Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 23, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | FRONTIER OILFIELD SERVICES INC | ||
Entity Central Index Key | 1108645 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
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 | $1,408,118 | ||
Entity Common Stock, Shares Outstanding | 5,457,486 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||
Cash | $114,698 | $108,360 |
Restricted Cash | 77,614 | 77,614 |
Accounts receivable, net of allowance of doubtful accounts of $193,483 and $33,321, respectively | 930,841 | 1,605,903 |
Other receivable | 287,076 | |
Inventory | 197,551 | 214,969 |
Prepaid expenses | 9,287 | 1,364,303 |
Current portion of capitalized loan fees | 242,092 | 289,194 |
Total current assets | 1,572,083 | 3,947,419 |
Property and equipment, at cost | 17,875,469 | 20,691,314 |
Less: accumulated depreciation | -6,855,473 | -5,554,487 |
Property and equipment, net | 11,019,996 | 15,136,827 |
Intangibles, net | 3,084,698 | 3,491,472 |
Capitalized loan fees, net of current portion | 383,204 | 625,296 |
Deposits | 32,302 | 24,037 |
Total other assets | 3,500,204 | 4,140,805 |
Total Assets | 16,092,283 | 23,225,051 |
Current Liabilities: | ||
Current maturities of long-term debt | 10,363,094 | 8,756,472 |
Accounts payable | 3,403,263 | 4,738,166 |
Accrued liabilities | 857,854 | 1,171,643 |
Financed insurance premiums payable | 1,119,213 | |
Current portion of loan from shareholder | 1,596,000 | |
Total current liabilities | 14,624,211 | 17,381,494 |
Long-term debt, less current maturities | 1,594,795 | 1,656,231 |
Total Liabilities | 16,219,006 | 19,037,725 |
Commitments and Contingencies (Note 7) | ||
Stockholders' Equity: | ||
Preferred stock to be issued | 450,000 | |
Preferred stock 2013 Series A- $.01 par value; authorized 10,000,000; 2,850,000 issued and outstanding as of December 31, 2014 1,750,000 issued and outstanding as of December 31, 2013 | 28,500 | 17,500 |
Common stock- $.01 par value; authorized 100,000,000 shares; 5,457,486 shares issued and outstanding at December 31, 2014 5,553,157 shares issued and outstanding at December 31, 2013 | 54,575 | 55,531 |
Additional paid-in capital | 32,142,717 | 31,659,261 |
Prepaid stock compensation | -74,000 | |
Accumulated deficit | -32,802,515 | -27,470,966 |
Total stockholders' equity (deficit) | -126,723 | 4,187,326 |
Total Liabilities and Stockholders' Equity (Deficit) | $16,092,283 | $23,225,051 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, doubtful accounts | $193,483 | $33,321 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 2,850,000 | 1,750,000 |
Preferred stock, shares outstanding | 2,850,000 | 1,750,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 5,457,486 | 5,553,157 |
Common stock, shares outstanding | 5,457,486 | 5,553,157 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | ||
Revenues, net of discounts | $16,080,914 | $34,951,231 |
Costs and expenses: | ||
Direct operating costs | 11,311,850 | 26,485,768 |
Indirect operating costs | 3,767,346 | 6,191,878 |
General and administrative | 925,961 | 6,333,781 |
Depreciation and amortization | 2,712,440 | 3,591,997 |
Total costs and expenses | 18,717,597 | 42,603,424 |
Operating loss | -2,636,683 | -7,652,193 |
Other (income) expense: | ||
Interest expense | 1,823,322 | 1,862,339 |
(Gain) loss on disposal of property and equipment | 797,372 | -369,687 |
Gain on write off of contingent consideration liability | -2,300,000 | |
Loss on impairment of property and equipment | 1,813,000 | |
Loss on extinguishment of debt | 4,453 | |
Loss before provision for income taxes | -5,261,830 | -8,657,845 |
Provision for state income taxes | 23,536 | 77,209 |
Net loss | ($5,285,366) | ($8,735,054) |
Net loss per common share - basic and diluted | ($0.92) | ($1.66) |
Weighted Average Common Shares Outstanding: | ||
Basic and Diluted | 5,751,181 | 5,250,820 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities: | ||
Net loss | ($5,285,366) | ($8,735,054) |
Adjustments to reconcile net loss to net cash (used in) operating activities: | ||
Depreciation and amortization | 2,712,440 | 3,591,997 |
Gain on write off of contingent consideration liability | -2,300,000 | |
Loss on impairment of property and equipment | 1,813,000 | |
Bad debt expense | 160,162 | 33,321 |
Issuance of common stock for services | 74,000 | 2,609,538 |
Loss on extinguishment of debt | 4,453 | |
Payment of expenses by stockholder in exchange for purchase of preferred stock | 314,743 | |
(Gain) loss on disposal of property and equipment | 797,372 | -369,687 |
Amortization of deferred loan fees | 325,442 | 371,333 |
Decrease (increase) in operating assets: | ||
Accounts receivable | 514,900 | 2,280,784 |
Other receivable | 287,076 | -287,076 |
Inventory | 17,418 | 105,762 |
Prepaid expenses | 1,355,016 | 389,545 |
Deposits | -8,265 | 70,961 |
Increase (decrease) in operating liabilities: | ||
Accounts payable | -1,033,132 | 72,548 |
Accrued liabilities | -359,972 | 45,929 |
Financed insurance premiums payable | -1,119,213 | 298,714 |
Net cash used in operating activities | -1,242,926 | -8,385 |
Cash Flows From Investing Activities: | ||
Purchase of property and equipment | -430,980 | |
Proceeds of sale property and equipment | 704,923 | 605,919 |
Release of escrow funds | -619,922 | |
Net cash provided by (used in) investing activities | 704,923 | -444,983 |
Cash Flows From Financing Activities: | ||
Proceeds from preferred stock issuance | 216,257 | 700,000 |
Net proceeds from stockholder loans | 1,381,309 | 1,246,000 |
Net change in line of credit | -931,181 | -1,086,707 |
Proceeds on long term debt | 220,490 | |
Payments on long term debt | -122,044 | -1,606,194 |
Payments from restricted cash account | 619,922 | |
Proceeds from common stock sales | 400,393 | |
Net cash provided by financing activities | 544,341 | 493,904 |
Net increase in cash | 6,338 | 40,536 |
Cash at beginning of period | 108,360 | 67,824 |
Cash at end of period | 114,698 | 108,360 |
Supplemental Cash Flow Disclosures | ||
Interest paid | 1,183,224 | 1,278,935 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Convertible notes conversion | 53,500 | |
Retirement of notes payable in exchange of preferred stock issuance | 359,000 | |
Cumulative dividend payable recorded in accrued liabilities | 46,183 | 37,027 |
Retirement of financed insurance premiums payable with proceeds from shareholder loan | 350,000 | |
Disposal of property and equipment paid directly to lenders | 308,870 | 1,765,969 |
Settlement of contingent consideration payable for acquisition of CTT | 4,708,348 | |
Beneficial conversion features of Asher Note | $72,235 |
STATEMENT_OF_CHANGES_IN_CONSOL
STATEMENT OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY (USD $) | Preferred Stock 2013 Series A 7% [Member] | Preferred Stock To Be Issued [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Prepaid Stock Compensation [Member] | Accumulated Deficit [Member] | Total |
Beginning Balance at Dec. 31, 2012 | $45,291 | $23,122,487 | ($18,698,885) | $4,468,893 | |||
Beginning Balance, shares at Dec. 31, 2012 | 4,529,090 | ||||||
Shares issued for services | 4,929 | 2,678,609 | -74,000 | 2,609,538 | |||
Shares issued for services, shares | 492,925 | ||||||
Sales of common stock | 936 | 399,457 | 400,393 | ||||
Sales of common stock, Shares | 93,575 | ||||||
Settlement of deferred compensation payable | 4,375 | 4,703,973 | 4,708,348 | ||||
Settlement of deferred compensation payable, Shares | 437,500 | ||||||
Convertible note - beneficial conversion features | 72,235 | 72,235 | |||||
Preferred stock sales | 17,500 | 682,500 | 700,000 | ||||
Preferred stock sales, shares | 1,750,000 | ||||||
Shares rounding due to reverse split | 67 | ||||||
Dividends | -37,027 | -37,027 | |||||
Net Loss | -8,735,054 | -8,735,054 | |||||
Ending Balance at Dec. 31, 2013 | 17,500 | 55,531 | 31,659,261 | -74,000 | -27,470,966 | 4,187,326 | |
Ending Balance, shares at Dec. 31, 2013 | 1,750,000 | 5,553,157 | |||||
Conversion of convertible note to common stock | 3,419 | 50,081 | 53,500 | ||||
Conversion of convertible note to common stock, shares | 341,829 | ||||||
Shares issued for services | 74,000 | 74,000 | |||||
Common stock cancellation | -4,375 | 4,375 | |||||
Common stock cancellation, Shares | -437,500 | ||||||
Preferred stock sales | 11,000 | 450,000 | 429,000 | 890,000 | |||
Dividends | -46,183 | -46,183 | |||||
Net Loss | -5,285,366 | -5,285,366 | |||||
Ending Balance at Dec. 31, 2014 | $28,500 | $450,000 | $54,575 | $32,142,717 | ($32,802,515) | ($126,723) | |
Ending Balance, shares at Dec. 31, 2014 | 2,850,000 | 5,457,486 |
BUSINESS_ACTIVITIES
BUSINESS ACTIVITIES | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS ACTIVITIES | 1 |
BUSINESS ACTIVITIES: | |
Frontier Oilfield Services, Inc. a Texas corporation (and collectively with its subsidiaries, “we”, “our”, “Frontier”, “FOSI”, or the “Company”), was organized on March 24, 1995. The accompanying consolidated financial statements include the accounts of the Company and Frontier Acquisition I, Inc., and its subsidiary Chico Coffman Tank Trucks, Inc. (CTT) and its subsidiary Coffman Disposal, LLC, and Frontier Income and Growth, LLC (FIG) and its subsidiaries Trinity Disposal & Trucking, LLC and Trinity Disposal Wells, LLC (Note 11). | |
Frontier operates its business in the oilfield service industry and is primarily involved in the transportation and disposal of saltwater and other oilfield fluids in Texas. The Company currently owns and operates eleven disposal wells in Texas, six within the Barnett Shale in North Texas and five in east Texas near the Louisiana state line. The Company’s customers include national, integrated, and independent oil and gas exploration companies. |
GOING_CONCERN
GOING CONCERN | 12 Months Ended | |
Dec. 31, 2014 | ||
Going Concern | ||
GOING CONCERN | 2 | GOING CONCERN: |
The Company’s financial statements are prepared using U.S. generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of the date of this report, the Company has generated losses from operations, has an accumulated deficit and a working capital deficiency. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. | ||
In order to continue as a going concern and achieve a profitable level of operations, the Company will need, among other things, to reduce its operating expenses, reduce debt, reduce the cost of its debt, raise additional capital resources and develop additional sources of revenue sufficient to meet its operating expenses. The Company’s continuation as a going concern is dependent upon the achievement of profitable operations from the Company’s business. | ||
The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from previously estimated amounts. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company recognizes revenues when services are rendered, field tickets are approved, signed and received, and when payment is determinable and reasonably assured. The Company extends short-term, unsecured credit to its customers for amounts invoiced. | |||||||||||||||||
