Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 30, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | GlyEco, Inc. | ||
Entity Central Index Key | 931,799 | ||
Trading Symbol | GLYE | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 7,387,406 | ||
Entity Common Stock, Shares Outstanding | 110,142,616 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash | $ 1,276,687 | $ 494,847 |
Accounts receivable, net | 807,906 | 786,056 |
Prepaid expenses | 95,775 | 137,056 |
Inventories | 380,789 | 567,677 |
Total current assets | 2,561,157 | 1,985,636 |
Property, plant and equipment, net | 1,279,057 | 7,889,207 |
Other Assets | ||
Deposits | 26,688 | 80,708 |
Goodwill | 835,295 | 835,295 |
Other intangibles, net | 169,533 | 3,461,361 |
Total other assets | 1,031,516 | 4,377,364 |
Total assets | 4,871,730 | 14,252,207 |
Current Liabilities | ||
Accounts payable and accrued expenses | 1,522,037 | 1,649,361 |
Due to related parties | 34,405 | 62,500 |
Notes payable - current portion | 117,972 | 121,905 |
Capital lease obligations - current portion | 9,752 | 326,656 |
Total current liabilities | $ 1,684,166 | 2,160,422 |
Non-Current Liabilities | ||
Notes payable - non-current portion | 2,971 | |
Capital lease obligations - non-current portion | $ 10,211 | 896,422 |
Total non-current liabilities | 10,211 | 899,393 |
Total liabilities | $ 1,694,377 | $ 3,059,815 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock: 40,000,000 shares authorized; $0.0001 par value; no shares issued and outstanding as of December 31, 2015 and 2014 | ||
Common stock: 300,000,000 shares authorized; $0.0001 par value; 72,472,412 and 58,033,560 shares issued and outstanding as of December 31, 2015 and 2014, respectively | $ 7,248 | $ 5,804 |
Additional paid-in capital | 37,720,608 | 33,284,831 |
Accumulated deficit | (34,550,503) | (22,098,243) |
Total stockholders' equity | 3,177,353 | 11,192,392 |
Total liabilities and stockholders' equity | $ 4,871,730 | $ 14,252,207 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 40,000,000 | 40,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, shares issued | 72,472,412 | 58,033,560 |
Common stock, shares outstanding | 72,472,412 | 58,033,560 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 7,364,452 | $ 5,893,844 |
Cost of goods sold | (8,167,841) | (6,577,168) |
Gross loss | (803,389) | (683,324) |
Operating expenses | ||
Consulting fees | 324,947 | 767,914 |
Share-based compensation | 887,173 | 2,046,074 |
Salaries and wages | 549,578 | 999,968 |
Legal and professional | 300,350 | 337,118 |
General and administrative | 781,982 | $ 1,468,684 |
Impairment loss | 8,633,761 | |
Total operating expenses | 11,477,791 | $ 5,619,758 |
Loss from operations | (12,281,180) | (6,303,082) |
Other (income) and expense | ||
Interest income | (231) | (1,103) |
Interest expense | $ 160,937 | 180,128 |
Other | 6,392 | |
Total other expense, net | $ 160,706 | 185,417 |
Loss before provision for income taxes | (12,441,886) | $ (6,488,499) |
Provision for income taxes | 10,374 | |
Net loss | $ (12,452,260) | $ (6,488,499) |
Premium on Series AA Preferred conversion to common shares | (2,243,410) | |
Net loss available to common shareholders | $ (12,452,260) | $ (8,731,909) |
Basic and diluted net loss per share (in dollars per share) | $ (0.18) | $ (0.16) |
Weighted average common shares outstanding (basic and diluted) (in shares) | 69,113,112 | 54,451,172 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance, at beginning at Dec. 31, 2013 | $ 4,884 | $ 24,541,809 | $ (13,366,334) | $ 11,180,359 |
Balance, at beginning (in shares) at Dec. 31, 2013 | 48,834,916 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common shares for acquisition | $ 20 | 210,893 | $ 210,913 | |
Common shares for acquisition (in shares) | 204,750 | 204,750 | ||
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 | 2,605,513 | ||
Warrants and options exercised | $ 634 | 3,071,536 | $ 3,072,170 | |
Warrants and options exercised (in shares) | 6,340,775 | |||
Share-based compensation expense | $ 5 | 2,046,069 | $ 2,046,074 | |
Share-based compensation expense (in shares) | 47,606 | 47,606 | ||
Premium on Series AA Preferred conversion to common shares | 2,243,410 | $ (2,243,410) | ||
Net loss | (6,488,499) | $ (6,488,499) | ||
Balance, at end at Dec. 31, 2014 | $ 5,804 | 33,284,831 | $ (22,098,243) | $ 11,192,392 |
Balance, at end (in shares) at Dec. 31, 2014 | 58,033,560 | 58,033,560 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Offering of common shares, net | $ 1,101 | 3,543,347 | $ 3,544,448 | |
Offering of common shares, net (in shares) | 11,013,170 | 11,013,170 | ||
Common shares for payment of accounts payable | $ 2 | 5,598 | $ 5,600 | |
Common shares for payment of accounts payable (in shares) | 16,334 | |||
Warrants and options exercised | $ 100 | (100) | ||
Warrants and options exercised (in shares) | 999,667 | |||
Share-based compensation expense | $ 241 | 886,932 | $ 887,173 | |
Share-based compensation expense (in shares) | 2,409,681 | 2,409,681 | ||
Net loss | $ (12,452,260) | $ (12,452,260) | ||
Balance, at end at Dec. 31, 2015 | $ 7,248 | $ 37,720,608 | $ (34,550,503) | $ 3,177,353 |
Balance, at end (in shares) at Dec. 31, 2015 | 72,472,412 | 72,472,412 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net cash flow from operating activities | ||
Net loss | $ (12,452,260) | $ (6,488,499) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 586,502 | 475,784 |
Amortization | 206,936 | 211,829 |
Share-based compensation | 887,173 | $ 2,046,074 |
Provision for bad debt | 167,315 | |
Impairment of inventories | 168,795 | |
Impairment of property, plant and equipment | 5,320,074 | |
Impairment of deposit | 60,000 | |
Impairment of intangible assets | $ 3,084,892 | |
Other | $ 6,392 | |
Change in operating assets and liabilities: | ||
Accounts receivable, net | $ (189,165) | 112,878 |
Due from related parties | 34,868 | |
Prepaid expenses | $ 41,281 | (83,324) |
Inventories | 18,093 | (299,486) |
Deposits | (5,980) | |
Accounts payable and accrued expenses | (121,723) | 492,687 |
Due to related party | (28,095) | (520,182) |
Net cash used in operating activities | (2,256,162) | (4,010,979) |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | $ (173,874) | (2,655,725) |
Proceeds from sale of fixed assets | 1,800 | |
Net cash used in investing activities | $ (173,874) | (2,653,925) |
Cash flows from financing activities | ||
Repayment of debt | (6,904) | (6,505) |
Repayment of capital lease obligations | (325,668) | (299,213) |
Proceeds from the sale of common stock, net | 3,579,275 | 3,134,314 |
Stock issuance costs | (34,827) | (62,144) |
Net cash provided by financing activities | 3,211,876 | 2,766,452 |
Net change in cash | 781,840 | (3,898,452) |
Cash at the beginning of the year | 494,847 | 4,393,299 |
Cash at end of the year | 1,276,687 | 494,847 |
Supplemental disclosure of cash flow information | ||
Interest paid during period | 160,937 | $ 180,128 |
Income taxes paid during period | $ 10,374 | |
Supplemental disclosure of non-cash items | ||
Premium on Series AA Preferred conversion to common shares | $ 2,243,410 | |
Common stock issued for acquisition | 210,913 | |
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 | |
Common stock issued for settlement of accounts payable | $ 5,600 | |
Extinguishment of capital lease | $ 877,449 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | 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 six 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) Rock Hill, South Carolina, (5) Tea, South Dakota, and (6) Landover, Maryland. We also previously operated a processing center in Elizabeth, New Jersey. 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 names of GlyEco Acquisition Corp. #1 through GlyEco Acquisition Corp. #7. Cessation of Operations at New Jersey Processing Center On December 28, 2015, the Board of Directors of the Company approved the termination of (i) the Premises Lease, dated December 10, 2012, between GlyEco Acquisition Corp. #4 ("GAC #4") and NY Terminals II, LLC ("NY Terminals"), and (ii) the Equipment Lease, dated December 10, 2012, between GAC #4 and Full Circle MFG Group, Inc. ("Full Circle"), by complying with a Notice of Lease Termination and Demand to Vacate and a Notice of Equipment Lease Agreement Default and Demand for Performance delivered by NY Terminals and Full Circle, respectively. Pursuant to the termination of the Premises Lease and Equipment Lease, GAC #4 ceased all operations at its New Jersey processing center immediately. Pursuant to the Premises Lease, GAC #4 agreed to lease certain real property owned by NY Terminals until December 31, 2017 at a monthly rate of $30,000, while pursuant to the Equipment Lease, GAC #4 agreed to lease Full Circle's equipment until December 31, 2017 for a monthly rate of $32,900. The circumstances surrounding the termination of the Premises Lease and Equipment Lease relate to NY Terminals demand for payment of approximately $2.3 million for GAC #4 to maintain its ability to use the space at the real property owned by NY Terminals. NY Terminals contends that additional rents are due, while GAC #4's position is that the $250,000 payment made to NY Terminals in March 2015 sufficiently covered any rents due for additional space used by GAC #4. Pursuant to the Premises Lease, upon termination, NY Terminals may declare the term ended, re-enter the premises, and pursue any other remedies that might otherwise be available. Moreover, pursuant to the Equipment Lease, upon termination, Full Circle may declare the term ended, recover possession of the equipment, and pursue any other remedies that might otherwise be available. The estimated range involved in resolving this dispute is from $0 to $2,000,000. As a result of this termination, the Company has assessed the carrying values of the property, plant and equipment, inventories, and other intangibles associated with the New Jersey Processing Center and has recorded an impairment loss of approximately $8.5 million during the fourth quarter. The Company may incur additional costs in 2016 related to the wind down of the New Jersey operations. Going Concern The consolidated financial statements as of and for the year ended December 31, 2015 have been prepared assuming that the Company will continue as a going concern. As of December 31, 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 plan to achieve viable profitable operations through the implementation of operating efficiencies at our facilities added since 2013, the roll out of additional products and the expansion of geographic footprint through acquisitions and/or broader distribution from our current facilities. 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. 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 | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 2 Basis of Presentation and Summary of Significant Accounting Policies 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); 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 Companys acquisitions, the recoverability 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 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 (1) delivery of product has occurred or services have been rendered, (2) there is persuasive evidence of a sale arrangement, (3) selling prices are fixed or determinable, and (4) collectability from the customer (individual customers and distributors) is reasonably assured. Revenue consists primarily of revenue generated from the sale of the Companys products. This generally occurs when the Companys products are shipped from its facility as title has passed. Revenue is recorded net of estimated cash discounts. The Company estimates and accrues an allowance for sales returns at the time the product is sold. To date, sales returns have not been material. 