Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 12, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | N-Viro International Corporation | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Trading Symbol | nvic | |
Amendment Flag | false | |
Entity Central Index Key | 904,896 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 8,749,549 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and Cash Equivalents - Unrestricted | $ 127,294 | $ 81,854 |
Cash and Cash Equivalents - Restricted | 0 | 65,529 |
Accounts Receivable, net | 140,816 | 140,070 |
Other Receivable, net | 24 | 51,912 |
Prepaid expenses and other assets | 109,531 | 79,719 |
Deferred costs - stock and warrants issued for services | 95,979 | 597,789 |
Total current assets | 473,644 | 1,016,873 |
Property and equipment, net | 919,082 | 998,852 |
Deposits and other assets | 33,665 | 27,319 |
TOTAL ASSETS | 1,426,391 | 2,043,044 |
CURRENT LIABILITIES | ||
Accounts Payable | 610,341 | 716,680 |
Current maturities of long-term debt | 65,762 | 63,186 |
Capital Lease Obligations, Current | 93,357 | 86,652 |
Notes Payable, Related Parties, Current | 206,065 | 244,480 |
Convertible Debt, Current | 365,000 | 455,000 |
Pension plan withdrawal liability, current | 363,083 | 68,917 |
Accrued liabilities | 276,652 | 320,207 |
Total current liabilities | 1,980,260 | 1,955,122 |
Long-term debt, less currrent maturities | 0 | 6,182 |
Pension plan withdrawal liability, long-term | 0 | 320,472 |
Capital lease liability - long-term, less current maturities, in default | 282,079 | 319,278 |
TOTAL LIABILITIES | 2,262,339 | 2,601,054 |
STOCKHOLDERS' DEFICIT | ||
Common stock, value | 87,476 | 81,668 |
Additional paid in capital | 32,833,832 | 32,103,596 |
Accumulated Deficit | (33,746,165) | (32,565,813) |
Total Stockholders' equity (deficit) before treasury stock | (824,857) | (380,549) |
Treasury stock, at cost | 11,091 | 177,461 |
Total Stockholders' Deficit | (835,948) | (558,010) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 1,426,391 | $ 2,043,044 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS - Parenthetical - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets | ||
Allowance for doubtful trade accounts receivable, current | $ 0 | $ 101,260 |
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 35,000,000 | 35,000,000 |
Common Stock, Shares Issued | 8,747,614 | 8,166,789 |
Treasury Stock, at cost - Shares | 2,000 | 32,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Operations | ||||
REVENUES | $ 325,720 | $ 170,091 | $ 674,639 | $ 693,680 |
COST OF REVENUES | 291,745 | 315,960 | 644,385 | 818,808 |
GROSS PROFIT (LOSS) | 33,975 | (145,869) | 30,254 | (125,128) |
OPERATING EXPENSES | ||||
Selling, General and Administrative | 543,208 | 265,865 | 990,702 | 743,337 |
Gain on disposal of assets | 0 | (52,655) | 0 | (120,334) |
Total Operating Expenses | 543,208 | 213,210 | 990,702 | 623,003 |
OPERATING LOSS | (509,233) | (359,079) | (960,448) | (748,131) |
OTHER INCOME (EXPENSE) | ||||
Interest income | 42 | 50 | 85 | 103 |
Interest expense | (33,349) | (31,983) | (68,866) | (83,067) |
Gain on extinguishment of liabilities | 0 | 15,478 | 0 | 15,478 |
Total other income (expense) | (33,307) | (16,455) | (68,781) | (67,486) |
LOSS BEFORE INCOME TAXES | (542,540) | (375,534) | (1,029,229) | (815,617) |
Federal and state income taxes | 0 | 0 | 0 | 0 |
NET LOSS | $ (542,540) | $ (375,534) | $ (1,029,229) | $ (815,617) |
Basic and diluted loss per share | $ (0.06) | $ (0.05) | $ (0.12) | $ (0.12) |
Weighted average number of common shares outstanding - basic and diluted | 8,621,747 | 7,096,599 | 8,424,591 | 7,010,787 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Cash Flows | ||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ (501,093) | $ (281,720) |
Cash Flows From Investing Activities | ||
Purchases of property and equipment | 27,437 | 8,106 |
Proceeds from sale of Property and Equipment | 45,608 | 152,202 |
Increases in (decreases to) restricted cash | (65,529) | 103 |
Collections on note receivable | 0 | 895 |
Net cash provided by investing activities | 83,700 | 144,888 |
Cash Flows From Financing Activities | ||
Private placements of stock, net | 533,365 | 192,250 |
Stock options exercised, net | 1,982 | 0 |
Principal payments on Notes Payable - related party | (38,414) | 0 |
Net repayments on line of credit | 0 | (81,943) |
Borrowngs under long-term debt | 53,629 | 101,175 |
Principal payments on long-term obligations | (87,729) | (71,386) |
Net cash provided by (used in) financing activities | 462,833 | 140,096 |
Net Increase in Cash and Cash Equivalents | 45,440 | 3,264 |
Cash and Cash Equivalents - Beginning | 81,854 | 14,344 |
Cash and Cash Equivalents - Ending | 127,294 | 17,608 |
Supplemental disclosure of cash flows information: | ||
Cash paid during the six months ended for interest | 61,471 | 45,947 |
Non-cash investing and financing activities: | ||
During the six months ended June 30, 2015, the Company issued common stock with a fair value of $91,260 as part of a conversion of debentures. | 91,260 | 0 |
During the six months ended June 30, 2015, the Company issued common stock with a fair value of $54,107 for the payment of accrued rent. | 54,107 | 0 |
During the six months ended June 30, 2015, the Company recorded a deemed dividend of $15,000 on the issuance of stock in a private placement. | 15,000 | 0 |
During the six months ended June 30, 2014, the Company issued common stock with a fair value of $50,000 in exchange for a note receivable. | 0 | 50,000 |
During the six months ended June 30, 2014, the Company entered into a capitalized lease with a net present value of $420,346 | 0 | 420,346 |
During the six months ended June 30, 2014, the Company recorded an account receivable of $30,000 for the sale of a fixed asset. | $ 0 | $ 30,000 |
Note 1. Organization and Basis
Note 1. Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 1. Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation The accompanying consolidated financial statements of N-Viro International Corporation (the Company) are unaudited but, in management's opinion, reflect all adjustments (including normal recurring accruals) necessary to present fairly such information for the period and at the dates indicated. The results of operations for the six months and three months ended June 30, 2015 may not be indicative of the results of operations for the year ending December 31, 2015. Since the accompanying consolidated financial statements have been prepared in accordance with Article 8 of Regulation S-X, they do not contain all information and footnotes normally contained in annual consolidated financial statements; accordingly, they should be read in conjunction with the consolidated financial statements and notes thereto appearing in the Company's Form 10-K for the period ending December 31, 2014. The financial statements are consolidated as of June 30, 2015, December 31, 2014 and June 30, 2014 for the Company. All intercompany transactions were eliminated. In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There have been no changes in the selection and application of significant accounting policies and estimates disclosed in Item 8 Financial Statements and Supplementary Data of our Annual Report on Form 10-K for the year ended December 31, 2014. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has negative working capital of approximately $1,507,000 at June 30, 2015 and has incurred recurring losses and negative cash flows from operations. Moreover, while the Company hopes to arrange for substitute financing arrangements for the line of credit that was closed during 2014, there can be no assurance that additional financing will be available. The Company has funded its cash losses with principally new equity issuances and expects to be able to generate future cash from the exercise of common stock warrants and continued new equity issuances, though there can be no assurance given that such issuances or exercises will be realized. The Company has also continued to slow payments to trade vendors, and has renegotiated payment terms with several existing and prior vendors to lengthen the time and/or reduce the amount of cash to repay these trade payables. Beginning in March 2014, the Companys operations in Volusia County, Florida, which at the time represented substantially all revenue, were voluntarily delayed while the Company employed additional personnel and moved assets to the Companys new site in Bradley, Florida. While operations resumed in Bradley in June 2014, this reduction in revenue materially reduced available cash to fund expenses incurred. From April 2014 through June 2015, the Company issued stock for private placements, warrant and stock option exercises that realized a net total of approximately $1,360,000. These factors raise substantial doubt as to the Companys ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note 2. Notes Payable
Note 2. Notes Payable | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 2. Notes Payable | Note 2. Notes Payable In August 2011, the Company borrowed $200,000 with a Promissory Note payable to David and Edna Kasmoch (related parties), the parents of Timothy Kasmoch, the Companys President and Chief Executive Officer, at 12% interest and prepaid for a period of three months, renewable for an additional three months by the prepayment of additional interest and secured by certain equipment. Timothy Kasmoch has personally guaranteed the repayment of this Note. As of June 30, 2015 the Note was past due and the Company is in default. The Company expects to extend the Note in the near future and pay it in full in 2015, although there can be no assurance the Company will have adequate cash flow to allow for any additional payments or that the maturity date will be extended. At both June 30, 2015 and December 31, 2014 the balance of this Note was $200,000. In November 2012, the Company received a Notice and Demand of Payment Withdrawal Liability from Central States Southeast and Southwest Areas Pension Fund (the Notice), the pension trustee that was funded by the Company for the benefit of its former employees at its City of Toledo operation. In December 2013, the Company received a Notice of Default from Central States, and in September 2014 the Company agreed to pay Central States a total of $415,000 plus interest on a financed settlement over 19 months, with principal and interest payments of $6,000 per month for the first twelve months and principal and interest payments of $10,000 per month for the following six months, with a balloon payment of approximately $312,000 due on or before February 1, 2016. Interest is charged at the Prime rate plus 2% (effective rate of 5.25% at June 30, 2015). Concurrently a separate security agreement was agreed on, effectively securing all of the Companys assets and future rights to assets. As of the date of this filing, the Company is in compliance with the new settlement agreement. At June 30, 2015 and December 31, 2014, the balance of this agreement was approximately $363,100 and $389,400, respectively. As of June 30, 2015, the Company has one term note outstanding at 7.1% interest with an initial term of five years, with monthly payments of approximately $2,100 and secured by automotive equipment. The amount owed on the note as of June 30, 2015 and December 31, 2014 was approximately $18,200 and $29,900, respectively, and is expected to be paid in full on the maturity date in March 2016. The Company borrowed a total of $80,509 to pay for insurance policies on equipment and directors and officers insurance coverage during the year. The terms of these agreements range from 9-10 months and are accordingly all classified as current. Interest rates range from 8.9% 9.9% and total monthly payments are $8,668. At June 30, 2015 and December 31, 2014 the balance of these notes was approximately $47,500 and $35,900, respectively. In 2009 the Company approved an offering of up to $1,000,000 of Convertible Debentures (the Debentures), convertible at any time into our unregistered common stock at $2.00 per share. The Debentures were issuable in $5,000 denominations, are unsecured and have a stated interest rate of 8%, payable quarterly to holders of record. The Company has timely paid all accrued interest due to all Debenture holders of record as of each quarter-end date starting in July 2009. At any time, the Company may redeem all or a part of the Debentures at face value plus unpaid interest. As of June 30, 2013, the Company had $455,000 of Debentures outstanding from the initial 2009 offering discussed above, but defaulted and did not pay the holders the principal amount due, all of which became due. In the first six months of 2015, two of the Companys debenture holders converted a total of $91,260 in debt including accrued interest to 45,630 restricted shares of the Companys common stock. The transactions were exempt from the registration requirements under the Securities Act pursuant to section 4(a)(2) as a transaction by an issuer not involving a public offering. These reduced the amount of Debentures that remain outstanding and in default at June 30, 2015 to $365,000. The Company continues to accrue interest on the principal amount at the rate set forth in the Debentures until the principal amount is paid in full. The Company expects to pay all accrued interest due and the principal amount to all outstanding holders of the Debentures after completing substitute financial arrangements, though there can be no assurance of the timing of receipt of these funds and amounts available from these substitute arrangements. |
Note 3. Capital Lease
