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SMG Industries (SMGI)

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021May 24, 2021
Document and Entity Information
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 31,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Registrant NameSMG Industries Inc.
Entity Central Index Key0001426506
Current Fiscal Year End Date--12-31
Entity Interactive Data CurrentYes
Entity Current Reporting StatusYes
Entity Filer CategoryNon-accelerated Filer
Trading SymbolSMGI
Title of 12(b) SecurityNone
Entity Common Stock, Shares Outstanding211,078,135
Entity Shell Companyfalse
Entity Emerging Growth Companyfalse
Entity Small Businesstrue

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)Mar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 353,418 $ 263,814
Restricted cash716,474 715,274
Accounts receivable, net of allowance for doubtful accounts of $672,201 and $691,098 as of March 31, 2021 and December 31, 2020, respectively6,324,912 4,920,967
Prepaid expenses and other current assets1,355,262 1,409,996
Current assets of discontinued operations138,821 437,787
Total current assets8,888,887 7,747,838
Property and equipment, net of accumulated depreciation of $6,882,957 and $5,991,572 as of March 31, 2021 and December 31, 2020, respectively14,912,382 16,337,914
Right of use assets - operating lease1,182,400 1,270,989
Other assets744,075 499,707
Other assets of discontinued operations, net1,514,469 1,568,700
Total assets27,242,213 27,425,148
Current liabilities:
Accounts payable2,940,421 3,171,086
Accounts payable - related party110,526 205,444
Accrued expenses and other liabilities3,836,219 2,373,057
Right of use liabilities operating leases current portion608,097 575,517
Deferred revenue30,000 30,000
Secured line of credit3,718,730 4,046,256
Current portion of unsecured notes payable4,449,569 2,187,436
Current portion of secured notes payable, net5,224,918 4,010,627
Current portion of convertible notes, net50,000 50,000
Current liabilities of discontinued operations1,943,319 2,243,037
Total current liabilities22,911,799 18,892,460
Long term liabilities:
Convertible notes payable, net2,691,321 2,417,335
Notes payable - unsecured, net of current portion1,831,844 1,040,223
Notes payable - secured, net of current portion12,518,185 14,038,409
Right of use liabilities - operating leases, net of current portion793,944 846,212
Long term liabilities of discontinued operations1,009,972 1,008,362
Total liabilities41,757,065 38,243,001
Commitments and contingencies
Stockholders' deficit
Common stock - $0.001 par value; authorized 250,000,000 authorized, issued and outstanding 19,839,365 and 19,446,258 at March 31, 2021 and December 31, 2020, respectively19,840 19,447
Additional paid in capital11,170,885 10,978,254
Accumulated deficit(25,705,579)(21,815,556)
Total stockholders' deficit(14,514,852)(10,817,853)
Total liabilities and stockholders' deficit27,242,213 27,425,148
Series A Preferred Stock [Member]
Stockholders' deficit
Preferred stock 1,000,000 shares authorized2 2
Series B Preferred Stock [Member]
Stockholders' deficit
Preferred stock 1,000,000 shares authorized $ 0 $ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)Mar. 31, 2021Dec. 31, 2020
Allowance for Doubtful Accounts Receivable, Current $ 672,210 $ 691,098
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment $ 6,882,957 $ 5,991,572
Preferred Stock, Shares Authorized1,000,000 1,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share) $ 0.001 $ 0.001
Common Stock, Shares Authorized250,000,000 250,000,000
Common Stock, Shares, Issued19,839,365 19,446,258
Common Stock, Shares, Outstanding19,839,365 19,446,258
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share (in dollars per share) $ 0.001 $ 0.001
Preferred Stock, Shares Authorized2,000 2,000
Preferred Stock, Shares Issued2,000 2,000
Preferred Stock, Shares Outstanding2,000 2,000
Series B Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share (in dollars per share) $ 0.001 $ 0.001
Preferred Stock, Shares Authorized6,000 6,000
Preferred Stock, Shares Issued0 0
Preferred Stock, Shares Outstanding0 0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
REVENUES $ 7,602,328 $ 4,360,381
COST OF REVENUES8,700,508 4,663,359
GROSS LOSS(1,098,180)(302,978)
OPERATING EXPENSES:
Selling, general and administrative1,512,400 2,098,330
Total operating expenses1,512,400 2,098,330
LOSS FROM OPERATIONS(2,610,580)(2,401,308)
OTHER INCOME (EXPENSE)
Interest expense, net(1,248,789)(344,599)
Other income, net639 0
Gain on sale of assets50,162 0
Total other income (expense)(1,197,988)(344,599)
NET LOSS FROM CONTINUING OPERATIONS(3,808,568)(2,745,907)
Loss from discontinued operations(56,455)(233,324)
NET LOSS(3,865,023)(2,979,231)
Preferred stock dividends(25,000)(42,123)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (3,890,023) $ (3,021,354)
Net loss per common share - Basic and diluted
Continuing operations (in dollar per share) $ (0.20) $ (0.18)
Discontinued operations (in dollar per share)0 (0.01)
Net loss attributable to common shareholders (in dollar per share) $ (0.20) $ (0.19)
Weighted average common shares outstanding
Basic (in shares)19,516,258 15,686,520
Diluted (in shares)19,516,258 15,686,520

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)Series A Preferred Stock [Member]Series B Preferred Stock [Member]Common Stock [Member]Additional Paid-In Capital [Member]Accumulate Deficit [Member]Total
Beginning balance at Dec. 31, 2019 $ 2 $ 0 $ 14,881 $ 4,756,194 $ (5,692,525) $ (921,448)
Beginning balance (in shares) at Dec. 31, 20192,000 0 14,881,372
Share based compensation2,895 2,895
Shares issued for acquisition of 5J Entities $ 6 4,377,994 4,378,000
Shares issued for acquisition of 5J Entities (in shares)6,000
Share issued for deferred financing cost $ 2,499 417,289 419,788
Share issued for deferred financing cost (in shares)2,498,736
Warrant issued for notes payable - debt discount59,439 59,439
Preferred stock dividends $ 0 $ 0 $ 0 0 (42,123)(42,123)
Net loss(2,979,231)(2,979,231)
Ending balance at Mar. 31, 2020 $ 2 $ 6 $ 17,380 9,613,811 (8,713,879)917,320
Ending balance (in shares) at Mar. 31, 20202,000 6,000 17,380,108
Beginning balance at Dec. 31, 2020 $ 2 $ 0 $ 19,447 10,978,254 (21,815,556)(10,817,853)
Beginning balance (in shares) at Dec. 31, 20202,000 0 19,446,258
Shares issued to settle accounts liabilities $ 0 $ 0 $ 393 174,658 0 175,051
Shares issued to settle accounts liabilities (in shares)0 0 393,107
Share based compensation $ 0 $ 0 $ 0 17,973 0 17,973
Preferred stock dividends0 $ 0 0 0 (25,000)(25,000)
Net loss(3,865,023)(3,865,023)
Ending balance at Mar. 31, 2021 $ 2 $ 19,840 $ 11,170,885 $ (25,705,579) $ (14,514,852)
Ending balance (in shares) at Mar. 31, 20212,000 19,839,365