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 customers willingness or ability to pay, the Companys 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. The allowance for doubtful accounts totaled $203,270 and $62,249 as of December 31, 2015 and 2014, respectively. Inventories 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. Finished goods represents work-in-process items with additive costs added. 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. For purposes of computing depreciation, the useful lives of property, plant and equipment are as follows: 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 and accrued expenses, amounts due to and from related parties and current portion of capital lease obligations and notes payable are reflected in the consolidated balance sheets 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 available to common shareholders by the weighted average number of shares outstanding during a period. Diluted loss per common share is computed by dividing the net loss available to common shareholders 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 December 31, 2015, these potentially dilutive securities included warrants of 16,567,326 and stock options of 11,612,302 for a total of 29,192,128. 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. Income Taxes The Company accounts for its income taxes in accordance with Financial Accounting Standard Board (FASB) Accounting Standards Codification (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. Share-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-Merton (BSM) option-pricing 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 share-based compensation is accounted for based on the fair value of the related stock or options, using the BSM, or the fair value of the goods or services on the measurement date, whichever is more readily determinable. 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 FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This updated guidance supersedes the current revenue recognition guidance, including industry-specific guidance. The updated guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The updated guidance is effective for interim and annual periods beginning after December 15, 2016, and early adoption is not permitted. In July 2015, the FASB decided to delay the effective date of ASU 2014-09 until December 15, 2017. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. The Company has not yet selected a transition method and is currently assessing the impact of the adoption of ASU 2014-09 will have on its consolidated financial statements and disclosures. In June 2014, the FASB issued ASU 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 consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 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 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 consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU 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 consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU NO. 2015-11, Inventory (Topic 330) (ASU 2015-11). The amendments in ASU 2015-11 require that an entity measure inventory within the scope at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transaction. The amendments in this update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting. ASU 2015-11 is effective for annual and interim periods beginning on or after December 15, 2016. The amendments in this update should be applied prospectively with early application permitted as of the beginning of the interim or annual reporting period. The Company is currently assessing this guidance for future implementation. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, an update to accounting guidance to simplify the presentation of deferred income taxes. The guidance requires an entity to classify all deferred tax liabilities and assets, along with any valuation allowance, as noncurrent in the balance sheet. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2016, including interim periods within these reporting periods. Early adoption is permitted. The Company is currently assessing the impact of the adoption of ASU 2015-17 will have on its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases, which requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. While the Company is still evaluating ASU 2016-02, the Company expects the adoption of ASU 2016-02 to have a material effect on the Companys consolidated financial condition due to the recognition of the lease rights and obligations as assets and liabilities. The Company is currently assessing the impact of the adoption of ASU 2016-02 will have on its consolidated financial statements and disclosures. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | NOTE 3 Accounts Receivable As of December 31, 2015 and 2014, the Company's net accounts receivable were $807,906 and $786,056, respectively. The following table summarizes activity for the allowance for doubtful accounts for the years ended December 31, 2015 and 2014: 2015 2014 Beginning balance as of January 1, $ 62,249 $ 47,927 Bad debt expense 167,315 64,226 Charge offs, net (26,293 ) (49,904 ) Ending balance as of December 31, $ 203,270 $ 62,249 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 Inventories As of December 31, 2015 and 2014, the Companys total inventories were $380,789 and $567,677, respectively. December 31, 2015 2014 Raw materials $ 217,165 $ 232,611 Work in process 84,343 110,466 Finished goods 79,281 224,600 Total inventories $ 380,789 $ 567,677 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 5 Property, Plant and Equipment As of December 31, 2015 and 2014, the property, plant and equipment, net of accumulated depreciation, is $1,279,057 and $7,889,207, respectively. December 31, 2015 2014 Machinery and equipment $ 1,863,322 $ 6,802,971 Leasehold improvements 50,772 449,271 Accumulated depreciation (661,930 ) (803,725 ) 1,252,164 6,448,517 Construction in process 26,893 1,440,690 Total property, plant and equipment $ 1,279,057 $ 7,889,207 Depreciation expense recorded during the years ended December 31, 2015 and 2014 was $586,502 and $475,784, respectively. During December 2015, the Company ceased operations at its New Jersey facility (see Note 1). In connection with the cession of operations at the New Jersey facility the Company recorded an impairment to property, plant and equipment of approximately $6.1 million. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 6 Goodwill and Other Intangible Assets 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. 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. See below for discussion of impairment recorded by the Company during 2015. 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 2015 and 2014 as the carrying amount of the reporting units assets did not exceed the estimated fair value determined. The components of goodwill and other 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 2014 Impairments 2015 Amortization 2015 Finite live intangible assets: Customer list and tradename 5 years 24,500 - 24,500 12,667 11,833 Non-compete agreements 5 years 332,000 - 332,000 174,300 157,700 Intellectual property 25 years 3,500,000 3,500,000 - - - Total intangible assets $ 3,856,500 $ 3,500,000 $ 356,500 $ 186,967 $ 169,533 Goodwill Indefinite $ 835,295 $ - $ 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. During December 2015, the Company ceased operations at its New Jersey facility (see Note 1). In connection with the cessation of operations at the New Jersey facility the Company recorded an impairment to intangible assets of approximately $3.1 million (net of accumulated amortization). Aggregate amortization expense included in general and administrative expenses for the years ended December 31, 2015 and 2014, totaled $206,936 and $211,829, respectively. The following table represents the total estimated amortization of intangible assets for future years: For the Year Ending December 31, Estimated Amortization Expense 2016 $ 71,829 2017 71,829 2018 25,875 $ 169,533 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 Income Taxes As of December 31, 2015 and 2014, the Company had net operating loss (NOL) carryforwards of approximately $30,842,000 and $16,500,000, respectively, adjusted for 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 realize the tax benefit related to the NOL carryforward, by having taxable income, a valuation allowance has been established as of December 31, 2015 and 2014 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, 2015 2014 Net operating loss 12,953,000 6,600,000 Stock compensation 1,732,000 - Reserves 85,000 - DTA 14,770,000 6,600,000 State taxes (956,000 ) - Depreciation and amortization - (600,000 ) DTL (956,000 ) (600,000 ) Net 13,814,000 6,000,000 Valuation allowance (13,814,000 ) (6,000,000 ) - - The change in the valuation allowance for deferred tax assets for the years ended December 31, 2015 and 2014 was $7,814,000 and $2,520,000, 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, 2015 and 2014, and recorded a full valuation allowance. Pursuant to Section 382 of the Internal Revenue Code of 1986, the annual utilization of a company's net operating loss carryforwards could be limited if the Company experiences a change in ownership of more than 50 percentage points within a three-year period. An ownership change occurs with respect to a corporation if it is a loss corporation on a testing date and, immediately after the close of the testing date, the percentage of stock of the corporation owned by one or more five-percent shareholders has increased by more than 50 percentage points over the lowest percentage of stock of such corporation owned by such shareholders at any time during the testing period. The Company has not performed an analysis to determine if any ownership changes have occurred that may limit the use of the Companys loss carryforwards. Reconciliation between the statutory rate and the effective tax rate is as follows at December 31, 2015 and 2014: Federal statutory tax rate 34 % Permanent differences (0.11 )% Valuation allowance (33.97 )% Effective tax rate (0.08 )% |
Capital Leases
Capital Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Capital Leases | NOTE 8 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 Circles 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. During December 2015, the Company ceased operations at its New Jersey facility (see Note 1). In connection with the cessation of operations at the New Jersey facility, the above equipment lease agreement was terminated by Full Circle. The Company recorded a gain on the termination of approximately $900,000, which has been shown net of the impairment loss on the accompanying consolidated statement of operations for the year ended December 31, 2015. 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, 2015, the carrying value of the assets under capital leases was $41,791. The depreciation expense for the year ended December 31, 2015 was $3,895. Future minimum lease payments are due as follow: Year Ended December 31, Principal Interest Total 2016 $ 9,752 $ 750 $ 10,502 2017 3,824 343 4,167 2018 3,983 184 4,167 2019 2,404 32 2,436 Total minimum lease payments $ 19,963 $ 1,309 $ 21,272 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 9 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. The balance due on the Note Payable was $2,972 as of December 31, 2015. 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. |