Note 3. Capital Lease | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 3. Capital Lease | Note 3. Capital Lease In June 2014, Mulberry Processing, LLC, a wholly owned subsidiary of the Company, entered into a contract to lease certain real property and buildings in Bradley, Florida from Bowling Green Holdings, LLC (BGH), a related party, a company owned by David Kasmoch, the father of Timothy R. Kasmoch, the Companys President and Chief Executive Officer. The lease term is for five years beginning June 1, 2014 with a monthly payment of $10,000. At June 30, 2015 and December 31, 2014 the Company was in default of its payments. This lease is for the Companys operating facility which commenced operations in June 2014, and has been determined to be a capital lease. The economic substance of the lease is the Company is financing the acquisition of the asset through the lease, and accordingly, it is recorded in the Companys assets and liabilities. Assets and liabilities under capital leases initially are recorded at the lower of present value of the minimum lease payments or the fair value of the assets. The assets are depreciated over the shorter of the lease term or their estimated useful lives. A liability and related asset of $420,346 was recorded in June 2014 concurrent with the start of the lease agreement. The capital lease liability at June 30, 2015 and December 31, 2014 was approximately $375,400 and $405,900, respectively. Depreciation on assets under capital leases charged to expense for the six months ended June 30, 2015 and 2014 was approximately $42,000 and $7,000, respectively, and for the three months ended June 30, 2015 and 2014 was approximately $21,000 and $7,000, respectively, recorded as cost of sales. Interest charged related to capital lease liabilities for the six months ended June 30, 2015 and 2014 was approximately $28,000 and $5,300, respectively, and for the three months ended June 30, 2015 and 2014 was approximately $13,700 and $5,300, respectively, recorded as interest expense. |
Note 4. Commitments and Conting
Note 4. Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 4. Commitments and Contingencies | Note 4. Commitments and Contingencies In 2010, the Company and Timothy R. Kasmoch, the President and Chief Executive Officer, entered into an Employment Agreement for a five-year term. Mr. Kasmoch is to receive an annual base salary of $150,000, subject to an annual discretionary increase. In addition, Mr. Kasmoch is eligible for an annual cash bonus and was granted stock options from the Companys Second Amended and Restated 2004 Stock Option Plan. Generally, the Agreement may be terminated by the Company with or without cause or by the Employee for any reason. In March 2015, Mr. Kasmochs Employment Agreement automatically renewed for a one-year term. In 2010, the Company and Robert W. Bohmer, the Executive Vice President and General Counsel, entered into an Employment Agreement for a five-year term. Mr. Bohmer is to receive an annual base salary of $150,000, subject to an annual discretionary increase. In addition, Mr. Bohmer is eligible for an annual cash bonus and was granted stock options from the Companys Second Amended and Restated 2004 Stock Option Plan. Generally, the Agreement may be terminated by the Company with or without cause or by the Employee for any reason. In March 2015, Mr. Bohmers Employment Agreement automatically renewed for a one-year term. In May 2014, the Company and Mr. Bohmer agreed to an adjustment to his employment contract, making him a part-time employee and adjusting his salary to $57,200. In 2010, the Company and James K. McHugh, the Chief Financial Officer, Secretary and Treasurer, entered into an Employment Agreement for a five-year term. Mr. McHugh is to receive an annual base salary of $125,000, subject to an annual discretionary increase. In addition, Mr. McHugh is eligible for an annual cash bonus and was granted stock options from the Companys Second Amended and Restated 2004 Stock Option Plan. Generally, the Agreement may be terminated by the Company with or without cause or by the Employee for any reason. In March 2015, Mr. McHughs Employment Agreement automatically renewed for a one-year term. As of June 30, 2015, the Company has accrued a liability of approximately $144,000 to reflect the total amount of salary and related payroll taxes voluntarily deferred by its three executive officers since February 2012. The Company has also not paid a total of $85,000 in regular (nondeferred) salary to the officers as of June 30, 2015, for a total of approximately $229,000 in unpaid salaries and related payroll taxes reflected in the accrued liabilities section on the balance sheet. In May 2013, the Companys Board of Directors approved an amendment to the stock option grant section of the employment agreements for all of the Companys executive officers. Additional information about all of the employment agreements for the Companys executive officers is available in Item 11 Executive Compensation in the Form 10-K filed on April 15, 2015. In February 2013, the Company received a letter from counsel on behalf of one of our stockholders (Counsel letter), demanding a review by the Board of option plan issuances in 2010 and 2011 to members of management. In response, the Board formed a Special Committee to evaluate the 2004 and 2010 Stock Option Plans for the issuances in 2010 pursuant to the multi-year employment agreements with Messrs. Kasmoch, Bohmer and McHugh under the 2004 Option Plan, and the 2011 award to Mr. Kasmoch under the 2010 Option Plan. In May 2013, the Special Committee and the Board finished reviewing the awards and sent a letter in reply to the Counsel letter. The Board also approved an amendment to each the executive officers respective employment agreement, and renegotiated their option grants such that (i) no grant in any single year exceeds the Plan Limits, and, (ii) each employee return to respective Option Plan the number of options by which his annual grant exceeded the Plan Limits for any single year. Additional information is available in the Form 10-K filed on April 15, 2015. As a result of these actions, and after additional negotiations, on July 14, 2014 the Company and the stockholder entered into a Confidential Settlement Agreement and General Release with the following terms: Without admitting liability in connection with any of the claims asserted but in order to avoid the expenses and uncertainty of potential litigation the Company agreed: (i) the Company will adopt certain procedures to monitor future issuances of options to management; (ii) the Company will make an installment payment of $20,000 ratably over ten months to counsel for the stockholder who asserted the claim, but none of these funds will be paid to the stockholder; (iii) the Company will issue warrants to counsel for the stockholder exercisable at a predetermined price. In exchange for the foregoing the parties exchanged general releases and this matter is resolved completely. Based on the terms of the settlement, the Company accrued an estimated expense of $86,500, recorded as a trade account payable, at December 