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (3,808,568) $ (2,745,907)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities
Stock based compensation17,973 2,895
Depreciation and amortization1,418,401 542,493
Amortization of deferred financing costs245,722 80,954
Amortization of right of use assets - operating leases88,589 33,786
Bad debt recovery(14,353)(1,167)
(Gain) loss on sale of assets(50,162)10,229
Changes in:
Accounts receivable(1,389,592)(146,198)
Prepaid expenses and other current assets1,251,779 744,766
Other assets(585,574)(732,042)
Accounts payable(118,594)(2,194,972)
Accounts payable - related party(59,918)
Accrued expenses and other liabilities1,438,162 2,470,255
Right of use operating lease liabilities(19,688)(11,807)
Net cash used in operating activities from continuing operations(1,585,823)(1,946,715)
Net cash provided by (used in) operating activities from discontinued operations530,013 (599,754)
Net cash used in operating activities(1,055,810)(2,546,469)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for acquisition of 5J Entities, net(6,320,168)
Cash paid for disposition of MG Cleaners, LLC(35,000)
Cash paid for purchase of property and equipment(84,878)
Net cash used in investing activities from continuing operations(35,000)(6,405,046)
Net cash used in investing activities(35,000)(6,405,046)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of deferred financing costs(239,558)
Proceeds from secured line of credit, net5,719,410
Payments on secured line of credit, net(354,214)
Proceeds from notes payable1,874,002 1,952,248
Payments on notes payable(338,001)(139,842)
Proceeds from convertible notes payable150,000 1,350,000
Net cash provided by financing activities from continuing operations1,331,787 8,642,258
Net cash (used in) provided by financing activities from discontinued operations(150,173)799,754
Net cash provided by financing activities1,181,614 9,442,012
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH90,804 490,497
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period979,088 29,568
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period1,069,892 520,065
Supplemental disclosures:
Cash paid for interest528,909
Noncash investing and financing activities
Non-cash consideration paid for business acquisitions4,378,000
Non-cash increase in secured notes payable related to acquisition5,840,622
Non-cash consideration paid for prepaids from debt financing331,065
Debt discount from issuance of common stock warrants59,439
Preferred stock dividend25,000 42,123
Expenses paid by related party25,279
Prepaid expenses financed with note payable1,179,752
Shares issued for deferred financing costs $ 419,788
Note receivable for property and equipment17,293
Beneficial conversion feature on convertible notes payable175,051
Non-cash consideration in convertible notes payable $ 112,071

BACKGROUND AND BASIS OF PRESENT

BACKGROUND AND BASIS OF PRESENTATION3 Months Ended
Mar. 31, 2021
BACKGROUND AND BASIS OF PRESENTATION
BACKGROUND AND BASIS OF PRESENTATIONNOTE 1 — BACKGROUND AND BASIS OF PRESENTATION
SMG Industries Inc. (“we”, “our”, the “Company” or “SMG”) is a corporation established pursuant to the laws of the State of Delaware on January 7, 2008. The Company’s original business was the acquisition and stockpile of a rare metal known as Indium used in cell phones and other industrial applications. The Company eventually sold its stockpile and distributed most of the proceeds to its stockholders via special dividends and share repurchases.
We are a growth-oriented Transportation Services company focused on the domestic logistics market.
SMG is headquartered in Houston, Texas with facilities in Floresville, Henderson, Odessa, Palestine, Tomball, and Victoria, Texas.
In March 2020, the World Health Organization declared COVID-19 a pandemic. Throughout 2020 and into 2021, many variants of the virus arose. We are still assessing the impact COVID-19 and related variants (together, “COVID-19”) may have on our business, but there can be no assurance that this analysis will enable us to avoid part or all of any impact from the spread of COVID-19 or its consequences, including downturns in business sentiment generally. The extent to which the COVID-19 pandemic and global efforts to contain its spread will impact our operations will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the pandemic and the actions taken to contain or treat the COVID-19 pandemic.
The accompanying unaudited interim consolidated financial statements of SMG Industries Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019 with are included on a Form 10-K filed on April 19, 2021. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosures contained in the audited consolidated financial statements for years ended December 31, 2020 and 2019 have been omitted.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES3 Months Ended
Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESNOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The Company prepares its consolidated financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its wholly subsidiaries, 5J Trucking LLC, 5J Oilfield Services LLC, 5J Specialized LLC, 5J Transportation LLC and 5J Brokerage LLC (together referred to as “5J”), Momentum Water Transfer Services, LLC Jake Oilfield Solutions LLC and Trinity Services LLC (“Trinity”), all of which have a quarter end of March 31 and fiscal year end of December 31. All intercompany accounts, balances and transactions have been eliminated in the consolidation.
Acquisition Accounting
The Company’s acquisitions are accounted for using the purchase acquisition method of accounting whereby purchase price is allocated to tangible and intangible assets acquired and liabilities assumed based on fair value. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired is recorded as goodwill. The consolidated financial statements for the fiscal years presented include the results of operations for the 5J Entities and Trinity acquisitions from the date of acquisition.
Fair Value of Financial Instruments
The carrying value of short-term instruments, including cash, accounts payable and accrued expenses, and short-term notes approximate fair value due to the relatively short period to maturity for these instruments. The long-term debt approximate fair value since the related rates of interest approximate current market rates.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company utilizes a three-level valuation hierarchy for disclosures of fair value measurements, defined as follows:
Level 1: inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
Level 3: inputs to the valuation methodology are unobservable and significant to the fair value
The Company does not have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.
Discontinued Operations
In December 2020 we sold MG and decided to cease the operations of Trinity. A component of an entity that is disposed of by sale or ceasing of operations is reported as discontinued operations if the transaction represents a strategic shift that will have a major effect on an entity’s operations and financial results. As such, MG and Trinity are reported as discontinued operations.
Assets and liabilities of the discontinued operations are aggregated and reported separately as assets and liabilities of discontinued operations in the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. The results of discontinued operations are aggregated and presented separately in the Consolidated Statements of Operations as net loss from discontinued operations for the three months ended March 31, 2021 and 2020. The cash flows of the discontinued operations are reflected as cash flows of discontinued operations within the Company’s Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020.
Amounts presented in discontinued operations have been derived from our consolidated financial statements and accounting records using the historical basis of assets, liabilities, results of operations, and cash flows of Trinity and MG Cleaners. The discontinued operations exclude general corporate allocations.
Basic and Diluted Net Loss per Share
The Company presents both basic and diluted net loss per share on the face of the statements of operations. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted per share calculations give effect to all potentially dilutive shares of common stock outstanding during the period, including stock options and warrants, and using the treasury-stock method. If anti-dilutive, the effect of potentially dilutive shares of common stock is ignored. For the three months ended March 31, 2021, 2,060,000 of stock options, 1,763,335 of warrants, 4,000,000 shares issuable from Series A Preferred Stock and 29,413,660 shares issuable from convertible notes were considered for their dilutive effects. For the three months ended March 31, 2020, 2,860,000 of stock options, 1,763,335 of warrants, 4,000,000 shares issuable from Series A Preferred Stock, 4,806,388 shares issuable from Series B Preferred Stock and 6,500,000 shares issuable from convertible notes were considered for their dilutive effects. As a result of the Company’s net losses for the three months ended March 31, 2021 and 2020, all potentially dilutive instruments were excluded as their effect would have been anti-dilutive.
March 31,
March 31,
Basic and Diluted Loss
2021
2020
Net loss from continuing operations
$
(3,808,568)
$
(2,745,907)
Net loss from discontinued operations
(56,455)
(233,324)
Net loss
(3,865,023)
(2,979,231)
Preferred stock dividends
(25,000)
(42,123)
Net loss attributable to common shareholders
(3,890,023)
(3,021,354)
Basic and Dilutive Shares:
Weighted average basic shares outstanding
19,516,258
15,686,520
Net dilutive stock options