Convertible Note Payable
Convertible Note Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | NOTE 10 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 Recyclings 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 Companys 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity | |
Stockholders' Equity | NOTE 11 Stockholders Equity Preferred Stock The Companys 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 Companys assets. Of the 40,000,000 preferred shares the Company is authorized by its articles of incorporation, the Board of Directors has designated up to 3,000,000 as Series AA preferred shares. As of December 31, 2015 and 2014 the Company had no shares of Preferred Stock outstanding. Common Stock As of December 31, 2015, the Company has 72,472,412, shares of common stock outstanding. The Companys 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 year ended December 31, 2015, the Company issued the following shares of common stock in connection with a private placement financing: On February 17, 2015, the Company issued an aggregate of 11,013,170 shares of Common Stock to eighteen accredited investors for cash at a price of $0.325 per share, net of offering costs of $34,827, for net proceeds of $3,544,448 in connection with the completion of a private placement offering. During the year ended December 31, 2015, the Company issued the following shares of common stock in connection with warrant exercises: 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. During the year ended December 31, 2015, the Company issued the following shares of common stock in connection with payment of accrued expenses: On February 19, 2015, the Company issued 8,000 shares of common stock to Sahag Consulting, LLC for settlement of $2,600 of accrued expenses. On July 16, 2015, the Company issued an aggregate of 8,334 shares of Common Stock to six directors of the Company in lieu of cash for compensation due to the directors for the fourth quarter of fiscal year 2014 at a price of $0.36 per share. These shares were issued for settlement of $3,000 of accrued expenses. During the year ended December 31, 2015, the Company issued the following shares of common stock for compensation: 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 Program 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 Program at a price of $0.30 per share. 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 Program 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 Program 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 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 Program at a price of $0.25 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 Program at a price of $0.25 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 $0.25 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 Program at a price of $0.25 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 39,473 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.19 per share. On July 31, 2015, the Company issued an aggregate of 19,870 shares of Common Stock to three employees of the Company pursuant to the Companys Equity Incentive Program at a price of $0.20 per share. On July 31, 2015, the Company issued of 50,000 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.15 per share. On August 31, 2015, the Company issued an aggregate of 24,941 shares of Common Stock to four employees of the Company pursuant to the Companys Equity Incentive Program at a price of $0.20 per share. On August 31, 2015, the Company issued 62,500 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.12 per share. On September 1, 2015, the Company issued 385,714 shares of Common Stock to the CEO of the Company at a price of $0.14 per share as a bonus pursuant to his consulting agreement. On September 11, 2015, the Company issued 80,000 shares of Common Stock to an outside consultant of the Company pursuant to his engagement agreement at a price of $0.10 per share. On September 16, 2015, the Company issued an aggregate of 30,000 shares of Common Stock to the Companys former CFO in accordance with her employment and consultant agreement at a price of $0.15 per share. On September 30, 2015, the Company issued an aggregate of 24,824 shares of Common Stock to four employees of the Company pursuant to the Companys Equity Incentive Program at a price of $0.20 per share. On September 30, 2015, the Company issued an aggregate of 160,904 shares of Common Stock to seven directors of the Company pursuant to the Companys FY2015 Director Compensation Plan at a price of $0.10 per share. On September 30, 2015, the Company issued 91,667 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.10 per share. On October 31, 2015, the Company issued an aggregate of 66,224 shares of Common Stock to five employees of the Company pursuant to the Companys Equity Incentive Program at a price of $0.10 per share. On November 30, 2015, the Company issued an aggregate of 65,110 shares of Common Stock to five employees of the Company pursuant to the Companys Equity Incentive Program at a price of $0.10 per share. On December 31, 2015, the Company issued an aggregate of 72,315 shares of Common Stock to six employees of the Company pursuant to the Companys Equity Incentive Program at a price of $0.10 per share. On December 31, 2015, the Company issued an aggregate of 343,750 shares of Common Stock to the CEO of the Company pursuant to his consulting agreement at a price of $0.08 per share. On December 31, 2015, the Company issued an aggregate of 209,375 shares of Common Stock to seven directors of the Company pursuant to the Companys FY2015 Director Compensation Plan at a price of $0.08 per share. Summary: Number of Common Shares Issued Value of Common Shares Common shares issued for cash, net of offering costs 11,013,170 $ 3,544,448 Common shares for settlement of accrued expenses 16,334 $ 5,600 Share-based compensation 2,409,681 $ 371,737 Warrants exercised 999,667 $ - For the year ended December 31, 2014, the Company issued the following common stock: Number of Value of Shares Common 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. 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. The common shares issued for cash 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. Equity Incentive Plan On December 18, 2014, the Companys 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. On July 10, 2015, the Companys 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 was eligible to receive either six stock options or five shares of restricted common stock. Stock options issued pursuant to the program vested immediately upon issuance and have an exercise price of $0.19 per share, while restricted stock issued pursuant to the program shall also vest immediately and have a stock basis of $0.19 per share. 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, $0.25, $0.20 and $0.10 per share during the quarters ended March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 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, $0.24, $0.19 and $0.10 per share for shares issued during the quarters ended March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, respectively. For 2015, the Company issued 668,604 shares of restricted Common Stock valued at $144,971 and granted 277,491 options valued at $45,643 pursuant to the Equity Incentive Program. |
Options and Warrants
Options and Warrants | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options and Warrants | NOTE 12 Options and Warrants The following are details related to options issued by the Company: Weighted Options for Average Shares Exercise Price Outstanding as of December 31, 2013 10,133,506 $ 0.74 Granted 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 Outstanding as of December 31, 2014 11,096,428 $ 0.72 Granted 678,157 0.25 Exercised - - Forfeited (162,283 ) 0.90 Cancelled - - Expired - - Outstanding as of December 31, 2015 11,612,302 $ 0.68 Options exercisable as of December 31, 2015 11,387,052 $ 0.68 Options exercisable and expected to vest as of December 31, 2015 11,612,302 $ 0.68 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. 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. We use the 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 Companys 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 managements analysis of potential forfeitures. The weighted average expected term of options outstanding and exercisable as of December 31, 2015 were 6.85 years and 6.77 years, respectively. There was no intrinsic value for any options outstanding as of December 31, 2015. The estimated value of employee stock options granted during the years ended December 31, 2015 and 2014 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2015 2014 Expected volatility 86 110 % 40 - 86 % Risk-free interest rate 0.89 1.21 % 0.16 0.70 % Expected dividends 0.00 % 0.00 % Expected term in years 3 5 3 5 The weighted-average grant date fair value per share of options for the year ended December 31, 2015 was $0.25. At December 31, 2015, the amount of unearned stock-based compensation currently estimated to be expensed over future years related to unvested common stock options is approximately $42,021, net of estimated forfeitures. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense or calculate and record additional expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional common stock options or other stock-based awards. The following are details related to warrants issued by the Company: Weighted Warrants for Average Shares Exercise Price Outstanding as of December 31, 2013 19,530,441 1.08 Granted 5,305,513 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 Outstanding as of December 31, 2014 17,567,326 0.93 Granted - - Exercised (1,000,000 ) 0.0001 Forfeited - - Cancelled - - Expired - - Outstanding and exercisable as of December 31, 2015 16,567,326 1.02 The Company recorded expense of $515,436 (including $102,426 of option modification expense) and $1,384,929 for options and warrants during the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, the Company had 966,771 common shares reserved for future issuance under the Companys stock plans. All warrants exercised during 2014 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. The 1,000,000 warrants exercised during 2015 were done on a cashless basis in which the Company issued 999,667 shares of common stock (see Note 11). ■ Expected term is generally determined using the contractual term of the award; ■ Expected volatility of award grants made under the Companys 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 managements analysis of potential forfeitures. The weighted-average estimated fair value of warrants granted as share-based compensation during the years ended December 31, 2015 and 2014 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2015 2014 Expected volatility - 40 - 86 % Risk-free interest rate - 0.60 0.70 % Expected dividends - 0.00 % Expected term in years - 3 5 At December 31, 2015, the amount of unearned stock-based compensation currently estimated to be expensed over future years related to unvested common stock warrants is $0. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense or calculate and record additional expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional common stock warrants or other stock-based awards. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 Related Party Transactions Interim Chief Executive Officer The Interim Chief Executive Officer is the sole owner of Rocco Advisors. Amounts due and payable to the Interim Chief Executive Officer for services performed were paid to Rocco Advisors, instead of directly to the Interim Chief Executive Officer. These services and fees were in the ordinary course of business and subject to an agreement approved by the Companys Board of Directors. 2015 2014 Beginning Balance as of January 1, $ - $ - Monies owed to related party for services performed 82,500 - Monies paid (82,500 ) - Ending Balance as of December 31, $ - $ - Vice President of US Operations The Vice President of US Operations is the sole owner of BKB Holdings, LLC, which is the landlord of the property where GlyEco Acquisition Corp #5 processing center is located. The Vice President of US Operations also is the sole owner of Renew Resources, LLC, which provides services to the Company as a vendor. 2015 2014 Beginning Balance as of January 1, $ (3,500 ) $ 1,213 Monies owed to related party for services performed 80,750 58,531 Monies paid (74,459 ) (63,244 ) Ending Balance as of December 31, $ 2,791 $ (3,500 ) Florida General Manager The General Manager of our Florida processing center also manages the business of Brians On-Site Recycling, Inc., which is a competitor to the Company in the local Florida market. The Company sells finished goods to Brians On-Site Recycling, Inc. and buys raw materials from Brians On-Site Recycling, Inc. 2015 2014 Beginning Balance as of January 1, $ - $ - Monies owed to related party for services performed 9,774 4,830 Monies due from related party for services performed (57,334 ) (82,561 ) Monies received, net 51,502 77,731 Ending Balance as of December 31, $ 3,942 $ - Former Chief Technical Officer The former Chief Technical Officer is the sole owner of WEBA Technologies (WEBA), 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 former Chief Technical Officer in the ordinary course of business. The WEBA transactions are summarized below. 2015 2014 Beginning Balance as of January 1, $ 15,050 $ - Monies owed to related party for services performed 372,763 218,195 Monies paid (360,141 ) (203,145 ) Ending Balance as of December 31, $ 27,672 $ 15,050 Former Chief Executive Officer 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 $ 100,000 Monies owed to related party for services performed 9,000 - Monies paid (71,500 ) (37,500 ) Ending Balance as of December 31, $ - $ 62,500 Former Chief Business Development Officer The former Chief Business Development Officer is the sole owner of two corporations, CyberSecurity, Inc. and Market Tactics, Inc., which was paid $76,500 for marketing consulting services provided to the Company and $4,113 of reimbursable business expenses during the year ended December 31, 2014. During the year ended December 31, 2015, the Company paid the former Chief Business Development Officer $7,515 for reimbursable business expenses. 2015 2014 Beginning Balance as of January 1, $ - $ 16,058 Monies owed to related party 7,515 80,613 Monies paid (7,515 ) (96,671 ) Ending Balance as of December 31, $ - $ - |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14 Commitments and Contingencies Rental Agreements During the years ended December 31, 2015 and 2014, the Company rented office and warehouse space on a monthly basis under written rental agreements. The terms of these agreements range from several months to five years. For the years ended December 31, 2015 and 2014, rent expense was $645,477 and $694,899, respectively. Future minimum lease payments due are as follows: Year Ended December 31, 2016 $ 290,391 2017 209,708 2018 64,005 2019 44,352 2020 44,352 Thereafter 7,392 Total minimum lease payments $ 660,200 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. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Below is an overview of a recently resolved legal proceeding, one pending legal proceeding, and one outstanding alleged claim. 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 was related to two alleged exceedances of the limits in the wastewater permit held by the Companys former New Jersey Processing Center. The Company was able to settle the civil action with PVSC on September 21, 2015, for a settlement amount of $1,000, and the action has since been disposed of. On January 8, 2016, Acquisition Sub. #4 filed a civil action against Onyxx Group LLC in the Circuit Court of Hillsborough County, Florida. This civil action relates to a significant outstanding balance due from Onyxx Group LLC to Acquisition Sub. #4. This civil action is still pending. The Company is also aware of one matter that involves an alleged claim against the Company, and it is at least reasonably possible that the claim will be pursued. The claim involves contracts with our former director and his related entities that provided services and was our landlord for the Companys former processing facility in New Jersey. In this matter, the landlord of the Companys formerly leased property claims back rent is due for property used by the Company outside of the scope of its lease agreement. During the fiscal quarter ended March 31, 2015, the former landlord denied the Company access to the New Jersey 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. On December 28, 2015, the Company ultimately approved the termination of the lease agreements related to the New Jersey facility, thereby ceasing all operations at that particular facility. This termination was prompted by the former landlords demand for payment of approximately $2.3 million to maintain access to the facility. The Companys position is that the Company has sufficiently paid the former landlord for use of any such additional space. The estimated range involved in resolving this dispute is from $0 to $2,000,000. Management believes this claim is meritless, and the Company will defend itself to the extent it is economically justified. As of December 31, 2015, the Company has recorded an accrual in the amount of $250,000 to provide for estimated contract termination costs associated with its exit from the New Jersey facility. 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 consolidated financial position, results of operations or cash flows. The Company is aware of one environmental remediation issue related to our former 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 former landlord has engaged a licensed site remediation professional and had assumed responsibility for this remediation. In managements opinion the liability for this remediation is the responsibility of the former landlord. However, the former landlord has disputed this position and it is an open issue subject to negotiation. Currently, we have no knowledge as to the scope of the landlords former remediation obligation. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | NOTE 15 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 Financial instruments that subject the Company to credit risk are cash balances maintained in excess of federal depository insurance limits. At December 31, 2015 and 2014, the Company had $0 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 2015 and 2014, the Company had one customer that accounted for more than 10% of revenues and whose accounts receivable balance (unsecured) accounted for more than 10% of accounts receivable at December 31, 2015 and 2014. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 Subsequent Events Appointment of Chief Financial Officer and President On February 12, 2016, the Board of Directors of the Company appointed Ian Rhodes to be the Companys Chief Financial Officer and Grant Sahag to be the Companys President, effective February 22, 2016. On February 12, 2016, the Company entered into separate Employment Agreements with Messrs. Rhodes and Sahag. Pursuant to the Employment Agreement with Mr. Rhodes, in exchange for Mr. Rhodes performance of his duties as Chief Financial Officer, the Company will compensate him with an annual base salary of $150,000. Mr. Rhodes will be granted 2% of the Companys total outstanding shares of Common Stock, following the Companys rights offering, as equity compensation. This stock will vest pursuant to a schedule with certain stock price thresholds that must be achieved based on a 30 trading day volume weighted average price. Mr. Rhodes will also be eligible to receive an annual cash incentive payable for the achievement of performance goals to be established by the Compensation Committee of the Companys Board of Directors up to 40% of his salary. The Employment Agreement is for an initial term of one year and will be automatically extended on each anniversary unless earlier terminated. Pursuant to the Employment Agreement with Mr. Sahag, in exchange for Mr. Sahags performance of his duties as President, the Company will compensate him with an annual base salary of $120,000. Mr. Sahag will be granted 1% of the Companys total outstanding shares of Common Stock, following the Companys rights offering, as equity compensation. This stock will vest pursuant to a schedule with certain stock price thresholds that must be achieved based on a 30 trading day volume weighted average price. Mr. Sahag will also be eligible to receive an annual cash incentive payable for the achievement of performance goals to be established by the Compensation Committee of the Companys Board of Directors up to 40% of his salary. The Employment Agreement is for an initial term of one year and will be automatically extended on each anniversary unless earlier terminated. Rights Offering On February 26, 2016, the Company closed a rights offering. The rights offering was made pursuant to a registration statement on Form S-1 filed with the Securities and Exchange Commission and declared effective on January 20, 2016. Pursuant to the rights offering, the Company distributed to holders of its common stock non-transferable subscription rights to purchase up to 50,200,947 shares of the Companys common stock, par value $0.0001 per share. Each shareholder received one subscription right for every one share of common stock owned at 5:00 p.m. EST on October 30, 2015, the record date. Each subscription right entitled a shareholder to purchase 0.7 shares of the Companys common stock at a subscription price of $0.08 per share, which was referred to as the basic subscription privilege. If a shareholder fully exercised their basic subscription privilege and other shareholders did not fully exercise their basic subscription privileges, shareholders could also exercise an over-subscription privilege to purchase a portion of the unsubscribed shares at the same subscription price of $0.08 per share. During the rights offering, subscription rights to purchase a total of 37,475,620 shares of common stock, par value $0.0001, were exercised. The exercise of these subscription rights resulted in gross proceeds to the Company of approximately $2,998,050 before deducting expenses of the rights offering. Recent Stock Issuances Since December 31, 2015, the Company has issued an aggregate of 194,584 shares of common stock pursuant to the Companys Equity Incentive Program. Change in Chief Executive Officer On March 28, 2016, David Ide, the Companys Interim Chief Executive Officer, informed the Companys Board of Directors of his intention to not extend his tenure as Interim Chief Executive Officer beyond the expiration of his Consulting Agreement on April 30, 2016. Mr. Ide will continue to serve as a member of the Board of Directors and as Chairman of the Board of Directors Executive Committee. On March 28, 2016, the Board of Directors of the Company appointed Grant Sahag to be the Companys Chief Executive Officer, effective May 1, 2016. |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 | 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) 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 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 | 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 | Cash All highly liquid investments with maturities of three months or less at the time of purchase are considered to be cash equivalents. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when (1) delivery of product has occurred or services have been rendered, (2) there is persuasive evidence of a sale arrangement, (3) selling prices are fixed or determinable, and (4) collectability from the customer (individual customers and distributors) is reasonably assured. Revenue consists primarily of revenue generated from the sale of the Companys products. This generally occurs when the Companys products are shipped from its facility as title has passed. Revenue is recorded net of estimated cash discounts. The Company estimates and accrues an allowance for sales returns at the time the product is sold. To date, sales returns have not been material. Shipping costs passed to the customer are included in net sales. |
Costs | 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 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. The allowance for doubtful accounts totaled $203,270 and $62,249 as of December 31, 2015, and December 31, 2014, respectively. |
Inventories | Inventories 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. Finished goods represents work-in-process items with additive costs added. The Company periodically reviews its inventories for obsolete or unsalable items and adjusts its carrying value to reflect estimated realizable values. |
Property and Equipment | 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. For purposes of computing depreciation, the useful lives of property, plant and equipment are as follows: Leasehold improvements 5 years Machinery and equipment |
Fair Value of Financial Instruments | 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 and accrued expenses, amounts due to and from related parties and current portion of capital lease obligations and notes payable are reflected in the consolidated balance sheets 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 | Net Loss per Share Calculation The basic net loss per common share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during a period. Diluted loss per common share is computed by dividing the net loss available to common shareholders 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 December 31, 2015, these potentially dilutive securities included warrants of 16,567,326 and stock options of 11,612,302 for a total of 29,192,128. 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. |
Income Taxes | Income Taxes The Company accounts for its income taxes in accordance with Financial Accounting Standard Board ("FASB") Accounting Standards Codification ("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. |
Share-based Compensation | Share-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-Merton ("BSM") option-pricing 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 share-based compensation is accounted for based on the fair value of the related stock or options, using the BSM, or the fair value of the goods or services on the measurement date, whichever is more readily determinable. |
Recently Issued Accounting Pronouncements | 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 FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This updated guidance supersedes the current revenue recognition guidance, including industry-specific guidance. The updated guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The updated guidance is effective for interim and annual periods beginning after December 15, 2016, and early adoption is not permitted. In July 2015, the FASB decided to delay the effective date of ASU 2014-09 until December 15, 2017. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. The Company has not yet selected a transition method and is currently assessing the impact of the adoption of ASU 2014-09 will have on its consolidated financial statements and disclosures. In June 2014, the FASB issued ASU 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 consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 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 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 consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU 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 consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU NO. 2015-11, Inventory (Topic 330) (ASU 2015-11). The amendments in ASU 2015-11 require that an entity measure inventory within the scope at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transaction. The amendments in this update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting. ASU 2015-11 is effective for annual and interim periods beginning on or after December 15, 2016. The amendments in this update should be applied prospectively with early application permitted as of the beginning of the interim or annual reporting period. The Company is currently assessing this guidance for future implementation. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, an update to accounting guidance to simplify the presentation of deferred income taxes. The guidance requires an entity to classify all deferred tax liabilities and assets, along with any valuation allowance, as noncurrent in the balance sheet. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2016, including interim periods within these reporting periods. Early adoption is permitted. The Company is currently assessing the impact of the adoption of ASU 2015-17 will have on its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases, which requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. While the Company is still evaluating ASU 2016-02, the Company expects the adoption of ASU 2016-02 to have a material effect on the Companys consolidated financial condition due to the recognition of the lease rights and obligations as assets and liabilities. The Company is currently assessing the impact of the adoption of ASU 2016-02 will have on its consolidated financial statements and disclosures. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of activity for the allowance for doubtful accounts | The following table summarizes activity for the allowance for doubtful accounts for the years ended December 31, 2015 and 2014: 2015 2014 Beginning balance as of January 1, $ 62,249 $ 47,927 Bad debt expense 167,315 64,226 Charge offs, net (26,293 ) (49,904 ) Ending balance as of December 31, $ 203,270 $ 62,249 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of December 31, 2015 and 2014, the Companys total inventories were $380,789 and $567,677, respectively. December 31, 2015 2014 Raw materials $ 217,165 $ 232,611 Work in process 84,343 110,466 Finished goods 79,281 224,600 Total inventories $ 380,789 $ 567,677 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net of accumulated depreciation | As of December 31, 2015 and 2014, the property, plant and equipment, net of accumulated depreciation, is $1,279,057 and $7,889,207, respectively. December 31, 2015 2014 Machinery and equipment $ 1,863,322 $ 6,802,971 Leasehold improvements 50,772 449,271 Accumulated depreciation (661,930 ) (803,725 ) 1,252,164 6,448,517 Construction in process 26,893 1,440,690 Total property, plant and equipment $ 1,279,057 $ 7,889,207 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The components of goodwill and other 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 2014 Impairments 2015 Amortization 2015 Finite live intangible assets: Customer list and tradename 5 years 24,500 - 24,500 12,667 11,833 Non-compete agreements 5 years 332,000 - 332,000 174,300 157,700 Intellectual property 25 years 3,500,000 3,500,000 - - - Total intangible assets $ 3,856,500 $ 3,500,000 $ 356,500 $ 186,967 $ 169,533 Goodwill Indefinite $ 835,295 $ - $ 835,295 $ - $ 835,295 |
Schedule of estimated amortization of intangible assets | The following table represents the total estimated amortization of intangible assets for future years: For the Year Ending December 31, Estimated Expense 2016 $ 71,829 2017 71,829 2018 25,875 $ 169,533 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets | The deferred tax assets, including a valuation allowance, are as follows at December 31: December 31, 2015 2014 Net operating loss 12,953,000 6,600,000 Stock compensation 1,732,000 - Reserves 85,000 - DTA 14,770,000 6,600,000 State taxes (956,000 ) - Depreciation and amortization - (600,000 ) DTL (956,000 ) (600,000 ) Net 13,814,000 6,000,000 Valuation allowance (13,814,000 ) (6,000,000 ) - - |
Schedule of reconciliation between the statutory rate and the effective tax rate | Reconciliation between the statutory rate and the effective tax rate is as follows at December 31, 2015 and 2014: Federal statutory tax rate 34 % Permanent differences (0.11 )% Valuation allowance (33.97 )% Effective tax rate (0.08 )% |
Capital Leases (Tables)
Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Capital Leases Tables | |
Schedule of future minimum lease payments | Future minimum lease payments are due as follow: Year Ended December 31, Principal Interest Total 2016 $ 9,752 $ 750 $ 10,502 2017 3,824 343 4,167 2018 3,983 184 4,167 2019 2,404 32 2,436 Total minimum lease payments $ 19,963 $ 1,309 $ 21,272 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity | |
Schedule of common stock issued | Summary: Number of Common Shares Issued Value of Common Shares Common shares issued for cash, net of offering costs 11,013,170 $ 3,544,448 Common shares for settlement of accrued expenses 16,334 $ 5,600 Share-based compensation 2,409,681 $ 371,737 Warrants exercised 999,667 $ - For the year ended December 31, 2014, the Company issued the following common stock: Number of Value of Shares Common 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 |
Options and Warrants (Tables)
Options and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of options | The following are details related to options issued by the Company: Weighted Options for Average Shares Exercise Price Outstanding as of December 31, 2013 10,133,506 $ 0.74 Granted 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 Outstanding as of December 31, 2014 11,096,428 $ 0.72 Granted 678,157 0.25 Exercised - - Forfeited (162,283 ) 0.90 Cancelled - - Expired - - Outstanding as of December 31, 2015 11,612,302 $ 0.68 Options exercisable as of December 31, 2015 11,387,052 $ 0.68 Options exercisable and expected to vest as of December 31, 2015 11,612,302 $ 0.68 |
Schedule of value of employee stock options by using black schole model | The estimated value of employee stock options granted during the years ended December 31, 2015 and 2014 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2015 2014 Expected volatility 86 110 % 40 - 86 % Risk-free interest rate 0.89 1.21 % 0.16 0.70 % Expected dividends 0.00 % 0.00 % Expected term in years 3 5 3 5 |
Schedule of warrants issued | The following are details related to warrants issued by the Company: Weighted Warrants for Average Shares Exercise Price Outstanding as of December 31, 2013 19,530,441 1.08 Granted 5,305,513 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 Outstanding as of December 31, 2014 17,567,326 0.93 Granted - - Exercised (1,000,000 ) 0.0001 Forfeited - - Cancelled - - Expired - - Outstanding and exercisable as of December 31, 2015 16,567,326 1.02 |