31, 2013 and, due to an increase in the underlying valuation of the warrants, an additional accrual of $93,900 for the quarter ended March 31, 2014, for a total expense of $180,400 to recognize the cost of the final settlement. All but $20,000 of this expense is for the non-cash component. Certain of the settlement payments due under the settlement are in default, and as of June 30, 2015 the Company owed approximately $4,000 in cash installment payments. The Companys executive and administrative offices are located in Toledo, Ohio. In April 2011, the Company signed a 68 month lease with Deerpoint Development Co., Ltd. The total minimum rental commitment for the years 2015 through 2016 is $40,764 each year. The total rental expense included in the statements of operations for each of the six months and three months ended June 30, 2015 and 2014 is approximately $20,400 and $10,200, respectively. The Company also leases various office equipment on a month-to-month basis. In October 2010, the Company began to lease property in Emlenton, Pennsylvania under a lease with Allegheny-Clarion Valley Development Corporation, for one year. After September 2011, the Company operated under a month-to-month lease agreement, for a reduced rate. The total rental expense included in the statements of operations for each of the six months and three months ended June 30, 2015 and 2014 is $6,000 and $3,000, respectively. In June 2009, the Company began to maintain an office in West Unity, Ohio under a lease with D&B Colon Leasing, LLC, for one year. In June 2010, the Company renewed the lease for an additional year through May 2011, and operated under a month-to-month lease until the Company closed the office in September 2014. The total rental expense included in the statements of operations for the six months ended June 30, 2015 and 2014 is $-0- and $15,000, respectively, and for the three months ended June 30, 2015 and 2014 is $-0- and $7,500, respectively. The Company maintained an office in Daytona Beach under a lease with the County of Volusia, Florida, from March 2009 through March 2014. Effective and subsequent to April 2014, the Company briefly operated on a month to month lease with Volusia County, to allow the removal of certain owned assets and finished product from the site as approved by the County. The total rental expense included in the statements of operations for the six months ended June 30, 2015 and 2014 is $-0- and $14,250, respectively, and for the three months ended June 30, 2015 and 2014 is $-0- and $2,250, respectively. For the six months and three months ended June 30, 2015, the Company paid a total of $13,200 and $6,600, respectively, recorded as rent in selling, general and administrative expense on behalf of the Chief Executive Officer. No future commitment exists as the residential building lease is not in the name of the Company; however, the Company expects to pay an additional $8,800 through the lease term maturing October 31, 2015. In September 2014, the Company entered into an operating lease with Caterpillar Financial for operating equipment at its Bradley, Florida location. The lease term is for three years beginning October 2014 and a monthly payment of approximately $3,200. The total minimum rental commitment for each of the years ending December 31, 2015 through 2016 is $37,900 and for the year ending December 31 2017 is $28,400. The total rental expense included in the statements of operations for the six months ended June 30, 2015 and 2014 is approximately $18,900 and $-0-, respectively, and for the three months ended June 30, 2015 and 2014 is approximately $9,500 and $-0-, respectively. Management believes that all of the Companys properties are adequately covered by insurance. The Company operates in an environment with many financial risks, including, but not limited to, major customer concentrations, customer contract termination provisions, competing technologies, infringement and/or misappropriation of intellectual property rights, the highly competitive and, at times, seasonal nature of the industry and worldwide economic conditions. Various federal, state and governmental agencies are considering, and some have adopted, laws and regulations regarding environmental protection which could adversely affect the business activities of the Company. The Company cannot predict what effect, if any, current and future regulations may have on the operations of the Company. From time to time the Company is involved in legal proceedings and subject to claims which may arise in the ordinary course of business. Certain unsecured creditors have brought civil action against the Company related to nonpayment. The Company has not accrued any additional amount related to these charges, but continue to negotiate payment plans to satisfy these creditors. |
Note 5. New Accounting Standard
Note 5. New Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 5. New Accounting Standards | Note 5. New Accounting Standards Accounting Standards Updates not effective until after June 30, 2015 are not expected to have a significant effect on the Companys consolidated financial position or results of operations. |
Note 6. Segment Information
Note 6. Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 6. Segment Information | Note 6. Segment Information The Company determined that it currently operates in one segment based on the financial information upon which the chief operating decision maker regularly assesses performance and allocates resources. The chief operating decision maker is the Chief Executive Officer. |
Note 7. Revenue and Major Custo
Note 7. Revenue and Major Customers | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 7. Revenue and Major Customers | Note 7. Revenue and Major Customers The Companys largest customer accounted for approximately 27% and 19% of revenues for the six months ended June 30, 2015 and 2014, respectively, and approximately 24% and 25% for the three months ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, the top three customers accounted for approximately 80% and 52%, respectively, of the Companys revenues. The accounts receivable balance due (which are unsecured) for these three Florida customers at June 30, 2015 and December 31, 2014 was approximately $80,000 and $132,000, respectively. Florida operations accounted for approximately 96% and 98% of consolidated revenue during the six months ended June 30, 2015 and 2014, respectively. A substantial portion of the Company's revenue is derived from services provided under contracts and agreements with existing licensees. Some of these contracts, especially those contracts with large municipalities, provide for termination of the contract by the customer after giving relatively short notice (in some cases as little as ten days). In addition, some of these contracts contain liquidated damages clauses, which may or may not be enforceable in the event of early termination of the contracts. If one or more of these contracts are terminated prior to the expiration of its term, and the Company is not able to replace revenues from the terminated contract or receive liquidated damages pursuant to the terms of the contract, the lost revenue could have a material and adverse effect on its business and financial condition. |