Dilutive shares
19,516,258
15,686,520
Reclassification
Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.
Recent Accounting Pronouncements
The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

GOING CONCERN

GOING CONCERN3 Months Ended
Mar. 31, 2021
GOING CONCERN
GOING CONCERNNOTE 3 – GOING CONCERN
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, no adjustments to the consolidated financial statements have been made to account for this uncertainty. The Company concluded that the uncertainty surrounding the COVID-19 global pandemic, its negative working capital, and negative cash flows from operations are conditions that raised substantial doubt about the Company’s ability to continue as a going concern. The Company plans to continue to generate additional revenue (and improve cash flows from operations) in connection with its anticipated growth related to the Company’s February 2020 acquisition of 5J and its expanded revenue lines in heavy haul, super heavy haul, drilling rig mobilization, commodity freight, and brokerage services. The Company believes that loans obtained under the Paycheck Protection Program in 2020 and 2021 will be forgiven in accordance with the terms of the program.

REVENUE

REVENUE3 Months Ended
Mar. 31, 2021
REVENUE
REVENUENOTE 4 – REVENUE
Disaggregation of revenue
All of the Company’s revenue from continuing operations is currently generated from services. As such no further disaggregation of revenue information is provided. All revenues are currently in the southern region of the United States.
Customer Concentration and Credit Risk
During the three months ended March 31, 2021, one of our customers accounted for approximately 12% of our total gross revenues. No other customers exceeded 10% of revenues during the three months ended March 31, 2021. No customer accounted for 10% of accounts receivable as of March 31, 2021 and one customer accounted for 10% of accounts receivable as of December 31, 2020. During the three months ended March 31, 2020, one of our customers accounted for approximately 18% of our total gross revenues. No other customers exceeded 10% of revenues during the three months ended March 31, 2020.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET3 Months Ended
Mar. 31, 2021
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NETNOTE 5 – PROPERTY AND EQUIPMENT, NET
Property and equipment at March 31, 2021 and December 31, 2020 consisted of the following:
March 31, 2021
December 31, 2020
Equipment
$
7,738,597
8,549,824
Trucks and trailers
11,342,119
11,062,588
Downhole oil tools
659,873
659,873
Vehicles
1,538,528
1,550,335
Building
493,626
493,626
Furniture, fixtures and other
22,596
13,240
Property and equipment, gross
21,795,339
22,329,486
Less: accumulated depreciation
(6,882,957)
(5,991,572)
Property and equipment, net
$
14,912,382
$
16,337,914
Depreciation expense for the three months ended March 31, 2021 and 2020 was $1,418,401 and $542,493, respectively.

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES3 Months Ended
Mar. 31, 2021
ACCRUED EXPENSES AND OTHER LIABILITIES
ACCRUED EXPENSES AND OTHER LIABILITIESNOTE 6 – ACCRUED EXPENSES AND OTHER LIABILITIES
Accrued expenses as of March 31, 2021 and December 31, 2020 included the following:
March 31, 2021
December 31, 2020
Payroll and payroll taxes payable
$
214,387
$
490,033
Sales tax payable
1,627
1,627
State income tax payable
146,912
144,800
Property tax payable
70,000

Interest payable
1,227,830
839,240
Credit cards payable
3,759
31,422
Accrued operational expenses
1,875,808
664,710
Accrued general and administrative expenses
153,244
79,067
Accrued dividend
132,652
107,658
Other
10,000
14,500
Total Accrued Expenses & Other Liabilities
$
3,836,219
$
2,373,057

NOTES PAYABLE

NOTES PAYABLE3 Months Ended
Mar. 31, 2021
NOTES PAYABLE.
NOTES PAYABLEN OTE 7 – NOTES PAYABLE
Notes payable included the following as of March 31, 2021 and December 31, 2020 :
March 31,
December 31,
2021
2020
Secured notes payable:
Secured note payable issued January 2, 2018, bearing interest of 6.29% per year. Note was paid off March 16, 2021.