Cash | |||||||||||||||||
For purposes of the consolidated statements of cash flows, cash includes demand deposits, time deposits, certificates of deposit and short-term liquid investments with original maturities of three months or less when purchased. The Company is obligated to maintain all deposits in one financial institution. The Federal Deposit Insurance Corporation provides coverage for all accounts of up to $250,000. As of December 31, 2014 and 2013, none of the Company’s cash was in excess of federally insured limits. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash represents certificates of deposit used as collateral for letters of credit issued in favor of the Texas Railroad Commission as required pursuant to the Texas Railroad Commission’s regulations. The letters of credit provide evidence of financial responsibility for the operation of the disposal wells owned by the Company. Restricted cash is not generally available to the Company until the respective letters of credit are cancelled or terminated undrawn. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
The Company performs periodic credit evaluations of its customers’ financial condition and extends credit to virtually all of its customers on an uncollateralized basis. Credit losses to date have been insignificant and within management’s expectations. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Normal accounts receivable are due 30 to 45 days after the issuance of the invoice. Receivables past due more than 60 days are considered delinquent. Delinquent receivables are evaluated for collectability based on individual credit evaluation and specific circumstances of the customer. As of December 31, 2014 and 2013, the Company’s allowance for doubtful accounts was $193,483 and $33,321, respectively. | |||||||||||||||||
At December 31, 2014 and 2013, the Company had the following customer concentrations. | |||||||||||||||||
Percentage of Revenue | Percentage of Accounts | ||||||||||||||||
Receivable | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Customer A | 53 | % | 52 | % | 22 | % | 31 | % | |||||||||
Customer B | * | 14 | % | * | * | ||||||||||||
Customer C | 14 | % | * | 29 | % | 14 | % | ||||||||||
Customer D | * | * | * | 13 | % | ||||||||||||
* Less than 10% | |||||||||||||||||
Parts Inventory | |||||||||||||||||
Parts inventory consists of replacement parts for the Company’s vehicles and transports and is stated at the lower of cost or market. Cost is determined using average cost method. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
The Company’s property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets for financial reporting purposes. Maintenance and repair costs are expensed when incurred, while major improvements are capitalized. | |||||||||||||||||
The cost of assets sold or abandoned and the related accumulated depreciation are eliminated from the accounts and any gains or losses are charged or credited to income in the respective period. The estimated useful lives are as follows: | |||||||||||||||||
Asset Description | Estimated Useful Life | Cost | |||||||||||||||
Land | Non-depreciable | $ | 225,000 | ||||||||||||||
Trucks and equipment | 5-7 years | 7,529,483 | |||||||||||||||
Disposal wells | 5-14 years | 9,046,686 | |||||||||||||||
Buildings and improvements | 15 - 39 years | 474,900 | |||||||||||||||
Office furniture and equipment | 5-7 years | 60,175 | |||||||||||||||
Disposal well under construction | Non-depreciable | 539,225 | |||||||||||||||
Total property and equipment, at cost | 17,875,469 | ||||||||||||||||
Less: accumulated depreciation | (6,855,473 | ) | |||||||||||||||
Property and equipment, net | $ | 11,019,996 | |||||||||||||||
During the year ended December 31, 2014, the Company disposed of property and equipment with a cost of $2,815,845 and accumulated depreciation of $1,004,679. The Company received total proceeds of $704,923 and recognized a loss of $797,372 in the accompanying consolidated statements of operations. During the year ended December 31, 2013, the Company disposed of property and equipment with a cost of $3,702,087 and accumulated depreciation of $1,393,744. The Company received total proceeds of $2,678,029 and recognized a gain of $369,687 in the accompanying consolidated statements of operations. | |||||||||||||||||
Long-Lived Assets | |||||||||||||||||
The Company periodically reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be realizable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. In 2013, the Company determined that it would not be able to fully recover the carrying amount of its disposal wells from FIG. In accordance with the guidance for the impairment of long-lived assets, the Company recorded an impairment charge of $1.8 million in 2013 to adjust the carrying value of the asset to our estimate of its fair value. No impairment charges were recorded in 2014. We estimated that fair value using the comparable sales method. The impairment charge impacted the loss from discontinued operations, net of income taxes line in our consolidated statement of operations. | |||||||||||||||||
Asset retirement obligations | |||||||||||||||||
ASC Topic 410, Asset Retirement and Environmental Obligations, requires companies to recognize a liability for an asset retirement obligation (ARO) at fair value in the period in which the obligation is incurred, if a reasonable estimate of fair value can be made. This obligation relates to the future costs of plugging and abandoning the Company’s disposal wells, the removal of equipment and facilities, and returning such land to its original condition. | |||||||||||||||||
The Company has not recorded an ARO for the future estimated reclamation costs associated with the operation of the Company’s disposal wells. The Company is not able to determine the estimated life of its wells and is unable to determine a reasonable estimate of the fair value associated with this liability. The Company believes that any such liability would not be material to the consolidated financial statements taken as a whole. | |||||||||||||||||
Equity Instruments Issued for Goods and Services | |||||||||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date. That cost is recognized in the consolidated financial statements over the period during which the employee is required to provide services in exchange for the award with a corresponding increase in additional paid-in capital. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value in accordance with U.S. generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the customer’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
In accordance with the reporting requirements of ASC Topic 825, Financial Instruments, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the financial statements when the fair value is different than the carrying value of those financial instruments. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at the balance sheet dates, nor gains or losses reported in the statements of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held during the years ended December 31, 2014 and 2013. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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 income in the period that includes the enactment date. Income tax expense is the tax payable for the year plus or minus the change during the period in deferred tax assets and liabilities. | |||||||||||||||||
Earnings Per Share (EPS) | |||||||||||||||||
Basic earnings per common share are calculated by dividing net income or loss by the weighted average number of shares outstanding during the year. Diluted earnings per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an antidilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are 150,000 stock options, which have been excluded from EPS, outstanding that could potentially have a dilutive effect on EPS in the future. The table below sets forth the reconciliation for net loss and weighted average shares used for calculating basic and diluted earnings per share. | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Earnings (numerator) | |||||||||||||||||
Net loss | $ | (5,285,366 | ) | $ | (8,735,054 | ) | |||||||||||
Preferred stock dividends | (46,183 | ) | (37,027 | ) | |||||||||||||
Net loss loss available to common shareholders | $ | (5,331,549 | ) | $ | (8,772,081 | ) | |||||||||||
Shares (denominator) | |||||||||||||||||
Weighted average common shares outstanding (basic) | 5,751,181 | 5,250,820 | |||||||||||||||
Earnings (loss) per share from continuing operations | |||||||||||||||||
Basic and Diluted | $ | (0.93 | ) | $ | (1.67 | ) | |||||||||||
Reverse Stock Split | |||||||||||||||||
On November 1, 2013 the Company affected a four-to-one reverse stock split. All information in this Annual Report on Form 10-K relating to the number of shares, price per share and per share amounts gives retroactive effect to the four-to-one reverse stock split of our capital stock. | |||||||||||||||||
RECENT_PRONOUNCEMENTS
RECENT PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
RECENT PRONOUNCEMENTS | |
4. RECENT ACCOUNTING PRONOUNCEMENTS: | |
During the year ended December 31, 2014 and through March 27, 2015, there were several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s financial statements. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Intangible Assets | |||||||||||||||||||
INTANGIBLE ASSETS | 5 | INTANGIBLE ASSETS: | |||||||||||||||||
In connection with the acquisition of CTT, the Company acquired intangible assets consisting of disposal well permits and customer relationships. The Company valued the disposal well permits using the build-out (Greenfield) valuation technique. The customer relationships were valued by the Company using the excess earnings valuation technique. | |||||||||||||||||||
Disposal well permits and customer relationships are considered definite-life intangible assets which are amortizable over their estimated useful life. | |||||||||||||||||||
The intangible assets, net of amortization as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Accumulated | Weighted Average | ||||||||||||||||||
Gross | Amortization | Net | Useful Life | ||||||||||||||||
Intangible assets: | |||||||||||||||||||
Disposal well permits | $ | 2,093,867 | $ | (506,018 | ) | $ | 1,587,849 | 10 years | |||||||||||
Customer relationships | 1,973,867 | (477,018 | ) | 1,496,849 | 10 years | ||||||||||||||
$ | 4,067,734 | $ | (983,036 | ) | $ | 3,084,698 | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Accumulated | Weighted Average | ||||||||||||||||||
Gross | Amortization | Net | Useful Life | ||||||||||||||||
Intangible assets: | |||||||||||||||||||
Disposal well permits | $ | 2,093,867 | $ | (296,631 | ) | $ | 1,797,236 | 10 years | |||||||||||
Customer relationships | 1,973,867 | (279,631 | ) | 1,694,236 | 10 years | ||||||||||||||
$ | 4,067,734 | $ | (576,262 | ) | $ | 3,491,472 | |||||||||||||
Future amortization expense for definite-life intangible assets as of December 31, 2014 is as follows: | |||||||||||||||||||
Periods | |||||||||||||||||||
Ending | |||||||||||||||||||
December 31, | |||||||||||||||||||
2015 | $ | 406,776 | |||||||||||||||||
2016 | 406,776 | ||||||||||||||||||
2017 | 406,776 | ||||||||||||||||||
2018 | 406,776 | ||||||||||||||||||
2019 | 406,776 | ||||||||||||||||||
Thereafter | 1,050,818 | ||||||||||||||||||
$ | 3,084,698 | ||||||||||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||
LONG-TERM DEBT | 6 | ||||||||
LONG-TERM DEBT: | |||||||||
Long-term debt as of December 31, 2014 and 2013 were as follows: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Revolving credit facility and term loan (a) | $ | 2,510,963 | $ | 3,767,585 | |||||
ICON term note (b) | 4,330,820 | 4,223,996 | |||||||
Loans from stockholder (f) | 2,870,484 | 1,596,000 | |||||||
Notes payable (c) | 2,082,407 | 2,082,407 | |||||||
Installment notes (d) | 163,215 | 221,467 | |||||||
Convertible note (e) | — | 117,246 | |||||||
Total debt | 11,957,889 | 12,008,701 | |||||||
Less current portion | (10,363,094 | ) | (10,352,472 | ) | |||||
Total long-term debt | $ | 1,594,795 | $ | 1,656,229 | |||||
In connection with the acquisition of CTT, the Company and its subsidiaries entered into loan agreements effective July 23, 2012 with Capital One Business Credit Corp. (the “Senior Loan Facility”) and ICON Investments (ICON) the proceeds of which were primarily used for the cash portion of the acquisition. On April 11, 2014 an accredited investor, who is also a significant stockholder in the Company, purchased the Senior Loan Facility from Capital One and assumed all the existing terms and conditions of the Credit Agreement and Forbearance Agreements. As of December 31, 2014, certain principal and accrued interest balances on the Senior Loan Facility are past due and the lenders had not exercised their rights under these agreements. | |||||||||
a. | The Senior Loan Facility has a maturity date of July 23, 2017 and a default interest rate which is the base rate plus the applicable margin plus 2% (6.75% and 7.75%, respectively as of December 31, 2014). The term loan portion of the Senior Loan Facility requires monthly payments of $100,000 plus interest. The Senior Loan Facility also provides for the payment of an unused commitment fee of .375% per annum. The loans are secured by all of the Company’s properties and assets except for its disposal wells wherein the Senior Loan Facility has a subordinated secured position to ICON. As of December 31, 2014, the Company was not in compliance with its debt covenants under the Senior Loan Facility and the lender had not exercised their rights under the ICON agreement. The outstanding balance of the Senior Loan Facility is included in current liabilities at December 31, 2014 due to the fact that the Company was not in compliance with its debt covenants. | ||||||||
b. | The Company and its subsidiaries entered into a Term Loan, Guaranty and Security Agreement on July 23, 2012 with ICON in the amount of $5 million. The Loan Agreement provides for an annual interest rate of 14% with monthly payments of interest and with repayment of the principal and all accrued but unpaid interest due on February 1, 2018. ICON had a senior secured position on the Company’s disposal wells and a subordinated position to the Senior Loan Facility on all other Company properties and assets. On December 27, 2014 an affiliate of an accredited investor who is also a stockholder purchased the note payable to ICON. The accredited investor assumed the terms and conditions of the ICON note agreement. As of December 31, 2014, the Company was not in compliance with its debt covenants under the ICON note and the lender had not exercised their rights under the ICON agreement. The outstanding balance of the ICON note is included in current liabilities at December 31, 2014 due to the fact that the Company was not in compliance with its debt covenants. | ||||||||
c. | The Company assumed two notes payable in connection with the acquisition of CTT. The notes were related to CTT’s purchase of common shares from two of its former stockholders. The primary note payable, dated June 1, 2007, in the original amount of $3,445,708 with interest at 4.79%, was payable in monthly installments of $33,003 including interest, maturing December 1, 2018. The Company’s secondary note payable in the original amount of $219,555 dated June 1, 2007 had interest at 4.79% and was payable in monthly installments of $2,488 including interest, maturing December 1, 2018. Both notes were subordinated to the Senior Loan Facility and ICON notes. On February 12, 2015 the Company executed a settlement agreement in the litigation with the holders of the two notes payable (Note 12). The effect of the settlement agreement is the cancellation of the two notes payable totaling $3.7 million. The settlement resulted in the reduction of the Company’s indebtedness by $2.1 million. The promissory notes were owed to the former owners of CTT and related to the Company’s acquisition of CTT. | ||||||||
d. | The Company has an installment loan with a principal balance of approximately $163,215 which was used to acquire property and equipment for use in the Company’s operations. The loan matures in September 2017 and has an interest rate of 5.69% and monthly minimum payments of $5,377. | ||||||||
e. | On August 15, 2013, the Company entered into a convertible note agreement with Asher Enterprises, Inc. in the amount of $153,500 with a stated interest rate of 8% per annum and effective interest rate of 70% per annum. The note was convertible into shares of the Company’s common stock, at the discretion of the holder, commencing 180 days following the date of the note at a conversion price per share equal to a discount of 35% from the average of the lowest three closing prices for the Company’s stock during the ten days prior to the conversion date. The Company evaluated the note and determined that the conversion option does not constitute a derivative liability for financial reporting purposes. The beneficial conversion feature discount resulting from the conversion price of $0.34, below the market price on August 15, 2013 of $0.53, resulted in a discount of $72,235 of which all of the balance was amortized during the nine months ended September 30, 2014. In 2014, the Company issued 341,372 shares to Asher Enterprises, Inc. in partial payment of the convertible note. This conversion resulted in a principal reduction of $53,500 in the convertible note balance of the Company. The conversion resulted in loss on extinguishment of debt of $4,453. On June 10, 2014 an accredited investor, who is also a stockholder in the Company purchased the note from Asher Enterprises, Inc. and assumed all the existing terms and conditions of the note agreement. On December 31, 2014, the holder of the note agreed to convert the note into 2014 Series A Convertible Preferred Stock of the Company. The Series A Convertible Preferred Stock was issued in January of 2015. | ||||||||
f. | On May 27, 2014 an accredited investor, who is also a stockholder in the Company, entered into a loan agreement with the Company for the amount of $2,783,484. As of December 31, 2014 and 2013 the principal balance of the note was $2,783,484 and $1,596,000, respectively. The note bears interest at 9% per annum. The terms of the note requires the cash payment of one half of the interest cost monthly (4.5% per annum), and the remaining half is accrued as payment in kind interest. The note and all accrued interest are due and payable in November 2015. | ||||||||
g. | On March 21, 2014 the CEO of the Company, who is also a stockholder in the Company entered into a promissory note agreement whereby the CEO loaned the Company $87,000. The promissory note has an interest rate of 7% per annum. The note was to have been repaid in installments throughout the year ended December 31, 2014 with a portion of the repayment conditioned upon the sale of certain of the Company’s disposal wells. The principle and interest on the note payable to the CEO is past due according to its terms. | ||||||||
Future maturities of long-term debt as of December 31, 2014 are as follows: | |||||||||
Years Ending | |||||||||
December 31, | |||||||||
2015 | $ | 10,363,094 | |||||||
2016 | $ | 418,928 | |||||||
2017 | $ | 430,326 | |||||||
2018 | $ | 398,864 | |||||||
2019 | $ | 346,677 | |||||||
$ | 11,957,889 | ||||||||
EQUITY_TRANSACTIONS
EQUITY TRANSACTIONS | 12 Months Ended | ||
Dec. 31, 2014 | |||
Stockholders' Equity Note [Abstract] | |||
EQUITY TRANSACTIONS | |||
7 | |||
EQUITY TRANSACTIONS: | |||
a. | During the year ended December 31, 2014, the Company issued 1,100,000 shares of 2013 Series A Convertible Preferred Stock and 2,200,000 warrants to purchase shares of the Company’s common stock, for $440,000. The preferred stock features a 7% cumulative dividend, payable quarterly. The amount of dividends in arrears for all preferred stock was $83,210 at December 31, 2014. The warrant features provide that 2 warrants may be exercised to purchase one share of common stock at a strike price of $0.20 per share with an expiration date of September 20, 2014. All of the warrants outstanding expired prior to December 31, 2014. | ||
b. | During the year ended December 31, 2014, the Board of Directors agreed to issue shares of 2014 Series A 7% Preferred Stock in exchange for the cancellation of $450,000 of the Company’s unsecured debt held by one of the Company’s significant stockholders. These shares of 2014 Series A 7% Preferred Stock were issued in February 2015. This preferred stock features a 7% cumulative dividend, payable quarterly. | ||
c. | On November 1, 2013 the Board of Directors voted for a four-to-one reverse split of the Company’s common stock. | ||
d. | During the year ended December 31, 2013, the Company issued 1,750,000 shares of 2013 Series A Convertible Preferred Stock and 3,500,000 warrants for $700,000. The preferred stock features a 7% cumulative dividend, payable quarterly. The warrant features provide that 2 warrants may be exercised to purchase one share of common stock at a strike price of $0.20 per share with a term of 12-24 months from the date of issuance. The weighted average fair value for the warrants was estimated using the Black-Scholes option valuation model. The value of the warrants was calculated to be $503,774 that was recorded to additional paid-in capital. The Black-Scholes option valuation model inputs used are as follows: | ||
Average expected life in years | 1 | ||
Average risk-free interest rate | 4.00% | ||
Average volatility | 75% | ||
Dividend yield | 7% |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
STOCK BASED COMPENSATION | 8 | ||||||||||||||||||||
STOCK BASED COMPENSATION: | |||||||||||||||||||||
Under the terms of the Company’s employment agreement with Mr. O’Donnell, Mr. O’Donnell receives a grant of 6,250 shares of the Company’s common stock per quarter and a grant of 1 share of the Company’s common stock times the number of years of completed service issued annually. In addition, Mr. O’Donnell receives options to purchase up to 15,000 of the Company’s common stock per calendar quarter at an exercise price equal to the ending bid price of the last market day prior to the date of the option award. The option exercise period for the option is up to two years from its date of issuance, at which time the option expires. Two officers who joined the Company in the first quarter of 2013 received a grant of certain restricted common stock shares as a sign-on bonus. The granted shares were vested proportionally each quarter for the calendar year ended December 31, 2013. Additionally, each Director, except for Mr. O’Donnell, is awarded 6,250 shares of the Company’s common stock per calendar quarter (issued at the beginning of each quarter). During the year ended December 31, 2014 the Company suspended all further stock grants to officers and directors due to the Company’s poor economic performance. | |||||||||||||||||||||
Summary Stock Compensation Table | |||||||||||||||||||||
The following table sets forth the Company’s paid or accrued stock compensation expense to its officers, directors and employees. | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Stock | Non-Vested | Underlying | |||||||||||||||||||
Stock | Options | Stock | Non-Vested | ||||||||||||||||||
Awards | Awards | Awards (1) | Stock (1) | Total | |||||||||||||||||
Year ended December 31, 2014 | $ | 74,000 | $ | — | $ | — | — | $ | 74,000 | ||||||||||||
Year ended December 31, 2013 | $ | 1,664,163 | $ | 101,400 | $ | 641,500 | 605,000 | $ | 2,407,063 | ||||||||||||
A summary of the status of the Company’s option grants as of December 31, 2014 and 2013 and the changes during the periods then ended is presented below: | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||
Remaining | Aggregate | ||||||||||||||||||||
Weighted-Average | Contractual Term | Intrinsic | |||||||||||||||||||
Shares | Exercise Price | (in Years) | Value | ||||||||||||||||||
Outstanding December 31, 2012 | 150,000 | $ | 1.54 | 0.64 | $ | 231,600 | |||||||||||||||
Granted | 150,000 | 1.62 | 1.57 | 242,850 | |||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||
Outstanding December 31, 2013 | 300,000 | 1.58 | 1.11 | 474,450 | |||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||
Forfeited | (150,000 | ) | 1.54 | 0.36 | (231,600 | ) | |||||||||||||||
Outstanding December 31, 2014 | 150,000 | $ | 1.58 | 1.11 | $ | 242,850 | |||||||||||||||
The weighted average fair value at the grant date for options during the years ended December 31, 2014 and 2013 was estimated using the Black-Scholes option valuation model with the following inputs: | |||||||||||||||||||||
Average expected life in years | 2 | ||||||||||||||||||||
Average risk-free interest rate | 2.00% | ||||||||||||||||||||
Average volatility | 75% | ||||||||||||||||||||
Dividend yield | 0% | ||||||||||||||||||||
Risk-free interest rates for the options were taken from the Daily Federal Yield Curve Rates on the grant dates for the expected life of the options as published by the Federal Reserve. The expected volatility was based upon historical data and other relevant factors such as changes in historical volatility, capital structure, and its daily trading volumes. | |||||||||||||||||||||
In calculating the expected life of stock options, the Company determines the amount of time from grant date to contractual term date for vested options. In developing the expected life assumption, all amounts of time are weighted by the number of underlying options. | |||||||||||||||||||||
A summary of the status of the Company’s vested and non-vested option grants at December 31, 2014 and the weighted average grant date fair value is presented below: | |||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||
Shares | Fair Value per Share | Fair Value | |||||||||||||||||||
Vested | 150,000 | $ | 0.68 | $ | 101,400 | ||||||||||||||||
Nonvested | — | — | — | ||||||||||||||||||
Total | 150,000 | $ | 0.68 | $ | 101,400 | ||||||||||||||||
EMPLOYEE_BENEFIT_PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plan | |
EMPLOYEE BENEFIT PLAN | 9 |
EMPLOYEE BENEFIT PLAN | |
CTT sponsors a 401(k) defined contribution plan covering substantially all employees. CTT generally matches contributions up to a maximum of 4% of the participant’s earnings. The matching contributions for the year ended December 31, 2014 and 2013 were $29,519 and $45,853, respectively. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
COMMITMENTS AND CONTINGENCIES | 10 | ||||
COMMITMENTS AND CONTINGENCIES: | |||||
a. During the year ended December 31, 2012 a complaint was filed with the Texas Railroad Commission (RRC) regarding the operation of one of Trinity Disposal Wells, LLC’s wells in East Texas. The complaint requested that the RRC terminate the well injection permit on the basis that the Company violated the terms of the permit by failing to confine injection fluids to the permitted interval and that the escape of such fluids is causing waste and poses a threat to fresh water. The Company answered the complaint and presented expert testimony contradicting the claim. On May 24, 2013, the RRC dismissed the complaint and ruled in favor of the Company. | |||||
b. The Company is obligated for $1,307,700 under long-term leases for the use of land where seven of its disposal wells are located. Three of the leases are for extended periods of time. The first lease expires on February 7, 2023 (with two options to renew for an additional 10 years each).The second lease expires on December 1, 2034 with no option to renew and the third lease expires on May 31, 2018 with one year renewal options. The monthly lease payment for the disposal well leases is $10,800. Rent expense for the twelve months ended December 31, 2014 and 2013 was $162,996 and $97,998, respectively. Following is a schedule of lease payments by year: | |||||
Years Ending | Disposal Well | ||||
December 31, | |||||
2015 | $ | 123,600 | |||
2016 | 123,600 | ||||
2017 | 116,100 | ||||
2018 | 105,600 | ||||
2019 | 105,600 | ||||
Thereafter | 733,200 | ||||
$ | 1,307,700 | ||||
c. A share based deferred consideration liability was recorded as part of the CTT purchase consideration based on the Stock Purchase Agreement dated June 29, 2012. The previous owner of CTT received $4,708,348 in consideration in the form of common shares with a right to receive additional common shares if the share price of the company falls below $4.00 per share at the end of the measurement period, which was January 25, 2014, as specified in the stock purchase agreement. The share based deferred consideration liability was settled on May 1, 2013 and the Company issued an additional 143,228 shares of common stock in full satisfaction of the Company’s liability. A total of 437,500 common shares were issued to settle the liability. | |||||
d. Earnings based deferred consideration liability was recorded as part of the CTT purchase consideration based on the Stock Purchase Agreement dated June 29, 2012 which was amended on May 1, 2013. The previous owner of CTT was granted the right to receive additional consideration based on specified earnings targets at the end of the measurement period, which ends on June 30, 2014, as specified in the amended agreement dated May 1, 2013. Based on CTT’s earnings through December 31, 2013, the fair value of the earnings based contingent liability of $2,300,000 (recorded at the acquisition date) has changed as of December 31, 2013 and the additional consideration based upon specific earnings targets were not achieved and therefore the contingent liability of $2,300,000 has been cancelled and the gain was included in other income (expense) for the year ended December 31, 2013. | |||||
e. Although not named directly in the litigation the Company was obligated to indemnify one of its current officers and one of its former officers in certain litigation filed against them; Jimmy Coffman and Elaine Coffman v. Tim P. Burroughs And Dick O’Donnell CAUSE NO. CV14-02-115 in the 271st Judicial District Wise County, Texas. In this suit the Coffmans sought to obtain the sum of $2,082,407 which they alleged was owed them on two promissory notes associated with the Company’s purchase of Chico Coffman Tank Trucks, Inc. and its subsidiary, Coffman Disposal, LLC. This amount is recorded as note payable. The lawsuit was being defended through the Company’s Directors and Officers insurance carrier, Chubb Insurance. On February 12, 2015 the Company executed a settlement agreement in the litigation with the Coffmans. The effect of the settlement agreement is the cancellation of two subordinated promissory notes originally totaling $3.7 million. The settlement resulted in the reduction of the Company’s indebtedness by $2.1 million. The promissory notes were owed to the former owners of CTT and related to the Company’s acquisition of CTT. The Company paid $150,000 in defense costs which represented the amount of the Company’s deductible under its Directors and Officers insurance policy. | |||||
f. The Company is a named defendant along with the previously named officers in certain litigation; Dynamic Technical Solutions Corp. and Ola Investments, LLC, V. Frontier Oilfield Services, Inc., Timothy Burroughs and Bernard R. “Dick” O’Donnell; CAUSE NO. CV14-04-234 in the 271st Judicial District Wise County, Texas wherein the Plaintiffs allege they have been damaged by the failure of the Company to complete a disposal well in a joint venture between the parties in the sum of $300,000. The Company is defending the lawsuit and believes the lawsuit is without merit. | |||||
g. From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs and legal costs associated with these matters when they become probable and the amount can be reasonably estimated. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Taxes | |||||||||||||||||
INCOME TAXES | 11 | ||||||||||||||||
INCOME TAXES: | |||||||||||||||||
The Company computes income taxes using the asset and liability approach. The Company currently has no issue that creates timing differences that would mandate deferred tax expense. Due to the uncertainty as to the utilization of net operating loss carryforwards, a valuation allowance has been made to the extent of any tax benefit that net operating losses may generate. No provision for income taxes has been recorded for the twelve months ended December 31, 2014 due to the Company’s net operating loss carryforward from prior years. | |||||||||||||||||
The following table reconciles income tax expense and rate base on the statutory rate to the Company’s income tax expense. | |||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Computed “expected” income tax benefit | $ | (1,841,641 | ) | 35 | $ | (3,031,996 | ) | 35 | |||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||||||
Expiration of unused net operating loss | 1,711,914 | (32.53 | ) | — | — | ||||||||||||
Permanent differences | 1,191 | (0.02 | ) | 11,065 | (0.13 | ) | |||||||||||
State taxes, net of federal benefit | 15,299 | (2.60 | ) | (25,273 | ) | 0.29 | |||||||||||
Changes in valuation allowance | 136,773 | (0.29 | ) | 3,118,413 | (36.00 | ) | |||||||||||
Provision for federal and state income tax | $ | 23,536 | (0.44 | ) | $ | 72,209 | (0.84 | ) | |||||||||
Deferred Income Taxes | |||||||||||||||||
Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of our deferred taxes are as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred tax assets (liabilities): | |||||||||||||||||
Net operating loss carryforward | $ | 11,449,134 | $ | 9,305,353 | |||||||||||||
Expiration of unused net operating loss | (1,711,914 | ) | — | ||||||||||||||
Bad debt allowance | 17,500 | — | |||||||||||||||
Stock based compensation | 98,035 | 72,135 | |||||||||||||||
Depreciation and amortization | (1,567,032 | ) | (1,228,538 | ) | |||||||||||||
Total deferred tax assets | 8,285,723 | 8,148,950 | |||||||||||||||
Valuation allowance | (8,285,723 | ) | (8,148,950 | ) | |||||||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||||||
At December 31, 2014 and 2013, the Company has net operating loss carry forwards of approximately $27.8 million and $21.7 million, respectively, remaining for federal income tax purposes. Net operating loss carry forwards may be used in future years to offset taxable income subject to compliance with Section 382 of the Internal Revenue Code. The federal net operating loss carry forwards will expire in 2019 through 2034. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12 |
SUBSEQUENT EVENTS | |
On February 12, 2015 the Company executed a settlement agreement in the litigation with the Coffmans whereby the Coffmans received a cash payment from Chubb in exchange for the termination of the litigation and the cancellation of two subordinated promissory notes with face amounts originally totaling $ 3.7 million. The settlement resulted in the reduction of the Company’s debt by $2.1 million. The Company paid $150,000 in defense costs which represented the amount of the Company’s deductible under its Directors and Officers insurance policy. | |
On March 25, 2015 the Company was notified by its largest customer that the Company was unsuccessful in a competitive bidding process conducted by the customer to select vendors for the customers’ saltwater transport and disposal service. The Company’s current MSA with the customer expires on March 31. 2015 and will not be the renewed. The customer represented 53% and 52%, respectively, of the Company’s revenues for the years ended December 31, 2014 and December 31, 2013. Management is in the process of preparing for the implications of the loss of this business volume, which at a minimum will be substantially lower revenues and cash flows beginning in April of 2015. |
SUMMARY_OF_SELECTED_ACCOUNTING
SUMMARY OF SELECTED ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | |||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from previously estimated amounts. | |||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||
The Company recognizes revenues when services are rendered, field tickets are approved, signed and received, and when payment is determinable and reasonably assured. The Company extends short-term, unsecured credit to its customers for amounts invoiced. | |||||||||||||||||
Cash | Cash | ||||||||||||||||
For purposes of the consolidated statements of cash flows, cash includes demand deposits, time deposits, certificates of deposit and short-term liquid investments with original maturities of three months or less when purchased. The Company is obligated to maintain all deposits in one financial institution. The Federal Deposit Insurance Corporation provides coverage for all accounts of up to $250,000. As of December 31, 2014 and 2013, none of the Company’s cash was in excess of federally insured limits. | |||||||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||||||
Restricted cash represents certificates of deposit used as collateral for letters of credit issued in favor of the Texas Railroad Commission as required pursuant to the Texas Railroad Commission’s regulations. The letters of credit provide evidence of financial responsibility for the operation of the disposal wells owned by the Company. Restricted cash is not generally available to the Company until the respective letters of credit are cancelled or terminated undrawn. | |||||||||||||||||
Accounts Receivable | Accounts Receivable | ||||||||||||||||
The Company performs periodic credit evaluations of its customers’ financial condition and extends credit to virtually all of its customers on an uncollateralized basis. Credit losses to date have been insignificant and within management’s expectations. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Normal accounts receivable are due 30 to 45 days after the issuance of the invoice. Receivables past due more than 60 days are considered delinquent. Delinquent receivables are evaluated for collectability based on individual credit evaluation and specific circumstances of the customer. As of December 31, 2014 and 2013, the Company’s allowance for doubtful accounts was $193,483 and $33,321, respectively. | |||||||||||||||||
At December 31, 2014 and 2013, the Company had the following customer concentrations. | |||||||||||||||||
Percentage of Revenue | Percentage of Accounts Receivable | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Customer A | 53 | % | 52 | % | 22 | % | 31 | % | |||||||||
Customer B | * | 14 | % | * | * | ||||||||||||
Customer C | 14 | % | * | 29 | % | 14 | % | ||||||||||
Customer D | * | * | * | 13 | % | ||||||||||||
* Less than 10% | |||||||||||||||||
Parts Inventory | Parts Inventory | ||||||||||||||||
Parts inventory consists of replacement parts for the Company’s vehicles and transports and is stated at the lower of cost or market. Cost is determined using average cost method. | |||||||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||||||
The Company’s property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets for financial reporting purposes. Maintenance and repair costs are expensed when incurred, while major improvements are capitalized. | |||||||||||||||||
The cost of assets sold or abandoned and the related accumulated depreciation are eliminated from the accounts and any gains or losses are charged or credited to income in the respective period. The estimated useful lives are as follows: | |||||||||||||||||
Asset Description | Estimated Useful Life | Cost | |||||||||||||||
Land | Non-depreciable | $ | 225,000 | ||||||||||||||
Trucks and equipment | 5-7 years | 7,529,483 | |||||||||||||||
Disposal wells | 5-14 years | 9,046,686 | |||||||||||||||
Buildings and improvements | 15 - 39 years | 474,900 | |||||||||||||||
Office furniture and equipment | 5-7 years | 60,175 | |||||||||||||||
Disposal well under construction | Non-depreciable | 539,225 | |||||||||||||||
Total property and equipment, at cost | 17,875,469 | ||||||||||||||||
Less: accumulated depreciation | (6,855,473 | ) | |||||||||||||||
Property and equipment, net | $ | 11,019,996 | |||||||||||||||
During the year ended December 31, 2014, the Company disposed of property and equipment with a cost of $2,815,845 and accumulated depreciation of $1,004,679. The Company received total proceeds of $704,923 and recognized a loss of $797,372 in the accompanying consolidated statements of operations. During the year ended December 31, 2013, the Company disposed of property and equipment with a cost of $3,702,087 and accumulated depreciation of $1,393,744. The Company received total proceeds of $2,678,029 and recognized a gain of $369,687 in the accompanying consolidated statements of operations. | |||||||||||||||||
Long-Lived Assets | Long-Lived Assets | ||||||||||||||||
The Company periodically reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be realizable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. In 2013, the Company determined that it would not be able to fully recover the carrying amount of its disposal wells from FIG. In accordance with the guidance for the impairment of long-lived assets, the Company recorded an impairment charge of $1.8 million in 2013 to adjust the carrying value of the asset to our estimate of its fair value. No impairment charges were recorded in 2014. We estimated that fair value using the comparable sales method. The impairment charge impacted the loss from discontinued operations, net of income taxes line in our consolidated statement of operations. | |||||||||||||||||
Asset retirement obligations | Asset retirement obligations | ||||||||||||||||
ASC Topic 410, Asset Retirement and Environmental Obligations, requires companies to recognize a liability for an asset retirement obligation (ARO) at fair value in the period in which the obligation is incurred, if a reasonable estimate of fair value can be made. This obligation relates to the future costs of plugging and abandoning the Company’s disposal wells, the removal of equipment and facilities, and returning such land to its original condition. | |||||||||||||||||
The Company has not recorded an ARO for the future estimated reclamation costs associated with the operation of the Company’s disposal wells. The Company is not able to determine the estimated life of its wells and is unable to determine a reasonable estimate of the fair value associated with this liability. The Company believes that any such liability would not be material to the consolidated financial statements taken as a whole. | |||||||||||||||||
Equity Instruments Issued for Goods and Services | Equity Instruments Issued for Goods and Services | ||||||||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date. That cost is recognized in the consolidated financial statements over the period during which the employee is required to provide services in exchange for the award with a corresponding increase in additional paid-in capital. | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
The ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value in accordance with U.S. generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the customer’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. | |||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||
In accordance with the reporting requirements of ASC Topic 825, Financial Instruments, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the financial statements when the fair value is different than the carrying value of those financial instruments. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at the balance sheet dates, nor gains or losses reported in the statements of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held during the years ended December 31, 2014 and 2013. | |||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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 income in the period that includes the enactment date. Income tax expense is the tax payable for the year plus or minus the change during the period in deferred tax assets and liabilities. | |||||||||||||||||
Earnings Per Share (EPS) | Earnings Per Share (EPS) | ||||||||||||||||
Basic earnings per common share are calculated by dividing net income or loss by the weighted average number of shares outstanding during the year. Diluted earnings per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an antidilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are 150,000 stock options, which have been excluded from EPS, outstanding that could potentially have a dilutive effect on EPS in the future. The table below sets forth the reconciliation for net loss and weighted average shares used for calculating basic and diluted earnings per share. | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Earnings (numerator) | |||||||||||||||||
Net loss | $ | (5,285,366 | ) | $ | (8,735,054 | ) | |||||||||||
Preferred stock dividends | (46,183 | ) | (37,027 | ) | |||||||||||||
Net loss loss available to common shareholders | $ | (5,331,549 | ) | $ | (8,772,081 | ) | |||||||||||
Shares (denominator) | |||||||||||||||||
Weighted average common shares outstanding (basic) | 5,751,181 | 5,250,820 | |||||||||||||||
Earnings (loss) per share from continuing operations | |||||||||||||||||
Basic and Diluted | $ | (0.93 | ) | $ | (1.67 | ) | |||||||||||
Reverse Stock Split | |||||||||||||||||
On November 1, 2013 the Company affected a four-to-one reverse stock split. All information in this Annual Report on Form 10-K relating to the number of shares, price per share and per share amounts gives retroactive effect to the four-to-one reverse stock split of our capital stock. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of customer concentrations | At December 31, 2014 and 2013, the Company had the following customer concentrations. | ||||||||||||||||
Percentage of Revenue | Percentage of Accounts Receivable | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Customer A | 53 | % | 52 | % | 22 | % | 31 | % | |||||||||
Customer B | * | 14 | % | * | * | ||||||||||||
Customer C | 14 | % | * | 29 | % | 14 | % | ||||||||||
Customer D | * | * | * | 13 | % | ||||||||||||
* Less than 10% | |||||||||||||||||
Summary of estimated lives of property and equipment | The cost of assets sold or abandoned and the related accumulated depreciation are eliminated from the accounts and any gains or losses are charged or credited to income in the respective period. The estimated useful lives are as follows: | ||||||||||||||||
Asset Description | Estimated Useful Life | Cost | |||||||||||||||
Land | Non-depreciable | $ | 225,000 | ||||||||||||||
Trucks and equipment | 5-7 years | 7,529,483 | |||||||||||||||
Disposal wells | 5-14 years | 9,046,686 | |||||||||||||||
Buildings and improvements | 15 - 39 years | 474,900 | |||||||||||||||
Office furniture and equipment | 5-7 years | 60,175 | |||||||||||||||
Disposal well under construction | Non-depreciable | 539,225 | |||||||||||||||
Total property and equipment, at cost | 17,875,469 | ||||||||||||||||
Less: accumulated depreciation | (6,855,473 | ) | |||||||||||||||
Property and equipment, net | $ | 11,019,996 | |||||||||||||||
Schedule of the reconciliation for net loss and weighted average shares used for calculating basic and diluted earnings per share | The table below sets forth the reconciliation for net loss and weighted average shares used for calculating basic and diluted earnings per share. | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Earnings (numerator) | |||||||||||||||||
Net loss | $ | (5,285,366 | ) | $ | (8,735,054 | ) | |||||||||||
Preferred stock dividends | (46,183 | ) | (37,027 | ) | |||||||||||||
Net loss loss available to common shareholders | $ | (5,331,549 | ) | $ | (8,772,081 | ) | |||||||||||
Shares (denominator) | |||||||||||||||||
Weighted average common shares outstanding (basic) | 5,751,181 | 5,250,820 | |||||||||||||||
Earnings (loss) per share from continuing operations | |||||||||||||||||
Basic and Diluted | $ | (0.93 | ) | $ | (1.67 | ) | |||||||||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Intangible Assets Tables | |||||||||||||||||||
Schedule of intangible assets | The intangible assets, net of amortization as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Accumulated | Weighted Average | ||||||||||||||||||
Gross | Amortization | Net | Useful Life | ||||||||||||||||
Intangible assets: | |||||||||||||||||||
Disposal well permits | $ | 2,093,867 | $ | (506,018 | ) | $ | 1,587,849 | 10 years | |||||||||||
Customer relationships | 1,973,867 | (477,018 | ) | 1,496,849 | 10 years | ||||||||||||||
$ | 4,067,734 | $ | (983,036 | ) | $ | 3,084,698 | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Accumulated | Weighted Average | ||||||||||||||||||
Gross | Amortization | Net | Useful Life | ||||||||||||||||
Intangible assets: | |||||||||||||||||||
Disposal well permits | $ | 2,093,867 | $ | (296,631 | ) | $ | 1,797,236 | 10 years | |||||||||||
Customer relationships | 1,973,867 | (279,631 | ) | 1,694,236 | 10 years | ||||||||||||||
$ | 4,067,734 | $ | (576,262 | ) | $ | 3,491,472 | |||||||||||||
Schedule of future amortization expense for intangible assets | Future amortization expense for definite-life intangible assets as of December 31, 2014 is as follows: | ||||||||||||||||||
Periods | |||||||||||||||||||
Ending | |||||||||||||||||||
December 31, | |||||||||||||||||||
2015 | $ | 406,776 | |||||||||||||||||
2016 | 406,776 | ||||||||||||||||||
2017 | 406,776 | ||||||||||||||||||
2018 | 406,776 | ||||||||||||||||||
2019 | 406,776 | ||||||||||||||||||
Thereafter | 1,050,818 | ||||||||||||||||||
$ | 3,084,698 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long-Term Debt, Net | Long-term debt as of December 31, 2014 and 2013 were as follows: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Revolving credit facility and term loan (a) | $ | 2,510,963 | $ | 3,767,585 | |||||
ICON term note (b) | 4,330,820 | 4,223,996 | |||||||
Loans from stockholder (f) | 2,870,484 | 1,596,000 | |||||||
Notes payable (c) | 2,082,407 | 2,082,407 | |||||||
Installment notes (d) | 163,215 | 221,467 | |||||||
Convertible note (e) | — | 117,246 | |||||||
Total debt | 11,957,889 | 12,008,701 | |||||||
Less current portion | (10,363,094 | ) | (10,352,472 | ) | |||||
Total long-term debt | $ | 1,594,795 | $ | 1,656,229 | |||||
Schedule of future maturities of long-term debt | Future maturities of long-term debt as of December 31, 2014 are as follows: | ||||||||
Years Ending | |||||||||
December 31, | |||||||||
2015 | $ | 10,363,094 | |||||||
2016 | $ | 418,928 | |||||||
2017 | $ | 430,326 | |||||||
2018 | $ | 398,864 | |||||||
2019 | $ | 346,677 | |||||||
$ | 11,957,889 | ||||||||
EQUITY_TRANSACTIONS_Tables
EQUITY TRANSACTIONS (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | ||
Schedule of Black-Scholes option valuation model inputs | The Black-Scholes option valuation model inputs used are as follows: | |
Average expected life in years | 1 | |
Average risk-free interest rate | 4.00% | |
Average volatility | 75% | |
Dividend yield | 7% |
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||
Schedule of paid or accrued stock compensation expense | The following table sets forth the Company’s paid or accrued stock compensation expense to its officers, directors and employees. | ||||||||||||||||||||||
Stock | Stock Options | Non-Vested Stock | Securities Underlying Non-Vested | ||||||||||||||||||||
Awards | Awards | Awards (1) | Stock (1) | Total | |||||||||||||||||||
Year ended December 31, 2014 | $ | 74,000 | $ | — | $ | — | — | $ | 74,000 | ||||||||||||||
Year ended December 31, 2013 | $ | 1,664,163 | $ | 101,400 | $ | 641,500 | 605,000 | $ | 2,407,063 | ||||||||||||||
Schedule of status of the Company's option grants | A summary of the status of the Company’s option grants as of December 31, 2014 and 2013 and the changes during the periods then ended is presented below: | ||||||||||||||||||||||
Weighted-Average | Weighted Average Remaining Contractual Term | Aggregate Intrinsic | |||||||||||||||||||||
Shares | Exercise Price | (in Years) | Value | ||||||||||||||||||||
Outstanding December 31, 2012 | 150,000 | $ | 1.54 | 0.64 | $ | 231,600 | |||||||||||||||||
Granted | 150,000 | 1.62 | 1.57 | 242,850 | |||||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||||
Outstanding December 31, 2013 | 300,000 | 1.58 | 1.11 | 474,450 | |||||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||||
Forfeited | (150,000 | ) | 1.54 | 0.36 | (231,600 | ) | |||||||||||||||||
Outstanding December 31, 2014 | 150,000 | $ | 1.58 | 1.11 | $ | 242,850 | |||||||||||||||||
Schedule of valuation assumptions | The weighted average fair value at the grant date for options during the years ended December 31, 2014 and 2013 was estimated using the Black-Scholes option valuation model with the following inputs: | ||||||||||||||||||||||
Average expected life in years | 2 | ||||||||||||||||||||||
Average risk-free interest rate | 2 | % | |||||||||||||||||||||
Average volatility | 75 | % | |||||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||
Schedule of vested and nonvested option grants | A summary of the status of the Company’s vested and non-vested option grants at December 31, 2014 and the weighted average grant date fair value is presented below: | ||||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||||
Shares | Fair Value per Share | Fair Value | |||||||||||||||||||||
Vested | 150,000 | $ | 0.68 | $ | 101,400 | ||||||||||||||||||
Nonvested | — | — | — | ||||||||||||||||||||
Total | 150,000 | $ | 0.68 | $ | 101,400 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies Tables | |||||
Schedule of base lease payments by year | b. Following is a schedule of lease payments by year: | ||||
Years Ending | Disposal Well | ||||
December 31, | |||||
2015 | $ | 123,600 | |||
2016 | 123,600 | ||||
2017 | 116,100 | ||||
2018 | 105,600 | ||||
2019 | 105,600 | ||||
Thereafter | 733,200 | ||||
$ | 1,307,700 | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Taxes Tables | |||||||||||||||||
Reconciliation of statutory tax expense to our income tax provision | The following table reconciles income tax expense and rate base on the statutory rate to the Company’s income tax expense. | ||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Computed “expected” income tax benefit | $ | (1,841,641 | ) | 35 | $ | (3,031,996 | ) | 35 | |||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||||||
Expiration of unused net operating loss | 1,711,914 | (32.53 | ) | — | — | ||||||||||||
Permanent differences | 1,191 | (0.02 | ) | 11,065 | (0.13 | ) | |||||||||||
State taxes, net of federal benefit | 15,299 | (2.60 | ) | (25,273 | ) | 0.29 | |||||||||||
Changes in valuation allowance | 136,773 | (0.29 | ) | 3,118,413 | (36.00 | ) | |||||||||||