Note 8. Basic and Diluted Incom
Note 8. Basic and Diluted Income (loss) Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 8. Basic and Diluted Income (loss) Per Share | Note 8. Basic and diluted income (loss) per share Basic and diluted income (loss) per share is computed using the treasury stock method for outstanding stock options and warrants. For the six months and three months ended June 30, 2015 and 2014 the Company incurred a net loss. Accordingly, no stock options or warrants have been included in the computation of diluted loss per share as the impact would be anti-dilutive. |
Note 9. Common Stock
Note 9. Common Stock | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 9. Common Stock | Note 9. Common Stock In October 2012, the Company issued 300,000 shares of common stock and granted 150,000 stock warrants to Strategic Asset Management, Inc., or SAMI, to extend the period of services performed in connection with a December 2010 Financial Public Relations Agreement for an additional two years, through December 2015. To reflect the entire value of the stock and warrants issued, the Company was recording a non-cash charge to earnings of $421,300 starting in 2013, over a 36 month period. In July 2015, the Company notified SAMI that it was terminating its contract early, and took a non-cash charge to earnings in the quarter ended June 30, 2015 for the balance of the unamortized cost of the contract. For the six months ended June 30, 2015 and 2014, the charge to earnings was approximately $125,200 and $68,300, respectively. For the three months ended June 30, 2015 and 2014, the charge to earnings was approximately $91,100 and $34,200, respectively. See Note 13, Subsequent Events, for more information. In April 2013, the Company executed a Consulting Agreement with Rakgear, Inc. The Company engaged Rakgear to provide financial consulting services for a term of one year. For its services, the Company issued Rakgear 150,000 shares of the Company's unregistered common stock and 150,000 warrants to purchase unregistered shares of common stock at a price of $1.49 per warrant. To reflect the entire value of the stock issued, the Company recorded a non-cash charge to earnings of $487,900 ratably through March 2014, the ending date of the agreement. For each of the six months ended June 30, 2015 and 2014 the charge to earnings was $-0-, and for the three months ended June 30, 2015 and 2014 the charge to earnings was approximately $-0- and $122,000, respectively. In September 2014, the Company executed a Financial Public Relations Agreement with Dynasty Wealth, Inc., for a one year term. For its services, the Company issued Dynasty Wealth 350,000 warrants to purchase the Company's unregistered common stock at an exercise price of $1.50 per share, and $10,000 per month, to be paid in either cash or shares of the Companys unregistered common stock at the Companys discretion. To reflect the entire value of the warrants issued, the Company is recording a non-cash charge to earnings of $460,700 ratably through September 14, 2015, the ending date of the agreement. For the six months ended June 30, 2015 and 2014 the charge to earnings for the entire agreement was approximately $290,400 and $-0-, respectively, of which the non-cash portion of the agreement was approximately $230,400 and $-0-, respectively. For the three months ended June 30, 2015 and 2014 the charge to earnings for the entire agreement was approximately $145,200 and $-0-, respectively, of which the non-cash portion of the agreement was approximately $115,200 and $-0-, respectively. In August 2015, the Company notified Dynasty that it was not renewing its contract. In November 2014, the Company executed a Public Relations Agreement with Global IR Group, Inc., for a one year term. For its services, the Company issued Global IR 100,000 shares of the Companys unregistered common stock. To reflect the entire value of the stock issued, the Company was recording a non-cash charge to earnings of $165,000 ratably through November 19, 2015, the original ending date of the agreement. In July 2015, the Company notified Global IR that it was terminating its contract early, and took a non-cash charge to earnings in the quarter ended June 30, 2015 for the balance of the unamortized cost of the contract. For the six months ended June 30, 2015 and 2014, the charge to earnings was approximately $146,200 and $-0-, respectively. For the three months ended June 30, 2015 and 2014 the charge to earnings was $105,000 and $-0-, respectively. See Note 13, Subsequent Events, for more information. In April 2015, the Company issued a total of 1,314 shares of unregistered common stock, valued at a total of $3,000, to six independent directors in lieu of cash owed for a board meeting attended. To reflect the value of the stock issued, the Company recorded a charge to earnings totaling $3,000 in the second quarter of 2015. Between January and April 2015, the Company entered into share purchase agreements with a total of fourteen Purchasers pursuant to which the Company sold 410,000 shares of its common stock (the Shares) to the Purchasers for a total of $410,000, or a purchase price of $1.00 per share, to provide operating capital. All but 30,000 shares were restricted and have limited piggy-back registration rights in connection with certain registration statement filings of the Company under the Securities Act of 1933 as amended (the Securities Act). The Company issued 30,000 shares in 2015 it held in its treasury. All of the transactions were exempt from the registration requirements under the Securities Act pursuant to section 4(a)(2) as a transaction by an issuer not involving a public offering. In June 2015, the Company entered into share purchase agreement with a Purchaser pursuant to which the Company sold 100,000 shares of its common stock (the Shares) to the Purchaser for a total of $125,000, or a purchase price of $1.25 per share, and 50,000 warrants to purchase stock for $1.50 per share, to provide operating capital. All the shares issued were restricted and have limited piggy-back registration rights in connection with certain registration statement filings of the Company under the Securities Act of 1933 as amended (the Securities Act). The transaction was exempt from the registration requirements under the Securities Act pursuant to section 4(a)(2) as a transaction by an issuer not involving a public offering. In June 2015, the Company issued a consultant 13,028 shares of registered common stock on the exercise of 22,400 warrants that were issued in 2010. The exercise did not provide the Company with cash as they were cashless per the agreements involved providing for the warrants and subsequent stock issuance. In June 2015, the Company issued Deerpoint Development Company Ltd., the landlord of its administrative office, 16,106 shares of unregistered common stock at a price of $1.43 per share in exchange for six months rent, resulting in net additional expense of approximately $2,700 above the contracted amount, but saving approximately $20,400 of cash. In June 2015, the Company issued D&B Colon Leasing, LLC, the landlord of a former satellite office, 20,997 shares of unregistered common stock at a price of $1.48 per share in exchange for the remaining eleven months rent owed, resulting in net additional expense of approximately $3,600 above the contracted amount, but saving $27,500 of cash. |