22,293
Secured note payable issued December 7, 2018 to a shareholder who as of March 31, 2021 controls 9.7% of votes, bearing interest of 10% per year, due one year after issuance. On March 6, 2020, the note was extended to June 30, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%. Principal balance $100,000.
100,000
100,000
Secured note payable issued December 7, 2018 to a shareholder who as of March 31, 2021 controls 5.2% of votes, bearing interest of 10% per year, due one year after issuance. On March 6, 2020, the note was extended to June 30, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%. Principal balance $100,000.
100,000
100,000
Secured note payable issued December 7, 2018, bearing interest of 10% per year, due one year after issuance, principal balance $100,000. Note is currently past due. If a default notice is received, the interest rate will be 14%.
100,000
100,000
Secured note payable issued on December 7, 2018 related to the acquisition of Momentum Water Transfer Services LLC (MWTS), bearing interest of 6% per year and due in monthly installments of $7,500, with a maturity date of December 8, 2023.
792,470
792,470
Secured note payable issued June 17, 2019 to a shareholder who as of March 31, 2021 controls 9.7% of votes, bearing interest of 10% per year, due July 1, 2019, principal balance $100,000. Note was extended to March 30, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%.
100,000
100,000
Secured note payable issued May 1, 2019 to a shareholder who as of March 31, 2021 controls 9.7% of votes, bearing interest of 10% per year, due June 30, 2020. Note is currently past due. If a default notice is received, the interest rate will be 14%.
80,000
80,000
Secured note payable issued December 12, 2019 to a shareholder who as of March 31, 2021 controls approximately 9.7% of votes, bearing interest of 12% per year, due June 3, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%.
25,000
25,000
Secured note payable issued July 26, 2019, bearing interest of 7% per year, due in monthly installments ending July 2020. Note is currently past due. If a default notice is received the interest rate will be 10%.
123,818
123,818
Secured note payable issued February 27, 2020 in connection with the 5J acquisition, bearing interest of 10% per year, due February 1, 2023. In October 2020, note holder was named as a board member.
2,000,000
2,000,000
Various notes payable secured by equipment of 5J Trucking, LLC, bearing interest ranging from 5.32% to 5.5% maturing from January 2023 through March 2023.
528,838
568,589
Secured note payable issued on February 27, 2020, bearing interest of 10.0% per year, due March 1, 2023. The note holder as of March 31, 2021 controls 12.2% of common shares and has an officer on the Board of Directors of the Company. Deferred financing costs associated with this agreement were $3,504 as of March
895,440
1,012,237
Secured Master Lease Agreement refinanced substantially all of the 5J Entities equipment in the aggregate amount of $11,950,000 which amount was financed based on 75% of the net forced liquidation value of the equipment. The note
11,708,919
11,708,919
Secured promissory notes for Jake Oilfield Solutions LLC, SMG Industries, Inc, and 5J Trucking LLC, with Small Business Administration Economic Injury Disaster Loans, bearing interest 3.75% annually and matures in June, August, and September 2050.
390,000
390,000
Secured promissory note issued on June 20, 2020. The note is due and payable in thirty-six monthly installments of $45,585 commencing on July 20, 2020 and the final installment is due on July 1, 2023. Deferred financing costs associated with this agreement were $279,572 as of March 31, 2021.
1,411,456
1,570,617
18,355,941
Less discounts and deferred finance costs
(612,838)
(644,907)
Less current maturities
(5,224,918)
(4,010,627)
Long term secured notes payable, net of current maturities and discounts
$
$
14,038,409
Effective March 9, 2021, the Company entered into a third amendment and surrender agreement with Utica requiring weekly payments of $23,750 until May 28, 2021. Upon the occurrence of an event of default under such amendment, and after the expiration of any cure period related to any such default, the surrender agreement entered into between the parties shall govern the surrender of the ownership and possession of the 5J equipment to Utica, or their designee, pursuant to the terms of the Lease agreement between the parties. The surrender agreement directs any third party in possession of any of such equipment to surrender the equipment in their possession to Utica and for Lessee to comply with any related paperwork requests to transfer ownership of the equipment to Utica. The surrender agreement shall terminate on the earlier to occur of: (i) June 25, 2021, or (ii) the occurrence of an event of default, that is not cured within any applicable cure period. From June 4, 2021 to June 25, 2021 the weekly payments shall increase to $112,000 per week, and thereafter commencing on July 27, 2021 the payments shall be $448,000 per month.
Notes Payable – Unsecured
March 31,
December 31,
2021
2020
Unsecured promissory note for 5J Oilfield Services LLC with Small Business Administration Paycheck Protection Program (“PPP1”), bearing interest 1.00% annually and matures in April 2022.
$
3,148,100
$
3,148,100
Unsecured promissory notes for 5J Oilfield Services LLC, Jake Oilfield Solutions LLC and SMG Industries, Inc. Small Business Administration Paycheck Protection Program (“PPP2”), bearing interest 1.00% annually and matures in April 2026.
1,874,002

Insurance premium financing note with original principal of $1,310,835, monthly payments of $133,939, with stated interest of 4.76%, maturing on December 1, 2021.
1,179,752

Unsecured note payable with a shareholder who as of March 31, 2021 controls 5.2% of votes. Note issued on August 10, 2018 for $40,000, due December 30, 2018 (extended to June 30, 2020) and 10% interest per year, balance of payable is due on demand. Additional $25,000 advanced and due on demand Note is currently past due. If a default notice is received, the interest rate will be 15%.
44,559
44,559
Unsecured advances from the sellers of Momentum Water Transfer Services LLC, non-interest bearing and due on demand
35,000
35,000
Notes payable - unsecured
6,281,413
3,227,659
Less discount