Provision for federal and state income tax | $ | 23,536 | (0.44 | ) | $ | 72,209 | (0.84 | ) | |||||||||
Components of deferred taxes | The components of our deferred taxes are as follows: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred tax assets (liabilities): | |||||||||||||||||
Net operating loss carryforward | $ | 11,449,134 | $ | 9,305,353 | |||||||||||||
Expiration of unused net operating loss | (1,711,914 | ) | — | ||||||||||||||
Bad debt allowance | 17,500 | — | |||||||||||||||
Stock based compensation | 98,035 | 72,135 | |||||||||||||||
Depreciation and amortization | (1,567,032 | ) | (1,228,538 | ) | |||||||||||||
Total deferred tax assets | 8,285,723 | 8,148,950 | |||||||||||||||
Valuation allowance | (8,285,723 | ) | (8,148,950 | ) | |||||||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash, FDIC insured amount | $250,000 | |
Allowance for doubtful accounts | 193,483 | 33,321 |
Proceeds from sale of property and equipment | 704,923 | 605,919 |
Gain (loss) on disposition of assets | -797,372 | 369,687 |
Stock Option Awards [Member] | ||
Potentially dilutive shares excluded from EPS | 150,000 | |
Property and equipment [Member] | ||
Property and equipment, Disposals | 2,815,845 | 3,702,087 |
Property and equipment, Disposals, Accumulated depreciation | 1,004,679 | 1,393,744 |
Proceeds from sale of property and equipment | 704,923 | 2,678,029 |
Gain (loss) on disposition of assets | 797,372 | 369,687 |
Impairment of long lived assets | $1,800,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Sales [Member] | Customer A [Member] | ||||
Percentage of concentration risk | 53.00% | 52.00% | ||
Sales [Member] | Customer B [Member] | ||||
Percentage of concentration risk | [1] | 14.00% | ||
Sales [Member] | Customer C [Member] | ||||
Percentage of concentration risk | 14.00% | [1] | ||
Sales [Member] | Customer D [Member] | ||||
Percentage of concentration risk | [1] | [1] | ||
Accounts Receivable [Member] | Customer A [Member] | ||||
Percentage of concentration risk | 22.00% | 31.00% | ||
Accounts Receivable [Member] | Customer B [Member] | ||||
Percentage of concentration risk | [1] | [1] | ||
Accounts Receivable [Member] | Customer C [Member] | ||||
Percentage of concentration risk | 29.00% | 14.00% | ||
Accounts Receivable [Member] | Customer D [Member] | ||||
Percentage of concentration risk | [1] | 13.00% | ||
[1] | Less than 10% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of estimated lives of property and equipment | ||
Total property and equipment, at cost | 17,875,469 | $20,691,314 |
Less: accumulated depreciation | -6,855,473 | -5,554,487 |
Property and equipment, net | 11,019,996 | 15,136,827 |
Trucks and equipment [Member] | ||
Summary of estimated lives of property and equipment | ||
Total property and equipment, at cost | 7,529,483 | |
Trucks and equipment [Member] | Maximum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 7 years | |
Trucks and equipment [Member] | Minimum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 5 years | |
Disposal Wells [Member] | ||
Summary of estimated lives of property and equipment | ||
Total property and equipment, at cost | 9,046,686 | |
Disposal Wells [Member] | Maximum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 14 years | |
Disposal Wells [Member] | Minimum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 5 years | |
Buildings and improvements [Member] | ||
Summary of estimated lives of property and equipment | ||
Total property and equipment, at cost | 474,900 | |
Buildings and improvements [Member] | Maximum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 39 years | |
Buildings and improvements [Member] | Minimum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 15 years | |
Office furniture and equipment [Member] | ||
Summary of estimated lives of property and equipment | ||
Total property and equipment, at cost | 60,175 | |
Office furniture and equipment [Member] | Maximum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 7 years | |
Office furniture and equipment [Member] | Minimum [Member] | ||
Summary of estimated lives of property and equipment | ||
Estimated Useful Life | 5 years | |
Land [Member] | ||
Summary of estimated lives of property and equipment | ||
Total property and equipment, at cost | 225,000 | |
Construction in Progress [Member] | ||
Summary of estimated lives of property and equipment | ||
Total property and equipment, at cost | 539,225 |
SUMMARY_OF_SELECTED_ACCOUNTING1
SUMMARY OF SELECTED ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings (numerator) | ||
Net loss | ($5,285,366) | ($8,735,054) |
Preferred stock dividends | -46,183 | -37,027 |
Net loss loss available to common shareholders | ($5,331,549) | ($8,772,081) |
Shares (denominator) | ||
Weighted average common shares outstanding (basic) | 5,751,181 | 5,250,820 |
Earnings (loss) per share from continuing operations | ||
Basic and Diluted | ($0.93) | ($1.67) |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Intangibles, Gross | $4,067,734 | $4,067,734 |
Intangibles, Accumulated Amortization | -983,036 | -576,262 |
Intangibles, net | 3,084,698 | 3,491,472 |
Customer Relationships [Member] | ||
Intangibles, Gross | 2,093,867 | 1,973,867 |
Intangibles, Accumulated Amortization | -506,018 | -279,631 |
Intangibles, net | 1,587,849 | 1,694,236 |
Intangible assets, Weighted Average Useful Life | 10 years | 10 years |
Disposal Wells Permits [Member] | ||
Intangibles, Gross | 1,973,867 | 2,093,867 |
Intangibles, Accumulated Amortization | -477,018 | -296,631 |
Intangibles, net | $1,496,849 | $1,797,236 |
Intangible assets, Weighted Average Useful Life | 10 years | 10 years |
INTANGIBLE_ASSETS_Details_1
INTANGIBLE ASSETS (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Expected amortization expense for the period ending December 31, | ||
2015 | $406,776 | |
2016 | 406,776 | |
2017 | 406,776 | |
2018 | 406,776 | |
2019 | 406,776 | |
Thereafter | 1,050,818 | |
Intangibles, net | $3,084,698 | $3,491,472 |
LONGTERM_DEBT_Details_Narrativ
LONG-TERM DEBT (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2014 | Feb. 12, 2015 | Aug. 15, 2014 | Jul. 23, 2012 | |
Stock price | $0.53 | ||||
Debt discount | $72,235 | ||||
Loans from shareholder | 1,596,000 | ||||
Number of shares issued , value | 400,393 | ||||
Icon Term Note [Member] | |||||
Debt face amount | 5,000,000 | ||||
Debt Interest Rate | 14.00% | ||||
Primary Notes Payable [Member] | Chico Coffman Tank Trucks [Member] | |||||
Maturity Date | 1-Dec-18 | ||||
Loan payment amount | 33,003 | ||||
Loan payment frequency | Monthly | ||||
Debt face amount | 3,445,708 | ||||
Debt Interest Rate | 4.79% | ||||
Secondary Notes Payable [Member] | Chico Coffman Tank Trucks [Member] | |||||
Maturity Date | 1-Dec-18 | ||||
Loan payment amount | 2,488 | ||||
Loan payment frequency | Monthly | ||||
Debt face amount | 219,555 | ||||
Debt Interest Rate | 4.79% | ||||
Total Notes Payable [Member] | Chico Coffman Tank Trucks [Member] | Subsequent Event [Member] | |||||
Repayments of debt | 3,700,000 | ||||
Reduction indebtedness | 2,100,000 | ||||
Installment Notes [Member] | |||||
Loan payment amount | 5,377 | ||||
Loan payment frequency | Monthly | ||||
Debt face amount | 163,215 | ||||
Debt Interest Rate | 5.69% | ||||
Asher Convertible Notes Payable [Member] | |||||
Debt face amount | 153,500 | ||||
Debt Interest Rate | 8.00% | ||||
Debt Effective Interest Rate | 70.00% | ||||
Conversion price discount percentage | 35.00% | ||||
Conversion price | $0.34 | ||||
Repayments of debt | 53,500 | ||||
Number of shares issued , value | 4,453 | ||||
Number of shares issued | 341,372 | ||||
Revolving Credit Facility And Term Loan [Member] | |||||
Maturity Date | 23-Jul-17 | ||||
Interest rate description | Base Rate Plus Applicable Margin Plus 2% | ||||
Spread on variable rate basis | 2.00% | ||||
Loan payment frequency | Monthly | ||||
Unused commitment fee | 0.38% | ||||
Revolving Credit Facility [Member] | |||||
Debt Interest Rate | 6.75% | ||||
Term Loan [Member] | |||||
Debt Interest Rate | 7.75% | ||||
TermLoanMember | |||||
Loan payment amount - principal | 100,000 | ||||
Accredited Investor Loan [Member] | |||||
Debt face amount | 2,783,484 | ||||
Debt Interest Rate | 9.00% | ||||
Debt oustanding | 2,783,484 | ||||
Interest rate terms | The terms of the note requires the cash payment of one half of the interest cost monthly (4.5% per annum), and the remaining half is accrued as payment in kind interest. | ||||
Promissory Note Agreement With CEO [Member] | |||||
Debt face amount | $87,000 | ||||
Debt Interest Rate | 7.00% |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term debt, net | |||
Total debt | $11,957,889 | ||
Less current portion | -10,363,094 | -8,756,472 | |
Total long-term debt | 1,594,795 | 1,656,231 | |
Revolving Credit Facility And Term Loan [Member] | |||
Long-term debt, net | |||
Total debt | 2,510,963 | [1] | |
Icon Term Note [Member] | |||
Long-term debt, net | |||
Total debt | 4,330,820 | [2] | |
Loans From Shareholder [Member] | |||
Long-term debt, net | |||
Total debt | 2,870,484 | [3] | |
Notes Payable [Member] | |||
Long-term debt, net | |||
Total debt | 2,082,407 | [4] | |
Installment Notes [Member] | |||
Long-term debt, net | |||
Total debt | $163,215 | [5] | |
[1] | The Senior Loan Facility has a maturity date of July 23, 2017 and a default interest rate which is the base rate plus the applicable margin plus 2% (6.75% and 7.75%, respectively as of December 31, 2014). The term loan portion of the Senior Loan Facility requires monthly payments of $100,000 plus interest. The Senior Loan Facility also provides for the payment of an unused commitment fee of .375% per annum. The loans are secured by all of the Company's properties and assets except for its disposal wells wherein the Senior Loan Facility has a subordinated secured position to ICON. As of December 31, 2014, the Company was not in compliance with its debt covenants under the Senior Loan Facility and the lender had not exercised their rights under the ICON agreement. The outstanding balance of the Senior Loan Facility is included in current liabilities at December 31, 2014 due to the fact that the Company was not in compliance with its debt covenants. | ||
[2] | The Company and its subsidiaries entered into a Term Loan, Guaranty and Security Agreement on July 23, 2012 with ICON in the amount of $5 million. The Loan Agreement provides for an annual interest rate of 14% with monthly payments of interest and with repayment of the principal and all accrued but unpaid interest due on February 1, 2018. ICON had a senior secured position on the Company's disposal wells and a subordinated position to the Senior Loan Facility on all other Company properties and assets. On December 27, 2014 an affiliate of an accredited investor who is also a stockholder purchased the note payable to ICON. The accredited investor assumed the terms and conditions of the ICON note agreement. As of December 31, 2014, the Company was not in compliance with its debt covenants under the ICON note and the lender had not exercised their rights under the ICON agreement. The outstanding balance of the ICON note is included in current liabilities at December 31, 2014 due to the fact that the Company was not in compliance with its debt covenants. | ||
