Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 13, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'GlyEco, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 58,238,249 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000931799 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets | ' | ' |
Cash | $1,458,953 | $4,393,299 |
Accounts receivable, net | 1,089,845 | 898,934 |
Due from related parties | 2,225 | 34,868 |
Prepaid expenses | 177,946 | 53,732 |
Inventories | 578,852 | 268,191 |
Total current assets | 3,307,821 | 5,649,024 |
Equipment | ' | ' |
Equipment | 6,742,996 | 3,719,344 |
Leasehold improvements | 449,271 | 7,641 |
Accumulated depreciation | -653,951 | -328,803 |
6,538,316 | 3,398,182 | |
Construction in process | 1,327,888 | 2,117,001 |
Total equipment, net | 7,866,204 | 5,515,183 |
Other assets | ' | ' |
Deposits | 0 | 80,708 |
Goodwill | 835,295 | 779,303 |
Other intangible assets, net | 3,514,318 | 3,673,190 |
Total other assets | 4,349,613 | 4,533,201 |
Total assets | 15,523,638 | 15,697,408 |
Current liabilities | ' | ' |
Accounts payable and accrued expenses | 959,999 | 1,271,674 |
Due to related parties | 103,174 | 582,682 |
Note payable | 6,803 | 6,504 |
Capital lease obligation | 319,403 | 285,363 |
Total current liabilities | 1,389,379 | 2,146,223 |
Non-current liabilities | ' | ' |
Note payable | 119,737 | 9,877 |
Capital lease obligation | 981,887 | 1,189,574 |
Total non-current liabilities | 1,101,624 | 1,199,451 |
Total liabilities | 2,491,003 | 3,345,674 |
Commitments and contingencies | ' | ' |
Redeemable Series AA convertible preferred stock | 0 | 1,171,375 |
Stockholders' equity | ' | ' |
Preferred stock; 40,000,000 shares authorized; $0.0001 par value; shares issued and outstanding of zero as of September 30, 2014 and 2,342,740 Series AA (above) as of December 31, 2013 | 0 | 0 |
Common stock, 300,000,00 shares authorized; $.0001 par value; 58,234,243 and 48,834,916 shares issued and outstanding as of September 30, 2014 and December 31, 2013 respectively | 5,824 | 4,884 |
Additional paid in capital | 32,737,623 | 24,541,809 |
Accumulated deficit | -19,710,812 | -13,366,334 |
Total stockholders' equity | 13,032,635 | 11,180,359 |
Total liabilities and stockholders’ equity | $15,523,638 | $15,697,408 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Preferred stock, shares authorized | 40,000,000 | 40,000,000 |
Preferred stock; shares issued | 0 | 0 |
Preferred stock; shares outstanding | 0 | 0 |
Preferred stock - Series AA, shares issued | 0 | 2,342,740 |
Preferred stock - Series AA, shares issued | 0 | 2,342,740 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares issued | 58,234,243 | 48,834,916 |
Common stock, shares outstanding | 58,234,243 | 48,834,916 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Sales, net | $1,281,791 | $1,163,607 | $4,541,822 | $3,813,747 |
Cost of goods sold | 1,469,709 | 1,203,240 | 4,760,389 | 3,310,686 |
Gross profit (loss) | -187,918 | -39,633 | -218,567 | 503,061 |
Operating expenses | ' | ' | ' | ' |
Stock-based compensation | 787,373 | 839,210 | 1,498,905 | 839,210 |
Salaries and wages | 242,585 | 196,560 | 757,739 | 545,117 |
General and administrative | 522,195 | 346,669 | 1,475,089 | 1,114,327 |
Total operating expenses | 1,552,153 | 1,382,439 | 3,731,733 | 2,498,654 |
Loss from operations | -1,740,071 | -1,422,072 | -3,950,300 | -1,995,593 |
Other (income) and expenses | ' | ' | ' | ' |
Interest income | -383 | -363 | -1,027 | -1,320 |
Interest expense | 46,348 | 48,046 | 136,791 | 153,845 |
Total other income and expenses | 45,965 | 47,683 | 135,764 | 152,525 |
Loss before provision for income taxes | -1,786,036 | -1,469,755 | -4,086,064 | -2,148,118 |
Provision for income taxes | -11,262 | 0 | -15,004 | 0 |
Net loss | -1,797,298 | -1,469,755 | -4,101,068 | -2,148,118 |
Premium on Series AA Preferred conversion to common shares | 0 | 0 | -2,243,410 | 0 |
Net loss available to common shareholders | ($1,797,298) | ($1,469,755) | ($6,344,478) | ($2,148,118) |
Basic and diluted loss per share (in Dollars per share) | ($0.03) | ($0.03) | ($0.12) | ($0.05) |
Weighted average number of common shares outstanding (basic and diluted) (in Shares) | 58,030,627 | 42,222,780 | 53,175,353 | 40,407,430 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2013 | $4,884 | $24,541,809 | ($13,366,334) | $11,180,359 |
Balance (in Shares) at Dec. 31, 2013 | 48,834,916 | ' | ' | 48,834,916 |
Common shares issued for acquisition | 20 | 210,873 | ' | 210,893 |
Common shares issued for acquisition (in Shares) | 204,750 | ' | ' | ' |
Common shares issued for Series AA Preferred Stock conversion | 261 | 1,171,114 | ' | 1,171,375 |
Common shares issued for Series AA Preferred Stock conversion (in Shares) | 2,605,513 | ' | ' | ' |
Warrants and options exercised | 634 | 3,071,537 | ' | 3,072,171 |
Warrants and options exercised (in Shares) | 6,340,775 | ' | ' | ' |
Share-based compensation | 25 | 1,498,880 | ' | 1,498,905 |
Share-based compensation (in Shares) | 248,289 | ' | ' | ' |
Premium on Series AA Preferred Stock conversion to common shares | ' | 2,243,410 | -2,243,410 | ' |
Net loss | ' | ' | -4,101,068 | -4,101,068 |
Balance at Sep. 30, 2014 | $5,824 | $32,737,623 | ($19,710,812) | $13,032,635 |
Balance (in Shares) at Sep. 30, 2014 | 58,234,243 | ' | ' | 58,234,243 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Net cash flow from operating activities | ' | ' |
Net loss | ($4,101,068) | ($2,148,118) |
Adjustments to reconcile net loss to net cash used by operating activities | ' | ' |
Depreciation and amortization | 484,020 | 182,466 |
Loss on sale of assets | 0 | 1,664 |
Stock-based compensation expense | 1,498,905 | 839,210 |
Stock issued for lease payments and services | 0 | 152,598 |
Stock issued for conversion of accrued interest | 0 | 24,913 |
(Increase) decrease in assets: | ' | ' |
Accounts receivable | -190,911 | -34,483 |
Due from related party | 32,643 | -2,225 |
Prepaid expenses | -124,213 | -61,675 |
Inventories | -310,661 | -357,408 |
Deposits | 80,708 | 0 |
Increase (decrease) in liabilities: | ' | ' |
Accounts payable and accrued expenses | -311,675 | 336,027 |
Due to related party | -479,508 | -246,789 |
Net cash used in operating activities | -3,421,760 | -1,313,819 |
Cash flows from investing activities | ' | ' |
Cash paid for acquisitions | 0 | -477,884 |
Purchase of equipment | -55,993 | -441,177 |
Proceeds from sale of fixed assets | 0 | 3,778 |
Construction in process | -2,465,276 | -966,965 |
Net cash used in investing activities | -2,521,269 | -1,882,248 |
Cash flows from financing activities | ' | ' |
Borrowing / (repayment) of debt | 110,159 | -2,052 |
Repayment of capital lease | -173,647 | -106,804 |
Proceeds from sale of common stock | 0 | 8,788,325 |
Proceeds from warrant exercise | 3,134,314 | 0 |
Stock issuance costs | -62,143 | -366,637 |
Net cash provided by financing activities | 3,008,683 | 8,312,832 |
Increase (decrease) in cash | -2,934,346 | 5,116,765 |
Cash at the beginning of the period | 4,393,299 | 1,153,941 |
Cash at end of the period | 1,458,953 | 6,270,706 |
Supplemental disclosure of cash flow information | ' | ' |
Interest paid during period | 136,791 | 153,845 |
Taxes paid during period | ' | ' |
Supplemental disclosure of non-cash items | ' | ' |
Redemption of Series AA Preferred by conversion to common shares | 3,414,785 | 0 |
Equipment purchased with capital lease | 0 | 1,714,974 |
Equipment purchased with debt | 0 | 20,000 |
Transfers from construction in progress to in use equipment | 3,264,665 | 0 |
Series AA Preferred Stock [Member] | Stock Issued for Convertible Note, Principal and Interest [Member] | ' | ' |
Supplemental disclosure of non-cash items | ' | ' |
Non-cash items, stock issued | 0 | 1,171,375 |
Stock Issued for Acquisition [Member] | ' | ' |
Supplemental disclosure of non-cash items | ' | ' |
Non-cash items, stock issued | 210,893 | 667,125 |
Stock Issued for Property, Plant and Equipment [Member] | ' | ' |
Supplemental disclosure of non-cash items | ' | ' |
Non-cash items, stock issued | 0 | 103,562 |
Stock Issued for Capital Lease, Principal and Interest [Member] | ' | ' |
Supplemental disclosure of non-cash items | ' | ' |
Non-cash items, stock issued | 0 | 65,800 |
Stock Issued for Convertible Note, Principal and Interest [Member] | ' | ' |
Supplemental disclosure of non-cash items | ' | ' |
Non-cash items, stock issued | $0 | $470,000 |
NOTE_1_Organization_and_Nature
NOTE 1 - Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1 – Organization and Nature of Business | |
GlyEco, Inc. (the "Company", “we”, or “our”) is a green chemistry company that collects and recycles waste glycol into a reusable product that is sold to third party customers in the automotive and industrial end-markets. Our proprietary technology, GlyEco TechnologyTM, allows us to recycle all five major types of waste glycol into a virgin-quality product usable in any glycol application. We are dedicated to conserving natural resources, limiting liability for waste generators, safeguarding the environment, and creating valuable green products. We currently operate seven processing centers in the United States with our principal offices located in Phoenix, Arizona. Our processing centers are located in (1) Minneapolis, Minnesota, (2) Indianapolis, Indiana, (3) Lakeland, Florida, (4) Elizabeth, New Jersey, (5) Rock Hill, South Carolina, (6) Tea, South Dakota, and (7) Landover, Maryland. | |
Currently, the Company is actively exploring opportunities to acquire operating entities involved in the recycling of waste ethylene glycol and is consolidating and streamlining their operations. | |
NOTE_2_Basis_of_Presentation_a
NOTE 2 - Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
NOTE 2 – Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Presentation | |
The condensed consolidated financial statements included herein have been prepared by us without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements for the year ended December 31, 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position at September 30, 2014, and the results of our operations, stockholders’ equity and cash flows for the periods presented. We derived the December 31, 2013 condensed consolidated balance sheet data from audited financial statements, but do not include all disclosures required by GAAP. Interim results are subject to seasonal variations and the results of operations for the three and nine months ended September 30, 2014 and 2013, are not necessarily indicative of the results to be expected for the full year. | |
Going Concern | |
The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2014 and 2013, and as of December 31, 2013 have been prepared assuming that the Company will continue as a going concern. As of September 30, 2014, the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. In their report dated April 15, 2014, our independent registered public accounting firm included an emphasis-of-matter paragraph with respect to our financial statements as of and for the year ended December 31, 2013 concerning the Company’s assumption that we will continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. | |
The Company’s plans to address these matters include, raising additional financing through offering its shares of capital stock in private and/or public offerings of its securities and through debt financing if available and needed. The Company plans to become profitable by upgrading the capacity and capabilities at its existing operating facilities, continuing to implement its patent-pending technology in international markets, and acquiring profitable glycol recycling companies, which are looking to take advantage of the Company’s public company status and improve their profitability through a combined synergy. The Company expects gross margins to increase as the costs associated with integration continue to decline and sales of our T1TM material reach plan levels. | |
Reclassification of Prior Year Amounts | |
Certain prior year numbers have been reclassified to conform to the current year presentation. These reclassifications have not affected the net loss or net loss per share as previously reported. | |
Net Loss per Share Calculation | |
The basic net loss per common share is computed by dividing the net loss by the weighted average number of shares outstanding during a period. Diluted income per common share is computed by dividing the net income, adjusted on an as if converted basis, by the weighted average number of common shares outstanding plus potentially dilutive securities. The Company has other potentially dilutive securities outstanding that are not shown in a diluted net loss per share calculation because their effect in both 2014 and 2013 would be anti-dilutive. These potentially dilutive securities excluded from the calculation include Series AA Preferred Stock, options and warrants. At September 30, 2014, these securities included warrants of 18,667,326 and stock options of 10,699,428 for a total of 29,366,754. At September 30, 2013, these securities included warrants of 20,867,703 and stock options of 10,215,506 for a total of 31,083,209. In addition, at September 30, 2013, there are 2,342,740 common shares that can potentially be issued upon the conversion of the Series AA Convertible Preferred Stock. There were no shares of Series AA Convertible Preferred Stock outstanding at September 30, 2014. | |
Recently Issued Accounting Pronouncements | |
In 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern and in May 2014, the FASB issued new accounting guidance related to revenue recognition. | |
ASU 2014-15 requires management to perform an assessment of going concern and under certain circumstances disclose information regarding this assessment in the footnotes to the financial statements. ASU 2014-15 is effective for the Company beginning January 1, 2016. | |
The new revenue recognition standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are evaluating the impact of adopting these new accounting standards on our financial statements. | |
There have been no other recent accounting pronouncements or changes in accounting pronouncements during the current year that are of significance, or potential significance, to us. | |
NOTE_3_Inventory
NOTE 3 - Inventory | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Inventory Disclosure [Abstract] | ' | ||||
Inventory Disclosure [Text Block] | ' | ||||
NOTE 3 – Inventory | |||||
As of September 30, 2014, the Company’s total inventories were $578,852. | |||||
September 30, | 2014 | ||||
Raw materials | $ | 148,572 | |||
Work in process | 176,105 | ||||
Finished goods | 254,175 | ||||
Total inventories (unaudited) | $ | 578,852 | |||
NOTE_4_Income_Taxes
NOTE 4 - Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
NOTE 4 – Income Taxes | |
As of September 30, 2014, the Company had a net operating loss (NOL) carryforward of approximately $13,030,000 adjusted for stock based compensation and certain other non-deductible items available to reduce future taxable income, if any. The NOL carryforward begins to expire in 2028, and fully expires in 2033. Because management is unable to determine that it is more likely than not that the Company will be able to realize the tax benefit related to the NOL carryforward, by having taxable income, a valuation allowance has been established as of September 30, 2014 and December 31, 2013 to reduce the net tax benefit asset value to zero. | |
NOTE_5_Options_and_Warrants
NOTE 5 - Options and Warrants | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||
NOTE 5 – Options and Warrants | |||||||||
The following are details related to options issued by the Company: | |||||||||
Weighted | |||||||||
Options for | Average | ||||||||
Shares | Exercise Price | ||||||||
Outstanding as of December 31, 2013 | 10,133,506 | $ | 0.74 | ||||||
Granted | 712,172 | 0.51 | |||||||
Exercised | (146,250 | ) | 0.77 | ||||||
Forfeited | - | - | |||||||
Cancelled | - | - | |||||||
Expired | - | - | |||||||
Outstanding as of September 30, 2014 (unaudited) | 10,699,428 | $ | 0.72 | ||||||
All options exercised were done so by means of a cashless exercise, whereby the Company received no cash and issued new shares. | |||||||||
We account for all stock-based payment awards made to employees and directors based on estimated fair values. We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period. As of September 30, 2014, there were $392,332 of unrecognized compensation expenses related to share-based payment arrangements. These costs are expected to be recognized over a weighted-average period of approximately three years. The Company has sufficient shares to satisfy expected share-based payment arrangements in 2014. | |||||||||
The following are details related to warrants issued by the Company: | |||||||||
Weighted | |||||||||
Warrants for | Average | ||||||||
Shares | Exercise Price | ||||||||
Outstanding as of December 31, 2013 | 19,530,441 | $ | 1.08 | ||||||
Granted | 5,405,513 | 0.91 | |||||||
Exercised | (6,268,628 | ) | 1 | ||||||
Forfeited | - | - | |||||||
Cancelled | - | - | |||||||
Expired | - | - | |||||||
Outstanding as of September 30, 2014 (Unaudited) | 18,667,361 | $ | 1.05 | ||||||
On March 14, 2014, the Series AA Preferred Stock was converted under the Conversion Agreement into 2,342,750 shares of Common Stock at a price of $1.02 per share. As inducement for the redemption of the Series AA Preferred Stock, an additional 262,763 shares of Common Stock were issued at a price of $1.02 per share. Additionally, per the terms of the Conversion Agreement, a three-year warrant to purchase one share of Common Stock was issued for each share of Common Stock received in the conversion with each such warrant having an exercise price of $1.00; therefore, a warrant to purchase 2,605,513 shares of Common Stock was issued in connection with the conversion. | |||||||||
NOTE_6_Related_Party_Transacti
NOTE 6 - Related Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 6 – Related Party Transactions | |||||||||||||||||
Related party transactions are included in cost of goods sold, consulting fees, general and administrative expenses, interest expense, and the capital lease obligation. Amounts of related party transactions included in the condensed consolidated statements of operations are shown below. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
Cost of goods sold | 543,473 | 689,017 | 1,762,455 | 1,883,256 | |||||||||||||
Operating expenses | 27,442 | 45,994 | 102,771 | 167,729 | |||||||||||||
Interest expense | 41,573 | 47,762 | 129,494 | 130,596 | |||||||||||||
Chief Executive Officer | |||||||||||||||||
The Chief Executive Officer purchased 156,000 shares in the offering that closed on February 15, 2013 at a price of $0.65 per share in consideration of monies owed to him by the Company. Activity for 2014 is as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Beginning balance as of December 31, 2013 | $ | 114,434 | |||||||||||||||
Monies owed | 29,898 | ||||||||||||||||
Monies paid | (44,332 | ) | |||||||||||||||
Ending balance as of September 30, 2014 (Unaudited) | $ | 100,000 | |||||||||||||||
Chief Business Development Officer | |||||||||||||||||
The Chief Business Development Officer is the sole owner of two corporations, CyberSecurity, Inc. and Market Tactics, Inc., which were paid for marketing consulting services provided to the Company. Activity for 2014 is as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Beginning balance as of December 31, 2013 | $ | 16,058 | |||||||||||||||
Monies owed | 72,873 | ||||||||||||||||
Monies paid | (85,757 | ) | |||||||||||||||
Ending balance as of September 30, 2014 (Unaudited) | $ | 3,174 | |||||||||||||||
Director | |||||||||||||||||
A former director of the Company is the counter party to consulting and non-compete contracts, as well as the sole owner of two corporations, Full Circle and NY Terminals with contracts with the Company. Full Circle is paid pursuant to lease and services agreements. Services provided through the agreements included labor and related costs, such as health insurance, to operate the NJ facility, insurance for the facility, utilities, transportation costs for railcars, and some feedstock procurements. NY Terminals is paid pursuant to a ground lease agreement. The director resigned August 22, 2014; however, related party amounts and balances shown are as of and for the period ended September 30, 2014. The ending balance due of $475,658 is now accounted for in Accounts Payable. Activity for 2014 is as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Beginning balance as of December 31, 2013 | $ | 426,052 | |||||||||||||||
Monies owed | 1,687,706 | ||||||||||||||||
Monies paid | (1,638,100 | ) | |||||||||||||||
Ending balance as of September 30, 2014 (Unaudited) | $ | 475,658 | |||||||||||||||
NOTE_7_Commitments_and_Conting
NOTE 7 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 7 – Commitments and Contingencies | |
Litigation | |
The Company may be party to legal proceedings in the ordinary course of business. The Company believes that the nature of these proceedings (collection actions, etc.) are typical for a Company of its size and scope of operations. Currently, there are no pending legal proceedings. | |
Environmental Matters | |
We are subject to federal, state, and local laws, regulations and ordinances relating to the protection of the environment, including those governing discharges to air and water, handling and disposal practices for solid and hazardous wastes, and occupational health and safety. It is management’s opinion that the Company is not currently exposed to significant environmental remediation liabilities or asset retirement obligations as of September 30, 2014. However, if a release of hazardous substances occurs, or is found on one of our properties from prior activity, we may be subject to liability arising out of such conditions and the amount of such liability could be material. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The condensed consolidated financial statements included herein have been prepared by us without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements for the year ended December 31, 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position at September 30, 2014, and the results of our operations, stockholders’ equity and cash flows for the periods presented. We derived the December 31, 2013 condensed consolidated balance sheet data from audited financial statements, but do not include all disclosures required by GAAP. Interim results are subject to seasonal variations and the results of operations for the three and nine months ended September 30, 2014 and 2013, are not necessarily indicative of the results to be expected for the full year. | |
Liquidity Disclosure [Policy Text Block] | ' |
Going Concern | |
The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2014 and 2013, and as of December 31, 2013 have been prepared assuming that the Company will continue as a going concern. As of September 30, 2014, the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. In their report dated April 15, 2014, our independent registered public accounting firm included an emphasis-of-matter paragraph with respect to our financial statements as of and for the year ended December 31, 2013 concerning the Company’s assumption that we will continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. | |
The Company’s plans to address these matters include, raising additional financing through offering its shares of capital stock in private and/or public offerings of its securities and through debt financing if available and needed. The Company plans to become profitable by upgrading the capacity and capabilities at its existing operating facilities, continuing to implement its patent-pending technology in international markets, and acquiring profitable glycol recycling companies, which are looking to take advantage of the Company’s public company status and improve their profitability through a combined synergy. The Company expects gross margins to increase as the costs associated with integration continue to decline and sales of our T1TM material reach plan levels. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassification of Prior Year Amounts | |
Certain prior year numbers have been reclassified to conform to the current year presentation. These reclassifications have not affected the net loss or net loss per share as previously reported. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Net Loss per Share Calculation | |
The basic net loss per common share is computed by dividing the net loss by the weighted average number of shares outstanding during a period. Diluted income per common share is computed by dividing the net income, adjusted on an as if converted basis, by the weighted average number of common shares outstanding plus potentially dilutive securities. The Company has other potentially dilutive securities outstanding that are not shown in a diluted net loss per share calculation because their effect in both 2014 and 2013 would be anti-dilutive. These potentially dilutive securities excluded from the calculation include Series AA Preferred Stock, options and warrants. At September 30, 2014, these securities included warrants of 18,667,326 and stock options of 10,699,428 for a total of 29,366,754. At September 30, 2013, these securities included warrants of 20,867,703 and stock options of 10,215,506 for a total of 31,083,209. In addition, at September 30, 2013, there are 2,342,740 common shares that can potentially be issued upon the conversion of the Series AA Convertible Preferred Stock. There were no shares of Series AA Convertible Preferred Stock outstanding at September 30, 2014. | |
New Accounting Pronouncements, Policy [Policy Text Block] | 'Recently Issued Accounting Pronouncements |
In 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern and in May 2014, the FASB issued new accounting guidance related to revenue recognition. | |
ASU 2014-15 requires management to perform an assessment of going concern and under certain circumstances disclose information regarding this assessment in the footnotes to the financial statements. ASU 2014-15 is effective for the Company beginning January 1, 2016. | |
The new revenue recognition standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are evaluating the impact of adopting these new accounting standards on our financial statements. | |
There have been no other recent accounting pronouncements or changes in accounting pronouncements during the current year that are of significance, or potential significance, to us. |
NOTE_3_Inventory_Tables
NOTE 3 - Inventory (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Inventory Disclosure [Abstract] | ' | ||||
Schedule of Inventory, Current [Table Text Block] | 'As of September 30, 2014, the Company’s total inventories were $578,852. | ||||
September 30, | 2014 | ||||
Raw materials | $ | 148,572 | |||
Work in process | 176,105 | ||||
Finished goods | 254,175 | ||||
Total inventories (unaudited) | $ | 578,852 |
NOTE_5_Options_and_Warrants_Ta
NOTE 5 - Options and Warrants (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of Stock Options Roll Forward [Table Text Block] | 'The following are details related to options issued by the Company: | ||||||||
Weighted | |||||||||
Options for | Average | ||||||||
Shares | Exercise Price | ||||||||
Outstanding as of December 31, 2013 | 10,133,506 | $ | 0.74 | ||||||
Granted | 712,172 | 0.51 | |||||||
Exercised | (146,250 | ) | 0.77 | ||||||
Forfeited | - | - | |||||||
Cancelled | - | - | |||||||
Expired | - | - | |||||||
Outstanding as of September 30, 2014 (unaudited) | 10,699,428 | $ | 0.72 | ||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 'The following are details related to warrants issued by the Company: | ||||||||
Weighted | |||||||||
Warrants for | Average | ||||||||
Shares | Exercise Price | ||||||||
Outstanding as of December 31, 2013 | 19,530,441 | $ | 1.08 | ||||||
Granted | 5,405,513 | 0.91 | |||||||
Exercised | (6,268,628 | ) | 1 | ||||||
Forfeited | - | - | |||||||
Cancelled | - | - | |||||||
Expired | - | - | |||||||
Outstanding as of September 30, 2014 (Unaudited) | 18,667,361 | $ | 1.05 |
NOTE_6_Related_Party_Transacti1
NOTE 6 - Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
NOTE 6 - Related Party Transactions (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | 'mounts of related party transactions included in the condensed consolidated statements of operations are shown below. | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
Cost of goods sold | 543,473 | 689,017 | 1,762,455 | 1,883,256 | |||||||||||||
Operating expenses | 27,442 | 45,994 | 102,771 | 167,729 | |||||||||||||
Interest expense | 41,573 | 47,762 | 129,494 | 130,596 | |||||||||||||
Chief Executive Officer [Member] | ' | ||||||||||||||||
NOTE 6 - Related Party Transactions (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | 'The Chief Executive Officer purchased 156,000 shares in the offering that closed on February 15, 2013 at a price of $0.65 per share in consideration of monies owed to him by the Company. Activity for 2014 is as follows: | ||||||||||||||||
2014 | |||||||||||||||||
Beginning balance as of December 31, 2013 | $ | 114,434 | |||||||||||||||
Monies owed | 29,898 | ||||||||||||||||
Monies paid | (44,332 | ) | |||||||||||||||
Ending balance as of September 30, 2014 (Unaudited) | $ | 100,000 | |||||||||||||||
Chief Business Development Officer [Member] | ' | ||||||||||||||||
NOTE 6 - Related Party Transactions (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | 'The Chief Business Development Officer is the sole owner of two corporations, CyberSecurity, Inc. and Market Tactics, Inc., which were paid for marketing consulting services provided to the Company. Activity for 2014 is as follows: | ||||||||||||||||
2014 | |||||||||||||||||
Beginning balance as of December 31, 2013 | $ | 16,058 | |||||||||||||||
Monies owed | 72,873 | ||||||||||||||||
Monies paid | (85,757 | ) | |||||||||||||||
Ending balance as of September 30, 2014 (Unaudited) | $ | 3,174 | |||||||||||||||
Director [Member] | ' | ||||||||||||||||
NOTE 6 - Related Party Transactions (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | 'The ending balance due of $475,658 is now accounted for in Accounts Payable. Activity for 2014 is as follows: | ||||||||||||||||
2014 | |||||||||||||||||
Beginning balance as of December 31, 2013 | $ | 426,052 | |||||||||||||||
Monies owed | 1,687,706 | ||||||||||||||||
Monies paid | (1,638,100 | ) | |||||||||||||||
Ending balance as of September 30, 2014 (Unaudited) | $ | 475,658 |
NOTE_1_Organization_and_Nature1
NOTE 1 - Organization and Nature of Business (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Number of Operating Segments | 7 |
NOTE_2_Basis_of_Presentation_a1
NOTE 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
NOTE 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 29,366,754 | 31,083,209 |
Warrant [Member] | ' | ' |
NOTE 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 18,667,326 | 20,867,703 |
Equity Option [Member] | ' | ' |
NOTE 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,699,428 | 10,215,506 |
Series AA Preferred Stock [Member] | ' | ' |
NOTE 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 2,342,740 |
NOTE_3_Inventory_Details
NOTE 3 - Inventory (Details) (USD $) | Sep. 30, 2014 |
Inventory Disclosure [Abstract] | ' |
Inventory, Gross | $578,852 |
NOTE_3_Inventory_Details_Sched
NOTE 3 - Inventory (Details) - Schedule of Inventory (USD $) | Sep. 30, 2014 |
Schedule of Inventory [Abstract] | ' |
Raw materials | $148,572 |
Work in process | 176,105 |
Finished goods | 254,175 |
Total inventories (unaudited) | $578,852 |
NOTE_4_Income_Taxes_Details
NOTE 4 - Income Taxes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Minimum [Member] | Maximum [Member] | |||
NOTE 4 - Income Taxes (Details) [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards | $13,030,000 | ' | ' | ' |
Operating Loss Carryforwards, Expiration Date, Year | ' | ' | '2028 | '2033 |
Deferred Tax Assets, Net of Valuation Allowance | $0 | $0 | ' | ' |
NOTE_5_Options_and_Warrants_De
NOTE 5 - Options and Warrants (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Mar. 14, 2014 | Mar. 14, 2014 | Mar. 14, 2014 | Mar. 14, 2014 | Sep. 30, 2014 | |
Inducement for Redemption [Member] | Inducement for Redemption [Member] | Series AA Preferred Stock [Member] | Series AA Preferred Stock [Member] | Employee Stock Option [Member] | ||
Series AA Preferred Stock [Member] | Series AA Preferred Stock [Member] | |||||
NOTE 5 - Options and Warrants (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ' | ' | ' | ' | ' | $392,332 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | '3 years |
Conversion of Stock, Shares Issued | ' | 262,763 | ' | 2,342,750 | ' | ' |
Shares Issued, Price Per Share | ' | ' | $1.02 | ' | $1.02 | ' |
Conversion of Stock, Description | ' | ' | ' | 'a three-year warrant to purchase one share of Common Stock was issued for each share of Common Stock | ' | ' |
Warrant, Term | ' | ' | ' | '3 years | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | $1 | ' |
Class of Warrant or Rights Granted | 5,405,513 | ' | ' | 2,605,513 | ' | ' |
NOTE_5_Options_and_Warrants_De1
NOTE 5 - Options and Warrants (Details) - Schedule of Stock Options Roll Forward (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Schedule of Stock Options Roll Forward [Abstract] | ' |
Outstanding as of December 31, 2013 | 10,133,506 |
Outstanding as of December 31, 2013 | $0.74 |
Granted | 712,172 |
Granted | $0.51 |
Exercised | -146,250 |
Exercised | $0.77 |
Forfeited | 0 |
Forfeited | $0 |
Cancelled | 0 |
Cancelled | $0 |
Expired | 0 |
Expired | $0 |
Outstanding as of September 30, 2014 (unaudited) | 10,699,428 |
Outstanding as of September 30, 2014 (unaudited) | $0.72 |
NOTE_5_Options_and_Warrants_De2
NOTE 5 - Options and Warrants (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract] | ' |
Outstanding as of December 31, 2013 | 19,530,441 |
Outstanding as of December 31, 2013 | $1.08 |
Granted | 5,405,513 |
Granted | $0.91 |
Exercised | -6,268,628 |
Exercised | $1 |
Forfeited | 0 |
Forfeited | $0 |
Cancelled | 0 |
Cancelled | $0 |
Expired | 0 |
Expired | $0 |
Outstanding as of September 30, 2014 (Unaudited) | 18,667,361 |
Outstanding as of September 30, 2014 (Unaudited) | $1.05 |
NOTE_6_Related_Party_Transacti2
NOTE 6 - Related Party Transactions (Details) (USD $) | 0 Months Ended | ||
Feb. 15, 2013 | Feb. 15, 2013 | Sep. 30, 2014 | |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Director [Member] | |
NOTE 6 - Related Party Transactions (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 156,000 | ' | ' |
Shares Issued, Price Per Share | ' | $0.65 | ' |
Accounts Payable, Current | ' | ' | $475,658 |
NOTE_6_Related_Party_Transacti3
NOTE 6 - Related Party Transactions (Details) - Schedule of Related Party Transactions (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of Related Party Transactions [Abstract] | ' | ' | ' | ' |
Cost of goods sold | $543,473 | $689,017 | $1,762,455 | $1,883,256 |
Operating expenses | 27,442 | 45,994 | 102,771 | 167,729 |
Interest expense | $41,573 | $47,762 | $129,494 | $130,596 |
NOTE_6_Related_Party_Transacti4
NOTE 6 - Related Party Transactions (Details) - Schedule of Related Party Transactions - Chief Executive Officer (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Chief Executive Officer [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' |
Beginning balance as of December 31, 2013 | $103,174 | $582,682 | $114,434 |
Monies owed | ' | ' | 29,898 |
Monies paid | ' | ' | -44,332 |
Ending balance as of September 30, 2014 (Unaudited) | $103,174 | $582,682 | $100,000 |
NOTE_6_Related_Party_Transacti5
NOTE 6 - Related Party Transactions (Details) - Schedule of Related Party Transactions - Chief Business Development Officer (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Chief Business Development Officer [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' |
Beginning balance as of December 31, 2013 | $103,174 | $582,682 | $16,058 |
Monies owed | ' | ' | 72,873 |
Monies paid | ' | ' | -85,757 |
Ending balance as of September 30, 2014 (Unaudited) | $103,174 | $582,682 | $3,174 |
NOTE_6_Related_Party_Transacti6
NOTE 6 - Related Party Transactions (Details) - Schedule of Related Party Transactions - Director (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Director [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' |
Beginning balance as of December 31, 2013 | $103,174 | $582,682 | $426,052 |
Monies owed | ' | ' | 1,687,706 |
Monies paid | ' | ' | -1,638,100 |
Ending balance as of September 30, 2014 (Unaudited) | $103,174 | $582,682 | $475,658 |