6,281,413
3,227,659
Less current portion
(4,449,569)
(2,187,436)
Notes payable - unsecured, net of current portion
$
1,831,844
$
1,040,223
On April 22, 2020, 5J Oilfield Services LLC received cash proceeds of $3,148,100 from the Hancock Whitney Bank. In accordance with the requirements of the CARES Act, 5J and used the proceeds from the PPP1 Loan primarily for payroll costs. The PPP1 Loan is scheduled to mature on August 22, 2022, has a 1.00% interest rate, and is subject to the terms and conditions applicable to all loans made pursuant to the Paycheck Protection Program as administered by the SBA under the CARES Act.
On January 28, 2021, the 5J Oilfield Services LLC received proceeds of $1,769,002 under the SBA PPP2 program. On February 3, 2021, Jake Oilfield Solutions LLC received proceeds of $35,000 under the SBA PPP2 program. On February 4, 2021, SMG Industries, Inc. received proceeds of $70,000 under the SBA PPP2 program.
The PPP2 loans mature 5 years from the date of the notes and bear interest at 1%. Payments of principal and interest payments begin one year and one month from the dates of the notes and are in 60 equal monthly installments. The loans are subject to the terms and conditions applicable to all loans made pursuant to the Paycheck Protection Program as administered by the SBA under the CARES Act. In accordance with the requirements of the CARES Act, the Company intends to use the proceeds from the PPP2 Loans primarily for payroll costs.
Unsecured Notes Payable – Discontinued Operations
On April 28,2020, Trinity, received proceeds of $195,000 under the SBA PPP1 program. In accordance with the requirements of the CARES Act, the Companies used the proceeds from the PPP1 Loan primarily for payroll costs. The loans have a 1.00% interest rate and are subject to the terms and conditions applicable to all loans made pursuant to the Paycheck Protection Program as administered by the SBA under the CARES Act. The PPP Loan was scheduled to mature on, August 28, 2020. The Trinity loan was forgiven February 16, 2021. The Trinity loan was included in Current Liabilities-Discontinued Operations on the Company’s December 31, 2020 Consolidated Balance Sheet and the gain on the forgiveness of the loan is included in loss from discontinued operations on the Company’s Consolidated Statement of Operations for the three months ended March 31, 2021.
Accounts Receivable Financing Facility (Secured Line of Credit)
On February 27, 2020, the 5J Entities entered into a Revolving Accounts Receivable Assignment and Term Loan Financing and Security Agreement with Amerisource Funding Inc. (“Amerisource”) in the aggregate amount of $10,000,000 (“Amerisource Financing”).The Amerisource Financing provides for: (i) an equipment loan in the principal amount of $1,401,559 (“Amerisource Equipment Loan”), (ii) a bridge term facility in the amount of $550,690 (“Bridge Facility”), and (iii) an accounts receivable revolving line of credit up to $10,000,000 (“AR Facility”). The Company recorded deferred financing costs of $223,558 recognized on the date of incurrence as a discount. During the three months ended March 31, 2021, $26,688 of debt discount was amortized to interest expense , and unamortized discount was $98,158 as of March 31, 2021. Amerisource is a related party of the Company due to its holdings of common stock and convertible debt of the Company and has an officer on the Board of Directors of the Company.
The AR Facility has been issued in an amount not to exceed $10,000,000, with the maximum availability limited to 85% of the eligible accounts receivable (as defined in the financing agreement). The AR Facility is paid for by the assignment of the accounts receivable of each of the 5J Entities and is secured by all instruments and proceeds related thereto. The AR Facility has an interest rate of 4.5% in excess of the prime rate per annum, an initial collateral management fee of 0.75% of the maximum account limit per annum, a non-usage fee of 0.35% assessed on a quarterly basis on the difference between the maximum availability under the AR Facility and the average daily revolving loan balance outstanding, and a one time commitment fee equal to $100,000 paid at closing. The AR Facility can be terminated by the 5J Entities with 60 days written notice. There is an early termination fee equal to two percent (2.0%) of the then maximum account limit if there are more than twelve (12) months remaining in term of the AR Facility, or one percent (1.0%) of the then maximum account limit if there twelve months or less remaining in the term of the AR Facility. The Company is a guarantor of the Amerisource Financing.
The balances under the above lines of credit was $3,718,730 and $4,046,256 as of March 31, 2021 and December 31, 2020, respectively.
Convertible Notes Payable
In April 2019, the Company issued a convertible promissory note in the amount of $50,000 to an individual investor. The note bears an interest rate of 8.50 %, payable in cash quarterly, matures in two years and is convertible at any time into shares of the Company’s common stock at a fixed conversion price of $0.50 (fifty cents) per share.
On February 27, 2020, the Company entered into a loan agreement with Amerisource Leasing Corporation, which has an equity ownership of 13.9% and is considered a related party, for the sale of a 10% convertible promissory note in the principal amount of $1,600,000 (“Amerisource Stretch Note”). The Amerisource Stretch Note matures on February 27, 2023 and is convertible into shares of the Company’s common stock at a conversion price of $0.25 per share. The interest rate on the Amerisource Stretch Note increases to 11% per annum on February 27, 2021 and to 12% per annum on February 27, 2022. Interest shall be paid on a quarterly basis. In addition, 2,498,736 shares of the Company’s common stock with a fair value of $419,788 were issued to the noteholder in connection with the sale of the Amerisource Note. The Company recorded deferred financing costs of $419,788 recognized on the date of incurrence as a discount and will be amortized over the life of the loan. During the three months ended March 31, 2021, $34,982 of debt discount was amortized to interest expense , and there was $268,198 of unamortized discount as of March 31, 2021 . The Amerisource Stretch Note may be prepaid at any time by the Company on 10 days-notice to the noteholder without penalty.
During the year ended December 31, 2020, the Company entered into secured note purchase agreements with nine individual investors for the purchase and sale of convertible promissory notes (“Convertible Notes”) in the principal amount of $2,019,000. The Convertible Notes are convertible at any time after the date of issuance into shares of the Company’s common stock at a conversion price of $0.10 per share. Interest on the Convertible Notes shall be paid to the investors at a rate of 10.0% per annum, paid on a quarterly basis, and the maturity date of the Convertible Notes is two years after the issuance date. The Convertible Notes are secured by all of the assets of the Company, subject to prior liens and security interests. The Company also issued a total of 3,028,500 shares of common stock to the investors. The Company recognized a debt discount of $1,057,710 which is equivalent to the relative fair value of the 3,028,500 common shares and the beneficial conversion feature on the Convertible Notes. During the three months ended March 31, 2021, the Company received $150,000 of cash and $112,071 of expenses paid on behalf of the Company in the form of new convertible notes under the terms above from related parties. The lender received 393,107 shares of the Company’s restricted common stock. The Company recognized debt discount of $175,051 based on the relative fair value of these shares and the beneficial conversion feature on the convertible notes. During the three months ended $151,984 of debt discount was amortized to interest expense.
Of the $2,228,071 principal amount, $1,931,071 of the convertible notes are held by investors who are considered related parties, primarily existing debt holders. As of March 31, 2021, there was $921,847 of unamortized discount remaining.
As of March 31, 2021, the convertible notes net balance was $2,741,321, consisting of long term convertible notes payable of $2,691,321, and current portion of convertible notes of $50,000. As of December 31, 2020, the convertible notes net balance was $2,467,335 consisting of long term convertible notes payable of $2,417,335 and current portion of convertible notes of $50,000.
Future maturities of all the Company’s debt as of March 31, 2021 are as follows:
2022
$
12,388,226
2023
8,212,576
2024
8,954,773
2025
2,119,275
2026
710,757
Total
$
32,385,607

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT3 Months Ended
Mar. 31, 2021
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICITNOTE 8 – STOCKHOLDERS’ DEFICIT
During the three months ended March 31, 2021, a total of 393,107 shares of common stock were issued to a related party pursuant to the convertible notes payable described in Note 7.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS3 Months Ended
Mar. 31, 2021
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTSNOTE 9 – STOCK OPTIONS AND WARRANTS
Summary stock option information is as follows:
Aggregate
Weighted
Aggregate
Exercise
Exercise
Average
Number
Price
Price Range
Exercise Price
Outstanding, December 31, 2020
2,060,000
$
688,750
$0.24-0.75
$
0.33
Granted




Exercised




Cancelled, forfeited or expired




Outstanding, March 31, 2021
2,060,000
$
688,750
$0.24-0.75
$
0.33
Exercisable, March 31, 2021
1,067,000
$
387,100
$0.24-0.75
$
0.36
The weighted average remaining contractual life is approximately 2.5 years for stock options outstanding on March 31, 2021. At March 31, 2021 there was no intrinsic value to the outstanding stock options.
During the three months ended March 31, 2021 and 2020, the Company recognized $17,973 and $2,895 of stock-based compensation, respectively, related to outstanding stock options. At March 31, 2021, the Company had $142,783 of unrecognized expenses related to options.
Summary Stock warrant information is as follows:
Aggregate
Weighted
Aggregate
Exercise
Exercise
Average
Number
Price
Price Range
Exercise Price
Outstanding, December 31, 2020
1,763,335
$
496,667
$0.15-$0.75
$
0.28
Granted




Exercised




Cancelled, forfeited or expired




Outstanding, March 31, 2021
1,763,335
$
496,667
$0.15 - 0.75
$
0.28
Exercisable, March 31, 2021
1,763,335
$
496,667
$0.15 - 0.75
$
0.28
The weighted average remaining contractual life is approximately 5.85 years for stock warrants outstanding on March 31, 2021. At March 31, 2021 the aggregate intrinsic value of outstanding stock warrants was $30,117.