Note 10. Stock Options
Note 10. Stock Options | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 10. Stock Options | Note 10. Stock Options The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes valuation model. The Company uses historical data among other factors to estimate the expected price volatility, the expected option term and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the date of grant for the expected term of the option. The Company has a stock option plan approved in May 2004, amended in June 2008 and again in August 2009 (the 2004 Plan), for directors and key employees under which 2,500,000 shares of common stock could have been issued. No other shares can be issued from the 2004 Plan, and approximately 1,625,000 options are outstanding as of June 30, 2015. The Company also has a stock option plan approved in July 2010 (the 2010 Plan), for directors and key employees under which 5,000,000 shares of common stock may be issued. Approximately 993,000 options are outstanding as of June 30, 2015. Unless otherwise stated in the stock option agreement, options are 20% vested on the date of grant, with the balance vesting 20% per year over the next four years, except for directors whose options vest six months from the date of grant. Options were granted in 2015 only from the 2010 Plan at the market value of the stock at date of grant, as defined in the plan. In December 2013, the Company granted stock options totaling 25,000 options to five directors. All of the options granted are for a period of ten years, are pursuant to the 2010 Plan, are exercisable at $1.52 and vested in June 2014. To reflect the value of the stock options granted, the Company recorded a charge to earnings totaling approximately $36,700 ratably over the subsequent six-month period. For the six months and three months ended June 30, 2014, the Company recorded an expense of approximately $31,800 and $13,400, respectively. In April 2014, the Company granted stock options totaling 25,000 options to five directors. All of the options granted are for a period of ten years, are pursuant to the 2010 Plan, are exercisable at $0.81 and vested in October 2014. To reflect the value of the stock options granted, the Company recorded a charge to earnings totaling approximately $16,200 ratably over the subsequent six-month period. For the three months ended June 30, 2015 and 2014 the charge to earnings was $-0- and $8,100, respectively. In June 2014, the Company granted stock options totaling 35,000 options to seven directors. All of the options granted are for a period of ten years, are pursuant to the 2010 Plan, are exercisable at $0.67 and vested in December 2014. To reflect the value of the stock options granted, the Company recorded a charge to earnings totaling approximately $32,200 ratably over the subsequent six-month period. For the six months ended June 30, 2015 and 2014 the charge to earnings was $-0- and $8,100, respectively. For the three months ended June 30, 2015 and 2014 the charge to earnings was $-0- and $5,400, respectively. In August 2014, the Company granted stock options totaling 35,000 options to seven directors. All of the options granted are for a period of ten years, are pursuant to the 2010 Plan, are exercisable at $1.47 and vested in February 2015. To reflect the value of the stock options granted, the Company recorded a charge to earnings totaling approximately $47,900 ratably over the subsequent six-month period. For the six months and three months ended June 30, 2015, the Company recorded an expense of approximately $16,000 and $-0-, respectively. In October 2014, the Company granted stock options totaling 12,500 options to five directors. All of the options granted are for a period of ten years, are pursuant to the 2010 Plan, are exercisable at $1.21 and do not vest until April 2015. To reflect the value of the stock options granted, the Company is taking a charge to earnings totaling approximately $16,600 ratably over the subsequent six-month period. For the six months and three months ended June 30, 2015, the Company recorded an expense of approximately $11,100 and $2,800, respectively. In November 2014, the Company granted stock options totaling 25,000 options to five directors. All of the options granted are for a period of ten years, are pursuant to the 2010 Plan, are exercisable at $1.59 and vested May 2015. To reflect the value of the stock options granted, the Company is taking a charge to earnings totaling approximately $43,200 ratably over the subsequent six-month period. For the six months and three months ended June 30, 2015, the Company recorded an expense of approximately $28,800 and $7,200, respectively. In April 2015, the Company granted stock options totaling 15,000 options to six directors. All of the options granted are for a period of ten years, are pursuant to the 2010 Plan, are exercisable at $2.28 and do not vest until October 2015. To reflect the value of the stock options granted, the Company is taking a charge to earnings totaling approximately $34,500 ratably over the subsequent six-month period. For the three months ended June 30, 2015, the Company recorded an expense of $11,500. |
Note 11. Stock Warrants
Note 11. Stock Warrants | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 11. Stock Warrants | Note 11. Stock Warrants The Company records compensation expense for stock warrants based on the estimated fair value of the warrants on the date of grant using the Black-Scholes valuation model. The Company uses historical data among other factors to estimate the expected price volatility, the expected warrant term and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the date of grant for the expected term of the warrant. In June 2015, the Company issued 50,000 warrants in connection with the private placement of stock to a Purchaser. More details can be found in Note 9, Common Stock. |
Note 12. Income Tax