[3] | On May 27, 2014 an accredited investor, who is also a stockholder in the Company, entered into a loan agreement with the Company for the amount of $2,783,484. As of December 31, 2014 the principal balance of the note was $2,783,484. The note bears interest at 9% per annum. The terms of the note requires the cash payment of one half of the interest cost monthly (4.5% per annum), and the remaining half is accrued as payment in kind interest. The note and all accrued interest are due and payable in November 2015. | ||
[4] | The Company assumed two notes payable in connection with the acquisition of CTT.The notes were related to CTT's purchase of common shares from two of its former stockholders. The primary note payable, dated June 1, 2007, in the original amount of $3,445,708 with interest at 4.79%, was payable in monthly installments of $33,003 including interest, maturing December 1, 2018. The Company's secondary note payable in the original amount of $219,555 dated June 1, 2007 had interest at 4.79% and was payable in monthly installments of $2,488 including interest, maturing December 1, 2018. Both notes were subordinated to the Senior Loan Facility and ICON notes. On February 12, 2015 the Company executed a settlement agreement in the litigation with the holders of the two notes payable. The effect of the settlement agreement is the cancellation of the two notes payable totaling $3.7 million. The settlement resulted in the reduction of the Company's indebtedness by $2.1 million. The promissory notes were owed to the former owners of CTT and related to the Company's acquisition of CTT. | ||
[5] | The Company has an installment loan with a principal balance of approximately $163,215 which was used to acquire property and equipment for use in the Company's operations.The loan matures in September 2017 and has an interest rate of 5.69% and monthly minimum payments of $5,377. |
LONGTERM_DEBT_Details_1
LONG-TERM DEBT (Details 1) (USD $) | Dec. 31, 2014 |
Summary of future maturities of long-term debt | |
2015 | $10,363,094 |
2016 | 418,928 |
2017 | 430,326 |
2018 | 398,864 |
2019 | 346,677 |
Total future maturities of long-term debt | $11,957,889 |
EQUITY_TRANSACTIONS_Details_Na
EQUITY TRANSACTIONS (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reverse stock spilit | 0.25 | |
Preferred stock sales | $890,000 | $700,000 |
Interest rate of Preferred Stock | 7.00% | |
Warrants [Member] | ||
Stock issued during the period,shares | 2,200,000 | 3,500,000 |
Description of warrants expiration term | Term of 12-24 months from the date of issuance. | |
Strike price | $0.20 | $0.20 |
Fair value of warrant | 503,774 | |
Preferred Stock 2013 Series A 7% [Member] | ||
Preferred stock sales | 11,000 | 17,500 |
Preferred stock sales, shares | 1,750,000 | |
Dividends in arrears | 83,210 | |
Stock to be issued for the conversion of debt, value | 450,000 | |
Preferred Stock 2013 Series A 7% [Member] | Issuance 2014 [Member] | ||
Preferred stock sales | $440,000 | |
Preferred stock sales, shares | 1,100,000 |
EQUITY_TRANSACTIONS_Details
EQUITY TRANSACTIONS (Details) (Warrants [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Warrants [Member] | |
Average expected life in years | 1 year |
Average risk-free interest rate | 4.00% |
Average volatility | 75.00% |
Dividend yield | 7.00% |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION (Details Narrative) | 12 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Number | |||
Share based compensation arrangement by share based payment award options exercise | 1 year 1 month 9 days | 1 year 1 month 9 days | |
Number of new officers joined who received restricted common stock shares as sign-on bonus | 2 | ||
Mr. O'Donnell [Member] | |||
Employment agreement of officers, stock grants | 6,250 | ||
Right to purchase common stock | 15,000 | ||
Share based compensation arrangement by share based payment award options exercise | 2 years | ||
Director [Member] | |||
Directors stock grant, quarterly | 6,250 |
STOCK_BASED_COMPENSATION_Detai1
STOCK BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Paid or accrued stock compensation expense | $74,000 | $2,407,063 |
Stock Awards [Member] | ||
Paid or accrued stock compensation expense | 74,000 | 1,664,163 |
Stock Option Awards [Member] | ||
Paid or accrued stock compensation expense | 101,400 | |
Non Vested Stock Awards [Member] | ||
Paid or accrued stock compensation expense | 641,500 | |
Securities Underlying Restricted Stock [Member] | ||
Paid or accrued stock compensation expense | $605,000 |
STOCK_BASED_COMPENSATION_Detai2
STOCK BASED COMPENSATION (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Number of shares | ||
Beginning balance | 300,000 | 150,000 |
Granted | 150,000 | |
Forfeited | -150,000 | |
Ending balance | 150,000 | 300,000 |
Weighted Average Exercise Price | ||
Beginning balance | $1.58 | $1.54 |
Granted | $1.62 | |
Forfeited | $1.54 | |
Ending balance | $1.58 | $1.58 |
Weighted Average Remaining Contractual Term | ||
Beginning Balance | 7 months 20 days | |
Granted | 1 year 6 months 25 days | |
Forfeited | 4 months 10 days | |
Ending Balance | 1 year 1 month 9 days | 1 year 1 month 9 days |
Aggregate Intrinsic Value | ||
Beginning Balance | $474,450 | $231,600 |
Granted | 242,850 | |
Forfeited | -231,600 | |
Ending Balance | $242,850 | $474,450 |
STOCK_BASED_COMPENSATION_Detai3
STOCK BASED COMPENSATION (Details 2) | 12 Months Ended |
Dec. 31, 2014 | |
Stock Based Compensation Details 2 | |
Average expected life in years | 2 years |
Average risk-free interest rate | 2.00% |
Average volatility | 75.00% |
Dividend yield | 0.00% |
STOCK_BASED_COMPENSATION_Detai4
STOCK BASED COMPENSATION (Details 3) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Granted, Shares | 150,000 |
Weighted Average Grant Date Fair Value per Share | $0.68 |
Weighted Average Grant Date Fair Value | $101,400 |
Vested Option [Member] | |
Granted, Shares | 150,000 |
Weighted Average Grant Date Fair Value per Share | $0.68 |
Weighted Average Grant Date Fair Value | $101,400 |
EMPLOYEE_BENEFIT_PLAN_Details_
EMPLOYEE BENEFIT PLAN (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plan (Textual) [Abstract] | ||
Maximum percentage of contribution to participants' earnings | 4.00% | |
Matching contribution | $29,519 | $45,853 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies Details Narrative | ||
Received consideration in form of common shares amount | $4,708,348 | |
Share price at the end of the contingency period | $4 | |
Deferred consideration payable for acquisition of CTT | 2,300,000 | |
Monthly lease payment for disposal wells leases | 10,800 | |
Rent expenses | $162,996 | $97,998 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative 1) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Number | |
Use of Land Leases [Member] | |
Total lease obligation | $1,307,700 |
Monthly lease payment for leases | 10,300 |
Number of disposal wells in land lease | 7 |
Number of leases with extensions for period of time | 3 |
Number of options to renew leases | 2 |
Use of Land Lease #1 [Member] | |
Lease renewal term | 10 years |
Use of Land Lease #3 [Member] | |
Lease renewal term | 1 year |
Case [Member] | |
Estimate of possible loss | 2,082,407 |
Description of litigation | Jimmy Coffman and Elaine Coffman v. Tim P. Burroughs And Dick O'Donnell CAUSE NO. CV14-02-115 in the 271st Judicial District Wise County, Texas wherein the Coffman's seek to obtain the sum of $2,082,407 which they allege is owed them as a result of the Company's purchase of Chico Coffman Tank Trucks, Inc. and its subsidiary |
Name of plaintiff | Jimmy Coffman and Elaine Coffman v. Tim P. Burroughs And Dick O'Donnell |
Domicile of litigation | Judicial District Wise County, Texas |
Case1 [Member] | |
Estimate of possible loss | $300,000 |
Description of litigation | Dynamic Technical Solutions Corp. and Ola Investments, LLC, V. Frontier Oilfield Services, Inc., Timothy Burroughs and Bernard R. "Dick" O'Donnell; CAUSE NO. CV14-04-234 in the 271st Judicial District Wise County, Texas wherein the Plaintiffs allege they have been damaged by the failure of the Company to complete a disposal well in a joint venture between the parties in the sum of $300,000. |
Name of plaintiff | Dynamic Technical Solutions Corp. and Ola Investments, LLC, V. Frontier Oilfield Services, Inc., Timothy Burroughs and Bernard R. "Dick" O'Donnell |
Domicile of litigation | Judicial District Wise County, Texas |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) (Disposal Well [Member], USD $) | Dec. 31, 2014 |
Disposal Well [Member] | |
Schedule of base lease payments by year | |
2015 | $123,600 |
2016 | 123,600 |
2017 | 116,100 |
2018 | 105,600 |
2019 | 105,600 |
Thereafter | 733,200 |
Total base lease payments | $1,307,700 |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (Federal [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Federal [Member] | ||
Net operating loss carryforwards | $27,800,000 | $21,700,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of statutory tax expense to our income tax provision | ||
Computed "expected" income tax benefit amount | ($1,841,641) | ($3,031,996) |
Increase (decrease) in income taxes resulting from: | ||
Expiration of unused net operating loss | 1,711,914 | |
Permanent differences, amount | 1,191 | 11,065 |
State taxes, net of Federal benefit, amount | 15,299 | -25,273 |
Changes in valuation allowance, amount | 136,773 | 3,118,413 |
Total tax provision, amount | $23,536 | $72,209 |
Computed "expected" income tax benefit percentage | 35.00% | 35.00% |
Expiration of unused net operating loss, percentage | -32.53% | |
Permanent differences, percentage | -0.02% | -0.13% |
State taxes, net of Federal benefit, percentage | -2.60% | 0.29% |
Changes in valuation allowance, percentage | -0.29% | -36.00% |
Total tax provision, percentage | -0.44% | -0.84% |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets (liabilities): | ||
Net operating loss carryforward | $11,449,134 | $9,305,353 |
Expiration of unused net operating loss | -1,711,914 | |
Bad debt allowance | 17,500 | |
Stock based compensation | 98,035 | 72,135 |
Depreciation and amortization | -1,567,032 | -1,228,538 |
Total deferred tax assets | 8,285,723 | 8,148,950 |
Valuation allowance | -8,285,723 | -8,148,950 |
Net deferred tax assets |
SUBSEQUENT_EVENTS_Details_Narr
SUBSEQUENT EVENTS (Details Narrative) (Subsequent Event [Member], Chico Coffman Tank Trucks [Member], Total Notes Payable [Member], USD $) | 0 Months Ended |
Feb. 12, 2015 | |
Subsequent Event [Member] | Chico Coffman Tank Trucks [Member] | Total Notes Payable [Member] | |
Repayments of debt | $3,700,000 |
Reduction indebtedness | $2,100,000 |