DISPOSITION OF BUSINESSES

DISPOSITION OF BUSINESSES3 Months Ended
Mar. 31, 2021
DISPOSITION OF BUSINESSES
DISPOSITION OF BUSINESSESNOTE 10 – DISPOSITION OF BUSINESSES
Trinity Services LLC
In December 2020, management decided to sell or dissolve Trinity. All assets and liabilities of Trinity are classified as assets and liabilities of discontinued operations and included within net loss from discontinued operations. The Company plans to auction the fixed assets in 2021 and recorded an impairment of $983,660 during the year ended December 31, 2020 to reflect expected proceeds from this auction.
The Company’s Consolidated Statements of Operations reflect in discontinued operations Trinity’s revenues and net loss from discontinued operations for the quarter ended March 31, 2021 of $104,440 and $54,180, respectively, compared to the first quarter ended March 31, 2020 of $845,896 and $199,412, respectively. The net losses exclude general corporate allocations.
MG Cleaners LLC
On December 22, 2020, the Company, as the sole member of MG Cleaners LLC (“MG”), entered into a share exchange agreement (“Agreement”) with S&A Christian Investments L.L.C. (“S&A”) pursuant to which the Company transferred all of the membership interests of MG (“MG Interests”) to S&A in exchange for Stephen Christian, the control person of S&A, returning 1,408,276 shares of the Company’s common stock, par value $.001 per share (“Exchanged Shares”) to the Company for cancellation, additional consideration received by the Company in connection with the transaction included the removal of the Company as a guarantor of certain MG debt. All 750,000 unvested incentive stock options previously granted to Mr. Christian expired at the time of the transaction. Mr. Stephen Christian, the Company’s former Executive Vice President and Secretary, is the control person of S&A. As a result of the terms of the transaction, S&A became the owner of all of the MG Interests. In connection with the sale of MG, Mr. Christian resigned as Executive Vice President and Secretary of the Company. The Company also agreed to pay $150,000 in cash to MG Cleaners, with $75,000 paid in December 2020. The remaining $75,000 was satisfied with a $40,000 sale of equipment and payment of $35,000 to MG Cleaners in February 2021.
The Company’s Consolidated Statements of Operations reflect in discontinued operations MG’s revenues and net loss from discontinued operations for the quarter ended March 31, 2021 of $0 and $2,275, respectively, compared to the first quarter ended March 31, 2020 of $770,123 and $33,912, respectively. The net losses exclude general corporate allocations.
The decision to sell Trinity assets and the MG sale agreement qualify as discontinued operations in accordance with U.S. GAAP, as each represents a significant strategic shift of the Company’s operations that will have a major effect on the Company’s operations. As a result, the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 present the assets and liabilities of MG and Trinity as assets and liabilities of discontinued operations. The Consolidated Statements of Operations for the three months end March 31, 2021 and 2020 present the results of MG and Trinity as Loss from discontinued operations. The Consolidated Statements of Cash Flows for the three months end March 31, 2021 and 2020 present operating, investing, and financing activities of MG and Trinity as cash flows from or used in discontinued operations.
The balance sheets of Trinity and MG combined are summarized below:
March 31,
December 31,
2021
2020
Cash and cash equivalents
$
3,607
$
591
Accounts receivable, net
87,752
360,541
Prepaid expenses and other current assets
47,462
76,655
Current assets of discontinued operations
138,821
437,787
Property and equipment, net
1,449,626
1,500,000
Other assets
1,500
1,500
Right of use assets - operating lease
63,343
67,200
Other assets of discontinued operations
1,514,469
1,568,700
Total assets of discontinued operations
$
1,653,290
$
2,006,487
Accounts payable
$
563,385
$
597,266
Accrued expenses and other liabilities
248,142
198,833
Right of use liabilities - operating leases short term
44,740
38,206
Secured line of credit
54,290
278,301
Current portion of unsecured notes payable
305,016
440,331
Current portion of secured notes payable, net
727,746
690,100
Current liabilities of discontinued operations
1,943,319
2,243,037
Notes payable - secured, net of current portion
815,390
855,995
Notes payable - unsecured, net of current portion
147,980
101,374
Right of use liabilities - operating leases, net of current portion
46,602
50,993
Long term liabilities of discontinued operations
1,009,972
1,008,362
Total liabilities of discontinued operations
$
2,953,291
$
3,251,399
The statements of operations of Trinity and MG combined are summarized below:
March 31,
March 31,
2021
2020
Revenues
$
104,440
$
1,616,019
Cost of revenues
(173,542)
(1,347,277)
Selling, general and administrative
(141,699)
(399,574)
Loss from operations
(210,801)
(130,832)
Gain on extinguishment of debt
196,469

Other expense
(2,913)

Interest expense, net
(39,210)
(102,492)
Net loss from discontinued operations
$
(56,455)
$
(233,324)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES3 Months Ended
Mar. 31, 2021
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIESNOTE 11 – COMMITMENTS AND CONTINGENCIES
As of March 31, 2021, the Company has an open letter of credit in the amount of $323,516 as collateral for its insurance policy.
Employment Agreements
Litigation
From time to time, SMG may be subject to routine litigation, claims, or disputes in the ordinary course of business. In the opinion of management no pending or known threatened claims, actions or proceedings against SMG are expected to have a material adverse effect on SMG’s financial position, results of operations or cash flows. SMG cannot predict with certainty, however, the outcome or effect of any of the litigation or investigatory matters specifically described above or any other pending litigation or claims. There can be no assurance as to the ultimate outcome of any lawsuits and investigations.

LEASES

LEASES3 Months Ended
Mar. 31, 2021
LEASES
LEASESNOTE 12 – LEASES
The Company has operating and finance leases for sales and administrative offices, motor vehicles and certain machinery and equipment. The Company’s leases have remaining lease terms of 1 year to 4 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that the Company will exercise those options. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the initial ROU asset or lease liability. The Company’s lease agreements do not contain any material restrictive covenants.
The components of lease cost for operating leases for the three months ended March 31, 2021 and 2020 were as follows:
Three Months Ended
Three Months Ended
March 31, 2021
March 31, 2020
Lease Cost
Operating lease cost
$
125,110
$
43,109
Short-term lease cost
56,598
21,336
Variable lease cost


