 0.45 | |
Forfeited, non-vested (in shares) | (70,001) | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ 0.35 | |
Balance, non-vested (in shares) | 2,110,100 | |
Balance, non-vested, weighted average grant date fair value (in dollars per share) | $ 0.26 |
Note 12 - Segment Reporting - R
Note 12 - Segment Reporting - Reportable Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenues | $ 7,106,041 | $ 4,138,352 | $ 20,880,942 | $ 12,445,411 | |
Cost of Revenue | 6,432,753 | 4,938,181 | 16,811,157 | 11,708,266 | |
Segment Profit | 673,288 | (799,829) | 4,069,785 | 737,145 | |
Depreciation and amortization | 1,674,875 | 1,617,620 | 3,251,304 | 3,365,592 | |
Capital Expenditures (Excluding Acquisitions) | 349,841 | 67,643 | 970,826 | 577,130 | |
Identifiable assets (1) | [1] | 37,137,403 | 41,155,811 | 37,137,403 | 41,155,811 |
Well Enhancement [Member] | |||||
Revenues | 5,819,435 | 2,660,526 | 17,803,064 | 9,820,349 | |
Cost of Revenue | 4,324,845 | 2,790,690 | 12,773,391 | 7,747,146 | |
Segment Profit | 1,494,590 | (130,164) | 5,029,673 | 2,073,203 | |
Depreciation and amortization | 1,252,801 | 1,224,851 | 2,424,124 | 2,577,218 | |
Capital Expenditures (Excluding Acquisitions) | 140,287 | 50,545 | 404,316 | 369,281 | |
Identifiable assets (1) | [1] | 30,974,297 | 34,399,312 | 30,974,297 | 34,399,312 |
Fluid Management [Member] | |||||
Revenues | 305,994 | 1,058,006 | 31,688 | ||
Cost of Revenue | 616,468 | 420,316 | 1,292,256 | 879,252 | |
Segment Profit | (310,474) | (420,316) | (234,250) | (847,564) | |
Depreciation and amortization | 246,137 | 215,946 | 477,796 | 431,893 | |
Capital Expenditures (Excluding Acquisitions) | 139,983 | 11,359 | 454,518 | 164,045 | |
Identifiable assets (1) | [1] | 3,885,676 | 3,903,753 | 3,885,676 | 3,903,753 |
Water Hauling [Member] | |||||
Revenues | 880,801 | 888,892 | 1,765,806 | 2,004,440 | |
Cost of Revenue | 1,192,372 | 830,872 | 2,105,057 | 2,020,876 | |
Segment Profit | (311,572) | 58,020 | (339,252) | (16,436) | |
Depreciation and amortization | 167,866 | 169,396 | 333,487 | 338,198 | |
Capital Expenditures (Excluding Acquisitions) | 69,043 | 5,739 | 106,431 | 27,473 | |
Identifiable assets (1) | [1] | 1,932,607 | 2,526,981 | 1,932,607 | 2,526,981 |
Construction Services [Member] | |||||
Revenues | 99,811 | 588,934 | 254,066 | 588,934 | |
Cost of Revenue | 67,483 | 712,326 | 211,644 | 712,326 | |
Segment Profit | 32,328 | (123,392) | 42,422 | (123,392) | |
Depreciation and amortization | |||||
Capital Expenditures (Excluding Acquisitions) | |||||
Identifiable assets (1) | [1] | ||||
Unallocated and Other Segments [Member] | |||||
Revenues | |||||
Cost of Revenue | 231,585 | 183,977 | 428,809 | 348,666 | |
Segment Profit | (231,585) | (183,977) | (428,809) | (348,666) | |
Depreciation and amortization | 8,071 | 7,427 | 15,897 | 18,283 | |
Capital Expenditures (Excluding Acquisitions) | 528 | 5,561 | 16,331 | ||
Identifiable assets (1) | [1] | $ 344,823 | $ 325,765 | $ 344,823 | $ 325,765 |
[1] | Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; and other assets. |
Note 12 - Segment Reporting - L
Note 12 - Segment Reporting - Loss From Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Segment profit (loss) | $ 673,288 | $ (799,829) | $ 4,069,785 | $ 737,145 | |
General and administrative expenses | (1,289,616) | (901,321) | (2,284,299) | (1,927,896) | |
Patent litigation and defense costs | (24,542) | (39,446) | (67,230) | (75,612) | |
Severance and Transition Costs | [1] | (767,755) | (767,755) | ||
Depreciation and amortization | (1,674,875) | (1,617,620) | (3,251,304) | (3,365,592) | |
Income (loss) from Operations | $ (3,083,501) | $ (3,358,216) | $ (2,300,803) | $ (4,631,955) | |
[1] | Severance and transition costs comprise (i) payments and accruals for future payments to our former Chief Executive Officer and Chielf Financial Officer and (ii) legal fees directly related to separation and transition activities. |
Note 13 - Subsequent Event (Det
Note 13 - Subsequent Event (Details Textual) - East West Bank [Member] - The 2017 Credit Agreement [Member] - Subsequent Event [Member] - USD ($) | Aug. 10, 2017 | Aug. 08, 2017 |
Line of Credit Facility, Expiration Period | 3 years | 3 years |
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | $ 30,000,000 |
Line of Credit Facility, Maximum Borrowing Capacity, Percent of Eligible Receivables | 85.00% | |
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Trucks and Equipment | 85.00% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |
Line of Credit Facility, Terms, Fixed Charge Coverage Ratio | 1.1 | |
Minimum [Member] | ||
Line of Credit Facility Terms, Minimum Liquidity | $ 1,500,000 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |
Prime Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |