Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2015 | |
Document And Entity Information | |
Entity Registrant Name | GlyEco, Inc. |
Entity Central Index Key | 931,799 |
Document Type | S1 |
Document Period End Date | Jun. 30, 2015 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Smaller Reporting Company |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | |||
Cash | $ 1,454,826 | $ 494,847 | $ 4,393,299 |
Accounts receivable, net | 1,309,477 | 786,056 | 898,934 |
Due from related parties | 34,868 | ||
Prepaid expenses | 116,064 | 137,056 | 53,732 |
Inventories | 1,056,950 | 567,677 | 268,191 |
Total current assets | 3,937,317 | 1,985,636 | 5,649,024 |
Property, Plant and Equipment, net | 7,691,206 | 7,889,207 | 5,515,183 |
Other assets | |||
Deposits | 86,688 | 80,708 | 80,708 |
Goodwill | 835,295 | 835,295 | 779,303 |
Other intangible assets, net | 3,355,447 | 3,461,361 | 3,673,190 |
Total other assets | 4,277,430 | 4,377,364 | 4,533,201 |
Total assets | 15,905,953 | 14,252,207 | 15,697,408 |
Current liabilities | |||
Accounts payable and accrued expenses | 1,361,604 | 1,649,361 | 1,271,674 |
Due to related parties | 44,491 | 62,500 | 582,682 |
Notes payable | 121,476 | 121,905 | 6,504 |
Capital lease obligations | 340,754 | 326,656 | 285,363 |
Total current liabilities | $ 1,868,325 | 2,160,422 | 2,146,223 |
Non-current liabilities | |||
Note payable - non-current portion | 2,971 | 9,877 | |
Capital lease obligations - non-current portion | $ 722,640 | 896,422 | 1,189,574 |
Total non-current liabilities | 722,640 | 899,393 | 1,199,451 |
Total liabilities | $ 2,590,965 | $ 3,059,815 | 3,345,674 |
Mandatorily redeemable Series AA convertible preferred stock, 0 and 2,342,750 shares issued and outstanding at December 31, 2014 and 2013, respectively | $ 1,171,375 | ||
Stockholders' equity | |||
Preferred stock; 40,000,000 shares authorized; $0.0001 par value; 0 shares issued and outstanding as of June 30, 2015 and December 31, 2014 | |||
Common stock, 300,000,000 shares authorized; $0.0001 par value; 70,776,884 and 58,033,560 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | $ 7,078 | $ 5,804 | $ 4,884 |
Additional paid in capital | 37,460,705 | 33,284,831 | 24,541,809 |
Accumulated deficit | (24,152,795) | (22,098,243) | (13,366,334) |
Total stockholders' equity | 13,314,988 | 11,192,392 | 11,180,359 |
Total liabilities, mezzanine, and stockholders' equity | $ 15,905,953 | $ 14,252,207 | $ 15,697,408 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Consolidated Balance Sheets Parenthetical | |||
Preferred stock, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 70,776,884 | 58,033,560 | 48,834,916 |
Preferred stock series A, shares issued | 0 | 0 | |
Preferred stock series A, shares outstanding | 2,342,750 | 2,342,750 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Consolidated Statements Of Operations | ||||||
Sales, net | $ 2,041,901 | $ 1,606,990 | $ 3,384,352 | $ 3,260,031 | $ 5,893,844 | $ 5,538,005 |
Cost of goods sold | 2,281,624 | 1,629,257 | 3,731,888 | 3,290,680 | 6,577,168 | 5,193,445 |
Gross profit (loss) | (239,723) | (22,267) | (347,536) | (30,649) | (683,324) | 344,560 |
Operating expenses | ||||||
Consulting fees | 122,462 | 144,744 | 219,772 | 285,910 | 767,914 | 680,196 |
Share-based compensation | 296,513 | 238,758 | 630,100 | 711,532 | 2,046,074 | 1,065,288 |
Salaries and wages | 128,500 | 243,579 | 269,446 | 515,154 | 999,968 | 830,677 |
Legal and professional | 64,035 | 199,388 | 185,937 | 236,301 | 337,118 | 286,728 |
General and administrative | 183,736 | 217,405 | 318,030 | 434,425 | 1,468,684 | 900,463 |
Total operating expenses | 795,246 | 1,043,874 | 1,623,285 | 2,183,322 | 5,619,758 | 3,763,352 |
Loss from operations | (1,034,969) | (1,066,141) | (1,970,821) | (2,213,971) | (6,303,082) | (3,418,792) |
Other (income) and expenses | ||||||
Interest income | (95) | (66) | (176) | (644) | (1,103) | (2,496) |
Interest expense | 40,912 | 45,466 | 83,907 | 90,443 | 180,128 | 592,788 |
Other | 6,392 | 4,043 | ||||
Total other (income) and expenses | 40,817 | 45,400 | 83,731 | 89,799 | 185,417 | 594,335 |
Loss before provision for income taxes | $ (1,075,786) | $ (1,111,541) | $ (2,054,552) | $ (2,303,770) | $ (6,488,499) | $ (4,013,127) |
Provision for income taxes | ||||||
Net loss | $ (1,075,786) | $ (1,111,541) | $ (2,054,552) | $ (2,303,770) | $ (6,488,499) | $ (4,013,127) |
Premium on Series AA Preferred conversion to common shares | 2,243,410 | (2,243,410) | ||||
Net loss available to common shareholders | $ (1,075,786) | $ (1,111,541) | $ (2,054,552) | $ (4,547,180) | $ (8,731,909) | $ (4,013,127) |
Basic and diluted loss per share | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.09) | $ (0.16) | $ (0.09) |
Weighted average number of common shares outstanding (basic and diluted) | 70,427,963 | 51,906,725 | 66,786,804 | 50,707,479 | 54,451,172 | 45,527,044 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Beginning Balance at Dec. 31, 2012 | $ 3,615 | $ 12,765,616 | $ (9,353,207) | $ 3,416,024 |
Beginning Balance (in Shares) at Dec. 31, 2012 | 36,149,985 | |||
Common shares for acquisition | $ 84 | 1,118,089 | 1,118,173 | |
Common shares for acquisition (in Shares) | 835,810 | |||
Common shares for payment of goods and services | $ 79 | 553,281 | 553,360 | |
Common shares for payment of goods and services (in Shares) | 793,679 | |||
Common shares for note conversion | $ 94 | 469,906 | 470,000 | |
Common shares for note conversion (in Shares) | 940,000 | |||
Warrants issued in conjunction with note conversion | 392,170 | 392,170 | ||
Common shares for cash, net | $ 936 | 8,177,535 | $ 8,178,471 | |
Common shares for cash, net (in Shares) | 9,357,578 | 9,357,578 | ||
Share-based compensation | 1,065,288 | $ 1,065,288 | ||
Warrants and options exercised | $ 76 | $ (76) | 0 | |
Warrants and options exercised (in shares) | 757,864 | |||
Net loss | $ (4,013,127) | (4,013,127) | ||
Ending Balance at Dec. 31, 2013 | $ 4,884 | $ 24,541,809 | $ (13,366,334) | 11,180,359 |
Ending Balance (in Shares) at Dec. 31, 2013 | 48,834,916 | |||
Common shares for acquisition | $ 20 | 210,893 | $ 210,913 | |
Common shares for acquisition (in Shares) | 204,750 | |||
Warrants issued in conjunction with note conversion | ||||
Common shares for Series AA Preferred conversion | $ 261 | 1,171,114 | $ 1,171,375 | |
Common shares for Series AA Preferred conversion (in Shares) | 2,605,513 | |||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | $ (2,243,410) | ||
Share-based compensation | $ 5 | 2,046,069 | $ 2,046,074 | |
Share-based compensation (in Shares) | 47,606 | 47,606 | ||
Warrants and options exercised | $ 634 | 3,071,536 | $ 3,072,170 | |
Warrants and options exercised (in shares) | 6,340,775 | |||
Net loss | $ (6,488,499) | (6,488,499) | ||
Ending Balance at Dec. 31, 2014 | $ 5,804 | 33,284,831 | $ (22,098,243) | 11,192,392 |
Ending Balance (in Shares) at Dec. 31, 2014 | 58,033,560 | |||
Common shares for cash, net | $ 1,102 | 3,545,946 | 3,547,048 | |
Common shares for cash, net (in Shares) | 11,021,170 | |||
Share-based compensation | $ 72 | 630,028 | $ 630,100 | |
Share-based compensation (in Shares) | 722,487 | 722,487 | ||
Warrants and options exercised | $ 100 | (100) | ||
Warrants and options exercised (in shares) | 999,667 | |||
Net loss | $ (2,054,552) | $ (2,054,552) | ||
Ending Balance at Jun. 30, 2015 | $ 7,078 | $ 37,460,705 | $ (24,152,795) | $ 13,314,988 |
Ending Balance (in Shares) at Jun. 30, 2015 | 70,776,884 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net cash flow from operating activities | ||||
Net loss | $ (2,054,552) | $ (2,303,770) | $ (6,488,499) | $ (4,013,127) |
Adjustments to reconcile net loss to net cash used by operating activities | ||||
Depreciation | 298,566 | 192,618 | 475,784 | 258,162 |
Amortization | 105,914 | 105,914 | 211,829 | 183,310 |
Share-based compensation expense | 630,100 | 711,532 | $ 2,046,074 | 1,065,288 |
Stock issued for accrued interest expense | 24,913 | |||
Warrants issued in conjunction with note conversion | 392,170 | |||
Stock and warrants issued for goods and services | 553,360 | |||
Other | $ 6,392 | 4,043 | ||
(Increase) decrease in operating assets and liabilities: | ||||
Accounts receivable | $ (523,421) | 297,889 | 112,878 | (689,651) |
Due from related party | 14,900 | 34,868 | (34,868) | |
Prepaid expenses | $ 20,992 | (100,178) | (83,324) | (121,890) |
Inventories | (489,273) | (237,886) | (299,486) | (185,238) |
Deposits | (5,980) | 80,708 | ||
Accounts payable and accrued expenses | (287,757) | (390,702) | 492,687 | 989,597 |
Due to related party | (18,009) | (24,979) | $ (520,182) | 112,239 |
Other | 9,000 | |||
Net cash used in operating activities | (2,323,420) | (1,653,954) | $ (4,010,979) | (1,452,692) |
Cash flows from investing activities | ||||
Cash paid for acquisitions | (539,304) | |||
Purchase of property, plant and equipment | (100,565) | (2,409,313) | $ (2,655,725) | (2,710,739) |
Proceeds from sale of fixed assets | 1,800 | 6,278 | ||
Net cash used in investing activities | (100,565) | (2,409,313) | (2,653,925) | (3,243,765) |
Cash flows from financing activities | ||||
Repayment of debt | (3,400) | 111,797 | (6,505) | (3,619) |
Repayment of capital lease | (159,684) | $ (117,329) | (299,213) | (239,037) |
Proceeds from sale of common stock | 3,581,875 | 3,134,314 | 8,546,386 | |
Stock issuance costs | $ (34,827) | (62,144) | (367,915) | |
Proceeds from warrant exercise | $ 1,673,182 | |||
Net cash provided by (used in) financing activities | $ 3,383,964 | 1,667,650 | 2,766,452 | 7,935,815 |
Increase (decrease) in cash | 959,979 | (2,395,617) | (3,898,452) | 3,239,358 |
Cash at the beginning of the period | 494,847 | 4,393,299 | 4,393,299 | 1,153,941 |
Cash at end of the period | 1,454,826 | 1,997,682 | 494,847 | 4,393,299 |
Supplemental disclosure of cash flow information | ||||
Interest paid during period | $ 83,907 | $ 90,443 | $ 180,128 | $ 122,510 |
Taxes paid during period | ||||
Supplemental disclosure of non-cash items | ||||
Redemption of Premium on Series AA Preferred by conversion to common shares | $ 2,243,410 | $ 2,243,410 | ||
Common stock issued for acquisition | $ 210,893 | $ 210,913 | $ 1,118,173 | |
Common stock issued for goods and services | 553,360 | |||
Common stock issued for convertible note, principal and interest | 470,000 | |||
Series AA Preferred Stock issued for convertible note, principal and interest | $ 1,171,375 | |||
Note payable issued in payment of accounts payable | $ 115,000 | |||
Common stock issued for conversion of Series AA Preferred stock | 1,171,375 | |||
Equipment purchased with capital lease | $ 47,354 | $ 1,714,974 | ||
Equipment purchased with debt | $ 20,000 |
Organization and Nature of Busi
Organization and Nature of Business | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 1 - Organization and Nature of Business | GlyEco, Inc. (the "Company", we, or our) collects and recycles waste glycol streams into reusable glycol products that are sold to third party customers in the automotive and industrial end-markets in the United States. Our proprietary technology allows us to recycle all five major types of waste glycol into high-quality products usable in any glycol application. We currently operate seven processing centers in the United States with our corporate offices located in Phoenix, Arizona. These 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. The Company was formed in the State of Nevada on October 21, 2011. We were formed to acquire the assets of companies in the business of recycling and processing waste glycol and to apply our proprietary technology to provide a higher quality of glycol to end-market users throughout North America. We are currently comprised of the parent corporation GlyEco, Inc., and the acquisition subsidiaries that were formed to acquire the seven processing centers listed above. These processing centers are held in seven subsidiaries under the name of GlyEco Acquisition Corp. #1 through GlyEco Acquisition Corp. #7. Going Concern The condensed consolidated financial statements as of June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014 have been prepared assuming that the Company will continue as a going concern. As of June 30, 2015, 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. Ultimately, we hope to achieve viable profitable operations when operating efficiencies can be realized from the facilities added in 2013. These factors raise substantial doubt about the Company's ability to continue as a going concern. In their report dated April 10, 2015, our independent registered public accounting firm included an emphasis-of-matter paragraph with respect to our consolidated financial statements for the fiscal year ended December 31, 2014, expressing uncertainty regarding the Companys 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. Management's plans to address these matters include raising additional financing through offering our shares of capital stock in private and/or public offerings of our 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 may desire to take advantage of the Company's public company status and improve their profitability through a combined synergy. The Company intends to expand customer and supplier bases once operational capacity and capabilities have been upgraded. | 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 in the United States. 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 corporate location 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. The Company was formed in the State of Nevada on October 21, 2011. We were formed to acquire the assets of companies in the business of recycling and processing waste ethylene glycol, and to apply a newly developed proprietary technology to produce ASTM E1177 Type I virgin grade recycled ethylene glycol to end users throughout North America. We are currently comprised of the parent corporation GlyEco, Inc. and the various acquisition subsidiaries that were formed to acquire the seven processing centers listed above. They are held in seven subsidiaries under the name of GlyEco Acquisition Corp. #1 through GlyEco Acquisition Corp. #7. Going Concern The consolidated financial statements as of and for the year ended December 31, 2014 have been prepared assuming that the Company will continue as a going concern. As of December 31, 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. Ultimately, we hope to achieve viable profitable operations when operating efficiencies can be realized from the facilities added in 2013. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. These factors raise substantial doubt about the Company's ability to continue as a going concern. In their report dated April 10, 2015, our independent registered public accounting firm included an emphasis-of-matter paragraph with respect to our consolidated financial statements for the fiscal year ended December 31, 2014, expressing uncertainty regarding the Company's assumption that we will continue as a going concern. Management's plans to address these matters include raising additional financing through offering our shares of capital stock in private and/or public offerings of our 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 may desire to take advantage of the Company's public company status and improve their profitability through a combined synergy. The Company intends to expand customer and supplier bases once operational capacity and capabilities have been upgraded. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
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 Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements for the year ended December 31, 2014. 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 our opinion, all normal recurring adjustments necessary to present fairly our financial position at June 30, 2015, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2014, condensed consolidated balance sheet data from audited financial statements but did not include all disclosures required by GAAP. Interim results are subject to seasonal variations and the results of operations for the three and Consolidation These condensed consolidated financial statements include the accounts of GlyEco, Inc., and its wholly-owned subsidiaries. All significant intercompany accounting transactions have been eliminated as a result of consolidation. The subsidiaries include: GlyEco Acquisition Corp #1 ("Acquisition Sub #1) located in Minneapolis, Minnesota; GlyEco Acquisition Corp #2 ("Acquisition Sub #2) located in Indianapolis, Indiana; GlyEco Acquisition Corp #3 ("Acquisition Sub #3) located in Lakeland, Florida; GlyEco Acquisition Corp #4 ("Acquisition Sub #4) located in Elizabeth, New Jersey; GlyEco Acquisition Corp #5 ("Acquisition Sub #5) located in Rock Hill, South Carolina; GlyEco Acquisition Corp #6 ("Acquisition Sub #6) located in Tea, South Dakota; and GlyEco Acquisition Corp. #7 (Acquisition Sub #7) located in Landover, Maryland. Operating Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing the performance of the segment. Operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics, among other criteria. The Company operates as one segment. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Because of the use of estimates inherent within the financial reporting process, actual results may differ significantly from those estimates. Significant estimates include, but are not limited to, items such as, the allowance for doubtful accounts, the carrying value of inventory, the value of stock-based compensation and warrants, the allocation of the purchase price in the various acquisitions, the realization of property, plant and equipment, goodwill, other intangibles and their estimated useful lives, contingent liabilities, and environmental and asset retirement obligations. Due to the uncertainties inherent in the formulation of accounting estimates, it is reasonable to expect that these estimates could be materially revised within the next year. Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the time of purchase are considered to be cash equivalents. Revenue Recognition The Company recognizes revenue when four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of products sold consists of direct and indirect costs of the purchased goods and labor related to the corresponding sales transaction. The Company recognizes revenue from services at the time the services are completed. Shipping costs passed to the customer are included in net sales. Costs Cost of goods sold includes all direct material and labor costs and those indirect costs of bringing raw materials to sale condition, including depreciation of equipment used in manufacturing and shipping and handling costs. Selling, general, and administrative costs are charged to operating expenses as incurred. Research and development costs are expensed as incurred and are included in operating expenses. Advertising costs are expensed as incurred. Accounts Receivable Accounts receivable are recognized and carried at the original invoice amount less an allowance for expected uncollectible amounts. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer's willingness or ability to pay, the Company's compliance with customer invoicing requirements, the effect of general economic conditions and the ongoing relationship with the customer. Accounts with outstanding balances longer than the payment terms are considered past due. We do not charge interest on past due balances. The Company writes off trade receivables when all reasonable collection efforts have been exhausted. Bad debt expense is reflected as a component of general and administrative expenses in the condensed consolidated statements of operations. Inventory Inventories are reported at the lower of cost or market. The cost of raw materials, including feedstocks and additives, is determined on an average unit cost of the units in a production lot. Work-in-process represents labor, material and overhead costs associated with the manufacturing costs at an average unit cost of the units in the production lot. The Company periodically reviews its inventories for obsolete or unsalable items and adjusts its carrying value to reflect estimated realizable values. Property, Plant and Equipment Property, plant and equipment is stated at cost. The Company provides for depreciation on the cost of its equipment using the straight-line method over an estimated useful life, ranging from three to twenty-five years, and zero salvage value. Expenditures for repairs and maintenance are charged to expense as incurred. As of June 30, 2015, the Company had incurred and capitalized construction in process totaling $1,524,921. The upgrades relate to construction in process for our New Jersey processing center and are scheduled to be completed in 2015 and 2016, pending resolution of the landlord dispute discussed in Note 10, at which time depreciation is expected to commence. The estimated cost to be incurred in complete planned upgrades at the processing center is estimated to be approximately $400,000. For purposes of computing depreciation, the useful lives of property, plant and equipment are: Leasehold improvements 5 years Machinery and equipment 3-25 years Fair Value of Financial Instruments The Company has adopted the framework for measuring fair value that establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs that may be used to measure fair value are as follows: ● Level 1 ● Level 2 ● Level 3 Cash, accounts receivable, accounts payable, accrued liabilities, and the current portions of capital lease obligations and notes payable are reflected in the balance sheet at their estimated fair values primarily due to their short-term nature. As to long-term capital lease obligations and notes payable, estimated fair values are based on borrowing rates currently available to the Company for loans with similar terms and maturities, which represent level 3 input levels. 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, by the weighted average number of common shares outstanding plus potentially dilutive securities. The Companys potentially dilutive securities outstanding are not shown in a diluted net loss per share calculation because their effect in both 2015 and 2014 would be anti-dilutive. At June 30, 2015, these potentially dilutive securities included warrants of 16,567,326 and stock options of 11,644,585 for a total of 28,211,911. At June 30, 2014, these potentially dilutive securities included warrants of 22,235,954 and stock options of 10,524,428 for a total of 32,760,382. Provision for Income Taxes The Company accounts for its income taxes in accordance with ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. An allowance for the deferred tax asset is established if it is more likely than not that the asset will not be realized. Stock Based Compensation All share-based payments to employees, including grants of employee stock options, are expensed based on their estimated fair values at the grant date, in accordance with ASC 718. Compensation expense for stock options is recorded over the vesting period using the estimated fair value on the date of grant, as calculated by the Company using the Black-Scholes model. For awards with only service conditions that have graded vesting schedules, compensation cost is recorded on a straight-line basis over the requisite service period for the entire award, unless vesting occurs earlier. Non-employee stock-based compensation is accounted for based on the fair value of the related stock or options, using the Black-Scholes Model, or the fair value of the goods or services on the measurement date, whichever is more readily determinable. Reclassification of Prior Year Amounts Certain prior year amounts 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. Recently Issued Accounting Pronouncements There have been no recent accounting pronouncements or changes in accounting pronouncements that are of significance, or potential significance to the Company, except as discussed below. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 supersedes nearly all existing revenue recognition guidance under U.S. GAAP and requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance will become effective beginning in the first quarter of 2017 using one of two prescribed transition methods. Early adoption is not permitted. In July 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12). ASU 2014-12 provides explicit guidance on whether to treat a performance target that could be achieved after the requisite service period as a performance condition that affects vesting, or as a non-vesting condition that affects the grant-date fair value of an award. The update requires that compensation costs are recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This update is effective for the annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 defines managements responsibility to evaluate whether there is substantial doubt about an organizations ability to continue as a going concern and provides related footnote disclosure requirements. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting. The going concern basis of accounting establishes the fundamental basis for measuring and classifying assets and liabilities. The update provides guidance on when there is substantial doubt about an organizations ability to continue as a going concern and how the underlying conditions and events should be disclosed in the footnotes. It is intended to reduce diversity that existed in footnote disclosures because of the lack of guidance about when substantial doubt existed. The amendments in this update are effective beginning in the first quarter of 2017. Early application is permitted. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 simplifies the presentation of debt issuance costs, the amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from that debt liability, consistent with the presentation of a debt discount. This presentation is consistent with the guidance in Concepts Statement 6, which states that debt issuance costs are similar to a debt discount and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. Concepts Statement 6 further states that debt issuance costs are not assets because they provide no future economic benefit. This presentation also improves consistency with IFRS, which requires that transaction costs be deducted from the carrying value of the financial liability and not recorded as separate assets. This update is effective for the annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. | Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States ("GAAP"), and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Consolidation These consolidated financial statements include the accounts of GlyEco, Inc., and its wholly-owned subsidiaries. All significant intercompany accounting transactions have been eliminated as a result of consolidation. The subsidiaries include: GlyEco Acquisition Corp #1 ("Acquisition Sub #1") located in Minneapolis, Minnesota; GlyEco Acquisition Corp #2 ("Acquisition Sub #2") located in Indianapolis, Indiana; GlyEco Acquisition Corp #3 ("Acquisition Sub #3") located in Lakeland, Florida; GlyEco Acquisition Corp #4 ("Acquisition Sub #4") located in Elizabeth, New Jersey; GlyEco Acquisition Corp #5 ("Acquisition Sub #5") located in Rock Hill, South Carolina; GlyEco Acquisition Corp #6 ("Acquisition Sub #6") located in Tea, South Dakota; and GlyEco Acquisition Corp. #7 ("Acquisition Sub #7") located in Landover, Maryland. Operating Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing the performance of the segment. Operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics, among other criteria. The Company operates as one segment. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Because of the use of estimates inherent within the financial reporting process, actual results may differ significantly from those estimates. Significant estimates include, but are not limited to, items such as, the allowance of doubtful accounts, the value of stock-based compensation and warrants, the allocation of the purchase price in the various acquisitions, the realization of property, plant and equipment, goodwill, other intangibles and their estimated useful lives, contingent liabilities, and environmental and asset retirement obligations. Due to the uncertainties inherent in the formulation of accounting estimates, it is reasonable to expect that these estimates could be materially revised within the next year. Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the time of purchase are considered to be cash equivalents. Revenue Recognition The Company recognizes revenue when four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of products sold consists of direct and indirect costs of the purchased goods and labor related to the corresponding sales transaction. The Company recognizes revenue from services at the time the services are completed. Shipping costs passed to the customer are included in the net sales. Costs Cost of goods sold includes all direct material and labor costs and those indirect costs of bringing raw materials to sale condition, including depreciation of equipment used in manufacturing and shipping and handling costs. Selling, general, and administrative costs are charged to operating expenses as incurred. Research and development costs are expensed as incurred and are included in operating expenses. Advertising costs are expensed as incurred. Total advertising costs for 2014 and 2013 were $21,569 and $85,528 respectively. Accounts Receivable Accounts receivable are recognized and carried at the original invoice amount less an allowance for expected uncollectible amounts. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer's willingness or ability to pay, the Company's compliance with customer invoicing requirements, the effect of general economic conditions and the ongoing relationship with the customer. Accounts with outstanding balances longer than the payment terms are considered past due. We do not charge interest on past due balances. The Company writes off trade receivables when all reasonable collection efforts have been exhausted. Bad debt expense is reflected as a component of general and administrative expenses in the consolidated statements of operations. Inventory Inventories are reported at the lower of cost or market. The cost of raw materials, including feedstocks and additives, is determined on an average unit cost of the units in a production lot. Work-in-process represents labor, material and overhead costs associated with the manufacturing costs at an average unit cost of the units in the production lot. The Company periodically reviews its inventories for obsolete or unsalable items and adjusts its carrying value to reflect estimated realizable values. There was no inventory write-down during the years ended December 31, 2014 and 2013. Property and Equipment Property and equipment is stated at cost. The Company provides depreciation on the cost of its equipment using the straight-line method over an estimated useful life, ranging from three to twenty-five years, and zero salvage value. Expenditures for repairs and maintenance are charged to expense as incurred. The upgrades related to construction in process for our New Jersey processing center as of December 31, 2014 are scheduled to be completed in 2015, at which time depreciation is expected to commence. As of December 31, 2014, the Company incurred and capitalized construction in process totaling $1,440,690. The estimated cost to be incurred in 2015 to complete upgrades at the processing center is estimated to be approximately $2.5 million. Depreciation expense for the years ended December 31, 2014 and 2013, was $475,784 and 258,162, respectively. For purposes of computing depreciation, the useful lives of property and equipment are: Leasehold improvements 5 years Machinery and equipment 3-25 years Fair Value of Financial Instruments The Company has adopted the framework for measuring fair value that establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs that may be used to measure fair value are as follows: ● Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date; ● Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and ● Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions that market participants would use in pricing an asset or liability. Valuation is generated from model-based techniques with the unobservable assumptions reflecting our own estimate of assumptions that market participants would use in pricing the asset or liability. Cash, accounts receivable, accounts payable and accrued liabilities, and current portion of capital lease obligations and notes payable are reflected in the balance sheet at their estimated fair values primarily due to their short-term nature. As to long-term capital lease obligations and notes payable, estimated fair values are based on borrowing rates currently available to the Company for loans with similar terms and maturities, which represent level 3 input levels. 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, by the weighted average number of common shares outstanding plus potentially dilutive securities. The Company's potentially dilutive securities outstanding are not shown in a diluted net loss per share calculation because their effect in both 2014 and 2013 would be anti-dilutive. At December 31, 2014, these potentially dilutive securities included warrants of 17,567,326 and stock options of 11,096,428 for a total of 28,663,754 At December 31, 2013, these potentially dilutive securities included warrants of 19,530,441 and stock options of 10,133,506 for a total of 29,663,947. Provision for Taxes The Company accounts for its income taxes in accordance with ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. An allowance for the deferred tax asset is established if it is more likely than not that the asset will not be realized. Stock Based Compensation All share-based payments to employees, including grants of employee stock options, are expensed based on their estimated fair values at the grant date, in accordance with ASC 718. Compensation expense for stock options is recorded over the vesting period using the estimated fair value on the date of grant, as calculated by the Company using the Black-Scholes model. For awards with only service conditions that have graded vesting schedules, compensation cost is recorded on a straight-line basis over the requisite service period for the entire awards, unless vesting occurs earlier. The Company classifies all share-based awards as equity instruments. See Note 12 for a description of the Company's share-based compensation plans and information related to awards granted under the plans. Non-employee stock-based compensation is accounted for based on the fair value of the related stock or options, using the Black-Scholes Model, or the fair value of the goods or services on the grant date, whichever is more readily determinable. 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. Recently Issued Accounting Pronouncements There have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2014 that are of significance, or potential significance to the Company, except as discussed below. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 supersedes nearly all existing revenue recognition guidance under U.S. GAAP and requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance will become effective beginning in the first quarter of 2017 using one of two prescribed transition methods. Early adoption is not permitted. The Company is currently evaluating the effect that the updated standard will have on the financial statements and related disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, "Compensation Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period" ("ASU 2014-12"). ASU 2014-12 provides explicit guidance on whether to treat a performance target that could be achieved after the requisite service period as a performance condition that affects vesting, or as a non-vesting condition that affects the grant-date fair value of an award. The update requires that compensation costs are recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This update is effective for the annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on the financial statements and related disclosures. In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-15, "Presentation of Financial Statements Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). ASU 2014-15 defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and provides related footnote disclosure requirements. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting. The going concern basis of accounting establishes the fundamental basis for measuring and classifying assets and liabilities. The update provides guidance on when there is substantial doubt about an organization's ability to continue as a going concern and how the underlying conditions and events should be disclosed in the footnotes. It is intended to reduce diversity that existed in footnote disclosures because of the lack of guidance about when substantial doubt existed. The amendments in this update are effective beginning in the first quarter of 2017. Early application is permitted. The Company is currently evaluating the effect that the updated standard will have on the financial statements and related disclosures. |
Inventory
Inventory | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 3 - Inventory | The Companys total inventories were as follows: June 30, December 31, 2015 2014 (unaudited) Raw materials $ 329,787 $ 232,611 Work in process 235,991 110,466 Finished goods 491,172 224,600 Total inventories $ 1,056,950 $ 567,677 | As of December 31, 2014 and 2013, the Company's total inventories were $567,677 and $268,191, respectively. December 31, 2014 2013 Raw materials $ 232,611 $ 76,165 Work in process 110,466 47,106 Finished goods 224,600 144,920 Total inventories $ 567,677 $ 268,191 |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 4 - Income Taxes | As of June 30, 2015 and December 31, 2014, the Company had a net operating loss (NOL) carryforward of approximately $17,600,000 (unaudited) and $16,500,000 respectively, 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 2027, and fully expires in 2035. 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 June 30, 2015 and December 31, 2014 to reduce the net tax benefit asset value to zero. | As of December 31, 2014 and 2013, the Company had net operating loss (NOL) carryforwards of approximately $16,500,000 and $9,980,000, respectively, 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 2027, and fully expires in 2034. Because management is unable to determine that it is more likely than not that the Company will realize the tax benefit related to the NOL carryforward, by having taxable income, a valuation allowance has been established as of December 31, 2014 and 2013 to reduce the tax benefit asset value to zero. The deferred tax assets, including a valuation allowance, are as follows at December 31: December 31, 2014 2013 Deferred tax assets NOL $ 6,600,000 $ 3,480,000 Depreciation and amortization (600,000 ) - Valuation allowance (6,000,000 ) (3,480,000 ) Net deferred tax assets $ - $ - The change in the valuation allowance for deferred tax assets for the years ended December 31, 2014 and 2013 was $2,520,000 and $1,230,000, respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31, 2014 and 2013, and recorded a full valuation allowance. Reconciliation between the statutory rate and the effective tax rate is as follows at December 31, 2014 and 2013: Federal and state statutory tax rate 40 % Permanent difference and valuation allowance (40 )% Effective tax rate 0 % |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 5 - Property, Plant and Equipment | The Companys property, plant and equipment were as follows: June 30, December 31, 2015 2014 (unaudited) Machinery and equipment $ 6,819,305 $ 6,802,971 Leasehold improvements 449,271 449,271 Accumulated depreciation (1,102,291 ) (803,725 ) 6,166,285 6,448,517 Construction in process 1,524,921 1,440,690 Total property, plant and equipment, net $ 7,691,206 $ 7,889,207 | As of December 31, 2014 and 2013, the property, plant and equipment, net of accumulated depreciation, is $7,889,207 and $5,515,183, respectively. December 31, 2014 2013 Machinery and equipment $ 6,802,971 $ 3,719,344 Leasehold improvements 449,271 7,641 Accumulated depreciation (803,725 ) (328,803 ) 6,448,517 3,398,182 Construction in process 1,440,690 2,117,001 Total property, plant and equipment $ 7,889,207 $ 5,515,183 Depreciation expense recorded during the years ended December 31, 2014 and 2013 was $475,784 and $258,162, respectively. |
Equity Incentive Program
Equity Incentive Program | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
NOTE 6 - Equity Incentive Program | On December 18, 2014, the Company's Board of Directors approved an Equity Incentive Program (the Equity Incentive Program), whereby the Companys employees may elect to receive equity in lieu of cash for all or part of their salary compensation. Pursuant to the Equity Incentive Program, each of the Companys employees may choose to forego all or part of their salary compensation in exchange for stock options or shares of restricted common stock. During the quarter ended March 31, 2015, for each dollar of compensation foregone, each employee was eligible to receive either four stock options or three and one-third shares of restricted common stock. During the quarter ended June 30, 2015, for each dollar of compensation foregone, each employee was eligible to receive either five stock options or four shares of restricted common stock. The Company issued all stock options and restricted stock due to employees pursuant to the Equity Incentive Program on the last day of each calendar month. Stock options issued pursuant to the program vested immediately upon issuance and had an exercise price of $0.30 and $0.24 during the quarters ended March 31, 2015 and June 30, 2015, respectively. Such stock options have a term of ten years and are otherwise subject to the terms of the Companys 2012 Equity Incentive Plan, including cashless exercise as an available form of payment. Restricted stock issued pursuant to the program also vested immediately and has a stock basis of $0.30 and $0.24 per share for shares issued during the quarters ended March 31, 2015 and June 30, 2015, respectively. On July 10, 2015, the Company's Board of Directors extended the Equity Incentive Program through September 30, 2015. For the fiscal quarter ended September 30, 2015, for each dollar of compensation foregone, each employee will be eligible to receive either six stock options or five shares of restricted common stock. Stock options issued pursuant to the program shall vest immediately upon issuance and have an exercise price of $0.19, while restricted stock issued pursuant to the program shall also vest immediately and have a stock basis of $0.19 per share. The Equity Incentive Program will be reevaluated on September 30, 2015. Upon the conclusion of the program, the Company will calculate its profitability for the quarter ended September 30, 2015 using an adjusted EBITDA calculation, and if the Company has achieved profitable operations, it shall proportionally distribute salary compensation back to all employees participating in the program from July 1, 2015 through September 30, 2015 in exchange for the equity granted. For the six months ended June 30, 2015, the Company issued 395,320 shares of Common Stock valued at $111,375 and granted 201,997 compensatory options valued at $40,571 pursuant to the plan. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 7 - Stockholders' Equity | Preferred Stock The Company's articles of incorporation authorize the Company to issue up to 40,000,000 shares of $0.0001 par value, preferred shares having preferences to be determined by the board of directors for dividends, and liquidation of the Company's assets. Of the 40,000,000 preferred shares the Company is authorized by its articles of incorporation to issue up to 3,000,000 Series AA preferred shares. As of June 30, 2015, the Company had no shares of Preferred Stock outstanding. Common Stock As of June 30, 2015, the Company has 70,776,884, $0.0001 par value, shares of common stock outstanding. The Company's articles of incorporation authorize the Company to issue up to 300,000,000 shares of $0.0001 par value, common stock. The holders are entitled to one vote for each share on matters submitted to a vote to shareholders, and to share pro rata in all dividends payable on common stock after payment of dividends on any preferred shares having preference in payment of dividends. During the six months ended June 30, 2015, the Company issued the following common stock: On January 1, 2015, the Company issued an aggregate of 120,000 shares of Common Stock to two consultants of the Company pursuant to the Companys Equity Incentive Plan at a price of $0.30 per share. On January 31, 2015, the Company issued an aggregate of 44,526 shares of Common Stock to six employees of the Company pursuant to the Companys Equity Incentive Plan at a price of $0.30 per share. On February 17, 2015, the Company issued an aggregate 11,021,170 shares of Common Stock to eighteen accredited investors and one non-accredited investor for cash at a price of $0.325 per share in connection with the completion of a private placement offering. On February 28, 2015, the Company issued an aggregate of 56,166 shares of Common Stock to five employees of the Company pursuant to the Companys Equity Incentive Plan at a price of $0.30 per share. On February 28, 2015, the Company issued an aggregate of 24,404 shares of Common Stock to two former employees of the Company as severance pay at a price of $0.28 per share. On February 28, 2015, the Company issued an aggregate of 26,786 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.28 per share. On March 4, 2015, the Company retired 17 shares of Common Stock per a shareholders request. On March 31, 2015, the Company issued an aggregate of 55,000 shares of Common Stock to five directors of the Company pursuant to the Companys FY2015 Director Compensation Plan at a price of $0.25 per share. On March 31, 2015, the Company issued an aggregate of 54,282 shares of Common Stock to five employees of the Company pursuant to the Companys Equity Incentive Plan at a price of $0.30 per share. On March 31, 2015, the Company issued an aggregate of 30,000 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.25 per share. On April 9, 2015, the Company issued an aggregate of 999,667 shares of Common Stock to one accredited investor in connection with the cashless exercise of 1,000,000 warrants at an exercise price of $0.0001. On April 30, 2015, the Company issued an aggregate of 40,082 shares of Common Stock to six employees of the Company pursuant to the Companys Equity Incentive Plan at a price of $0.24 per share. On April 30, 2015, the Company issued an aggregate of 32,609 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.23 per share. On May 31, 2015, the Company issued an aggregate of 40,174 shares of Common Stock to six employees of the Company pursuant to the Companys Equity Incentive Plan at a price of $0.24 per share. On May 31, 2015, the Company issued an aggregate of 31,250 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.24 per share. On June 30, 2015, the Company issued an aggregate of 40,090 shares of Common Stock to six employees of the Company pursuant to the Companys Equity Incentive Plan at a price of $0.24 per share. On June 30, 2015, the Company issued an aggregate of 87,662 shares of Common Stock to six directors of the Company pursuant to the Companys FY2015 Director Compensation Plan at a price of $0.18 per share. On June 30, 2015, the Company issued an aggregate of 39,474 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.19 per share. Summary: Share-Based Compensation As of June 30, 2015, the Company had 1,036,771 common shares reserved for future issuance under the Company's stock plans. Number of Common Shares Issued Value of Common Shares and Vested Options Common Shares for Cash, net 11,021,170 $ 3,547,048 Share-Based Compensation 722,487 $ 630,100 Warrants Exercised 999,667 $ - | Preferred Stock The Company's articles of incorporation authorize the Company to issue up to 40,000,000 shares of $0.0001 par value, preferred shares having preferences to be determined by the board of directors for dividends, and liquidation of the Company's assets. Of the 40,000,000 preferred shares the Company is authorized by its articles of incorporation to issue up to 3,000,000 Series AA preferred shares. As discussed in Note 10, the 2,342,750 shares of Series AA Preferred stock were converted to common stock on March 14, 2014. As of December 31, 2014, there are no shares of Series AA Preferred stock outstanding and no accrued dividends payable. As of December 31, 2013, the Company had 2,342,750 Series AA preferred shares issued and outstanding. Please see the description of the features and issuance of the Series AA preferred stock in Note 10. As of December 31, 2013, the accrued dividends payable on the Series AA preferred stock was approximately $30. Common Stock As of December 31, 2014, the Company has 58,033,560, shares of common stock outstanding. The Company's articles of incorporation authorize the Company to issue up to 300,000,000 shares of $0.0001 par value, common stock. The holders are entitled to one vote for each share on matters submitted to a vote to shareholders, and to share pro rata in all dividends payable on common stock after payment of dividends on any preferred shares having preference in payment of dividends. For the year ended December 31, 2014, the Company issued the following common stock: Number of Common Value Shares Issued Recorded Common Shares for Acquisition 204,750 $ 210,913 Share-Based Compensation 47,606 $ 2,046,074 Common Shares for Series AA Conversion 2,605,513 $ 1,171,375 Warrants and Options Exercised 6,340,775 $ 3,072,170 Cash received from shares issued through equity financing during the year ended December 31, 2014, was $3,072,170, net of $62,144 of stock issuance costs. Please refer to the information regarding warrant exercises in 2014 in Note 12 for further information related to this equity financing. For the year ended December 31, 2013, the Company issued the following common stock: Number of Common Value Shares Issued Recorded Common Shares for Acquisition 835,810 $ 1,118,173 Common Shares for Goods and Services 793,679 $ 553,360 Common Shares for Convertible Note 940,000 $ 470,000 Common Shares for Cash 9,357,578 $ 8,178,471 Warrants and Options Exercised 757,864 $ - Cash received from shares issued under private placements during the year ended December 31, 2013, was $8,178,471, net of $367,915 of stock issuance costs. We account for share based payments for goods and services to non-employees in accordance with ASC Subtopic 505-50 that requires that all such payments shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measured. In order to evaluate whether the fair value of consideration received or the fair value of equity instruments issued is more reliable, we calculate the fair value of each. Primarily we have had contractual obligations owed and goods and services related to working capital exchanged for units in our private placements at their issue price to the public. To determine the fair value of shares issued for acquisitions, we used the fair value determined by using the average closing price from the preceding five days up to the transaction closing date on the OTCQB Market. The common shares were issued pursuant to Section 4(2) and Rule 506 of Regulation D promulgated thereunder because such purchasers represented that they were "accredited investors" as such term is defined under the Securities Act and the sale did not involve any form of general solicitation or general advertising. The investors made investment representations that the shares were taken for investment purposes and not with a view to resale. The shares of common stock issued are restricted under Rule 144 promulgated under the Securities Act. Share-Based Compensation As of December 31, 2014 the Company had 1,584,928 common shares reserved for future issuance under the Company's stock plans (See Note 12). |
Options and Warrants
Options and Warrants | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 8 - Options and Warrants | The following are details related to options issued by the Company: Options for Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 11,096,428 $ 0.72 Granted 548,157 0.27 Exercised - - Forfeited - - Cancelled - - Expired - - Outstanding as of June 30, 2015 (unaudited) 11,644,585 $ 0.69 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 the Black-Scholes 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 June 30, 2015, there was $88,150 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 2015. On April 8, 2015, the Board of Directors agreed to extend the expiration date on options granted to employees and directors that resign or are terminated from the Company without cause from 90 days to one year. All stock-based payment awards made to employees and directors are accounted for based on estimated fair values. The value assigned to the options that were modified through the Board resolution have an estimated value of $102,426, as determined by the Black-Scholes-Merton (BSM) option-pricing model. The following are details related to warrants issued by the Company: Warrants for Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 17,567,326 $ 0.93 Granted - - Exercised (1,000,000 ) 0.0001 Forfeited - - Cancelled - - Expired - - Outstanding as of June 30, 2015 (Unaudited) 16,567,326 $ 0.99 The Company recorded expense of $342,436 and $376,998 for options and warrants during the six months ended June 30, 2015 and June 30, 2014, respectively. | The following are details related to options issued by the Company: Weighted Options for Average Shares Exercise Price Outstanding as of December 31, 2012 6,837,606 $ 0.59 Granted 3,445,900 1.00 Exercised (150,000 ) 0.50 Forfeited - - Cancelled - - Expired - - Outstanding as of December 31, 2013 10,133,506 $ 0.74 Outstanding as of December 31, 2013 10,133,506 $ 0.74 Granted 1,209,172 0.66 Exercised (146,250 ) 0.77 Forfeited - - Cancelled (100,000 ) 2.45 Expired - - Outstanding as of December 31, 2014 11,096,428 $ 0.72 During 2014 and 2013, there were no forfeitures or expirations under our stock plans. The weighted-average grant-date fair value of options granted was $0.33 and $0.44 per option for the years ended December 31, 2014 and 2013, respectively. For the year ended December 31, 2014, the intrinsic value of options outstanding was $14,450 and of options exercisable was $10,025. 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. We use the Black-Scholes-Merton ("BSM") option-pricing model as our method of valuation. The fair value is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair value of share-based payment awards on the date of grant as determined by the BSM model is affected by our stock price as well as other assumptions. These assumptions include, but are not limited to: · Expected term is generally determined using weighted average of the contractual term and vesting period of the award; · Expected volatility of award grants made under the Company's plans is measured using the historical daily changes in the market price of similar industry indices selected by us as representative, which are publicly traded, over the expected term of the award, due to our limited trading history for awards granted through June 30, 2014. Thereafter, we began using our own trading history as we deemed there to be sufficient history at that point in time; * Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and, * Forfeitures are based on the history of cancellations of awards granted by the Company and management's analysis of potential forfeitures. The estimated value of employee stock options granted during the years ended December 31, 2014 and 2013 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2014 2013 Expected volatility % 40 % Risk-free interest rate % % Expected dividends 0.00 % 0.00 % Expected term in years 5 3 5 The following are details related to warrants issued by the Company: Weighted Warrants for Average Shares Exercise Price Outstanding as of December 31, 2012 12,307,558 0.86 Granted 8,187,817 1.31 Exercised (680,000 ) 0.03 Forfeited (284,934 ) 0.48 Cancelled - - Expired - - Outstanding as of December 31, 2013 19,530,441 1.08 Outstanding as of December 31, 2013 19,530,441 1.08 Granted 5,305,513 0.86 Exercised (6,268,628 ) 1.33 Forfeited - - Cancelled - - Expired (1,000,000 ) 1.00 Outstanding as of December 31, 2014 17,567,326 0.93 The weighted-average grant-date fair value of the 4,293,013 compensatory warrants granted for the year ended December 31, 2014, was $0.31 per warrant. The weighted-average grant-date fair value of the 1,439,560 compensatory warrants granted for the year ended December 31, 2013, was $0.37 per warrant. For the year ended December 31, 2014, the intrinsic value of warrants outstanding and exercisable was $0. All warrants exercised were for cash. The Company issued an aggregate of 6,268,628 shares of Common Stock, par value $0.0001 per share, upon the exercise of 6,268,628 warrants. The Company temporarily reduced the exercise price of all of its outstanding warrants to $0.50 per share for a period beginning on June 4, 2014, and ending on July 1, 2014 (the "Temporary Exercise Period"). During the Temporary Exercise Period, forty-six warrant holders exercised a total of 6,268,628 warrants and therefore purchased 6,268,628 shares of common stock in exchange for an aggregate purchase price of $3,134,314. The Company utilized the services of two FINRA registered placement agents during the Temporary Exercise Period. In connection with the warrant exercises, the Company paid an aggregate cash fee of approximately $62,144 to such placement agents. The net proceeds to the Company from the warrant exercises, after deducting the foregoing cash fee, were approximately $3,072,170. For the year ended December 31, 2014, the Company issued 4,293,013 compensatory warrants to purchase its common stock while recording expense for these warrants of $1,339,880 using the BSM option pricing model based upon: n Expected term is generally determined using the contractual term of the award; n Expected volatility of award grants made under the Company's plans is measured using the historical daily changes in the market price of similar industry indices selected by us as representative, which are publicly traded, over the expected term of the award, due to our limited trading history for awards granted through June 30, 2014. Thereafter, we began using our own trading history as we deemed there to be sufficient history at that point in time; n Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and, n Forfeitures are based on the history of cancellations of awards granted by the Company and management's analysis of potential forfeitures. Forfeitures are based on the history of cancellations of awards granted by the Company and management's analysis of potential forfeitures. The weighted-average estimated fair value of warrants granted as stock based compensation during the years ended December 31, 2014 and 2013 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2014 2013 Expected volatility % 40 % Risk-free interest rate % % Expected dividends 0.00 % 0.00 % Expected term in years 3 5 3 5 For the Year Ended December 31, 2014: Warrants and Options Outstanding Warrants and Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (years) Range of Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.000.50 7,612,550 5.78 $0.000.50 7,015,300 $ 0.42 $ 0.511.00 17,020,617 2.36 $0.511.00 14,859,777 $ 0.96 $ 1.011.50 4,030,587 0.44 $1.011.50 3,980,587 $ 1.35 28,663,754 25,855,664 For the Year Ended December 31, 2013: Warrants and Options Outstanding Warrants and Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (years) Range of Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.0001 1,000,000 1.4 $ 0.0001 1,000,000 0.0001 $ 0.50 6,410,800 8.1 $ 0.50 5,182,300 0.50 $ 1.00 15,036,830 4.2 $ 1.00 13,414,330 1.00 $ 1.25 2,912,716 2.2 $ 1.25 2,912,716 1.25 $ 1.50 4,203,601 4.7 $ 1.50 4,203,601 1.50 $ 2.45 100,000 8.5 $ 2.45 40,000 2.45 29,663,947 26,752,947 Third Amended and Restated 2007 Stock Incentive Plan The Company assumed the Third Amended and Restated 2007 Stock Incentive Plan (the "2007 Stock Plan") from Global Recycling Technologies, Ltd., a Delaware corporation ("Global Recycling"), upon the consummation of a reverse triangular merger between the Company, Global Recycling, and GRT Acquisition, Inc., a Nevada corporation, on November 28, 2011. There are an aggregate of 6,742,606 shares of our Common Stock reserved for issuance under options granted by the 2007 Stock Plan to employees, directors, proposed employees and directors, advisors, independent contractors (and their employees and agents), and other persons who provide valuable services to the Company (collectively, "Eligible Persons"). As of December 31, 2014, we have issued options to purchase an aggregate of 6,647,606 shares of our Common Stock originally reserved under the 2007 Stock Plan. There remain 95,000 shares of Common Stock available for issuance under this plan. Under the 2007 Stock Plan, Eligible Persons may be granted: (a) stock options ("Options"), which may be designated as Non-Qualified Stock Options ("NQSOs") or Incentive Stock Options ("ISOs"); (b) stock appreciation rights ("SARs"); (c) restricted stock awards ("Restricted Stock"); (d) performance share awards ("Performance Awards"); or (e) other forms of stock-based incentive awards. The 2007 Stock Plan will remain in full force and effect through May 30, 2017, unless earlier terminated by our Board of Directors. After the 2007 Stock Plan is terminated, no future awards may be granted under the 2007 Stock Plan, but awards previously granted will remain outstanding in accordance with their applicable terms and conditions. 2012 Equity Incentive Plan On February 23, 2012, subject to stockholder approval, the Company's Board of Directors approved the Company's 2012 Equity Incentive Plan (the "2012 Plan"). By written consent in lieu of a meeting, dated March 14, 2012, Stockholders of the Company owning an aggregate of 14,398,402 shares of Common Stock (representing approximately 66.1% of the then 23,551,991 outstanding shares of Common Stock) approved and adopted the 2012 Plan. Also by written consent in lieu of a meeting, dated July 27, 2012, Stockholders of the Company owning an aggregate of 12,676,202 shares of Common Stock (representing approximately 51.8% of the then 24,451,991 outstanding shares of Common Stock) approved an amendment to the 2012 Plan to increase the number of shares reserved for issuance under the 2012 Plan by 3,000,000 shares. There are an aggregate of 6,500,000 shares of our Common Stock reserved for issuance upon exercise of awards granted under the 2012 Plan to employees, directors, proposed employees and directors, advisors, independent contractors (and their employees and agents), and other persons who provide valuable services to the Company. As of December 31, 2014, we have issued options to purchase an aggregate of 5,010,072 shares of our Common Stock originally reserved under the 2012 Plan. There remain 1,489,928 shares of Common Stock available for issuance under this plan. The 2012 Plan includes a variety of forms of awards, including (a) ISOs (b) NQSOs (c) SARs (d) Restricted Stock, (e) Performance Awards, and (e) other forms of stock-based incentive awards to allow the Company to adapt its incentive compensation program to meet its needs. The 2012 Plan will terminate on February 23, 2022, unless sooner terminated by our Board of Directors. After the 2012 Plan is terminated, no future awards may be granted under the 2012 Plan, but awards previously granted will remain outstanding in accordance with their applicable terms and conditions and the 2012 Plan's terms and conditions. |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 9 - Related Party Transactions | Accounts Payable Related Party Chief Executive Officer The Chief Executive Officer is the sole owner of Rocco Advisors, which was paid for management consulting services provided to the Company. 2015 2014 Beginning Balance as of January 1, $ - $ - Monies owed 37,500 - Monies paid (30,000) - Ending Balance as of June 30, $ 7,500 $ - Chief Technical Officer The Chief Technical Officer is the sole owner of WEBA Technologies, which was paid for products sold to GlyEco, primarily consisting of additive packages for antifreeze. The Company also incurred expenses for consulting services provided by the Chief Technical Officer in the ordinary course of business, totaling $75,000 during the six months ended June 30, 2015. These transactions are summarized below. 2015 2014 Beginning Balance as of January 1, $ 15,050 $ - Monies owed 224,658 - Monies paid (205,217) - Ending Balance as of June 30, $ 34,491 $ - Former Chief Executive Officer / Director The former Chief Executive Officer is the sole owner of Barcid Investment Group, which was owed $62,500 as of December 31, 2014, for management and consulting services provided to the Company. The former Chief Executive Officer is the sole owner of Picard Investment Group, which is paid for advisory consulting services provided to the Company. 2015 2014 Beginning Balance as of January 1, $ 62,500 $ 114,434 Monies owed 9,000 7,679 Monies paid (69,000) (22,113) Ending Balance as of June 30, $ 2,500 $ 100,000 | Accounts Payable Related Party Chief Executive Officer The Chief Executive Officer is the sole owner of a corporation, Barcid Investment Group, which was owed $114,434 as of December 31, 2013 for management consulting services provided to the Company. The accounts payable related party in the amount of $62,500 was owed to the former Chief Executive Officer as of December 31, 2014 and is comprised of a deferred compensation obligation, which was paid in full subsequent to December 31, 2014. Chief Technical Officer The Chief Technical Officer is the sole owner of WEBA Technologies, which was paid for products sold to GlyEco, primarily consisting of additive packages for antifreeze. 2014 2013 Beginning balance as of December 31, 2013 $ - $ - Monies owed 218,195 - Monies paid (203,145 ) - Ending balance as of December 31, 2014 $ 15,050 $ - This liability is included in accounts payable as of December 31, 2014. In addition to the above amounts, the Company incurred expenses for consulting services provided by the Chief Technical Officer in the ordinary course of business, totaling $119,668 and $0 during 2014 and 2013, respectively. Chief Business Development Officer The Chief Business Development Officer is the sole owner of two corporations, CyberSecurity, Inc. and Market Tactics, Inc., which were owed $16,058 for marketing consulting services provided to the Company as of December 31, 2013. The Company incurred expenses totaling $145,011 during 2013 for marketing consulting services. In 2014, the Company incurred expenses for consulting services provided by the Chief Business Development Officer totaling $84,500 to the Company in the ordinary course of business through Market Tactics, Inc. Chief Financial Officer The Chief Financial Officer was owed $16,138 for reimbursable business expenses charged on a personal credit card as of December 31, 2013. Former 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. As described in Note 6, Full Circle is paid pursuant to lease and services agreements. NY Terminals is paid pursuant to a ground lease agreement. The former Director, Full Circle and NY Terminals were owed $426,052 as of December 31, 2013. By the fourth quarter of 2014, the former Director ceased to be a related party upon his resignation from the Board on August 22, 2014. During the year ended December 31, 2013, and the nine months ended September 30, 2014, the Company incurred expenses from the Former Director, Full Circle and NY Terminals totaling $2,832,046 and $1,687,706, respectively. General Manager The General Manager of Acquisition Sub #3 is co-owner of MMT Technologies and was owed $10,000 as of December 31, 2013 in rent pursuant to a lease agreement for the building and land occupied by Acquisition Sub #3. In 2014, the outstanding balance was paid and the lease was transferred to a banking institution. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 10 - Commitments and Contingencies | The Company may be party to legal proceedings in the ordinary course of business. The Company believes, excluding the matters below, that the nature of these proceedings (collection actions, etc.) are typical for a Company of our size and scope of operations. Currently, there is one pending legal proceeding involving the Company. On April 28, 2015, the Passaic Valley Sewerage Commission (the PVSC) filed a civil action against Acquisition Sub #4 in the Superior Court of New Jersey Chancery Division located in Essex County. The civil action relates to two alleged exceedances of the limits in the wastewater permit held by Acquisition Corp. #4. The Company estimates the range of the potential loss involved in this dispute is from $5,000 to $15,000. The Company is also aware of two matters that involve alleged claims against the Company, and it is at least reasonably possible that the claims will be pursued. Both of these claims are related to our New Jersey processing facility. The smaller of the claims is related to construction management services provided for the ongoing improvements to the facility. The entity has billed the Company for amounts above their contract amount for services that the Company believes were, to some extent, either already paid for, or overbilled. The estimated range involved in this dispute is from $0 to $175,000. The second matter involves our contracts with our former director and his related entities that provide services, and is the landlord, for the processing facility. In this matter, the landlord of the Companys leased property claims back rent is due for property used by the Company outside of the scope of its lease agreement. The estimated range involved in this dispute is from $0 to $750,000. Management believes both of these claims are meritless, and the Company will defend itself to the extent it is economically justified. During the fiscal quarter ended March 31, 2015, the landlord denied the Company access to the facility and prepared an eviction notice. The Company negotiated a payment in the amount of $250,000 to regain access to the New Jersey facility, and reached an accord to negotiate with the landlord to resolve the outstanding issues by May 31, 2015. Although the May 31 st 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 managements opinion that the Company is not currently exposed to significant environmental remediation liabilities or asset retirement obligations. 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. The Company accrues for potential environmental liabilities in a manner consistent with accounting principles generally accepted in the United States; that is, when it is probable a liability has been incurred and the amount of the liability is reasonably estimable. The Company reviews the status of its environmental sites on a yearly basis and adjusts its reserves accordingly. Such potential liabilities accrued by the Company do not take into consideration possible recoveries of future insurance proceeds. The Company maintains insurance coverage for unintentional acts that result in environmental remediation liabilities up to $1 million per occurrence; $2 million aggregate, with an umbrella liability policy that doubles the coverage. They do, however, take into account the likely share other parties will bear at remediation sites. It would be difficult to estimate the Companys ultimate level of liability due to the number of other parties that may be involved, the complexity of determining the relative liability among those parties, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, the uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective actions at the sites, and the often quite lengthy periods over which eventual remediation may occur. Nevertheless, the Company does not currently believe that any claims, penalties or costs in connection with known environmental matters will have a material adverse effect on the Companys financial position, results of operations or cash flows. The Company is aware of one environmental remediation issue related to our leased property in New Jersey, which is currently subject to a remediation stemming from the sale of property by the previous owner in 2008 to the current landlord. To managements knowledge, the landlord has engaged a licensed site remediation professional and has assumed responsibility for this remediation. In managements opinion the liability for this remediation is the responsibility of the landlord. However, the landlord has disputed this position and it is an open issue subject to negotiation and the ultimate transfer of the New Jersey business. Currently, we have no knowledge as to the scope of the landlords remediation obligation. The Company acknowledges that there will need to be an asset retirement obligation recorded for environmental matters that are expected to be addressed at the eventual asset retirement of our facility in New Jersey. Currently, the landlord of the property maintains a letter of credit, in the approximate amount of $400,000, to the benefit of the state of New Jersey to support such asset retirement expenditures. The transfer of the business operations to GlyEco, which began with the transfer of the Class D permit in August 2014, is still in process. Upon completion of the transfer, we anticipate that the Company will record an asset retirement obligation of approximately $400,000. We will need to post the $400,000 letter of credit with the New Jersey Department of Environmental Protection to ensure the funds are available if the facility is closed. The resultant $400,000 asset retirement obligation will be expensed over the anticipated operating life of the project, which is estimated to be approximately 25 years. | Rental Agreements During the years ended December 31, 2014 and 2013, the Company rented office and warehouse space on a monthly basis under a written rental agreements. The terms of these agreements range from several months to five years. For the years ended December 31, 2014 and 2013, rent expense was $694,899 and $516,952, respectively. Future minimum lease payments due are as follows: Year Ended December 31, 2015 $ 645,687 2016 650,652 2017 564,251 2018 80,651 Total minimum lease payments $ 1,941,241 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 our size and scope of operations. Currently, there are no pending legal proceedings. However, the Company is aware of two matters that involve alleged claims against the Company, and it is at least reasonably possible that the claims will be pursued. Both of these claims are related to our New Jersey processing facility. The smaller of the claims is related to construction management services provided for the ongoing improvements to the facility. The entity has billed for amounts above their contract amount for services that the Company believes were, to some extent, either already paid for, or overbilled. The estimated range involved in this dispute is from $0 to $175,000. The second matter involves our contracts with our former director and his related entities that provide services, and is the landlord, for the processing facility. In this matter, the landlord of the Company's leased property claims back rent is due for property used by the Company outside of the scope of its lease agreement. The estimated range involved in this dispute is from $0 to $750,000. Management believes both of these claims are meritless, and the Company will defend itself to the extent it is economically justified. Subsequent to December 31, 2014, the landlord denied the Company access to the facility and prepared an eviction notice. The Company negotiated a payment in the amount of $250,000 to regain access to the facility, and reached an accord to negotiate with the landlord to resolve the outstanding issues by May 31, 2015. As of December 31, 2014, the Company has recorded an accrual in the amount of $525,000 to reflect the $250,000 payment, as well as to provide for potential costs to litigate these matters. 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 December 31, 2014 and 2013. 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. The Company accrues for potential environmental liabilities in a manner consistent with accounting principles generally accepted in the United States; that is, when it is probable a liability has been incurred and the amount of the liability is reasonably estimable. The Company reviews the status of its environmental sites on a yearly basis and adjusts its reserves accordingly. Such potential liabilities accrued by the Company do not take into consideration possible recoveries of future insurance proceeds. The Company maintains insurance coverage for unintentional acts that result in environmental remediation liabilities up to $1 million per occurrence; $2 million aggregate, with an umbrella liability policy that doubles the coverage. They do, however, take into account the likely share other parties will bear at remediation sites. It is difficult to estimate the Company's ultimate level of liability at many remediation sites due to the number of other parties that may be involved, the complexity of determining the relative liability among those parties, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, the uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective actions at the sites, and the often quite lengthy periods over which eventual remediation may occur. Nevertheless, the Company does not currently believe that any claims, penalties or costs in connection with known environmental matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. The Company is aware of one environmental remediation issue related to our leased property in New Jersey, which is currently subject to a remediation stemming from the sale of property by the previous owner in 2008 to the current landlord. To Management's knowledge, the landlord has engaged a licensed site remediation professional and had assumed responsibility for this remediation. In Management's opinion the liability for this remediation is the responsibility of the landlord. However, the landlord has disputed this position and it is an open issue subject to negotiation and the ultimate transfer of the New Jersey business. Currently, we have no knowledge as to the scope of the landlord's remediation obligation. The Company acknowledges that there will need to be recorded an asset retirement obligation for environmental matters that are expected to be addressed at the eventual asset retirement of our facility in New Jersey. Currently, the landlord of the property maintains a letter of credit, in the approximate amount of $400,000, to the benefit of the state of New Jersey to support such asset retirement expenditures. The transfer of the business operations to GlyEco, which began with the transfer of the Class D permit in August 2014, is still in process. Upon completion of the transfer, we anticipate that the Company will record an asset retirement obligation of approximately $400,000. We will need to post the $400,000 letter of credit with the New Jersey Department of Environmental Protection to ensure the funds are available if the facility is closed. The resultant $400,000 asset retirement obligation will be expensed over the anticipated operating life of the project, which is estimated to be approximately 25 years. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
NOTE 11 - Accounts Receivable | As of December 31, 2014 and 2013, the Company's net accounts receivable were $786,056 and $898,934, respectively. The following table summarizes activity for the allowance for doubtful accounts for the years ended December 31, 2014 and 2013: 2014 2013 Beginning balance as of January 1, $ 47,927 $ 4,892 Bad debt expense 64,226 44,198 Charge offs, net (49,904 ) (1,163 ) Ending balance as of December 31, $ 62,249 $ 47,927 |
Acquisitions, Goodwill and Inta
Acquisitions, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
NOTE 12 - Acquisitions, Goodwill and Intangible Assets | We account for an acquisition of a business, as defined in ASC Topic 805, as required by an analysis of the inputs, processes and outputs associated with the transactions. Intangible assets that we acquire are recognized separately if they arise from contractual or other legal rights or if they are separable and are recorded at fair value less accumulated amortization. We analyze intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. We review the amortization method and period at least at each balance sheet date. The effects of any revision are recorded to operations when the change arises. We recognize impairment when the estimated undiscounted cash flow generated by those assets is less than the carrying amounts of such assets. The amount of impairment is the excess of the carrying amount over the fair value of such assets. Goodwill is recorded as the excess of (i) the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquired over the (ii) fair value of the net identifiable assets acquired. We do not amortize goodwill; however, we annually, or whenever there is an indication that goodwill may be impaired, evaluate qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company measures the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future net cash flows be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the assets exceeds fair value. Any future increases in fair value would not result in an adjustment to the impairment loss that may be recorded in our consolidated financial statements. Our test of goodwill impairment includes assessing qualitative factors and the use of judgment in evaluating economic conditions, industry and market conditions, cost factors, and entity-specific events, as well as overall financial performance. Based on our analysis, no impairment loss was recorded in 2014 and 2013 as the carrying amount of the reporting unit's assets did not exceed the estimated fair value determined. Acquisition of Evergreen Recycling, Inc. Effective January 1, 2013, the Company acquired Evergreen Recycling Co., Inc., an Indiana corporation ("Evergreen"), pursuant to an Asset Purchase Agreement, dated December 31, 2012 (the "Evergreen Agreement"), by and among the Company, Evergreen, Mr. Thomas Shiveley, the selling principal of Evergreen (the "Evergreen Selling Principal"), and GlyEco Acquisition Corp. #2, an Arizona corporation and wholly owned subsidiary of the Company ("Acquisition Sub #2"). Evergreen operated a business located in Indianapolis, Indiana, relating to processing recyclable glycol streams, primarily used antifreeze, and selling glycol as remanufactured product. Pursuant to the Evergreen Agreement, the Company (through Acquisition Sub #2) acquired the business and all of the glycol-related assets of Evergreen, free and clear of any liabilities or encumbrances, consisting of Evergreen's personal property (equipment, tools, machinery, furniture, supplies, materials, and other tangible personal property), inventory, intangible property, contractual rights, books and records, intellectual property, accounts receivable (excluding trade accounts receivable equal to or greater than 90 days), goodwill, and miscellaneous assets, in exchange for a $59,304 cash payment, 377,372 unregistered shares of the Company's common stock, valued at the then current fair market value of $1.57, determined by using the average closing price from the preceding five days up to the transaction closing date, and assumption of Evergreen's current payables totaling $10,010. Transaction with Full Circle Manufacturing Group, Inc. New Jersey Processing Center On December 10, 2012, we entered into the following agreements allowing us to rent real property, and equipment and receive manufacturing, distribution and consulting services with the entities and sole owner, who is a former member of our Board of Directors, as more fully described below. Effective January 1, 2013, and beginning on February 1, 2013, GlyEco Acquisition Corp. #4, an Arizona corporation and wholly owned subsidiary of the Company ("Acquisition Sub #4") commenced an operating Lease Agreement with NY Terminals II, LLC, a New Jersey limited liability company ("NY Terminals") and related party, whereby Acquisition Sub #4 agreed to lease certain real property owned by NY Terminals for a five-year term at a monthly rate of $30,000. Effective January 1, 2013, and beginning on February 1, 2013, as a part of the same transaction, Acquisition Sub #4 commenced a capital Equipment Lease Agreement with Full Circle Manufacturing Group, Inc., a New Jersey corporation ("Full Circle"), whereby it agreed to lease Full Circle's equipment for $32,900 a month for a term of five years (refer to Note 8). The Company also commenced a Consulting Agreement with Joseph A. Ioia, the sole shareholder of Full Circle and sole member of NY Terminals ("Mr. Ioia"), in which the Company engaged Mr. Ioia, and agreed to compensate Mr. Ioia, to serve as a consultant for the Company. Effective December 10, 2012, we executed a Manufacturing and Distribution Agreement (the "M&D Agreement") with Full Circle and a consulting agreement with Mr. Ioia, whereby Full Circle, under the supervision of Mr. Ioia, operates Full Circle to process recyclable glycol streams and sell glycol as remanufactured product at our direction. Under the M&D Agreement, Full Circle agreed to perform the manufacturing and distribution services relating to its glycol recycling business using the GlyEco Technology, to exclusively produce remanufactured glycol for the sole benefit of us and to use the Intellectual Property ("IP") sold to us by Mr. Ioia covering the worldwide right, title, and interest in Mr. Ioia's exclusive glycol remanufacturing process. We acquired the IP for consideration of $2,000,000 in cash and 3,000,000 unregistered shares of the Company's common stock valued at $0.50 per share in 2012. Mr. Ioia became a director of the Company on January 15, 2013, and resigned as a director on August 22, 2014. On September 11, 2014, the State of New Jersey Department of Environmental Protection transferred to Acquisition Sub #4 the permit for Class D Recyclable Materials from Full Circle. The permit allows Acquisition Sub #4 to recycle products containing waste glycols. The transfer of the Class D permit is one of the final steps towards completing the transition of business operations from Full Circle to Acquisition Sub #4. The remaining steps include the transfer of a letter of credit related to the Class D permit (discussed further in Note 14), and the cancellation of the M&D Agreement. The Company has yet to determine whether the purchase of the equipment under our capital Equipment Lease Agreement must be accomplished prior to the transfer of business operations. Discussions between Full Circle and the Company to finalize the transition are ongoing. Interim Management Agreement with MMT Technologies, Inc. Effective August 26, 2013, GlyEco Acquisition Corp. #3, an Arizona subsidiary and wholly owned corporation of the Company ("Acquisition Sub #3") entered into an Interim Management Agreement with MMT Technologies, Inc., a Florida corporation ("MMT Technologies"), and Otho N. Fletcher, Jr., principal of MMT Technologies (the "MMT Principal"), pursuant to which Acquisition Sub #3 assumed control of the operations of MMT Technologies' antifreeze recycling business in anticipation of the closing of the transaction contemplated by that certain Asset Purchase Agreement originally entered into on May 24, 2012, by and between the Company, Acquisition Sub #3, MMT Technologies, and the MMT Principal (the "MMT Agreement"). Pursuant to the Interim Management Agreement, the Company (through Acquisition Sub #3) purchased two vehicles and assumed control of MMT Technologies' business and all of the assets to be assigned to Acquisition Sub #3 pursuant to the MMT Agreement in exchange for $50,000 in cash, which will be deducted from the aggregate purchase price outlined in the MMT Agreement. On March 21, 2014, the Company completed the MMT Acquisition, by acquiring all business and all assets in exchange for 204,750 shares of restricted common stock, par value $0.0001, of the Company valued at a current fair market value of $1.03 per share determined by using the average closing price from the preceding five days up to the transaction closing date. Merger of GSS Automotive Recycling, Inc. with and into GlyEco Acquisition Corp. #7 Effective September 30, 2013, GSS Automotive Recycling, Inc., a Maryland corporation ("GSS Automotive Recycling"), merged with and into GlyEco Acquisition Corp. #7, an Arizona corporation and wholly owned subsidiary of the Company ("Acquisition Sub #7"), with Acquisition Sub #7 continuing as the surviving corporation and a wholly-owned subsidiary of the Company, pursuant to an Agreement and Plan of Merger, dated September 27, 2013 (the "GSS Agreement"), by and among the Company, Acquisition Sub #7, GSS Automotive Recycling, Joseph Getz, an individual ("Getz"), and John Stein, an individual ("Stein" and collectively with Getz, the "GSS Shareholders"). Pursuant to the GSS Agreement, the Company (through Acquisition Sub #7) purchased all of the issued and outstanding shares of GSS Automotive Recycling's common stock from the GSS Shareholders in exchange for $430,000 in cash and 455,000 unregistered shares of the Company's Common Stock, valued at the then current fair market value of $1.12 per share determined by using the average closing price from the preceding five days up to the transaction closing date. As a result of the merger, Acquisition Sub #7 has assumed operations and all of the assets of GSS Automotive Recycling's business located in Landover, Maryland, relating to processing recyclable glycol streams, primarily used as antifreeze, and reselling glycol as remanufactured product. The acquisition of GSS includes a contingent consideration arrangement that requires the provision of $1.00 credit to the GSS Shareholders towards the purchase of additional shares of the Company for each additional $1.00 of Gross Profits (as defined in the GSS Agreement) that Acquisition Sub #7 earns in excess of $72,000 through December 31, 2014. The range of the undiscounted amounts the Company could owe under this arrangement is estimated to be between $0 and $38,000. The fair value of the contingent consideration on the acquisition date of approximately $0 was estimated based on the present value of projected payments, which were based on projected gross profit through 2014. These calculations and projections are based on significant inputs not observable in the market, which ASC 820 refers to as Level 3 inputs. Key assumptions include a discount rate of 25 percent as well as an increasing level of revenues and expenses based on probability factors at the acquisition date. At December 31, 2014, the Company evaluated the cash flow projections included in the contingent consideration and determined that there was no change in the fair value of the contingent consideration. During 2013, the Company completed the Evergreen, Full Circle, MMT Technologies and GSS Automotive Recycling transactions (the "Transactions") in order to expand our market within North America, obtain synergies and cost efficiencies among the Transactions and GlyEco, and where economically feasible, add our technological advances to already operating facilities. As a result of the Transactions, we expect to reduce costs through economies of scale. The goodwill of $619,819 arising from the Transactions during 2013 consists largely of the synergies and economies of scale expected from combining the operations and expanding our market. The Company recognized additional goodwill of $55,992 in 2014 when it completed the acquisition of MMT Technologies. The following table summarizes the aggregate consideration paid during 2014 and 2013 for the Transactions and resolution of previous contingent consideration, and the amounts of the assets acquired and liabilities assumed at the effective acquisition date: Consideration: Cash $ 539,304 Equity instruments (1,040,560 common shares of the Company) issued 1,329,086 Assets acquired under capital lease 1,714,974 Fair value of total consideration transferred $ 3,583,364 Recognized amounts of identifiable assets acquired and liabilities assumed: Financial assets (primarily accounts receivable) $ 92,320 Inventory 24,234 Property, plant, and equipment 2,532,442 Identifiable intangible assets 356,500 Financial liabilities (97,943 ) Total identifiable net assets 2,907,553 Goodwill 675,811 $ 3,583,364 During 2013, the Company had placed in escrow 200,000 shares to be released to the former owners upon the passage of one year as long as no undisclosed contingencies arise as more fully described in the documents. The 200,000 shares were released from escrow in October 2014. The amounts of the Transactions' revenue and earnings included in the Company's consolidated statement of operations for the year ended December 31, 2013, and the revenue and earnings of the combined entity had the acquisition date been done on January 1, 2013, are: Revenue Earnings (Loss) Actual from date of Transaction through 12/31/2013 $ 3,057,071 $ 569,697 Pro forma (unaudited) supplemental information as if the Transactions had occurred at the beginning of the period is approximately as shown below: Supplemental (unaudited) pro forma for 1/1/2013 - 12/31/2013 $ 6,420,000 $ (3,420,000 ) The 2013 supplemental (unaudited) pro forma earnings were adjusted to exclude approximately $35,000, of acquisition-related costs incurred in 2013. The components of intangible assets are as follows: Gross Balance at Gross Balance at Net Balance at Estimated December 31, Current Year December 31, Accumulated December 31, Useful Life 2013 Additions 2014 Amortization 2014 Finite live intangible assets: Customer list and tradename 5 years $ 24,500 $ - $ 24,500 $ 7,239 $ 17,261 Non-compete agreements 5 years 332,000 - 332,000 107,900 224,100 Intellectual property 25 years 3,500,000 - 3,500,000 280,000 3,220,000 Total intangible assets $ 3,856,500 $ - $ 3,856,500 $ 395,139 $ 3,461,361 Goodwill Indefinite $ 779,303 $ 55,992 $ 835,295 $ - $ 835,295 We compute amortization using the straight-line method over the estimated useful lives of the intangible assets. The Company has no indefinite-lived intangible assets other than goodwill. The tax deductibility of goodwill has yet to be determined, but the Company believes it will be able to deduct goodwill amortization for tax purposes. Aggregate amortization expense included in general and administrative expenses for the years ended December 31, 2014 and 2013, totaled $211,829 and $183,310, respectively. The following table represents the total estimated amortization of intangible assets for the five succeeding years and thereafter: For the Year Ending December 31, Estimated Amortization Expense 2015 $ 211,829 2016 211,829 2017 211,829 2018 165,874 2019 140,000 Thereafter 2,520,000 $ 3,461,361 |
Capital Leases
Capital Leases | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
NOTE 13 - Capital Leases | Acquisition Sub #4 entered into a capital Equipment Lease Agreement with Full Circle, a former related party, as its sole owner was on our Board of Directors until August 22, 2014, whereby it agreed to lease Full Circle's equipment for $32,900 a month for a term of five years with an option to purchase the equipment at the end of the lease for $200,000. The net present value of the equipment is estimated at $1,714,974 based on a 9% discount rate. The lease is amortized over the five-year term at a rate of 9%. The equipment acquired included a distillation column and infrastructure, tanks and related equipment, filtration equipment, and vehicles. Depreciation on the cost of its equipment is calculated using the straight-line method over an estimated useful life, ranging from five to twenty-five years, and zero salvage value. On May 22, 2014, the Company entered into a capital equipment lease agreement with Balboa Capital, whereby it agreed to lease carbon vessels for $1,030 a month for a term of two years with an option to purchase the equipment at the end of the lease for $1. The net present value of the equipment is estimated at $22,154 based on a discount rate of 11%. The lease is amortized over the two-year term at the rate of 11%. Depreciation on the cost of its equipment is calculated using the straight-line method over an estimated useful life of ten years, and zero salvage value. On August 26, 2014, the Company entered into a capital lease agreement with De Lage Laden, whereby it agreed to lease a forklift for $347 a month for a term of five years with an option to purchase the equipment at the end of the lease for $1. The net present value of the equipment is estimated at $25,200 based on a discount rate of 4%. The lease is amortized over the five-year term at the rate of 4%. Depreciation on the cost of its equipment is calculated using the straight-line method over an estimated useful life of fifteen years, and zero salvage value. At December 31, 2014, the value of the assets under the capital leases was $1,604,915, net. The depreciation expense for the year ended December 31, 2014 was $79,540. Future minimum lease payments are due as follow: Year Ended December 31, Principal Interest Total 2015 $ 326,656 $ 84,674 $ 411,330 2016 351,048 54,101 405,149 2017 377,238 21,729 398,967 2018 165,738 430 166,168 2019 2,398 32 2,430 Total minimum lease payments $ 1,223,078 $ 160,966 $ 1,384,044 |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
NOTE 14 - Note Payable | On May 3, 2013, Acquisition Sub #1 entered into a secured promissory note with Security State Bank of Marine in Minnesota (the "Note Payable"). The key terms of the Note Payable include: (i) a principal value of $20,000, (ii) an interest rate of 6.0%, and (iii) a term of three years with a maturity date of May 2, 2016. The Note Payable is collateralized by a vehicle. On May 30, 2014, Acquisition Sub #4 entered into a promissory note with Rose Manzo, a private individual (the "Manzo Note"). The key terms of the Manzo Note include: (i) a principal value of $115,000, (ii) an interest rate of 12.0%, and (iii) principal balance to be paid upon the raising of additional necessary capital. Future minimum note payments due are as follows: Year Ended December 31, 2015 $ 121,905 2016 2,971 Total minimum note payments $ 124,876 |
Convertible Note Payable
Convertible Note Payable | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
NOTE 15 - Convertible Note Payable | On August 9, 2008, Global Recycling issued a convertible promissory note to Leonid Frenkel, a principal stockholder, registered in the name of "IRA FBO Leonid Frenkel," for $1,000,000 and bearing interest at 10.0% per annum (the "Frenkel Convertible Note"). Interest payments were due semi-annually in cash or shares of Global Recycling common stock. The Frenkel Convertible Note was convertible into 575,350 shares, at any time prior to maturity, at the option of the holder, into Global Recycling common stock at a conversion price of $2.50 per share. The Frenkel Convertible Note was secured by a lien on Global Recycling's provisional patent application, including the GlyEco TechnologyTM Patent. The holder was also granted 480,000 warrants at $0.025 per share at the time the Frenkel Convertible Note was issued. The warrants expired on September 8, 2013. On April 3, 2012, the Company executed a Note Conversion Agreement (the "Conversion Agreement") with Mr. Frenkel. The terms of the Conversion Agreement extended the maturity date for the convertible note (the "Frenkel Convertible Note") to December 31, 2013, with interest accrued at a rate of 12.5% compounding semi-annually, and waived any and all claims of demand arising from or related to a default on the Frenkel Convertible Note prior to the Conversion Agreement. The Conversion Agreement further stated that Mr. Frenkel would convert all money owed into a combination of common and Series AA preferred stock on the date that the Company had received an aggregate of $5,000,000 in equity investment following the date of the Conversion Agreement and warrants. Of the debt converted, $470,000 would be converted into common stock at $1.00 per share or the price offered to any investor subsequent to the Conversion Agreement, if lower. The remainder would be converted into Series AA preferred stock at $1.00 per share or the price offered to any investor subsequent to the Conversion Agreement, if lower. The Series AA preferred stock shall in all respects be the same as common stock, except for the following features: (i) the Series AA preferred stock shall accrue a dividend of 12.5% per year, compounded semi-annually; (ii) the Series AA preferred stock shall have priority in payment upon liquidation over common stock to the extent of the $1,171,375 and all accrued but unpaid dividends; (iii) the Series AA preferred stock shall automatically convert into common stock at the rate of one share of common stock for each $1 of the Series AA preferred stock plus accrued but unpaid dividends if the closing price on the common stock on the OTC/BB is $5.00 per share for 20 consecutive trading days, or if the stock is listed on NYSE or NASDAQ; (iv) the original issue price of $1,171,375 plus all accrued but unpaid dividends shall be due and payable on December 31, 2013 if the Series AA preferred stock is not converted to common stock under the terms herein by such date; and (v) the Series AA preferred stock shall provide that the holder may not voluntarily convert into common stock to the extent that the holder will beneficially own in excess of 9.99% of the then issued and outstanding common stock of the Company. As of February 15, 2013 the amount outstanding under the convertible note, including principal and interest, totaled $1,641,375. On February 15, 2013, the Company satisfied the terms of the Conversion Agreement, upon receiving an aggregate of $5,000,000 in equity investment. At this time, the Company issued to Mr. Frenkel 940,000 shares of common stock at a price of $0.50 per share, 2,342,750 shares of Series AA preferred stock at a price of $0.50 per share, and 940,000 warrants to purchase shares of Common Stock at a price of $1.00 per share. The estimated value of the warrants totaling $392,170 were expensed under interest expense during 2013. Interest expense of $24,913 was recorded during 2013 for the period from January 1, 2013 through the date the notes payable were converted to the common and Series AA preferred stock. Upon conversion of the Series AA preferred stock to Common Stock, the Company will issue warrants at a price of $1.00 per share for each share of the Series AA preferred stock that is converted. The Series AA preferred stock is shown on the balance sheet as mandatorily redeemable Series AA convertible preferred stock as of December 31, 2013. On December 31, 2013, the Company and Mr. Frenkel entered into an Amendment No. 1 to the Conversion Agreement, pursuant to which the redemption date of the Series AA preferred stock was extended to January 31, 2014. On January 31, 2014, the Company and Mr. Frenkel entered into an Amendment No. 2 to the Conversion Agreement, pursuant to which the redemption date of the Series AA preferred stock was further extended to March 15, 2014. On March 14, 2014, Mr. Frenkel redeemed the Series AA Preferred Stock under the Conversion Agreement into 2,342,750 shares of Common Stock at a conversion rate of one share of Common Stock for each one share of Series AA Preferred Stock redeemed. As an inducement to convert the Series AA Preferred Stock into Common Shares, an additional 262,763 shares of Common Stock were issued upon conversion. Further, 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 redemption. Therefore, 2,605,513 warrants at an exercise price of $1.00 were issued in connection with the redemption of the Series AA Preferred Stock for Common Stock. The redemption price per share of Series AA Preferred Stock was $1.46 per share, or $3,414,785 in total, which included a redemption premium of $0.85 per share, or $1,975,392 in total; and, an inducement premium of $0.11 per share, or $268,018 in total. The redemption premium included the fair value of the warrants issued of $757,162 and the excess of the fair value of common shares over the book value of the Series AA Preferred Stock of $1,218,230. The total redemption and inducement premium of $2,243,410 is deducted from net earnings to arrive at net earnings applicable to common shareholders in the accompanying consolidated Statements of Operations earnings per share calculation. The warrants issued to Mr. Frenkel in connection with the satisfaction of the Conversation Agreement have an exercise price of $1.00 and are exercisable at any time until the third anniversary of the date of issuance, which is March 14, 2017. The warrants may only be exercised upon the payment of cash to the Company. In the event the Company's common stock trades at an average of at least $3.00 per share for a period of not less than twenty consecutive trading days and the warrants have been registered under an effective Registration Statement, Mr. Frenkel shall be required to fully exercise the warrants within ten business days following the twentieth trading day. The exercise price of the warrants may be adjusted upon any increase or decrease in the number of issued shares of our common stock resulting from any stock split, reverse stock split, split-up, combination or exchange of shares, consolidation, spin-off, reorganization, or recapitalization of shares. The fair value of the warrants was determined using the Black-Scholes Model with inputs from the time when the Conversion Agreement terms were met. The resulting value was approximately $0.29 per warrant. The warrants were expensed pursuant to the provisions of ASC 470 for a debt extinguishment wherein the fair value of the equity securities issued are considered a component of the reacquisition price of the debt. The warrants issued were fully vested and exercisable on the date of grant. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
NOTE 16 - Concentration of Credit Risk | Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties failed completely to perform as contracted. Concentrations of credit risk that arise from financial instruments exist for groups of customers when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions described below. · Cash and cash equivalents Financial instruments that subject the Company to credit risk are cash balances maintained in excess of federal depository insurance limits. At December 31, 2014, the Company had $0 in cash which was not guaranteed by the Federal Deposit Insurance Corporation. At December 31, 2013, the Company had $3,828,685 in cash which was not guaranteed by the Federal Deposit Insurance Corporation. To date, the Company has not experienced any losses in such accounts and believes the exposure is minimal. · Major customers and accounts receivable Major customers represent any customer that accounts for more than 10% of revenues for the year. During 2014, the Company had one customer that accounted for 30% of revenues and whose accounts receivable balance (unsecured) accounted for approximately 19% of accounts receivable at December 31, 2014. During 2013, the Company had two customers that accounted for 23% and 29% of revenues and whose accounts receivable balance (unsecured) accounted for approximately 23% and 7% of accounts receivable at December 31, 2013. |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
NOTE 17 - Subsequent Events | Employment and Consulting Agreement with Alicia Williams Young On July 16, 2015, the Company entered into an Employment and Consulting Agreement (the Agreement) with the Companys Chief Financial Officer, Alicia Williams Young. Pursuant to the Agreement, Ms. Williams Young will serve full-time as the Companys Chief Financial Officer through August 15, 2015, during which time she will be responsible for the preparation and filing of the Companys Form 10-Q filing for the fiscal quarter ended June 30, 2015. For the remainder of August 2015, Ms. Williams Young will serve as a full-time consultant to the Company, and for the month of September 2015, she will work 30 hours per week. As a consultant, she will provide guidance regarding the Companys accounting and IT activities. The Agreement terminates on September 30, 2015. In consideration for her services, the Company will compensate Ms. Williams Young with monthly compensation of $10,000 per month through August 31, 2015, and $7,500 per month through September 30, 2015. During the month of September, any hours in excess of 30 hours per week will be billed at $250 per hour. Upon the successful completion of Ms. Williams Youngs engagement, she will be issued 30,000 shares of restricted stock valued as of the effective date of the agreement. Additionally, all of Ms. Williams Youngs vested stock options and warrants will remain exercisable for a term of one year following the termination of the agreement. The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement. A copy of the Agreement is filed as Exhibit 10.1 to the Current Report on Form 8-K filed by the Company on July 22, 2015. Departure of Director On August 4, 2015, John Lorenz tendered his resignation as a director of the Company, effective August 5, 2015. Mr. Lorenz's resignation was not the result of any disagreement with the Company on any matter relating to its operations, policies, or practices. | Private Placement Offering On February 17, 2015, the Company completed a private placement offering ("the Offering") of units of the Company's securities (the "Units") at a price of $0.325 per Unit, with each Unit consisting of one share of the Company's common stock, par value $0.0001 per share. In connection with the Offering, the Company entered into subscription agreements with eighteen (18) accredited investors and one (1) non-accredited investor (the "Investors"), pursuant to which the Company sold to the Investors, for an aggregate purchase price of $3,581,880, a total of 11,021,170 Units, consisting of 11,021,170 shares of common stock. The Company utilized the services of a FINRA registered placement agent (the "Placement Agent") for the Offering. In connection with the Offering, the Company paid an aggregate cash fee of $34,827 to the Placement Agent and shall issue to the Placement Agent five-year stock options to purchase up to 107,160 shares of common stock at an exercise price of $0.325 per share. The net proceeds to the Company from the Offering, after deducting the foregoing cash fee and other expenses related to the Offering, are expected to be approximately $3,547,053. Recent Stock Issuances From January 1, 2015, to March 30, 2015, the Company issued an aggregate of 245,096 shares of common stock, of which 220,692 shares were issued pursuant to the Company's Equity Incentive Program, as described in a Form 8-K filed by the Company with the SEC on December 24, 2014, and 24,404 shares were issued as severance pay to two departing employees. All shares of common stock issued are restricted under Rule 144 promulgated under the Securities Act. |
Basis of Presentation and Sum24
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Basis Of Presentation And Summary Of Significant Accounting Policies 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 Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements for the year ended December 31, 2014. 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 our opinion, all normal recurring adjustments necessary to present fairly our financial position at June 30, 2015, and the results of our operations and cash flows for the periods presented. We derived the December 31, 2014, condensed consolidated balance sheet data from audited financial statements but did not include all disclosures required by GAAP. Interim results are subject to seasonal variations and the results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the full year. | The accompanying consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States ("GAAP"), and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). |
Consolidation | These condensed consolidated financial statements include the accounts of GlyEco, Inc., and its wholly-owned subsidiaries. All significant intercompany accounting transactions have been eliminated as a result of consolidation. The subsidiaries include: GlyEco Acquisition Corp #1 ("Acquisition Sub #1) located in Minneapolis, Minnesota; GlyEco Acquisition Corp #2 ("Acquisition Sub #2) located in Indianapolis, Indiana; GlyEco Acquisition Corp #3 ("Acquisition Sub #3) located in Lakeland, Florida; GlyEco Acquisition Corp #4 ("Acquisition Sub #4) located in Elizabeth, New Jersey; GlyEco Acquisition Corp #5 ("Acquisition Sub #5) located in Rock Hill, South Carolina; GlyEco Acquisition Corp #6 ("Acquisition Sub #6) located in Tea, South Dakota; and GlyEco Acquisition Corp. #7 (Acquisition Sub #7) located in Landover, Maryland. | These consolidated financial statements include the accounts of GlyEco, Inc., and its wholly-owned subsidiaries. All significant intercompany accounting transactions have been eliminated as a result of consolidation. The subsidiaries include: GlyEco Acquisition Corp #1 ("Acquisition Sub #1") located in Minneapolis, Minnesota; GlyEco Acquisition Corp #2 ("Acquisition Sub #2") located in Indianapolis, Indiana; GlyEco Acquisition Corp #3 ("Acquisition Sub #3") located in Lakeland, Florida; GlyEco Acquisition Corp #4 ("Acquisition Sub #4") located in Elizabeth, New Jersey; GlyEco Acquisition Corp #5 ("Acquisition Sub #5") located in Rock Hill, South Carolina; GlyEco Acquisition Corp #6 ("Acquisition Sub #6") located in Tea, South Dakota; and GlyEco Acquisition Corp. #7 ("Acquisition Sub #7") located in Landover, Maryland. |
Operating Segments | Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing the performance of the segment. Operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics, among other criteria. The Company operates as one segment. | Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing the performance of the segment. Operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics, among other criteria. The Company operates as one segment. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Because of the use of estimates inherent within the financial reporting process, actual results may differ significantly from those estimates. Significant estimates include, but are not limited to, items such as, the allowance for doubtful accounts, the carrying value of inventory, the value of stock-based compensation and warrants, the allocation of the purchase price in the various acquisitions, the realization of property, plant and equipment, goodwill, other intangibles and their estimated useful lives, contingent liabilities, and environmental and asset retirement obligations. Due to the uncertainties inherent in the formulation of accounting estimates, it is reasonable to expect that these estimates could be materially revised within the next year. | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Because of the use of estimates inherent within the financial reporting process, actual results may differ significantly from those estimates. Significant estimates include, but are not limited to, items such as, the allowance of doubtful accounts, the value of stock-based compensation and warrants, the allocation of the purchase price in the various acquisitions, the realization of property, plant and equipment, goodwill, other intangibles and their estimated useful lives, contingent liabilities, and environmental and asset retirement obligations. Due to the uncertainties inherent in the formulation of accounting estimates, it is reasonable to expect that these estimates could be materially revised within the next year. |
Cash and Cash Equivalents | All highly liquid investments with maturities of three months or less at the time of purchase are considered to be cash equivalents. | All highly liquid investments with maturities of three months or less at the time of purchase are considered to be cash equivalents. |
Revenue Recognition | The Company recognizes revenue when four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of products sold consists of direct and indirect costs of the purchased goods and labor related to the corresponding sales transaction. The Company recognizes revenue from services at the time the services are completed. Shipping costs passed to the customer are included in net sales. | The Company recognizes revenue when four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of products sold consists of direct and indirect costs of the purchased goods and labor related to the corresponding sales transaction. The Company recognizes revenue from services at the time the services are completed. Shipping costs passed to the customer are included in the net sales. |
Cost | Cost of goods sold includes all direct material and labor costs and those indirect costs of bringing raw materials to sale condition, including depreciation of equipment used in manufacturing and shipping and handling costs. Selling, general, and administrative costs are charged to operating expenses as incurred. Research and development costs are expensed as incurred and are included in operating expenses. Advertising costs are expensed as incurred. | Cost of goods sold includes all direct material and labor costs and those indirect costs of bringing raw materials to sale condition, including depreciation of equipment used in manufacturing and shipping and handling costs. Selling, general, and administrative costs are charged to operating expenses as incurred. Research and development costs are expensed as incurred and are included in operating expenses. Advertising costs are expensed as incurred. Total advertising costs for 2014 and 2013 were $21,569 and $85,528 respectively. |
Accounts Receivable | Accounts receivable are recognized and carried at the original invoice amount less an allowance for expected uncollectible amounts. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer's willingness or ability to pay, the Company's compliance with customer invoicing requirements, the effect of general economic conditions and the ongoing relationship with the customer. Accounts with outstanding balances longer than the payment terms are considered past due. We do not charge interest on past due balances. The Company writes off trade receivables when all reasonable collection efforts have been exhausted. Bad debt expense is reflected as a component of general and administrative expenses in the condensed consolidated statements of operations. | Accounts receivable are recognized and carried at the original invoice amount less an allowance for expected uncollectible amounts. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer's willingness or ability to pay, the Company's compliance with customer invoicing requirements, the effect of general economic conditions and the ongoing relationship with the customer. Accounts with outstanding balances longer than the payment terms are considered past due. We do not charge interest on past due balances. The Company writes off trade receivables when all reasonable collection efforts have been exhausted. Bad debt expense is reflected as a component of general and administrative expenses in the consolidated statements of operations. |
Inventory | Inventories are reported at the lower of cost or market. The cost of raw materials, including feedstocks and additives, is determined on an average unit cost of the units in a production lot. Work-in-process represents labor, material and overhead costs associated with the manufacturing costs at an average unit cost of the units in the production lot. The Company periodically reviews its inventories for obsolete or unsalable items and adjusts its carrying value to reflect estimated realizable values. | Inventories are reported at the lower of cost or market. The cost of raw materials, including feedstocks and additives, is determined on an average unit cost of the units in a production lot. Work-in-process represents labor, material and overhead costs associated with the manufacturing costs at an average unit cost of the units in the production lot. The Company periodically reviews its inventories for obsolete or unsalable items and adjusts its carrying value to reflect estimated realizable values. There was no inventory write-down during the years ended December 31, 2014 and 2013. |
Property, Plant and Equipment | Property, plant and equipment is stated at cost. The Company provides for depreciation on the cost of its equipment using the straight-line method over an estimated useful life, ranging from three to twenty-five years, and zero salvage value. Expenditures for repairs and maintenance are charged to expense as incurred. As of June 30, 2015, the Company had incurred and capitalized construction in process totaling $1,524,921. The upgrades relate to construction in process for our New Jersey processing center and are scheduled to be completed in 2015 and 2016, pending resolution of the landlord dispute discussed in Note 10, at which time depreciation is expected to commence. The estimated cost to be incurred in complete planned upgrades at the processing center is estimated to be approximately $400,000. For purposes of computing depreciation, the useful lives of property, plant and equipment are: Leasehold improvements 5 years Machinery and equipment 3-25 years | Property and equipment is stated at cost. The Company provides depreciation on the cost of its equipment using the straight-line method over an estimated useful life, ranging from three to twenty-five years, and zero salvage value. Expenditures for repairs and maintenance are charged to expense as incurred. The upgrades related to construction in process for our New Jersey processing center as of December 31, 2014 are scheduled to be completed in 2015, at which time depreciation is expected to commence. As of December 31, 2014, the Company incurred and capitalized construction in process totaling $1,440,690. The estimated cost to be incurred in 2015 to complete upgrades at the processing center is estimated to be approximately $2.5 million. Depreciation expense for the years ended December 31, 2014 and 2013, was $475,784 and 258,162, respectively. For purposes of computing depreciation, the useful lives of property and equipment are: Leasehold improvements 5 years Machinery and equipment 3-25 years |
Fair Value of Financial Instruments | The Company has adopted the framework for measuring fair value that establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs that may be used to measure fair value are as follows: ● Level 1 ● Level 2 ● Level 3 Cash, accounts receivable, accounts payable, accrued liabilities, and the current portions of capital lease obligations and notes payable are reflected in the balance sheet at their estimated fair values primarily due to their short-term nature. As to long-term capital lease obligations and notes payable, estimated fair values are based on borrowing rates currently available to the Company for loans with similar terms and maturities, which represent level 3 input levels. | The Company has adopted the framework for measuring fair value that establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs that may be used to measure fair value are as follows: ● Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date; ● Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and ● Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions that market participants would use in pricing an asset or liability. Valuation is generated from model-based techniques with the unobservable assumptions reflecting our own estimate of assumptions that market participants would use in pricing the asset or liability. Cash, accounts receivable, accounts payable and accrued liabilities, and current portion of capital lease obligations and notes payable are reflected in the balance sheet at their estimated fair values primarily due to their short-term nature. As to long-term capital lease obligations and notes payable, estimated fair values are based on borrowing rates currently available to the Company for loans with similar terms and maturities, which represent level 3 input levels. |
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, by the weighted average number of common shares outstanding plus potentially dilutive securities. The Companys potentially dilutive securities outstanding are not shown in a diluted net loss per share calculation because their effect in both 2015 and 2014 would be anti-dilutive. At June 30, 2015, these potentially dilutive securities included warrants of 16,567,326 and stock options of 11,644,585 for a total of 28,211,911. At June 30, 2014, these potentially dilutive securities included warrants of 22,235,954 and stock options of 10,524,428 for a total of 32,760,382. | 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, by the weighted average number of common shares outstanding plus potentially dilutive securities. The Company's potentially dilutive securities outstanding are not shown in a diluted net loss per share calculation because their effect in both 2014 and 2013 would be anti-dilutive. At December 31, 2014, these potentially dilutive securities included warrants of 17,567,326 and stock options of 11,096,428 for a total of 28,663,754 At December 31, 2013, these potentially dilutive securities included warrants of 19,530,441 and stock options of 10,133,506 for a total of 29,663,947. |
Provision for Income Taxes | The Company accounts for its income taxes in accordance with ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. An allowance for the deferred tax asset is established if it is more likely than not that the asset will not be realized. | The Company accounts for its income taxes in accordance with ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. An allowance for the deferred tax asset is established if it is more likely than not that the asset will not be realized. |
Stock Based Compensation | All share-based payments to employees, including grants of employee stock options, are expensed based on their estimated fair values at the grant date, in accordance with ASC 718. Compensation expense for stock options is recorded over the vesting period using the estimated fair value on the date of grant, as calculated by the Company using the Black-Scholes model. For awards with only service conditions that have graded vesting schedules, compensation cost is recorded on a straight-line basis over the requisite service period for the entire award, unless vesting occurs earlier. Non-employee stock-based compensation is accounted for based on the fair value of the related stock or options, using the Black-Scholes Model, or the fair value of the goods or services on the measurement date, whichever is more readily determinable. | All share-based payments to employees, including grants of employee stock options, are expensed based on their estimated fair values at the grant date, in accordance with ASC 718. Compensation expense for stock options is recorded over the vesting period using the estimated fair value on the date of grant, as calculated by the Company using the Black-Scholes model. For awards with only service conditions that have graded vesting schedules, compensation cost is recorded on a straight-line basis over the requisite service period for the entire awards, unless vesting occurs earlier. The Company classifies all share-based awards as equity instruments. See Note 12 for a description of the Company's share-based compensation plans and information related to awards granted under the plans. Non-employee stock-based compensation is accounted for based on the fair value of the related stock or options, using the Black-Scholes Model, or the fair value of the goods or services on the grant date, whichever is more readily determinable. |
Reclassification | Certain prior year amounts 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. | 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. |
New Accounting Pronouncements | There have been no recent accounting pronouncements or changes in accounting pronouncements that are of significance, or potential significance to the Company, except as discussed below. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 supersedes nearly all existing revenue recognition guidance under U.S. GAAP and requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance will become effective beginning in the first quarter of 2017 using one of two prescribed transition methods. Early adoption is not permitted. In July 2015, the FASB voted to would defer the effective date of the new revenue recognition standard by one year. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12). ASU 2014-12 provides explicit guidance on whether to treat a performance target that could be achieved after the requisite service period as a performance condition that affects vesting, or as a non-vesting condition that affects the grant-date fair value of an award. The update requires that compensation costs are recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This update is effective for the annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 defines managements responsibility to evaluate whether there is substantial doubt about an organizations ability to continue as a going concern and provides related footnote disclosure requirements. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting. The going concern basis of accounting establishes the fundamental basis for measuring and classifying assets and liabilities. The update provides guidance on when there is substantial doubt about an organizations ability to continue as a going concern and how the underlying conditions and events should be disclosed in the footnotes. It is intended to reduce diversity that existed in footnote disclosures because of the lack of guidance about when substantial doubt existed. The amendments in this update are effective beginning in the first quarter of 2017. Early application is permitted. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 simplifies the presentation of debt issuance costs, the amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from that debt liability, consistent with the presentation of a debt discount. This presentation is consistent with the guidance in Concepts Statement 6, which states that debt issuance costs are similar to a debt discount and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. Concepts Statement 6 further states that debt issuance costs are not assets because they provide no future economic benefit. This presentation also improves consistency with IFRS, which requires that transaction costs be deducted from the carrying value of the financial liability and not recorded as separate assets. This update is effective for the annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the standard will have on the financial statements and related disclosures. | There have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2014 that are of significance, or potential significance to the Company, except as discussed below. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 supersedes nearly all existing revenue recognition guidance under U.S. GAAP and requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance will become effective beginning in the first quarter of 2017 using one of two prescribed transition methods. Early adoption is not permitted. The Company is currently evaluating the effect that the updated standard will have on the financial statements and related disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, "Compensation Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period" ("ASU 2014-12"). ASU 2014-12 provides explicit guidance on whether to treat a performance target that could be achieved after the requisite service period as a performance condition that affects vesting, or as a non-vesting condition that affects the grant-date fair value of an award. The update requires that compensation costs are recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This update is effective for the annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on the financial statements and related disclosures. In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-15, "Presentation of Financial Statements Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). ASU 2014-15 defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and provides related footnote disclosure requirements. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting. The going concern basis of accounting establishes the fundamental basis for measuring and classifying assets and liabilities. The update provides guidance on when there is substantial doubt about an organization's ability to continue as a going concern and how the underlying conditions and events should be disclosed in the footnotes. It is intended to reduce diversity that existed in footnote disclosures because of the lack of guidance about when substantial doubt existed. The amendments in this update are effective beginning in the first quarter of 2017. Early application is permitted. The Company is currently evaluating the effect that the updated standard will have on the financial statements and related disclosures. |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Basis Of Presentation And Summary Of Significant Accounting Policies Tables | ||
Property and Equipment | For purposes of computing depreciation, the useful lives of property, plant and equipment are: Leasehold improvements 5 years Machinery and equipment 3-25 years | For purposes of computing depreciation, the useful lives of property and equipment are: Leasehold improvements 5 years Machinery and equipment 3-25 years |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Inventory Tables | ||
Schedule of Inventory | The Companys total inventories were as follows: June 30, December 31, 2015 2014 (unaudited) Raw materials $ 329,787 $ 232,611 Work in process 235,991 110,466 Finished goods 491,172 224,600 Total inventories $ 1,056,950 $ 567,677 | As of December 31, 2014 and 2013, the Company's total inventories were $567,677 and $268,191, respectively. December 31, 2014 2013 Raw materials $ 232,611 $ 76,165 Work in process 110,466 47,106 Finished goods 224,600 144,920 Total inventories $ 567,677 $ 268,191 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Income Taxes Tables | |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets, including a valuation allowance, are as follows at December 31: December 31, 2014 2013 Deferred tax assets NOL $ 6,600,000 $ 3,480,000 Depreciation and amortization (600,000 ) - Valuation allowance (6,000,000 ) (3,480,000 ) Net deferred tax assets $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation between the statutory rate and the effective tax rate is as follows at December 31, 2014 and 2013: Federal and state statutory tax rate 40 % Permanent difference and valuation allowance (40 )% Effective tax rate 0 % |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment Tables | ||
Property, Plant and Equipment | The Companys property, plant and equipment were as follows: June 30, December 31, 2015 2014 (unaudited) Machinery and equipment $ 6,819,305 $ 6,802,971 Leasehold improvements 449,271 449,271 Accumulated depreciation (1,102,291 ) (803,725 ) 6,166,285 6,448,517 Construction in process 1,524,921 1,440,690 Total property, plant and equipment, net $ 7,691,206 $ 7,889,207 | As of December 31, 2014 and 2013, the property, plant and equipment, net of accumulated depreciation, is $7,889,207 and $5,515,183, respectively. December 31, 2014 2013 Machinery and equipment $ 6,802,971 $ 3,719,344 Leasehold improvements 449,271 7,641 Accumulated depreciation (803,725 ) (328,803 ) 6,448,517 3,398,182 Construction in process 1,440,690 2,117,001 Total property, plant and equipment $ 7,889,207 $ 5,515,183 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Stockholders Equity Tables | ||
Schedule of Stockholders Equity | As of June 30, 2015, the Company had common shares reserved for future issuance under the Company's stock plans. Number of Common Shares Issued Value of Common Shares and Vested Options Common Shares for Cash, net 11,021,170 $ 3,547,048 Share-Based Compensation 722,487 $ 630,100 Warrants Exercised 999,667 $ - | For the year ended December 31, 2014, the Company issued the following common stock: Number of Common Value Shares Issued Recorded Common Shares for Acquisition 204,750 $ 210,913 Share-Based Compensation 47,606 $ 2,046,074 Common Shares for Series AA Conversion 2,605,513 $ 1,171,375 Warrants and Options Exercised 6,340,775 $ 3,072,170 For the year ended December 31, 2013, the Company issued the following common stock: Number of Common Value Shares Issued Recorded Common Shares for Acquisition 835,810 $ 1,118,173 Common Shares for Goods and Services 793,679 $ 553,360 Common Shares for Convertible Note 940,000 $ 470,000 Common Shares for Cash 9,357,578 $ 8,178,471 Warrants and Options Exercised 757,864 $ - |
Options and Warrants (Tables)
Options and Warrants (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Options And Warrants Tables | ||
Schedule of Stock Options | The following are details related to options issued by the Company: Options for Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 11,096,428 $ 0.72 Granted 548,157 0.27 Exercised - - Forfeited - - Cancelled - - Expired - - Outstanding as of June 30, 2015 (unaudited) 11,644,585 $ 0.69 | The following are details related to options issued by the Company: Weighted Options for Average Shares Exercise Price Outstanding as of December 31, 2012 6,837,606 $ 0.59 Granted 3,445,900 1.00 Exercised (150,000 ) 0.50 Forfeited - - Cancelled - - Expired - - Outstanding as of December 31, 2013 10,133,506 $ 0.74 Outstanding as of December 31, 2013 10,133,506 $ 0.74 Granted 1,209,172 0.66 Exercised (146,250 ) 0.77 Forfeited - - Cancelled (100,000 ) 2.45 Expired - - Outstanding as of December 31, 2014 11,096,428 $ 0.72 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The estimated value of employee stock options granted during the years ended December 31, 2014 and 2013 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2014 2013 Expected volatility % 40 % Risk-free interest rate % % Expected dividends 0.00 % 0.00 % Expected term in years 5 3 5 | |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following are details related to warrants issued by the Company: Warrants for Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 17,567,326 $ 0.93 Granted - - Exercised (1,000,000 ) 0.0001 Forfeited - - Cancelled - - Expired - - Outstanding as of June 30, 2015 (Unaudited) 16,567,326 $ 0.99 | The following are details related to warrants issued by the Company: Weighted Warrants for Average Shares Exercise Price Outstanding as of December 31, 2012 12,307,558 0.86 Granted 8,187,817 1.31 Exercised (680,000 ) 0.03 Forfeited (284,934 ) 0.48 Cancelled - - Expired - - Outstanding as of December 31, 2013 19,530,441 1.08 Outstanding as of December 31, 2013 19,530,441 1.08 Granted 5,305,513 0.86 Exercised (6,268,628 ) 1.33 Forfeited - - Cancelled - - Expired (1,000,000 ) 1.00 Outstanding as of December 31, 2014 17,567,326 0.93 |
Schedule of Assumptions Used | The weighted-average estimated fair value of warrants granted as stock based compensation during the years ended December 31, 2014 and 2013 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2014 2013 Expected volatility % 40 % Risk-free interest rate % % Expected dividends 0.00 % 0.00 % Expected term in years 3 5 3 5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Warrants and Options, Outstanding and Exercisable | For the Year Ended December 31, 2014: Warrants and Options Outstanding Warrants and Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (years) Range of Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.000.50 7,612,550 5.78 $0.000.50 7,015,300 $ 0.42 $ 0.511.00 17,020,617 2.36 $0.511.00 14,859,777 $ 0.96 $ 1.011.50 4,030,587 0.44 $1.011.50 3,980,587 $ 1.35 28,663,754 25,855,664 For the Year Ended December 31, 2013: Warrants and Options Outstanding Warrants and Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (years) Range of Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.0001 1,000,000 1.4 $ 0.0001 1,000,000 0.0001 $ 0.50 6,410,800 8.1 $ 0.50 5,182,300 0.50 $ 1.00 15,036,830 4.2 $ 1.00 13,414,330 1.00 $ 1.25 2,912,716 2.2 $ 1.25 2,912,716 1.25 $ 1.50 4,203,601 4.7 $ 1.50 4,203,601 1.50 $ 2.45 100,000 8.5 $ 2.45 40,000 2.45 29,663,947 26,752,947 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Chief Executive Officer [Member] | ||
Schedule of Related Party Transactions | 2015 2014 Beginning Balance as of January 1, $ - $ - Monies owed 37,500 - Monies paid (30,000) - Ending Balance as of June 30, $ 7,500 $ - | |
Chief Technical Officer [Member] | ||
Schedule of Related Party Transactions | 2015 2014 Beginning Balance as of January 1, $ 15,050 $ - Monies owed 224,658 - Monies paid (205,217) - Ending Balance as of June 30, $ 34,491 $ - | The Chief Technical Officer is the sole owner of WEBA Technologies, which was paid for products sold to GlyEco, primarily consisting of additive packages for antifreeze. 2014 2013 Beginning balance as of December 31, 2013 $ - $ - Monies owed 218,195 - Monies paid (203,145 ) - Ending balance as of December 31, 2014 $ 15,050 $ - |
Former Chief Executive Officer / Director [Member] | ||
Schedule of Related Party Transactions | 2015 2014 Beginning Balance as of January 1, $ 62,500 $ 114,434 Monies owed 9,000 7,679 Monies paid (69,000) (22,113) Ending Balance as of June 30, $ 2,500 $ 100,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments due are as follows: Year Ended December 31, 2015 $ 645,687 2016 650,652 2017 564,251 2018 80,651 Total minimum lease payments $ 1,941,241 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Accounts Receivable Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table summarizes activity for the allowance for doubtful accounts for the years ended December 31, 2014 and 2013: 2014 2013 Beginning balance as of January 1, $ 47,927 $ 4,892 Bad debt expense 64,226 44,198 Charge offs, net (49,904 ) (1,163 ) Ending balance as of December 31, $ 62,249 $ 47,927 |
Acquisitions, Goodwill and In34
Acquisitions, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Acquisitions Goodwill And Intangible Assets Tables | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the aggregate consideration paid during 2014 and 2013 for the Transactions and resolution of previous contingent consideration, and the amounts of the assets acquired and liabilities assumed at the effective acquisition date: Cash $ 539,304 Equity instruments (1,040,560 common shares of the Company) issued 1,329,086 Assets acquired under capital lease 1,714,974 Fair value of total consideration transferred $ 3,583,364 Recognized amounts of identifiable assets acquired and liabilities assumed: Financial assets (primarily accounts receivable) $ 92,320 Inventory 24,234 Property, plant, and equipment 2,532,442 Identifiable intangible assets 356,500 Financial liabilities (97,943 ) Total identifiable net assets 2,907,553 Goodwill 675,811 $ 3,583,364 |
Business Acquisition, Pro Forma Information | The amounts of the Transactions' revenue and earnings included in the Company's consolidated statement of operations for the year ended December 31, 2013, and the revenue and earnings of the combined entity had the acquisition date been done on January 1, 2013, are: Revenue Earnings (Loss) Actual from date of Transaction through 12/31/2013 $ 3,057,071 $ 569,697 Pro forma (unaudited) supplemental information as if the Transactions had occurred at the beginning of the period is approximately as shown below: Supplemental (unaudited) pro forma for 1/1/2013 - 12/31/2013 $ 6,420,000 $ (3,420,000 ) |
Schedule of Intangible Assets and Goodwill | The components of intangible assets are as follows: Gross Balance at Gross Balance at Net Balance at Estimated December 31, Current Year December 31, Accumulated December 31, Useful Life 2013 Additions 2014 Amortization 2014 Finite live intangible assets: Customer list and tradename 5 years $ 24,500 $ - $ 24,500 $ 7,239 $ 17,261 Non-compete agreements 5 years 332,000 - 332,000 107,900 224,100 Intellectual property 25 years 3,500,000 - 3,500,000 280,000 3,220,000 Total intangible assets $ 3,856,500 $ - $ 3,856,500 $ 395,139 $ 3,461,361 Goodwill Indefinite $ 779,303 $ 55,992 $ 835,295 $ - $ 835,295 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table represents the total estimated amortization of intangible assets for the five succeeding years and thereafter: For the Year Ending December 31, Estimated Amortization Expense 2015 $ 211,829 2016 211,829 2017 211,829 2018 165,874 2019 140,000 Thereafter 2,520,000 $ 3,461,361 |
Capital Leases (Tables)
Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Capital Leases Tables | |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments are due as follow: Year Ended December 31, Principal Interest Total 2015 $ 326,656 $ 84,674 $ 411,330 2016 351,048 54,101 405,149 2017 377,238 21,729 398,967 2018 165,738 430 166,168 2019 2,398 32 2,430 Total minimum lease payments $ 1,223,078 $ 160,966 $ 1,384,044 |
Note Payable (Tables)
Note Payable (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Note Payable Tables | |
Schedule of Maturities of Long-term Debt | Future minimum note payments due are as follows: Year Ended December 31, 2015 $ 121,905 2016 2,971 Total minimum note payments $ 124,876 |
Basis of Presentation and Sum37
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 26, 2014 | May. 22, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||||
Property and Equipment, Useful lives | 3 years | |||
Maximum [Member] | ||||
Property and Equipment, Useful lives | 25 years | |||
Assets Held under Capital Leases [Member] | ||||
Property and Equipment, Useful lives | 15 years | 10 years | ||
Assets Held under Capital Leases [Member] | Minimum [Member] | ||||
Property and Equipment, Useful lives | 5 years | |||
Assets Held under Capital Leases [Member] | Maximum [Member] | ||||
Property and Equipment, Useful lives | 25 years | |||
Machinery and Equipment [Member] | Minimum [Member] | ||||
Property and Equipment, Useful lives | 3 years | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | ||||
Property and Equipment, Useful lives | 25 years | 25 years | ||
Leasehold Improvements [Member] | ||||
Property and Equipment, Useful lives | 5 years | 5 years |
Basis of Presentation and Sum38
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | |
Number of Operating Segments | 1 | |||
Advertising Expense | $ 21,569 | $ 85,528 | ||
Inventory Write-down | 0 | 0 | ||
Property, Plant, and Equipment, Salvage Value | 0 | |||
Estimated Cost to be Incurred to Complete Contstruction | $ 1,524,921 | 1,440,690 | ||
Estimated Costs to be Incurred in the Next Twelve Months | 25 | |||
Depreciation | $ 298,566 | $ 192,618 | $ 475,784 | $ 258,162 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares | 28,211,911 | 32,760,382 | 28,663,754 | 29,663,947 |
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 25 years | |||
Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares | 11,644,585 | 10,524,428 | 11,096,428 | 10,133,506 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares | 16,567,326 | 22,235,954 | 17,567,326 | 19,530,441 |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Details | |||
Raw materials | $ 329,787 | $ 232,611 | $ 76,165 |
Work in process | 235,991 | 110,466 | 47,106 |
Finished goods | 491,172 | 224,600 | 144,920 |
Total inventories (unaudited) | $ 1,056,950 | $ 567,677 | $ 268,191 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Details Narrative | |||
Inventory, Gross | $ 1,056,950 | $ 567,677 | $ 268,191 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes Details | |||
Deferred tax assets - NOL | $ 6,600,000 | $ 3,480,000 | |
Depreciation and amortization | (600,000) | 0 | |
Valuation allowance | (6,000,000) | (3,480,000) | |
Net deferred tax assets | $ 0 | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended |
Dec. 31, 2014 | |
Income Taxes Details 1 | |
Federal and state statutory tax rate | 40.00% |
Permanent difference and valuation allowance | (40.00%) |
Effective tax rate | 0.00% |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards | $ 17,600,000 | $ 16,500,000 | $ 9,980,000 |
Deferred Tax Assets, Net of Valuation Allowance | $ 0 | 0 | 0 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 2,520,000 | $ 1,230,000 | |
Maximum [Member] | |||
Operating Loss Carryforwards, Expiration Date 1 | 2,035 | 2,034 | |
Minimum [Member] | |||
Operating Loss Carryforwards, Expiration Date 1 | 2,027 | 2,027 |
Property, Plant and Equipment44
Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Property Plant And Equipment Details | |||
Machinery and equipment | $ 6,819,305 | $ 6,802,971 | $ 3,719,344 |
Leasehold improvements | 449,271 | 449,271 | 7,641 |
Accumulated depreciation | (1,102,291) | (803,725) | (328,803) |
Property, plant and equipment, gross | 6,166,285 | 6,448,517 | 3,398,182 |
Construction in process | 1,524,921 | 1,440,690 | 2,117,001 |
Total property, plant and equipment, net | $ 7,691,206 | $ 7,889,207 | $ 5,515,183 |
Property, Plant and Equipment45
Property, Plant and Equipment (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment Details Narrative | ||||
Property, Plant and Equipment, Net | $ 7,691,206 | $ 7,889,207 | $ 5,515,183 | |
Depreciation | $ 298,566 | $ 192,618 | $ 475,784 | $ 258,162 |
Equity Incentive Program (Detai
Equity Incentive Program (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | |
Stock Issued During Period, Shares | 395,320 | ||||||
Stock Issued During Period, Value | $ 111,375 | ||||||
Share Issued During Period , Grants in Period | 201,997 | 1,209,172 | 3,445,900 | ||||
Share-based Compensation | $ 296,513 | $ 238,758 | $ 630,100 | $ 711,532 | $ 2,046,074 | $ 1,065,288 | |
Employee Stock Option [Member] | |||||||
Shares Issued, Price Per Share | $ 0.24 | $ 0.24 | $ 0.30 | ||||
Restricted Stock [Member] | |||||||
Shares Issued, Price Per Share | $ 0.24 | $ 0.24 | $ 0.30 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Mar. 14, 2014 | Mar. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders Equity Details | |||||
Common Shares for Acquisition, Number of Shares Issued | 204,750 | 835,810 | |||
Common Shares for Acquisition, Value of Common Shares Recorded | $ 210,913 | $ 1,118,173 | |||
Common Shares for Goods and Services | 793,679 | ||||
Common Shares for Goods and Services | $ 553,360 | ||||
Common Shares for Convertible Note | 11,021,170 | 940,000 | |||
Common Shares for Convertible Note | $ 470,000 | ||||
Common Shares for Cash | 245,096 | 9,357,578 | |||
Common Shares for Cash | $ 3,547,048 | $ 8,178,471 | |||
Share-Based Compensation | 220,692 | 722,487 | 47,606 | ||
Share-Based Compensation | $ 630,100 | $ 2,046,074 | 1,065,288 | ||
Common Shares for Series AA Conversion | 2,342,750 | 2,605,513 | |||
Common Shares for Series AA Conversion | $ 1,171,375 | $ 470,000 | |||
Warrants and Options Exercised, Number of Shares Issued | 999,667 | 6,340,775 | 757,864 | ||
Warrants and Options Exercised, Value of Common Shares Recorded | $ 3,072,170 | $ 0 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Mar. 14, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred Stock, Shares Authorized | 40,000,000 | 40,000,000 | 40,000,000 | ||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,342,750 | 2,605,513 | |||
Preferred Stock, Shares Outstanding | 0 | 0 | 2,342,750 | ||
Preferred Stock, Shares Issued | 0 | 0 | 2,342,750 | ||
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 | 300,000,000 | ||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common Stock, Voting Rights | The holders are entitled to one vote for each share on matters submitted to a vote to shareholders, and to share pro rata in all dividends payable on common stock after payment of dividends on any preferred shares having preference in payment of dividends. | ||||
Payments of Stock Issuance Costs (in Dollars) | $ 34,827 | $ 62,144 | $ 367,915 | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable Fair Value Method | To determine the fair value of shares issued for acquisitions, we used the fair value determined by using the average closing price from the preceding five days up to the transaction closing date on the OTCQB Market. | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,036,771 | 1,584,928 | |||
Six Employees [Member] | |||||
Shares Issued, Price Per Share (in Dollars per share) | $ 40,090 | ||||
Stock Excercise price | 0.24 | ||||
Six Directors [Member] | |||||
Shares Issued, Price Per Share (in Dollars per share) | 87,662 | ||||
Stock Excercise price | 0.18 | ||||
Chief Executive Officer [Member] | |||||
Shares Issued, Price Per Share (in Dollars per share) | 39,474 | ||||
Stock Excercise price | $ 0.19 | ||||
Series AA Preferred Stock [Member] | |||||
Preferred Stock, Shares Authorized | 3,000,000 | ||||
Preferred Stock, Shares Outstanding | 2,342,750 | ||||
Dividends Payable (in Dollars) | $ 300,000 |
Options and Warrants (Details)
Options and Warrants (Details) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options Outstanding, Weighted Average Exercise Price | $ 0.72 | $ 0.74 | $ 0.59 |
Options Granted | 201,997 | 1,209,172 | 3,445,900 |
Options Granted, Weighted Average Exercise Price | $ 0.66 | $ 1 | |
Options Exercised | (146,250) | (150,000) | |
Options Exercised, Weighted Average Exercise Price | $ 0.77 | $ 0.50 | |
Options Forfeited | 0 | 0 | |
Options Forfeited, Weighted Average Exercise Price | $ 0 | $ 0 | |
Options Cancelled | (100,000) | 0 | |
Options Cancelled, Weighted Average Exercise Price | $ 2.45 | $ 0 | |
Options Expired | 0 | 0 | |
Options Expired, Weighted Average Exercise Price | $ 0 | $ 0 | |
Options Outstanding, Weighted Average Exercise Price | $ 0.72 | $ 0.74 | |
Option [Member] | |||
Options Outstanding | 11,096,428 | ||
Options Outstanding, Weighted Average Exercise Price | $ 0.72 | ||
Options Granted | 548,157 | ||
Options Granted, Weighted Average Exercise Price | $ 0.27 | ||
Options Exercised | |||
Options Exercised, Weighted Average Exercise Price | |||
Options Forfeited | |||
Options Forfeited, Weighted Average Exercise Price | |||
Options Cancelled | |||
Options Cancelled, Weighted Average Exercise Price | |||
Options Expired | |||
Options Expired, Weighted Average Exercise Price | |||
Options Outstanding | 11,644,585 | 11,096,428 | |
Options Outstanding, Weighted Average Exercise Price | $ 0.69 | $ 0.72 |
Options and Warrants (Details 1
Options and Warrants (Details 1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Expected volatility | 40.00% | |
Expected dividends | 0.00% | 0.00% |
Expected term in years | 5 years | |
Minimum [Member] | ||
Expected volatility | 40.00% | |
Risk-free interest rate | 0.16% | 0.16% |
Expected term in years | 3 years | |
Maximum [Member] | ||
Expected volatility | 86.00% | |
Risk-free interest rate | 0.70% | 0.70% |
Expected term in years | 5 years |
Options and Warrants (Details 2
Options and Warrants (Details 2) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warrants Oustanding (in Shares) | 17,567,326 | 19,530,441 | 12,307,558 |
Warrants Oustanding, Weighted Average Exercise Price | $ 0.93 | $ 1.08 | $ 0.86 |
Warrants Granted | 5,305,513 | 8,187,817 | |
Warrants Granted, Weighted Average Exercise Price | $ 0.86 | $ 1.31 | |
Warrants Exercised (in Shares) | (6,268,628) | (680,000) | |
Warrants Exercised, Weighted Average Exercise Price | $ 1.33 | $ 0.03 | |
Warrants Forfeited (in Shares) | 0 | (284,934) | |
Warrants Forfeited, Weighted Average Exercise Price | $ 0 | $ 0.48 | |
Warrants Cancelled (in Shares) | 0 | 0 | |
Warrants Cancelled, Weighted Average Exercise Price | $ 0 | $ 0 | |
Warrants Expired (in Shares) | (1,000,000) | 0 | |
Warrants Expired, Weighted Average Exercise Price | $ 1 | $ 0 | |
Warrants Oustanding (in Shares) | 17,567,326 | 19,530,441 | |
Warrants Oustanding, Weighted Average Exercise Price | $ 0.93 | $ 1.08 | |
Warrant [Member] | |||
Warrants Oustanding (in Shares) | 17,567,326 | ||
Warrants Oustanding, Weighted Average Exercise Price | $ 0.93 | ||
Warrants Granted | |||
Warrants Granted, Weighted Average Exercise Price | |||
Warrants Exercised (in Shares) | (1,000,000) | ||
Warrants Exercised, Weighted Average Exercise Price | $ 0.0001 | ||
Warrants Forfeited (in Shares) | |||
Warrants Forfeited, Weighted Average Exercise Price | |||
Warrants Cancelled (in Shares) | |||
Warrants Cancelled, Weighted Average Exercise Price | |||
Warrants Expired (in Shares) | |||
Warrants Expired, Weighted Average Exercise Price | |||
Warrants Oustanding (in Shares) | 16,567,326 | 17,567,326 | |
Warrants Oustanding, Weighted Average Exercise Price | $ 0.99 | $ 0.93 |
Options and Warrants (Details 3
Options and Warrants (Details 3) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Expected volatility | 40.00% | |
Expected dividends | 0.00% | 0.00% |
Minimum [Member] | ||
Expected volatility | 40.00% | |
Risk-free interest rate | 0.60% | 0.60% |
Expected term in years | 3 years | 3 years |
Maximum [Member] | ||
Expected volatility | 86.00% | |
Risk-free interest rate | 0.70% | 0.70% |
Expected term in years | 5 years | 5 years |
Options and Warrants (Details 4
Options and Warrants (Details 4) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Warrants and Options Outstanding Number Outstanding (in Shares) | 28,663,754 | 29,663,947 |
Warrants and Options Exercisable Number Exercisable (in Shares) | 25,855,664 | 26,752,947 |
Warrants And Options 0. 511. 00 [Member] | ||
Warrants and Options Outstanding Number Outstanding (in Shares) | 17,020,617 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 2 years 131 days | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 14,859,777 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 0.96 | |
Warrants And Options 0. 511. 00 [Member] | Minimum [Member] | ||
Warrants and Options Outstanding Exercise Price | 0.51 | |
Warrants and Options Exercisable Exercise Price | 0.51 | |
Warrants And Options 0. 511. 00 [Member] | Maximum [Member] | ||
Warrants and Options Outstanding Exercise Price | 1 | |
Warrants and Options Exercisable Exercise Price | $ 1 | |
Warrants And Options 1. 001. 50 [Member] | ||
Warrants and Options Outstanding Number Outstanding (in Shares) | 4,030,587 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 160 days | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 3,980,587 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 1.35 | |
Warrants And Options 1. 001. 50 [Member] | Minimum [Member] | ||
Warrants and Options Outstanding Exercise Price | 1.01 | |
Warrants and Options Exercisable Exercise Price | 1.01 | |
Warrants And Options 1. 001. 50 [Member] | Maximum [Member] | ||
Warrants and Options Outstanding Exercise Price | 1.50 | |
Warrants and Options Exercisable Exercise Price | $ 1.50 | |
Warrants And Options 0. 000. 05 [Member] | ||
Warrants and Options Outstanding Number Outstanding (in Shares) | 7,612,550 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 5 years 284 days | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 7,015,300 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 0.42 | |
Warrants And Options 0. 000. 05 [Member] | Minimum [Member] | ||
Warrants and Options Outstanding Exercise Price | 0 | |
Warrants and Options Exercisable Exercise Price | 0 | |
Warrants And Options 0. 000. 05 [Member] | Maximum [Member] | ||
Warrants and Options Outstanding Exercise Price | 0.50 | |
Warrants and Options Exercisable Exercise Price | $ 0.50 | |
Warrants And Options At 0. 0001 [Member] | ||
Warrants and Options Outstanding Exercise Price | $ 0.0001 | |
Warrants and Options Outstanding Number Outstanding (in Shares) | 1,000,000 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 1 year 146 days | |
Warrants and Options Exercisable Exercise Price | $ 0.0001 | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 1,000,000 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 0.0001 | |
Warrants And Options At 0. 50 [Member] | ||
Warrants and Options Outstanding Exercise Price | $ 0.50 | |
Warrants and Options Outstanding Number Outstanding (in Shares) | 6,410,800 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 8 years 36 days | |
Warrants and Options Exercisable Exercise Price | $ 0.50 | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 5,182,300 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 0.50 | |
Warrants And Options At 1. 00 [Member] | ||
Warrants and Options Outstanding Exercise Price | $ 1 | |
Warrants and Options Outstanding Number Outstanding (in Shares) | 15,036,830 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 4 years 73 days | |
Warrants and Options Exercisable Exercise Price | $ 1 | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 13,414,330 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 1 | |
Warrants And Options At 1. 25 [Member] | ||
Warrants and Options Outstanding Exercise Price | $ 1.25 | |
Warrants and Options Outstanding Number Outstanding (in Shares) | 2,912,716 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 2 years 73 days | |
Warrants and Options Exercisable Exercise Price | $ 1.25 | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 2,912,716 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 1.25 | |
Warrants And Options At 1. 50 [Member] | ||
Warrants and Options Outstanding Exercise Price | $ 1.50 | |
Warrants and Options Outstanding Number Outstanding (in Shares) | 4,203,601 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 4 years 255 days | |
Warrants and Options Exercisable Exercise Price | $ 1.50 | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 4,203,601 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 1.50 | |
Warrants And Options At 2. 45 [Member] | ||
Warrants and Options Outstanding Exercise Price | $ 2.45 | |
Warrants and Options Outstanding Number Outstanding (in Shares) | 100,000 | |
Warrants and Options Outstanding Weighted Average Remaining Contractual Life | 8 years 6 months | |
Warrants and Options Exercisable Exercise Price | $ 2.45 | |
Warrants and Options Exercisable Number Exercisable (in Shares) | 40,000 | |
Warrants and Options Exercisable Weighted Average Exercise Price | $ 2.45 |
Options and Warrants (Details N
Options and Warrants (Details Narrative) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014USD ($)shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Jul. 01, 2014$ / shares | Mar. 14, 2014$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | 0 | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares | $ 0.33 | $ 0.44 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | $ 14,450 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | $ 10,025 | ||||||
Class of Warrant or Rights Granted | shares | 4,293,013 | 1,439,560 | |||||
Warrants, Grants in Period, Weighted-Average Grant Date Fair Value, Per Warrant (in Dollars per share) | $ / shares | $ 0.31 | $ 0.37 | |||||
Class of Warrant or Rights, Outstanding Intrinsic Value (in Dollars) | $ 0 | ||||||
Class of Warrant or Rights, Exercisable Intrinsic Value (in Dollars) | 0 | ||||||
Stock Issued During Period, Value, Exercise of Warrants and Options (in Dollars) | $ 3,072,170 | $ 0 | |||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Class of Warrants or Rights Exercised | shares | 6,268,628 | 680,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 1 | ||||||
Proceeds from Warrant Exercises (in Dollars) | $ 1,673,182 | ||||||
Payments of Stock Issuance Costs (in Dollars) | $ 34,827 | $ 62,144 | $ 367,915 | ||||
Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 11,644,585 | 11,096,428 | |||||
Warrant [Member] | |||||||
Class of Warrants or Rights Exercised | shares | 1,000,000 | ||||||
Temporary Exercise Period [Member] | |||||||
Stock Issued During Period, Value, Exercise of Warrants and Options (in Dollars) | $ 6,268,628 | ||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 0.0001 | ||||||
Class of Warrants or Rights Exercised | shares | 6,268,628 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.50 | ||||||
Number of Warrant Holders | 46 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Beginning Balance as of January 1, | $ 62,500 | $ 582,682 | $ 582,682 | |
Ending Balance as of June 30, | 44,491 | $ 62,500 | $ 582,682 | |
Chief Executive Officer [Member] | ||||
Beginning Balance as of January 1, | 62,500 | |||
Monies owed | 37,500 | |||
Monies paid | (30,000) | |||
Ending Balance as of June 30, | 7,500 | $ 62,500 | ||
Chief Technical Officer [Member] | ||||
Beginning Balance as of January 1, | 15,050 | $ 0 | $ 0 | $ 0 |
Monies owed | 224,658 | 218,195 | ||
Monies paid | (205,217) | (203,145) | ||
Ending Balance as of June 30, | 34,491 | $ 15,050 | 0 | |
Former Chief Executive Officer / Director [Member] | ||||
Beginning Balance as of January 1, | 62,500 | $ 114,434 | 114,434 | |
Monies owed | 9,000 | 7,679 | ||
Monies paid | (69,000) | (22,113) | ||
Ending Balance as of June 30, | $ 2,500 | $ 100,000 | $ 62,500 | $ 114,434 |
Related Party Transactions (D56
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2012 | |
Due to Related Parties, Current | $ 44,491 | $ 62,500 | $ 582,682 | |||
Former Director [Member] | ||||||
Due to Related Parties, Current | 426,052 | |||||
Officers' Compensation | $ 1,687,706 | 2,832,046 | ||||
Chief Technical Officer [Member] | ||||||
Due to Related Parties, Current | 34,491 | 15,050 | 0 | $ 0 | ||
Officers' Compensation | 75,000 | 119,668 | 0 | |||
Chief Business Development Officer [Member] | ||||||
Officers' Compensation | $ 145,011 | |||||
Chief Executive Officer [Member] | ||||||
Due to Related Parties, Current | $ 7,500 | 62,500 | ||||
Chief Financial Officer [Member] | ||||||
Due to Related Parties, Current | $ 16,138 | |||||
Chief Business Development Officer [Member] | ||||||
Officers' Compensation | $ 84,500 | |||||
Two Corporations Owned By Chief Business Development Officer [Member] | Affiliated Entity [Member] | ||||||
Due to Related Parties, Current | 16,058 | |||||
Corporation Owned By CEO [Member] | Affiliated Entity [Member] | ||||||
Due to Related Parties, Current | 114,434 | |||||
Business Co Owned By General Manager [Member] | Affiliated Entity [Member] | ||||||
Due to Related Parties, Current | $ 10,000 |
Commitments and Contingencies57
Commitments and Contingencies (Details) | Dec. 31, 2014USD ($) |
Commitments And Contingencies Details | |
2,015 | $ 645,687 |
2,016 | 650,652 |
2,017 | 564,251 |
2,018 | 80,651 |
Total minimum lease payments | $ 1,941,241 |
Commitments and Contingencies58
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | |
Operating Leases, Rent Expense | $ 694,899 | $ 516,952 | ||
Accrued Rent | $ 275,000 | |||
Maximum [Member] | Dispute With Entity Contracted To Assist In Raising Capital [Member] | ||||
Loss Contingency, Estimate of Possible Loss | 175,000 | |||
Maximum [Member] | Dispute With Entity Contracted To Provide Project Management Services [Member] | ||||
Loss Contingency, Estimate of Possible Loss | 750,000 | |||
Minimum [Member] | Dispute With Entity Contracted To Assist In Raising Capital [Member] | ||||
Loss Contingency, Estimate of Possible Loss | 0 | |||
Minimum [Member] | Dispute With Entity Contracted To Provide Project Management Services [Member] | ||||
Loss Contingency, Estimate of Possible Loss | $ 0 | |||
Building [Member] | Maximum [Member] | ||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years | |||
Environmental Remediation Liability Insurance Aggregate [Member] | ||||
Environmental Remediation Insurance Liability, Maximum Coverage | $ 2 | |||
Eventual Asset Retirement Of New Jersey F Acility [Member] | ||||
Debt Instrument, Face Amount | 400,000 | |||
Other Commitment | $ 400,000 | |||
Other Commitments, Description | the $400,000 letter of credit with the New Jersey Department of Environmental Protection to ensure the funds are available if the facility is closed. The resultant $400,000 asset retirement obligation will be expensed over the anticipated operating life of the project, which is estimated to be approximately 25 years. | |||
Environmental Remediation Liability Insurance Per Occurance [Member] | ||||
Environmental Remediation Insurance Liability, Maximum Coverage | $ 1 | |||
Dispute With Landlord [Member] | ||||
Payments for Rent | $ 250,000 | |||
Accrued Rent | $ 525,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts Receivable Details | ||
Beginning balance as of January 1, | $ 47,927 | $ 4,892 |
Bad debt expense | 64,226 | 44,198 |
Charge offs, net | (49,904) | (1,163) |
Ending balance as of December 31, | $ 62,249 | $ 47,927 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts Receivable Details Narrative | |||
Accounts Receivable, Net, Current | $ 1,309,477 | $ 786,056 | $ 898,934 |
Acquisitions, Goodwill and In61
Acquisitions, Goodwill and Intangible Assets (Details) - USD ($) | Dec. 10, 2012 | Sep. 30, 2013 | Aug. 21, 2013 | Jan. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Goodwill | $ 835,295 | $ 835,295 | $ 779,303 | |||||
GSS Automotive Recycling Inv [Member] | ||||||||
Cash | $ 430,000 | |||||||
MMT Technologies [Member] | ||||||||
Cash | $ 50,000 | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Goodwill | 55,992 | |||||||
Evergreen Recycling Inc [Member] | ||||||||
Cash | $ 59,304 | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Financial liabilities | $ (10,010) | |||||||
Full Circle Manufacturing Group Inc [Member] | ||||||||
Cash | $ 2,000,000 | |||||||
Series Of Individual Business Acquisitions [Member] | ||||||||
Cash | 539,304 | |||||||
Equity instruments (1,040,560 common shares of the Company) issued | 1,329,086 | |||||||
Assets acquired under capital lease | 1,714,974 | |||||||
Fair value of total consideration transferred | 3,583,364 | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Financial assets (primarily accounts receivable) | 92,320 | |||||||
Inventory | 24,234 | |||||||
Property, plant, and equipment | 2,532,442 | |||||||
Identifiable intangible assets | 356,500 | |||||||
Financial liabilities | (97,943) | |||||||
Total identifiable net assets | 2,907,553 | |||||||
Goodwill | 675,811 | |||||||
Total | $ 3,583,364 | |||||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Goodwill | $ 619,819 |
Acquisitions, Goodwill and In62
Acquisitions, Goodwill and Intangible Assets (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Equity instruments issued | 204,750 | 835,810 |
Series Of Individual Business Acquisitions [Member] | ||
Equity instruments issued | 1,040,560 |
Acquisitions, Goodwill and In63
Acquisitions, Goodwill and Intangible Assets (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Actual from date of Transaction through 12/31/2013 | $ (1,075,786) | $ (1,111,541) | $ (2,054,552) | $ (2,303,770) | $ (6,488,499) | $ (4,013,127) | |
Series Of Individual Business Acquisitions [Member] | Scenario, Actual [Member] | |||||||
Actual from date of Transaction through 12/31/2013 | $ 3,057,071 | ||||||
Actual from date of Transaction through 12/31/2013 | $ 569,697 | ||||||
Series Of Individual Business Acquisitions [Member] | Pro Forma [Member] | |||||||
Pro forma (unaudited) supplemental information as if the Transactions had occurred at the beginning of the period is approximately as shown below: | |||||||
Supplemental (unaudited) pro forma for 1/1/2013 - 12/31/2013 | 6,420,000 | ||||||
Supplemental (unaudited) pro forma for 1/1/2013 - 12/31/2013 | $ (3,420,000) |
Acquisitions, Goodwill and In64
Acquisitions, Goodwill and Intangible Assets (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite live intangible assets: | ||
Balance | $ 3,856,500 | $ 3,856,500 |
Current Year Additions | 0 | |
Accumulated Amortization | 395,139 | |
Net | $ 3,461,361 | |
Noncompete Agreements [Member] | ||
Finite live intangible assets: | ||
Estimated Useful Life | 5 years | |
Balance | $ 3,500,000 | 332,000 |
Current Year Additions | 0 | |
Accumulated Amortization | 107,900 | |
Net | $ 224,100 | |
Intellectual Property [Member] | ||
Finite live intangible assets: | ||
Estimated Useful Life | 25 years | |
Balance | $ 332,000 | 3,500,000 |
Current Year Additions | 0 | |
Accumulated Amortization | 280,000 | |
Net | $ 3,220,000 | |
Customer Lists And Trade Names [Member] | ||
Finite live intangible assets: | ||
Estimated Useful Life | 5 years | |
Balance | $ 24,500 | 24,500 |
Current Year Additions | 0 | |
Accumulated Amortization | 7,239 | |
Net | $ 17,261 | |
Goodwill [Member] | ||
Finite live intangible assets: | ||
Goodwill | Indefinite | |
Goodwill | $ 835,295 | $ 779,303 |
Goodwill | 55,992 | |
Goodwill | 0 | |
Goodwill | $ 835,295 |
Acquisitions, Goodwill and In65
Acquisitions, Goodwill and Intangible Assets (Details 4) | Dec. 31, 2014USD ($) |
Acquisitions Goodwill And Intangible Assets Details 4 | |
2,015 | $ 211,829 |
2,016 | 211,829 |
2,017 | 211,829 |
2,018 | 165,874 |
2,019 | 140,000 |
Thereafter | 2,520,000 |
Total | $ 3,461,361 |
Acquisitions, Goodwill and In66
Acquisitions, Goodwill and Intangible Assets (Details Narrative) - USD ($) | Dec. 10, 2012 | Aug. 26, 2014 | May. 22, 2014 | Mar. 21, 2014 | Sep. 30, 2013 | Aug. 21, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | Dec. 31, 2012 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 200,000 | 200,000 | ||||||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||
Goodwill | $ 835,295 | $ 779,303 | $ 835,295 | |||||||||
Business Combination, Acquisition Related Costs | 35,000 | |||||||||||
Amortization of Intangible Assets | 211,829 | 183,310 | ||||||||||
MMT Technologies [Member] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 50,000 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 204,750 | |||||||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.0001 | |||||||||||
Business Acquisition, Share Price (in Dollars per share) | $ 1.03 | |||||||||||
Goodwill | 55,992 | |||||||||||
GSS Automotive Recycling Inv [Member] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 430,000 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 455,000 | |||||||||||
Share Price (in Dollars per share) | $ 1.12 | |||||||||||
Business Combination, Contingent Consideration Arrangements, Description | The acquisition of GSS includes a contingent consideration arrangement that requires the provision of $1.00 credit to the GSS Shareholders towards the purchase of additional shares of the Company for each additional $1.00 of Gross Profits (as defined in the GSS Agreement) that Acquisition Sub #7 earns in excess of $72,000 through December 31, 2014. | |||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | |||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 38,000 | |||||||||||
Business Combination, Contingent Consideration, Liability | $ 0 | |||||||||||
Fair Value Inputs, Discount Rate | 25.00% | |||||||||||
Full Circle Manufacturing Group Inc [Member] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 2,000,000 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 3,000,000 | |||||||||||
Share Price (in Dollars per share) | $ 0.50 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Full Circle Manufacturing Group Inc [Member] | NY Terminals IILLC [Member] | ||||||||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years | |||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 30,000 | |||||||||||
Evergreen Recycling Inc [Member] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 59,304 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 377,372 | |||||||||||
Share Price (in Dollars per share) | $ 1.57 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 10,010 | |||||||||||
Series Of Individual Business Acquisitions [Member] | ||||||||||||
Payments to Acquire Businesses, Gross | 539,304 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 97,943 | |||||||||||
Goodwill | 675,811 | |||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||
Goodwill | $ 619,819 | |||||||||||
Assets Held under Capital Leases [Member] | ||||||||||||
Debt Instrument, Periodic Payment | $ 347 | $ 1,030 | $ 32,900 | |||||||||
Debt Instrument, Term | 5 years | 2 years | 5 years | |||||||||
Fair Value Inputs, Discount Rate | 4.00% | 11.00% | 9.00% | |||||||||
Assets Held under Capital Leases [Member] | Full Circle Manufacturing Group Inc [Member] | ||||||||||||
Debt Instrument, Periodic Payment | $ 32,900 |
Capital Lease (Details)
Capital Lease (Details) | Dec. 31, 2014USD ($) |
2,015 | $ 411,330 |
2,016 | 405,149 |
2,017 | 398,967 |
2,018 | 166,168 |
2,019 | 2,430 |
Total minimum lease payments | 1,384,044 |
Capital Lease Principal [Member] | |
2,015 | 326,656 |
2,016 | 351,048 |
2,017 | 377,238 |
2,018 | 165,738 |
2,019 | 2,398 |
Total minimum lease payments | 1,223,078 |
Capital Lease Interest [Member] | |
2,015 | 84,674 |
2,016 | 54,101 |
2,017 | 21,729 |
2,018 | 430 |
2,019 | 32 |
Total minimum lease payments | $ 160,966 |
Capital Lease (Details Narrativ
Capital Lease (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 26, 2014 | May. 22, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant, and Equipment, Salvage Value | $ 0 | |||||
Depreciation | $ 298,566 | $ 192,618 | $ 475,784 | $ 258,162 | ||
Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 25 years | |||||
Assets Held under Capital Leases [Member] | ||||||
Debt Instrument, Periodic Payment | $ 347 | $ 1,030 | $ 32,900 | |||
Debt Instrument, Term | 5 years | 2 years | 5 years | |||
Capital Lease, Option to Purchase, Amount | $ 1 | $ 1 | $ 200,000 | |||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $ 25,200 | $ 22,154 | $ 1,714,974 | |||
Fair Value Inputs, Discount Rate | 4.00% | 11.00% | 9.00% | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 11.00% | 9.00% | |||
Property, Plant and Equipment, Useful Life | 15 years | 10 years | ||||
Property, Plant, and Equipment, Salvage Value | $ 0 | $ 0 | $ 0 | |||
Capital Leased Assets, Gross | 1,604,915 | |||||
Depreciation | $ 79,540 | |||||
Assets Held under Capital Leases [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Assets Held under Capital Leases [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 25 years | |||||
Leasehold Improvements [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | ||||
Machinery and Equipment [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | 3 years | ||||
Machinery and Equipment [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 25 years | 25 years |
Note Payable (Details)
Note Payable (Details) | Dec. 31, 2014USD ($) |
Note Payable Details | |
2,015 | $ 121,905 |
2,016 | 2,971 |
Total minimum note payments | $ 124,876 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | May. 03, 2013 | Apr. 03, 2012 | Aug. 09, 2008 | May. 30, 2014 |
Notes Payable, Other Payables [Member] | ||||
Debt Instrument, Face Amount | $ 115,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||
Debt Instrument, Maturity Date, Description | principal balance to be paid upon the raising of additional necessary capital | |||
Notes Payable to Banks [Member] | ||||
Debt Instrument, Face Amount | $ 20,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||
Debt Instrument, Term | 3 years | |||
Debt Instrument, Maturity Date | May 2, 2016 | |||
Debt Instrument, Collateral | The Note Payable is collateralized by a vehicle. | |||
Convertible Debt [Member] | ||||
Debt Instrument, Face Amount | $ 1,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 12.50% | 10.00% | ||
Debt Instrument, Maturity Date | Dec. 31, 2013 | |||
Debt Instrument, Collateral | The Frenkel Convertible Note was secured by a lien on Global Recycling’s provisional patent application, including the GlyEco TechnologyTM Patent. |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) - USD ($) | Mar. 14, 2014 | May. 03, 2013 | Apr. 03, 2012 | Aug. 09, 2008 | Feb. 15, 2013 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2014 | May. 30, 2014 |
Class of Warrant or Rights Granted | 4,293,013 | 1,439,560 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1 | |||||||||
Stock Issued During Period, Shares, Other | 11,021,170 | 940,000 | ||||||||
Preferred Stock Redemption Premium | $ 2,243,410 | $ 0 | ||||||||
Warrants, Grants in Period, Weighted-Average, Fair Value Granted in Period | $ 5,305,513 | $ 8,187,817 | ||||||||
Series AA Preferred Stock [Member] | ||||||||||
Convertible Preferred Stock, Terms of Conversion | Upon conversion of the Series AA preferred stock to Common Stock, the Company will issue warrants at a price of $1.00 per share for each share of the Series AA preferred stock that is converted. | |||||||||
Temporary Exercise Period [Member] | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.50 | |||||||||
Convertible Debt [Member] | ||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.50% | 10.00% | ||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Conversion Agreement further stated that Mr. Frenkel would convert all money owed into a combination of common and Series AA preferred stock on the date that the Company had received an aggregate of $5,000,000 in equity investment following the date of the Conversion Agreement and warrants. Of the debt converted, $470,000 would be converted into common stock at $1.00 per share or the price offered to any investor subsequent to the Conversion Agreement, if lower. The remainder would be converted into Series AA preferred stock at $1.00 per share or the price offered to any investor subsequent to the Conversion Agreement, if lower. | convertible into 575,350 shares, at any time prior to maturity, at the option of the holder, into Global Recycling common stock at a conversion price of $2.50 per share. | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 2.50 | $ 0.50 | ||||||||
Debt Instrument, Collateral | The Frenkel Convertible Note was secured by a lien on Global Recycling’s provisional patent application, including the GlyEco TechnologyTM Patent. | |||||||||
Class of Warrant or Rights Granted | 480,000 | 940,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.025 | $ 1 | ||||||||
Debt Instrument, Maturity Date | Dec. 31, 2013 | |||||||||
Preferred Stock, Redemption Terms | The Series AA preferred stock shall in all respects be the same as common stock, except for the following features: (i) the Series AA preferred stock shall accrue a dividend of 12.5% per year, compounded semi-annually; (ii) the Series AA preferred stock shall have priority in payment upon liquidation over common stock to the extent of the $1,171,375 and all accrued but unpaid dividends; (iii) the Series AA preferred stock shall automatically convert into common stock at the rate of one share of common stock for each $1 of the Series AA preferred stock plus accrued but unpaid dividends if the closing price on the common stock on the OTC/BB is $5.00 per share for 20 consecutive trading days, or if the stock is listed on NYSE or NASDAQ; (iv) the original issue price of $1,171,375 plus all accrued but unpaid dividends shall be due and payable on December 31, 2013 if the Series AA preferred stock is not converted to common stock under the terms herein by such date; and (v) the Series AA preferred stock shall provide that the holder may not voluntarily convert into common stock to the extent that the holder will beneficially own in excess of 9.99% of the then issued and outstanding common stock of the Company. | |||||||||
Convertible Notes Payable | $ 1,641,375 | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 940,000 | |||||||||
Interest Expense, Other | $ 392,170 | |||||||||
Interest Expense, Debt | 24,913 | |||||||||
Convertible Preferred Stock, Terms of Conversion | conversion rate of one share of Common Stock for each one share of Series AA Preferred Stock redeemed | |||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,342,750 | |||||||||
Debt Instrument, Description | Further, 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 redemption. | |||||||||
Class of Warrant or Right, Term | 3 years | |||||||||
Convertible Debt [Member] | Minimum [Member] | ||||||||||
Proceeds from Issuance or Sale of Equity | $ 5,000,000 | |||||||||
Convertible Debt [Member] | Series AA Preferred Stock [Member] | ||||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.50 | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 2,342,750 | |||||||||
Convertible Debt [Member] | Shares Issued For Extension Of Debt [Member] | ||||||||||
Stock Issued During Period, Shares, Other | 262,763 | |||||||||
Convertible Debt [Member] | Investor [Member] | ||||||||||
Class of Warrant or Rights Granted | 2,605,513 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1 | |||||||||
Preferred Stock, Redemption Price Per Share | $ 1.46 | |||||||||
Preferred Stock, Redemption Amount | $ 3,414,785 | |||||||||
Preferred Stock, Redemption Premium Price Per Share | $ 0.85 | |||||||||
Preferred Stock Redemption Premium | $ 1,975,392 | |||||||||
Preferred Stock Conversions, Inducement Premium | $ 0.11 | |||||||||
Preferred Stock Conversions, Inducements | $ 268,018 | |||||||||
Preferred Stock, Redemption and Inducement Premium | $ 2,243,410 | |||||||||
Warrants, Expiration Date | Mar. 14, 2017 | |||||||||
Warrant, Exercise Price, Description | In the event the Company’s common stock trades at an average of at least $3.00 per share for a period of not less than twenty consecutive trading days and the warrants have been registered under an effective Registration Statement, Mr. Frenkel shall be required to fully exercise the warrants within ten business days following the twentieth trading day. The exercise price of the warrants may be adjusted upon any increase or decrease in the number of issued shares of our common stock resulting from any stock split, reverse stock split, split-up, combination or exchange of shares, consolidation, spin-off, reorganization, or recapitalization of shares. | |||||||||
Warrants, Grants in Period, Weighted-Average, Fair Value Granted in Period | $ 0.29 | |||||||||
Convertible Debt [Member] | Investor [Member] | Fair Value Of Common Shares Over Book Value Of Preferred Stock [Member] | ||||||||||
Preferred Stock Redemption Premium | $ 1,218,230 | |||||||||
Convertible Debt [Member] | Investor [Member] | Fair Value Of Warrants [Member] | ||||||||||
Preferred Stock Redemption Premium | $ 757,162 | |||||||||
Notes Payable to Banks [Member] | ||||||||||
Debt Instrument, Face Amount | $ 20,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||
Debt Instrument, Collateral | The Note Payable is collateralized by a vehicle. | |||||||||
Debt Instrument, Maturity Date | May 2, 2016 | |||||||||
Notes Payable, Other Payables [Member] | ||||||||||
Debt Instrument, Face Amount | $ 115,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash, Uninsured Amount (in Dollars) | $ 0 | $ 3,828,685 |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 19.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer B [Member] | ||
Concentration Risk, Percentage | 7.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer A [Member] | ||
Concentration Risk, Percentage | 23.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | ||
Concentration Risk, Percentage | 30.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Customer B [Member] | ||
Concentration Risk, Percentage | 29.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Customer A [Member] | ||
Concentration Risk, Percentage | 23.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 17, 2015USD ($)shares | Mar. 30, 2015shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Feb. 16, 2015$ / shares | |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Stock Issued During Period, Shares, New Issues | 245,096 | 9,357,578 | |||||
Payments of Stock Issuance Costs (in Dollars) | $ | $ 34,827 | $ 62,144 | $ 367,915 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 201,997 | 1,209,172 | 3,445,900 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 220,692 | 722,487 | 47,606 | ||||
Employees [Member] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 24,404 | ||||||
Number of Employees | 2 | ||||||
Private Placement [Member] | |||||||
Sale of Stock, Price Per Share (in Dollars per share) | $ / shares | $ 0.325 | ||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | 0.0001 | ||||||
Number of Investors | 18 | ||||||
Proceeds from Issuance of Private Placement (in Dollars) | $ | $ 3,581,880 | ||||||
Stock Issued During Period, Shares, New Issues | 11,021,170 | ||||||
Payments of Stock Issuance Costs (in Dollars) | $ | $ 34,827 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 107,160 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Exercise Price (in Dollars per share) | $ / shares | $ 0.325 | ||||||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ | $ 3,547,053 |