Sublease income


Total lease cost
$
181,708
$
64,445
Supplemental cash flow information related to leases was as follows:
Three Months Ended
Three Months Ended
March 31, 2021
March 31, 2020
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
19,688
$
11,807
The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at March 31, 2021:
Lease Position
March 31, 2021
December 31, 2020
Operating Leases
Operating lease right-of-use assets
$
1,182,400
$
1,270,989
Right of use liability operating lease current portion
$
608,097
$
575,517
Right of use liability operating lease long term
793,944
846,212
Total operating lease liabilities
$
1,402,041
$
1,421,729
The Company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable.
Lease Term and Discount Rate
March 31, 2021
December 31, 2020
Weighted-average remaining lease term (years)
Operating leases
2.9
3.6
Weighted-average discount rate
Operating leases
8.1
%
8.4
%
The following table provides the maturities of lease liabilities at March 31, 2021:
Operating
Leases
Maturity of Lease Liabilities at March 31, 2021
2021 (Nine months remaining)
$
547,372
2022
423,001
2023
391,501
2024
192,000
2025
10,750
Total future undiscounted lease payments
1,564,624
Less: Interest
(162,583)
Present value of lease liabilities
$
1,402,041
During the period ended March 31, 2021, the Company did not enter into new leases.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS3 Months Ended
Mar. 31, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONSNOTE 13 – RELATED PARTY TRANSACTIONS
Newton Dorsett, who received $2 million Series A Convertible Preferred Stock in connection with the sale of Trinity Services to us also owns or has control over Dorsett Properties LLC, an entity that is the lessor to a lease with the Company. The lease is for $2,000 per month from July 1, 2019 until June 1, 2024.
James Frye, who currently serves as a director on our Board and President of our 5J subsidiary and received 6,000 shares of Series B Convertible Preferred Stock in connection with the sale of 5J to us , also owns or has control over 5J Properties LLC, an entity that is the lessor to three leases with the Company. These three leases located in Palestine, West Odessa and Floresville Texas all have similar five year terms with options for renewal. The current monthly rent for these leases totals approximately $14,250.
On June 15, 2020, the Company entered into an Interim Management Services Agreement with Apex Heritage Group, Inc. (the “Consultant”), of which Steven H. Madden, a related party, has sole voting and investment control over. The Consultant will provide Jeffrey Martini to serve as the Company’s Chief Financial Officer, reporting to both the Company’s Chief Executive Officer and its Board of Directors. The Company shall pay to Consultant an amount and in a form to be mutually agreed by both parties. In December 2020, Mr. Martini was also appointed as Chief Executive officer.
During the year ended December 31, 2020 and the three months ended March 31, 2021, the Company entered into new convertible notes payable with related parties totaling $1,931,071 in principal as of March 31, 2021. See Note 7.
Mr. Martini serves as our Chief Executive Officer and Chief Financial Officer, however, we are not party to an employment agreement with Mr. Martini. Instead, APEX Heritage Group, Inc. (“Apex”) has contracted directly with Mr. Martini for such management services and is routinely compensated in turn via the provision of debt and/or equity instruments under the terms of an interim management services agreement, among other arrangements. During 2020, Apex was reimbursed via convertible debt valued at $225,000, which was in part compensation for such employment, and during the three months ended March 31, 2021, $112,071 was reimbursed through convertible debt. The Company expects to continue such arrangement throughout 2021.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS3 Months Ended
Mar. 31, 2021
SUBSEQUENT EVENTS
SUBSEQUENT EVENTSNOTE 14 – SUBSEQUENT EVENTS
On April 7, 2021, the Company executed an auction agreement to sell all of its Trinity Services assets with a national auctioneer firm. The auction is expected to take place within the next three months.
On April 14, 2021, an affiliate and stockholder invested $300,000 into the Company’s secured convertible note offering, that matures after twenty-four months, pays a 10% per annum interest rate, paid quarterly, and has a fixed conversion rate at $0.10 per share. This lender also received 450,000 shares of the Company’s restricted common stock in connection with this convertible note investment.
On April 19, 2021, 5J Transportation LLC entered into a five year lease with Miller Investments & Properties for 45 acres in N.E. Houston, Texas, of which 24 acres is stabilized, and office and warehouse facilities, with monthly payments starting at $55,000 per month, escalating annually to a maximum of $58,191 per month by year five. The lease has an early termination option at the end of year three with appropriate notice. 5J Transportation also entered into an equipment lease agreement with BJJ Trailer Leasing on the same day to lease approximately 40 trailers used in hauling equipment and pipe for a twelve-month term at a rate of $22,500 per month. At its option, 5J may extend the equipment lease.
On April 30, 2021, an affiliate and stockholder invested $195,000 into the Company’s secured convertible note offering, that matures after twenty-four months, pays a 10% per annum interest rate, paid quarterly, and has a fixed conversion rate at $0.10 per share. This lender also received 292,500 shares of the Company’s restricted common stock in connection with this convertible note investment.
On April 30, 2021, an investor invested $350,000 into the Company’s secured convertible note offering, that matures after twenty-four months, pays a 10% per annum interest rate, paid quarterly, and has a fixed conversion rate at $0.10 per share. This lender also received 525,000 shares of the Company’s restricted common stock in connection with this convertible note investment.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)3 Months Ended
Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of ConsolidationPrinciples of Consolidation
The Company prepares its consolidated financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its wholly subsidiaries, 5J Trucking LLC, 5J Oilfield Services LLC, 5J Specialized LLC, 5J Transportation LLC and 5J Brokerage LLC (together referred to as “5J”), Momentum Water Transfer Services, LLC Jake Oilfield Solutions LLC and Trinity Services LLC (“Trinity”), all of which have a quarter end of March 31 and fiscal year end of December 31. All intercompany accounts, balances and transactions have been eliminated in the consolidation.
Acquisition AccountingAcquisition Accounting
The Company’s acquisitions are accounted for using the purchase acquisition method of accounting whereby purchase price is allocated to tangible and intangible assets acquired and liabilities assumed based on fair value. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired is recorded as goodwill. The consolidated financial statements for the fiscal years presented include the results of operations for the 5J Entities and Trinity acquisitions from the date of acquisition.
Fair Value of Financial InstrumentsFair Value of Financial Instruments
The carrying value of short-term instruments, including cash, accounts payable and accrued expenses, and short-term notes approximate fair value due to the relatively short period to maturity for these instruments. The long-term debt approximate fair value since the related rates of interest approximate current market rates.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company utilizes a three-level valuation hierarchy for disclosures of fair value measurements, defined as follows:
Level 1: inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
Level 3: inputs to the valuation methodology are unobservable and significant to the fair value
The Company does not have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.
Discontinued OperationsDiscontinued Operations
In December 2020 we sold MG and decided to cease the operations of Trinity. A component of an entity that is disposed of by sale or ceasing of operations is reported as discontinued operations if the transaction represents a strategic shift that will have a major effect on an entity’s operations and financial results. As such, MG and Trinity are reported as discontinued operations.
Assets and liabilities of the discontinued operations are aggregated and reported separately as assets and liabilities of discontinued operations in the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. The results of discontinued operations are aggregated and presented separately in the Consolidated Statements of Operations as net loss from discontinued operations for the three months ended March 31, 2021 and 2020. The cash flows of the discontinued operations are reflected as cash flows of discontinued operations within the Company’s Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020.
Amounts presented in discontinued operations have been derived from our consolidated financial statements and accounting records using the historical basis of assets, liabilities, results of operations, and cash flows of Trinity and MG Cleaners. The discontinued operations exclude general corporate allocations.
Basic and Diluted Net Loss per ShareBasic and Diluted Net Loss per Share
The Company presents both basic and diluted net loss per share on the face of the statements of operations. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted per share calculations give effect to all potentially dilutive shares of common stock outstanding during the period, including stock options and warrants, and using the treasury-stock method. If anti-dilutive, the effect of potentially dilutive shares of common stock is ignored. For the three months ended March 31, 2021, 2,060,000 of stock options, 1,763,335 of warrants, 4,000,000 shares issuable from Series A Preferred Stock and 29,413,660 shares issuable from convertible notes were considered for their dilutive effects. For the three months ended March 31, 2020, 2,860,000 of stock options, 1,763,335 of warrants, 4,000,000 shares issuable from Series A Preferred Stock, 4,806,388 shares issuable from Series B Preferred Stock and 6,500,000 shares issuable from convertible notes were considered for their dilutive effects. As a result of the Company’s net losses for the three months ended March 31, 2021 and 2020, all potentially dilutive instruments were excluded as their effect would have been anti-dilutive.
March 31,
March 31,
Basic and Diluted Loss
2021
2020
Net loss from continuing operations
$
(3,808,568)
$
(2,745,907)
Net loss from discontinued operations
(56,455)
(233,324)
Net loss
(3,865,023)
(2,979,231)
Preferred stock dividends
(25,000)
(42,123)
Net loss attributable to common shareholders
(3,890,023)
(3,021,354)
Basic and Dilutive Shares:
Weighted average basic shares outstanding
19,516,258
15,686,520
Net dilutive stock options