Note 12. Income Tax | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 12. Income Tax | Note 12. Income Tax For the six months and three months ended June 30, 2015 and 2014, we are fully reserving our deferred tax asset value to zero as we have not recognized the future tax benefit of current or prior period losses due to our history of operating losses. Accordingly, our effective tax rate for each period was 0%. |
Note 13. Subsequent Events
Note 13. Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 13. Subsequent Events | Note 13. Subsequent Events Effective July 14, 2015, the Company executed a Public Relations Agreement with Financial Genetics, LLC, for a one year term. For its services, the Company issued Financial Genetics 100,000 shares of the Companys unregistered common stock. To reflect the entire value of the Agreement, the Company will record a non-cash charge to earnings of $100,000 ratably through July 14, 2016, the ending date of the agreement. In July and August 2015, the Company notified Strategic Asset Management, Inc. and Global IR Group, Inc., that each of their consulting agreements with the Company had been terminated early. As a result, the Company accelerated the unamortized cost of these agreements of approximately $121,000 into the second quarter of 2015, and recorded a non-cash charge to earnings. |
Note 1. Organization and Basi19
Note 1. Organization and Basis of Presentation: Consolidation Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Consolidation Policy | The financial statements are consolidated as of June 30, 2015, December 31, 2014 and June 30, 2014 for the Company. All intercompany transactions were eliminated. |
Note 1. Organization and Basi20
Note 1. Organization and Basis of Presentation: Basis of Accounting, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Basis of Accounting, Policy | In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There have been no changes in the selection and application of significant accounting policies and estimates disclosed in Item 8 Financial Statements and Supplementary Data of our Annual Report on Form 10-K for the year ended December 31, 2014. |
Note 1. Organization and Basi21
Note 1. Organization and Basis of Presentation: Substantial Doubt about Going Concern (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Substantial Doubt about Going Concern | The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has negative working capital of approximately $1,507,000 at June 30, 2015 and has incurred recurring losses and negative cash flows from operations. Moreover, while the Company hopes to arrange for substitute financing arrangements for the line of credit that was closed during 2014, there can be no assurance that additional financing will be available. The Company has funded its cash losses with principally new equity issuances and expects to be able to generate future cash from the exercise of common stock warrants and continued new equity issuances, though there can be no assurance given that such issuances or exercises will be realized. The Company has also continued to slow payments to trade vendors, and has renegotiated payment terms with several existing and prior vendors to lengthen the time and/or reduce the amount of cash to repay these trade payables. Beginning in March 2014, the Companys operations in Volusia County, Florida, which at the time represented substantially all revenue, were voluntarily delayed while the Company employed additional personnel and moved assets to the Companys new site in Bradley, Florida. While operations resumed in Bradley in June 2014, this reduction in revenue materially reduced available cash to fund expenses incurred. From April 2014 through June 2015, the Company issued stock for private placements, warrant and stock option exercises that realized a net total of approximately $1,360,000. These factors raise substantial doubt as to the Companys ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note 3. Capital Lease_ Lease, P
Note 3. Capital Lease: Lease, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Lease, Policy | The economic substance of the lease is the Company is financing the acquisition of the asset through the lease, and accordingly, it is recorded in the Companys assets and liabilities. Assets and liabilities under capital leases initially are recorded at the lower of present value of the minimum lease payments or the fair value of the assets. The assets are depreciated over the shorter of the lease term or their estimated useful lives. |
Note 4. Commitments and Conti23
Note 4. Commitments and Contingencies: Legal Costs, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Legal Costs, Policy | From time to time the Company is involved in legal proceedings and subject to claims which may arise in the ordinary course of business. Certain unsecured creditors have brought civil action against the Company related to nonpayment. The Company has not accrued any additional amount related to these charges, but continue to negotiate payment plans to satisfy these creditors. |
Note 5. New Accounting Standa24
Note 5. New Accounting Standards: New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
New Accounting Pronouncements | Accounting Standards Updates not effective until after June 30, 2015 are not expected to have a significant effect on the Companys consolidated financial position or results of operations. |
Note 6. Segment Information_ Se
Note 6. Segment Information: Segment Reporting Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Segment Reporting Policy | The Company determined that it currently operates in one segment based on the financial information upon which the chief operating decision maker regularly assesses performance and allocates resources. The chief operating decision maker is the Chief Executive Officer. |
Note 7. Revenue and Major Cus26
Note 7. Revenue and Major Customers: Major Customers, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Major Customers, Policy | A substantial portion of the Company's revenue is derived from services provided under contracts and agreements with existing licensees. Some of these contracts, especially those contracts with large municipalities, provide for termination of the contract by the customer after giving relatively short notice (in some cases as little as ten days). In addition, some of these contracts contain liquidated damages clauses, which may or may not be enforceable in the event of early termination of the contracts. If one or more of these contracts are terminated prior to the expiration of its term, and the Company is not able to replace revenues from the terminated contract or receive liquidated damages pursuant to the terms of the contract, the lost revenue could have a material and adverse effect on its business and financial condition. |
Note 8. Basic and Diluted Inc27