Schedule of weighted-average estimated fair value of warrants by using black-schole model | The weighted-average estimated fair value of warrants granted as share-based compensation during the years ended December 31, 2015 and 2014 were estimated using the BSM option pricing model with the following assumptions: Years Ended December 31, 2015 2014 Expected volatility - 40 - 86 % Risk-free interest rate - 0.60 0.70 % Expected dividends - 0.00 % Expected term in years - 3 5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Chief Executive Officer [Member] | |
Schedule of related party transations | The Interim Chief Executive Officer is the sole owner of Rocco Advisors. Amounts due and payable to the Interim Chief Executive Officer for services performed were paid to Rocco Advisors, instead of directly to the Interim Chief Executive Officer. These services and fees were in the ordinary course of business and subject to an agreement approved by the Companys Board of Directors. 2015 2014 Beginning Balance as of January 1, $ - $ - Monies owed to related party for services performed 82,500 - Monies paid (82,500 ) - Ending Balance as of December 31, $ - $ - |
Vice President of US Operations [Member] | |
Schedule of related party transations | The Vice President of US Operations is the sole owner of BKB Holdings, LLC, which is the landlord of the property where GlyEco Acquisition Corp #5 processing center is located. The Vice President of US Operations also is the sole owner of Renew Resources, LLC, which provides services to the Company as a vendor. 2015 2014 Beginning Balance as of January 1, $ (3,500 ) $ 1,213 Monies owed to related party for services performed 80,750 58,531 Monies paid (74,459 ) (63,244 ) Ending Balance as of December 31, $ 2,791 $ (3,500 ) |
Florida General Manager [Member] | |
Schedule of related party transations | The General Manager of our Florida processing center also manages the business of Brians On-Site Recycling, Inc., which is a competitor to the Company in the local Florida market. The Company sells finished goods to Brians On-Site Recycling, Inc. and buys raw materials from Brians On-Site Recycling, Inc. 2015 2014 Beginning Balance as of January 1, $ - $ - Monies owed to related party for services performed 9,774 4,830 Monies due from related party for services performed (57,334 ) (82,561 ) Monies received, net 51,502 77,731 Ending Balance as of December 31, $ 3,942 $ - |
Former Chief Technical Officer [Member] | |
Schedule of related party transations | The former Chief Technical Officer is the sole owner of WEBA Technologies (WEBA), 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 former Chief Technical Officer in the ordinary course of business. The WEBA transactions are summarized below. 2015 2014 Beginning Balance as of January 1, $ 15,050 $ - Monies owed to related party for services performed 372,763 218,195 Monies paid (360,141 ) (203,145 ) Ending Balance as of December 31, $ 27,672 $ 15,050 |
Former Chief Executive Officer [Member] | |
Schedule of related party transations | 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 $ 100,000 Monies owed to related party for services performed 9,000 - Monies paid (71,500 ) (37,500 ) Ending Balance as of December 31, $ - $ 62,500 |
Former Chief Business Development Officer [Member] | |
Schedule of related party transations | During the year ended December 31, 2015, the Company paid the former Chief Business Development Officer $7,515 for reimbursable business expenses. 2015 2014 Beginning Balance as of January 1, $ - $ 16,058 Monies owed to related party 7,515 80,613 Monies paid (7,515 ) (96,671 ) Ending Balance as of December 31, $ - $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments due are as follows: Year Ended December 31, 2016 $ 290,391 2017 209,708 2018 64,005 2019 44,352 2020 44,352 Thereafter 7,392 Total minimum lease payments $ 660,200 |
Organization and Nature of Bu34
Organization and Nature of Business (Details Narrative) - Lease Termination Agreement [Member] - GlyEco Acquisition Corp. #4 [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | |
Impairment loss | $ 8,500,000 | ||
Minimum [Member] | |||
Lease estimated rang of loss | $ 0 | ||
Maximum [Member] | |||
Lease estimated rang of loss | 2,000,000 | ||
NY Terminals II, LLC [Member] | Premises Lease Property [Member] | |||
Lease payment | 30,000 | $ 30,000 | |
Lease expiration term | Dec. 31, 2017 | ||
Frequency of lease payment | Monthly | ||
Lease obligation paid at the time of termination | 2,300,000 | $ 2,300,000 | |
Additional lease payment | $ 250,000 | ||
Full Circle MFG Group, Inc [Member] | Equipment Lease Property [Member] | |||
Lease payment | $ 32,900 | $ 32,900 | |
Lease expiration term | Dec. 31, 2017 | ||
Frequency of lease payment | Monthly |
Basis of Presentation and Sum35
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Numbershares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | |
Number of operating segement | Number | 1 | ||
Allowance for doubtful accounts | $ | $ 203,270 | $ 62,249 | $ 47,927 |
Capitalized costs | $ | $ 661,930 | $ 803,725 | |
Number of potentially dilutive securities | 29,192,128 | 28,663,754 | |
Warrant [Member] | |||
Number of potentially dilutive securities | 16,567,326 | 17,567,326 | |
Employee Stock Option [Member] | |||
Number of potentially dilutive securities | 11,612,302 | 11,096,428 |
Basis of Presentation and Sum36
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Land Improvements [Member] | |
Useful life | 5 years |
Machinery And Equipment [Member] | Minimum [Member] | |
Useful life | 3 years |
Machinery And Equipment [Member] | Maximum [Member] | |
Useful life | 25 years |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Accounts receivable, net | $ 807,906 | $ 786,056 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 62,249 | $ 47,927 |
Bad debt expense | 167,315 | 64,226 |
Charge offs, net | (26,293) | (49,904) |
Ending balance | $ 203,270 | $ 62,249 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Inventories | $ 380,789 | $ 567,677 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 217,165 | $ 232,611 |
Work in process | 84,343 | 110,466 |
Finished goods | 79,281 | 224,600 |
Total inventories | $ 380,789 | $ 567,677 |
Property, Plant and Equipment41
Property, Plant and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, plant and equipment, net | $ 1,279,057 | $ 7,889,207 |
Depreciation expense | 586,502 | $ 475,784 |
Impaiment charges | 8,633,761 | |
GlyEco Acquisition Corp. #4 [Member] | ||
Impaiment charges | $ 6,100,000 |
Property, Plant and Equipment42
Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated depreciation | $ (661,930) | $ (803,725) |
Property, plant and equipment before construction in process | 1,252,164 | 6,448,517 |
Construction in process | 26,893 | 1,440,690 |
Total property, plant and equipment | 1,279,057 | 7,889,207 |
Machinery And Equipment [Member] | ||
Property, plant and equipment before construction in process | 1,863,322 | 6,802,971 |
Land Improvements [Member] | ||
Property, plant and equipment before construction in process | $ 50,772 | $ 449,271 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Details Narrative) | Aug. 26, 2015USD ($)Number | Mar. 21, 2015$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Impairment to intangible assets | $ 3,084,892 | |||
Amortization expense | 186,967 | |||
General and Administrative Expense [Member] | ||||
Amortization expense | 206,936 | $ 211,829 | ||
GlyEco Acquisition Corp. #4 [Member] | ||||
Impairment to intangible assets | $ 3,100,000 | |||
GlyEco Acquisition Corp. #3 [Member] | Interim Management Agreement [Member] | MMT Technologies, Inc. [Member] | Restricted Stock [Member] | ||||
Number of shares issued | shares | 204,750 | |||
Share price (in dollars per share) | $ / shares | $ 0.0001 | |||
GlyEco Acquisition Corp. #3 [Member] | Interim Management Agreement [Member] | MMT Technologies, Inc. [Member] | Vehicle [Member] | ||||
Number of vehicle purchased | Number | 10 | |||
Cash consideration | $ 50,000 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite live intangible assets | ||
Gross | $ 356,500 | $ 3,856,500 |
Current Year Impairments | 3,500,000 | |
Accumulated Amortization | 186,967 | |
Net | 169,533 | |
Goodwill | ||
Gross | $ 835,295 | $ 835,295 |
Current Year Impairments | ||
Accumulated Amortization | ||
Net | $ 835,295 | $ 835,295 |
Customer List And Tradename [Member] | ||
Finite live intangible assets | ||
Estimated Useful Life | 5 years | |
Gross | $ 24,500 | $ 24,500 |
Current Year Impairments | ||
Accumulated Amortization | $ 12,667 | |
Net | $ 11,833 | |
Non-Compete Agreements [Member] | ||
Finite live intangible assets | ||
Estimated Useful Life | 5 years | |
Gross | $ 332,000 | $ 332,000 |
Current Year Impairments | ||
Accumulated Amortization | $ 174,300 | |
Net | $ 157,700 | |
Intellectual Property [Member] | ||
Finite live intangible assets | ||
Estimated Useful Life | 25 years | |
Gross | $ 3,500,000 | |
Current Year Impairments | $ 3,500,000 | |
Accumulated Amortization | ||
Net |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets (Details 1) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 71,829 | |
2,017 | 71,829 | |
2,018 | 25,875 | |
Total | $ 169,533 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating loss carryforwards | $ 30,842,000 | $ 16,500,000 |
Description of operationg loss carry forwards | Adjusted for stock based compensation and certain other non-deductible items available to reduce future taxable income, if any. | |
Change in deferred tax assets valuation allowance | $ 7,814,000 | $ 2,520,000 |
Minimum [Member] | Warrant [Member] | ||
Expiration year | 2,027 | |
Maximum [Member] | Warrant [Member] | ||
Expiration year | 2,035 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 12,953,000 | $ 6,600,000 |
Stock compensation | 1,732,000 | |
Reserves | 85,000 | |
DTA | 14,770,000 | $ 6,600,000 |
State taxes | $ (956,000) | |
Depreciation and amortization | $ (600,000) | |
DTL | $ (956,000) | (600,000) |
Net | 13,814,000 | 6,000,000 |
Valuation allowance | $ (13,814,000) | $ (6,000,000) |
Deferred tax assets, net |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 34.00% | 34.00% |
Permanent differences | (0.11%) | (0.11%) |
Valuation allowance | (33.97%) | (33.97%) |
Effective tax rate | (0.08%) | (0.08%) |
Capital Leases (Details)
Capital Leases (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 10,502 |
2,017 | 4,167 |
2,018 | 4,167 |
2,019 | 2,436 |
Total minimum lease payments | 21,272 |
Capital Lease Principal [Member] | |
2,016 | 9,752 |
2,017 | 3,824 |
2,018 | 3,983 |
2,019 | 2,404 |
Total minimum lease payments | 19,963 |
Capital Lease Interest [Member] | |
2,016 | 750 |
2,017 | 343 |
2,018 | 184 |
2,019 | 32 |
Total minimum lease payments | $ 1,309 |
Capital Leases (Details Narrati
Capital Leases (Details Narrative) - USD ($) | Aug. 26, 2014 | May. 22, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying value assets | $ 41,791 | |||
Depreciation | 586,502 | $ 475,784 | ||
Lease Termination Agreement [Member] | ||||
Depreciation | 3,895 | |||
Lease Termination Agreement [Member] | Full Circle MFG Group, Inc [Member] | GlyEco Acquisition Corp. #4 [Member] | Equipment Lease Property [Member] | ||||
Lease payment | $ 32,900 | |||
Frequency of lease payment | Monthly | |||
Lease term | 5 years | |||
Payment to acquire equipment | $ 200,000 | |||
Net present value of the equipment | $ 1,714,974 | |||
Discount rate | 9.00% | |||
Gain on termination of agreement | $ 900,000 | |||
Lease Termination Agreement [Member] | Full Circle MFG Group, Inc [Member] | GlyEco Acquisition Corp. #4 [Member] | Equipment Lease Property [Member] | Minimum [Member] | ||||
Estimated useful life | 5 years | |||
Lease Termination Agreement [Member] | Full Circle MFG Group, Inc [Member] | GlyEco Acquisition Corp. #4 [Member] | Equipment Lease Property [Member] | Maximum [Member] | ||||
Estimated useful life | 25 years | |||
Capital Equipment Lease Agreement [Member] | Balboa Capital [Member] | Carbon Vessels Lease Property [Member] | ||||
Lease payment | $ 1,030 | |||
Frequency of lease payment | monthly | |||
Lease term | 2 years | |||
Payment to acquire equipment | $ 1 | |||
Net present value of the equipment | $ 22,154 | |||
Discount rate | 11.00% | |||
Estimated useful life | 10 years | |||
Capital Equipment Lease Agreement [Member] | De Lage Laden [Member] | Forklift Lease Property [Member] | ||||
Lease payment | $ 347 | |||
Frequency of lease payment | monthly | |||
Lease term | 5 years | |||
Payment to acquire equipment | $ 1 | |||
Net present value of the equipment | $ 25,200 | |||
Discount rate | 4.00% | |||
Estimated useful life | 15 years |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | May. 03, 2013 | Dec. 31, 2015 | May. 30, 2014 |
GlyEco Acquisition Corp. #1 [Member] | 6% Secured Promissory Note Due May 2, 2016 (State Bank of Marine) [Member] | |||
Debt principal amount | $ 20,000 | ||
Description of debt collateral | Collateralized by a vehicle. | ||
Debt instrument term | 3 years | ||
Note payable due | $ 2,972 | ||
GlyEco Acquisition Corp. #4 [Member] | 12% Promissory Note [Member] | Mr. Rose Manzo [Member] | |||
Debt principal amount | $ 115,000 |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) - USD ($) | Mar. 14, 2014 | Feb. 15, 2013 | Apr. 03, 2012 | Aug. 09, 2008 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Number of common stock issued | 11,013,170 | ||||||
Redemption premium total | $ (2,243,410) | ||||||
Common Stock [Member] | |||||||
Number of common stock issued | 11,013,170 | ||||||
Warrant [Member] | |||||||
Number of common stock issued | 999,667 | ||||||
Exercise price (in dollars per share) | $ 0.50 | ||||||
12.5% Convertible Note Payable [Member] | Note Conversion Agreement [Member] | 12.% Series AA Preferred Stock [Member] | |||||||
Number of shares issued upon conversion | 2,342,750 | ||||||
Conversion price (in dollars per share) | $ 0.5 | ||||||
Number of common stock issued | 940,000 | ||||||
Exercise price (in dollars per share) | $ 1 | ||||||
12.5% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | Note Conversion Agreement [Member] | |||||||
Debt principal amount | $ 5,000,000 | ||||||
Frequency of interest payment | Semi-annually | ||||||
Agreement redemption date | Jan. 31, 2014 | ||||||
Debt outstanding amount | $ 1,641,375 | ||||||
Interest expense | $ 24,913 | ||||||
12.5% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | Note Conversion Agreement [Member] | 12.% Series AA Preferred Stock [Member] | |||||||
Number of shares issued upon conversion | 2,342,750 | 1,171,375 | |||||
Conversion price (in dollars per share) | $ 0.5 | $ 1 | |||||
Agreement redemption date | Mar. 15, 2014 | ||||||
Liquidation preference amount | $ 1,171,375 | ||||||
Description of preferred stock conversion terms | (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; (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. | ||||||
Number of shares issue upon stock conversion | 2,342,750 | ||||||
Number of additional shares issue upon stock conversion | 262,763 | ||||||
Redemption value (in dollars per share) | $ 1.46 | ||||||
Redemption value total | $ 3,414,785 | ||||||
Redemption premium (in dollars per share) | $ 0.85 | ||||||
Redemption premium total | $ 1,975,392 | ||||||
Inducement premium (in dollars per share) | $ 0.11 | ||||||
Inducement premium total | $ 268,018 | ||||||
Redemption premium and inducement premium total | 2,243,410 | ||||||
12.5% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | Common Stock [Member] | Note Conversion Agreement [Member] | |||||||
Number of shares issued upon conversion | 940,000 | ||||||
Conversion price (in dollars per share) | $ 0.5 | $ 1 | |||||
Excess of common share value over book value | $ 1,218,230 | ||||||
12.5% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | Common Stock [Member] | Note Conversion Agreement - Amendment No. 1 [Member] | |||||||
Number of shares issued upon conversion | 470,000 | ||||||
12.5% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | Warrant [Member] | Note Conversion Agreement [Member] | |||||||
Number of shares issued upon conversion | 940,000 | ||||||
Conversion price (in dollars per share) | $ 0.5 | ||||||
Number of common stock issued | 2,605,513 | ||||||
Exercise price (in dollars per share) | $ 1 | ||||||
Estimated fair value of warrant | $ 392,170 | ||||||
Warrant term | 3 years | ||||||
Warrant redemption premium fair value | $ 757,162 | ||||||
Description of warrant exercise price | 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 | ||||||
Fair value of warrant (in dollars per share) | $ 0.29 | ||||||
Global Recycling Technologies [Member] | 10% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | |||||||
Debt principal amount | $ 1,000,000 | ||||||
Description of interest rate terms | Interest payments were due semi-annually in cash or shares of Global Recycling common stock. | ||||||
Frequency of interest payment | Semi-annually | ||||||
Description of debt collateral | Secured by a lien on Global Recyclings provisional patent application, including the GlyEco TechnologyTM Patent. | ||||||
Global Recycling Technologies [Member] | 10% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | Common Stock [Member] | |||||||
Number of shares issued upon conversion | 575,350 | ||||||
Conversion price (in dollars per share) | $ 2.50 | ||||||
Global Recycling Technologies [Member] | 10% Convertible Note Payable [Member] | Mr. Leonid Frenkel [Member] | Warrant [Member] | |||||||
Number of common stock issued | 480,000 | ||||||
Exercise price (in dollars per share) | $ 0.025 | ||||||
Warrants expiration date | Sep. 8, 2013 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity | ||
Common shares issued for cash, net of offering costs, shares | 11,013,170 | |
Common shares for settlement of accrued expenses, shares | 16,334 | |
Share-based compensation, shares | 2,409,681 | 47,606 |
Warrants and options exercised, shares | 999,667 | 6,340,775 |
Common Shares for Acquisition,shares | 204,750 | |
Common Shares for Series AA Conversion ,shares | 2,605,513 | |
Common shares issued for cash, net of offering costs, value | $ 3,544,448 | |
Common shares for settlement of accrued expenses, value | 5,600 | |
Share-based compensation, value | $ 371,737 | $ 2,046,074 |
Warrants and options exercised, value | 3,072,170 | |
Common Shares for Acquisition, value | 210,913 | |
Common Shares for Series AA Conversion, value | $ 1,171,375 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Dec. 31, 2015 | Nov. 30, 2015 | Oct. 31, 2015 | Sep. 30, 2015 | Sep. 16, 2015 | Sep. 11, 2015 | Sep. 01, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jul. 16, 2015 | Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Apr. 09, 2015 | Mar. 31, 2015 | Mar. 04, 2015 | Feb. 28, 2015 | Feb. 19, 2015 | Feb. 17, 2015 | Jan. 31, 2015 | Jan. 02, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock, authorized | 40,000,000 | 40,000,000 | 40,000,000 | |||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||
Common stock, outstanding | 72,472,412 | 72,472,412 | 58,033,560 | |||||||||||||||||||||||
Common stock, authorized | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||||||||||||||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||||||||||||||||||||||||
Number of common stock issued | 11,013,170 | |||||||||||||||||||||||||
Offering cost | $ 34,827 | $ 62,144 | ||||||||||||||||||||||||
Number of shares retired | 17 | |||||||||||||||||||||||||
Cash received from shares issued | 3,072,170 | |||||||||||||||||||||||||
Stock issuance cost | $ 34,827 | $ 62,144 | ||||||||||||||||||||||||
Stock issued during period, shares, granted | 678,157 | 1,209,172 | ||||||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||||||||||||||||||||||||
Number of common stock issued | 999,667 | |||||||||||||||||||||||||
Number of warrant exercised | 1,000,000 | 1,000,000 | 6,268,628 | |||||||||||||||||||||||
Eighteen Accredited Investors [Member] | Private Placement [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 11,013,170 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.325 | |||||||||||||||||||||||||
Offering cost | $ 34,827 | |||||||||||||||||||||||||
Stock issuance cost | 34,827 | |||||||||||||||||||||||||
Proceeds from private placement | $ 3,544,448 | |||||||||||||||||||||||||
Two Former Employees [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 24,404 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.28 | |||||||||||||||||||||||||
Chief Executive Officer [Member] | Consulting Agreement [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 343,750 | 91,667 | 385,714 | 62,500 | 50,000 | 39,473 | 31,250 | 32,609 | 30,000 | 26,786 | ||||||||||||||||
Share price (in dollars per share) | $ 0.08 | $ 0.10 | $ 0.14 | $ 0.12 | $ 0.15 | $ 0.19 | $ 0.25 | $ 0.23 | $ 0.25 | $ 0.28 | $ 0.10 | $ 0.19 | $ 0.25 | $ 0.08 | ||||||||||||
One Accredited Investor [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 999,667 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.0001 | |||||||||||||||||||||||||
One Accredited Investor [Member] | Warrant [Member] | ||||||||||||||||||||||||||
Number of warrant exercised | 1,000,000 | |||||||||||||||||||||||||
Six Directors [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 8,334 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.36 | |||||||||||||||||||||||||
Accrued expenses | $ 3,000 | |||||||||||||||||||||||||
Mr. Rhodes [Member] | Consulting Agreement [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 30,000 | 30,000 | ||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.15 | $ 0.15 | ||||||||||||||||||||||||
Equity Incentive Program [Member] | ||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, terms of award | Each dollar of compensation foregone, each employee was eligible to receive either six stock options or five shares of restricted common stock. | Each dollar of compensation foregone, each employee was eligible to receive either five stock options or four shares of restricted common stock. | 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. | |||||||||||||||||||||||
Equity Incentive Program [Member] | Employee Stock Option [Member] | ||||||||||||||||||||||||||
Exercise price | 0.10 | 0.20 | 0.25 | 0.30 | $ 0.20 | $ 0.25 | $ 0.30 | $ 0.10 | ||||||||||||||||||
Stock issued during period, shares, granted | 277,491 | |||||||||||||||||||||||||
Stock issued during period, value, granted | $ 45,643 | |||||||||||||||||||||||||
Equity Incentive Program [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||
Exercise price | $ 0.10 | $ 0.19 | $ 0.25 | $ 0.30 | 0.19 | 0.25 | 0.30 | $ 0.10 | ||||||||||||||||||
Stock issued during period, value | $ 144,971 | |||||||||||||||||||||||||
Stock issued during period, shares | 668,604 | |||||||||||||||||||||||||
Equity Incentive Program [Member] | Six Employees [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 40,090 | 40,174 | 40,082 | 44,526 | ||||||||||||||||||||||