Note 8. Basic and Diluted Income (loss) Per Share: Earnings Per Share Policy, Diluted (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Earnings Per Share Policy, Diluted | Basic and diluted income (loss) per share is computed using the treasury stock method for outstanding stock options and warrants. For the six months and three months ended June 30, 2015 and 2014 the Company incurred a net loss. Accordingly, no stock options or warrants have been included in the computation of diluted loss per share as the impact would be anti-dilutive. |
Note 10. Stock Options_ Share-b
Note 10. Stock Options: Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes valuation model. The Company uses historical data among other factors to estimate the expected price volatility, the expected option term and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the date of grant for the expected term of the option. |
Note 10. Stock Options_ Share29
Note 10. Stock Options: Share-based Compensation, Option Plans Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Share-based Compensation, Option Plans Policy | The Company has a stock option plan approved in May 2004, amended in June 2008 and again in August 2009 (the 2004 Plan), for directors and key employees under which 2,500,000 shares of common stock could have been issued. No other shares can be issued from the 2004 Plan, and approximately 1,625,000 options are outstanding as of June 30, 2015. The Company also has a stock option plan approved in July 2010 (the 2010 Plan), for directors and key employees under which 5,000,000 shares of common stock may be issued. Approximately 993,000 options are outstanding as of June 30, 2015. Unless otherwise stated in the stock option agreement, options are 20% vested on the date of grant, with the balance vesting 20% per year over the next four years, except for directors whose options vest six months from the date of grant. Options were granted in 2015 only from the 2010 Plan at the market value of the stock at date of grant, as defined in the plan. |
Note 11. Stock Warrants_ Share-
Note 11. Stock Warrants: Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other, Description (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other, Description | The Company records compensation expense for stock warrants based on the estimated fair value of the warrants on the date of grant using the Black-Scholes valuation model. The Company uses historical data among other factors to estimate the expected price volatility, the expected warrant term and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the date of grant for the expected term of the warrant. |
Note 12. Income Tax_ Income Tax
Note 12. Income Tax: Income Tax, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Income Tax, Policy | For the six months and three months ended June 30, 2015 and 2014, we are fully reserving our deferred tax asset value to zero as we have not recognized the future tax benefit of current or prior period losses due to our history of operating losses. Accordingly, our effective tax rate for each period was 0%. |
Note 2. Notes Payable (Details)
Note 2. Notes Payable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2015 | Feb. 01, 2016 | Dec. 31, 2014 | Sep. 30, 2014 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | 7.10% | |||
Repayments of Secured Debt, Monthly | $ 2,100 | ||||
Secured Debt, Other | 18,200 | $ 18,200 | $ 29,900 | ||
Repayments of Unsecured Debt, Monthly | 8,668 | ||||
Unsecured Debt, Current | 47,500 | 47,500 | 35,900 | ||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 91,260 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 45,630 | ||||
Convertible Debt, Current | 365,000 | $ 365,000 | 455,000 | ||
Central States Southeast and Southwest Areas Pension Fund | |||||
Liabilities Subject to Compromise, Pension and Other Postretirement Obligations | $ 363,100 | $ 363,100 | 389,400 | $ 415,000 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 312,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 5.25% | 5.25% | |||
David and Edna Kasmoch | |||||
Related Party Transaction, Rate | 12.00% | ||||
Notes Payable, Related Parties | $ 200,000 | $ 200,000 | $ 200,000 |
Note 3. Capital Lease (Details)
Note 3. Capital Lease (Details) - Bowling Green Holdings, LLC - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Capital Lease Obligations | $ 375,400 | $ 420,346 | $ 375,400 | $ 420,346 | $ 405,900 |
Capital Leases, Income Statement, Amortization Expense | $ 13,700 | $ 5,300 | $ 28,000 | $ 5,300 |
Note 4. Commitments and Conti34
Note 4. Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2014 | |
Due to Officers, Current | $ 229,000 | $ 229,000 | |||||||
Litigation Settlement, Expense | $ 93,900 | $ 180,400 | |||||||
Settlement Liabilities, Current | 4,000 | 4,000 | |||||||
Deerpoint Development Co., Ltd. | |||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 40,764 | $ 40,764 | |||||||
Operating Leases, Rent Expense, Net | 10,200 | $ 10,200 | 20,400 | $ 20,400 | |||||
Allegheny-Clarion Valley Development Corporation | |||||||||
Operating Leases, Rent Expense, Net | 3,000 | 3,000 | 6,000 | 6,000 | |||||
D&B Colon Leasing, LLC | |||||||||
Operating Leases, Rent Expense, Net | 0 | 7,500 | 0 | 15,000 | |||||
County of Volusia, Florida | |||||||||
Operating Leases, Rent Expense, Net | 0 | 2,250 | 0 | 14,250 | |||||
Caterpillar Financial | |||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 28,400 | $ 37,900 | 37,900 | ||||||
Operating Leases, Rent Expense, Net | 9,500 | $ 0 | 18,900 | $ 0 | |||||
Timothy R. Kasmoch | |||||||||
Officers' Compensation | 150,000 | ||||||||
Operating Leases, Rent Expense, Net | $ 6,600 | $ 13,200 | |||||||
Robert W. Bohmer | |||||||||
Officers' Compensation | 57,200 | ||||||||
James K. McHugh | |||||||||
Officers' Compensation | $ 125,000 |
Note 9. Common Stock (Details)
Note 9. Common Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Apr. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Proceeds from Issuance of Common Stock | $ 125,000 | $ 410,000 | ||||
Sale of Stock, Price Per Share | $ 1.25 | $ 1.25 | $ 1 | $ 1.25 | ||
Stock Issued During Period, Shares, Treasury Stock Reissued | 30,000 | |||||
Deerpoint Development Co., Ltd. | ||||||
Stock Issued During Period, Shares, Other | 16,106 | |||||
Stock Issued During Period, Value, Other | $ 20,400 | |||||
D&B Colon Leasing, LLC | ||||||
Stock Issued During Period, Shares, Other | 20,997 | |||||
Stock Issued During Period, Value, Other | $ 27,500 | |||||
Strategic Asset Management, Inc. | ||||||
Issuance of Stock and Warrants for Services or Claims | 91,100 | $ 34,200 | $ 125,200 | $ 68,300 | ||
Rakgear, Inc. | ||||||
Issuance of Stock and Warrants for Services or Claims | 0 | 122,000 | 0 | 0 | ||
Dynasty Wealth, Inc. | ||||||
Issuance of Stock and Warrants for Services or Claims | 115,200 | 0 | 230,400 | 0 | ||
Global IR Group, Inc. | ||||||
Issuance of Stock and Warrants for Services or Claims | $ 105,000 | $ 0 | $ 146,200 | $ 0 |
Note 12. Income Tax_ Deferred T
Note 12. Income Tax: Deferred Tax Liability Not Recognized, Description of Temporary Difference (Details) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 0.00% |