Share price (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.30 | 0.25 | |||||||||||||||||||||
Equity Incentive Program [Member] | Six Employees [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 72,315 | 65,110 | 66,224 | 54,282 | 56,166 | |||||||||||||||||||||
Share price (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 | 0.30 | $ 0.10 | |||||||||||||||||||
Equity Incentive Program [Member] | Three Employees [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 19,870 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.20 | |||||||||||||||||||||||||
Equity Incentive Program [Member] | Four Employees [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 24,824 | 24,941 | ||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.20 | $ 0.20 | 0.20 | |||||||||||||||||||||||
2015 Director Compensation Plan [Member] | Five Directors [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 55,000 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.25 | $ 0.25 | ||||||||||||||||||||||||
2015 Director Compensation Plan [Member] | Six Directors [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 87,662 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.18 | $ 0.18 | ||||||||||||||||||||||||
2015 Director Compensation Plan [Member] | Seven Directors [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 209,375 | 160,904 | ||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.08 | $ 0.10 | $ 0.10 | $ 0.08 | ||||||||||||||||||||||
Two Consultants [Member] | Equity Incentive Program [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 120,000 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.30 | |||||||||||||||||||||||||
Sahag Consulting, LLC [Member] | Six Directors [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 8,000 | |||||||||||||||||||||||||
Accrued expenses | $ 2,600 | |||||||||||||||||||||||||
Outside Consultants [Member] | Engagement Agreement [Member] | ||||||||||||||||||||||||||
Number of common stock issued | 80,000 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.10 | |||||||||||||||||||||||||
Series AA Preferred Stock [Member] | ||||||||||||||||||||||||||
Preferred stock, authorized | 3,000,000 | 3,000,000 |
Options and Warrants (Details)
Options and Warrants (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding as beginning of the year | 11,096,428 | 10,133,506 |
Granted | 678,157 | 1,209,172 |
Exercised | ||
Forfeited | (162,283) | |
Cancelled | (100,000) | |
Expired | ||
Outstanding as end of the year | 11,612,302 | 11,096,428 |
Options exercisable | 11,387,052 | |
Options exercisable and expected to vest | 11,612,302 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding as beginning of the year | $ 0.72 | $ 0.74 |
Granted | $ 0.25 | 0.66 |
Exercised | $ 0.77 | |
Forfeited | $ 0.90 | |
Cancelled | $ 2.45 | |
Expired | ||
Outstanding as end of the year | $ 0.68 | $ 0.72 |
Options exercisable | 0.68 | |
Options exercisable and expected to vest | $ 0.68 |
Options and Warrants (Details 1
Options and Warrants (Details 1) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Expected dividends | 0.00% | 0.00% |
Minimum [Member] | ||
Expected volatility | 86.00% | 40.00% |
Risk-free interest rate | 0.89% | 0.16% |
Expected term in years | 3 years | 3 years |
Maximum [Member] | ||
Expected volatility | 110.00% | 86.00% |
Risk-free interest rate | 1.21% | 0.70% |
Expected term in years | 5 years | 5 years |
Options and Warrants (Details 2
Options and Warrants (Details 2) - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding as beginning of the year | 17,567,326 | 19,530,441 |
Granted | 5,305,513 | |
Exercised | (1,000,000) | (6,268,628) |
Forfeited | ||
Cancelled | ||
Expired | (1,000,000) | |
Outstanding and exercisable as end of the year | 16,567,326 | 17,567,326 |
Warrants exercisable | 17,579,826 | |
Warrants exercisable and expected to vest | 17,579,826 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding as beginning of the year | $ 0.93 | $ 1.08 |
Granted | 0.86 | |
Exercised | $ 0.0001 | $ 1.33 |
Forfeited | ||
Cancelled | ||
Expired | $ 1 | |
Outstanding as end of the year | $ 1.02 | $ 0.93 |
Warrants exercisable | 0.93 | |
Warrants exercisable and expected to vest | $ 0.93 |
Options and Warrants (Details 3
Options and Warrants (Details 3) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Expected dividends | 0.00% | 0.00% |
Warrant [Member] | ||
Expected dividends | 0.00% | |
Minimum [Member] | ||
Expected volatility | 86.00% | 40.00% |
Risk-free interest rate | 0.89% | 0.16% |
Expected term in years | 3 years | 3 years |
Minimum [Member] | Warrant [Member] | ||
Expected volatility | 40.00% | |
Risk-free interest rate | 0.60% | |
Expected term in years | 3 years | |
Maximum [Member] | ||
Expected volatility | 110.00% | 86.00% |
Risk-free interest rate | 1.21% | 0.70% |
Expected term in years | 5 years | 5 years |
Maximum [Member] | Warrant [Member] | ||
Expected volatility | 86.00% | |
Risk-free interest rate | 0.70% | |
Expected term in years | 5 years |
Options and Warrants (Details N
Options and Warrants (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Recorded expense | $ 887,173 | $ 2,046,074 |
Number of common shares reserved for future issuance | 966,771 | |
Number of common stock issued | 11,013,170 | |
Common stock, par value (in dollars per share) | $ 0.0001 | |
Value of shares issued | $ 3,544,448 | |
Aggregate cash fee to placement agents | $ 62,144 | |
Weighted-average grant date fair value (in dollars per share) | $ 0.25 | |
Expected term of options outstanding | 6 years 10 months 6 days | |
Expected term of options exercisable | 6 years 9 months 7 days | |
Options and Warrants [Member] | ||
Modified estimated fair values | $ 102,426 | $ 102,426 |
Recorded expense | 515,436 | $ 1,384,929 |
Employee Stock Option [Member] | ||
Estimated unearned stock-based compensation | $ 42,021 | |
Warrant [Member] | ||
Number of common stock issued | 999,667 | |
Number of warrant exercised | 1,000,000 | 6,268,628 |
Common stock, par value (in dollars per share) | $ 0.0001 | |
Warrant exercise price (in dollars per share) | $ 0.50 | |
Value of shares issued | $ 3,134,314 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Chief Executive Officer [Member] | ||
Due to Related Parties, Current [Roll Forward] | ||
Beginning Balance as of January 1, | ||
Monies owed to related party for services performed | $ 82,500 | |
Monies due from related party for services performed | $ (82,500) | |
Ending Balance as of December 31, | ||
Vice President of US Operations [Member] | ||
Due to Related Parties, Current [Roll Forward] | ||
Beginning Balance as of January 1, | $ (3,500) | $ 1,213 |
Monies owed to related party for services performed | 80,750 | 58,531 |
Monies due from related party for services performed | (74,459) | (63,244) |
Ending Balance as of December 31, | $ 2,791 | $ (3,500) |
Florida General Manager [Member] | ||
Due to Related Parties, Current [Roll Forward] | ||
Beginning Balance as of January 1, | ||
Monies owed to related party for services performed | $ 9,774 | $ 4,830 |
Monies due from related party for services performed | (57,334) | (82,561) |
Monies received, net | 51,502 | $ 77,731 |
Ending Balance as of December 31, | 3,942 | |
Former Chief Technical Officer [Member] | ||
Due to Related Parties, Current [Roll Forward] | ||
Beginning Balance as of January 1, | 15,050 | |
Monies owed to related party for services performed | 372,763 | $ 218,195 |
Monies due from related party for services performed | (360,141) | (203,145) |
Ending Balance as of December 31, | 27,672 | 15,050 |
Former Chief Executive Officer [Member] | ||
Due to Related Parties, Current [Roll Forward] | ||
Beginning Balance as of January 1, | 62,500 | $ 100,000 |
Monies owed to related party for services performed | 9,000 | |
Monies due from related party for services performed | $ (71,500) | $ (37,500) |
Ending Balance as of December 31, | 62,500 | |
Former Chief Business Development Officer [Member] | ||
Due to Related Parties, Current [Roll Forward] | ||
Beginning Balance as of January 1, | 16,058 | |
Monies owed to related party for services performed | $ 7,515 | 80,613 |
Monies due from related party for services performed | $ (7,515) | $ (96,671) |
Ending Balance as of December 31, |
Related Party Transactions (D61
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Former Chief Business Development Officer [Member] | ||
Management and Marketing consulting services | $ 76,500 | |
Reimbursable business expenses | $ 7,515 | 4,113 |
Former Chief Executive Officer [Member] | ||
Management and Marketing consulting services | $ 62,500 |
Commitments and Contingencies62
Commitments and Contingencies (Details Narrative) - USD ($) | Dec. 28, 2015 | Apr. 28, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Rent expense | $ 645,477 | $ 694,899 | ||
Negotiated payment | 250,000 | |||
Demand for payment to maintain access to the facility | $ 2,300,000 | |||
Estimated contract termination costs | 250,000 | |||
Maximum [Member] | ||||
Damages paid value | 0 | |||
Environmental remediation liabilities | 200,000 | |||
Minimum [Member] | ||||
Damages paid value | $ 2,000,000 | |||
Environmental remediation liabilities | $ 100,000 | |||
GlyEco Acquisition Corp. #4 [Member] | Litigation Case Wastewater Permit [Member] | ||||
Litigation settlement amount | $ 1,000 | |||
Name of the plantiff | Passaic Valley Sewerage Commission. | |||
Domicile of litigation | Superior Court of New Jersey Chancery Division located in Essex County. | |||
GlyEco Acquisition Corp. #4 [Member] | Litigation Case Significant Outstanding [Member] | ||||
Name of the plantiff | Onyxx Group LLC. | |||
Domicile of litigation | Circuit Court of Hillsborough County, Florida. |
Commitments and Contingencies63
Commitments and Contingencies (Details) | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 290,391 |
2,017 | 209,708 |
2,018 | 64,005 |
2,019 | 44,352 |
2,020 | 44,352 |
Thereafter | 7,392 |
Total minimum lease payments | $ 660,200 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details Narrative) | 12 Months Ended | |
Dec. 31, 2015USD ($)Number | Dec. 31, 2014USD ($)Number | |
Cash uninsured | $ | $ 0 | $ 0 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Numbers of customer | Number | 1 | 1 |
Concentration of risk | 10.00% | 10.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Feb. 26, 2016 | Feb. 12, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.0001 | |||
Subsequent Event [Member] | Equity Incentive Program [Member] | ||||
Number of common stock issued | 194,584 | |||
Employment Agreements [Member] | Subsequent Event [Member] | Rights Offering [Member] | ||||
Common stock non-transferable subscription rights | 50,200,947 | |||
Common stock, par value (in dollars per share) | $ 0.0001 | |||
Description of subscription rights | Each shareholder received one subscription right for every one share of common stock owned. | |||
Subscription price per share (in dollars per share) | $ 0.08 | |||
Number of right issue shares | 0.7 | |||
Share price (in dollars per share) | $ 0.0001 | |||
Gross proceeds from subscription rights | 2,998,050 | |||
Employment Agreements [Member] | Mr. Rhodes [Member] | Subsequent Event [Member] | ||||
Annual base salary | $ 150,000 | |||
Percentage of common shares outstanding | 2.00% | |||
Percentage of incentive payable | 40.00% | |||
Employment Agreements [Member] | Mr. Sahag [Member] | Subsequent Event [Member] | ||||
Annual base salary | $ 120,000 | |||
Percentage of common shares outstanding | 1.00% | |||
Percentage of incentive payable | 40.00% |