Dilutive shares
19,516,258
15,686,520
ReclassificationReclassification
Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.
Recent Accounting PronouncementsRecent Accounting Pronouncements
The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)3 Months Ended
Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of basic and diluted net loss per share for their dilutive effectsMarch 31,
March 31,
Basic and Diluted Loss
2021
2020
Net loss from continuing operations
$
(3,808,568)
$
(2,745,907)
Net loss from discontinued operations
(56,455)
(233,324)
Net loss
(3,865,023)
(2,979,231)
Preferred stock dividends
(25,000)
(42,123)
Net loss attributable to common shareholders
(3,890,023)
(3,021,354)
Basic and Dilutive Shares:
Weighted average basic shares outstanding
19,516,258
15,686,520
Net dilutive stock options


Dilutive shares
19,516,258
15,686,520

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)3 Months Ended
Mar. 31, 2021
PROPERTY AND EQUIPMENT, NET
Schedule of property, plant and equipmentProperty and equipment at March 31, 2021 and December 31, 2020 consisted of the following:
March 31, 2021
December 31, 2020
Equipment
$
7,738,597
8,549,824
Trucks and trailers
11,342,119
11,062,588
Downhole oil tools
659,873
659,873
Vehicles
1,538,528
1,550,335
Building
493,626
493,626
Furniture, fixtures and other
22,596
13,240
Property and equipment, gross
21,795,339
22,329,486
Less: accumulated depreciation
(6,882,957)
(5,991,572)
Property and equipment, net
$
14,912,382
$
16,337,914

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)3 Months Ended
Mar. 31, 2021
ACCRUED EXPENSES AND OTHER LIABILITIES
Schedule of accrued expensesAccrued expenses as of March 31, 2021 and December 31, 2020 included the following:
March 31, 2021
December 31, 2020
Payroll and payroll taxes payable
$
214,387
$
490,033
Sales tax payable
1,627
1,627
State income tax payable
146,912
144,800
Property tax payable
70,000

Interest payable
1,227,830
839,240
Credit cards payable
3,759
31,422
Accrued operational expenses
1,875,808
664,710
Accrued general and administrative expenses
153,244
79,067
Accrued dividend
132,652
107,658
Other
10,000
14,500
Total Accrued Expenses & Other Liabilities
$
3,836,219
$
2,373,057

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)3 Months Ended
Mar. 31, 2021
NOTES PAYABLE
Schedule of notes payableMarch 31,
December 31,
2021
2020
Secured notes payable:
Secured note payable issued January 2, 2018, bearing interest of 6.29% per year. Note was paid off March 16, 2021.

22,293
Secured note payable issued December 7, 2018 to a shareholder who as of March 31, 2021 controls 9.7% of votes, bearing interest of 10% per year, due one year after issuance. On March 6, 2020, the note was extended to June 30, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%. Principal balance $100,000.
100,000
100,000
Secured note payable issued December 7, 2018 to a shareholder who as of March 31, 2021 controls 5.2% of votes, bearing interest of 10% per year, due one year after issuance. On March 6, 2020, the note was extended to June 30, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%. Principal balance $100,000.
100,000
100,000
Secured note payable issued December 7, 2018, bearing interest of 10% per year, due one year after issuance, principal balance $100,000. Note is currently past due. If a default notice is received, the interest rate will be 14%.
100,000
100,000
Secured note payable issued on December 7, 2018 related to the acquisition of Momentum Water Transfer Services LLC (MWTS), bearing interest of 6% per year and due in monthly installments of $7,500, with a maturity date of December 8, 2023.
792,470
792,470
Secured note payable issued June 17, 2019 to a shareholder who as of March 31, 2021 controls 9.7% of votes, bearing interest of 10% per year, due July 1, 2019, principal balance $100,000. Note was extended to March 30, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%.
100,000
100,000
Secured note payable issued May 1, 2019 to a shareholder who as of March 31, 2021 controls 9.7% of votes, bearing interest of 10% per year, due June 30, 2020. Note is currently past due. If a default notice is received, the interest rate will be 14%.
80,000
80,000
Secured note payable issued December 12, 2019 to a shareholder who as of March 31, 2021 controls approximately 9.7% of votes, bearing interest of 12% per year, due June 3, 2020. Note is currently past due. If a default notice is received the interest rate will be 14%.
25,000
25,000
Secured note payable issued July 26, 2019, bearing interest of 7% per year, due in monthly installments ending July 2020. Note is currently past due. If a default notice is received the interest rate will be 10%.
123,818
123,818
Secured note payable issued February 27, 2020 in connection with the 5J acquisition, bearing interest of 10% per year, due February 1, 2023. In October 2020, note holder was named as a board member.
2,000,000
2,000,000
Various notes payable secured by equipment of 5J Trucking, LLC, bearing interest ranging from 5.32% to 5.5% maturing from January 2023 through March 2023.
528,838
568,589
Secured note payable issued on February 27, 2020, bearing interest of 10.0% per year, due March 1, 2023. The note holder as of March 31, 2021 controls 12.2% of common shares and has an officer on the Board of Directors of the Company. Deferred financing costs associated with this agreement were $3,504 as of March
895,440
1,012,237
Secured Master Lease Agreement refinanced substantially all of the 5J Entities equipment in the aggregate amount of $11,950,000 which amount was financed based on 75% of the net forced liquidation value of the equipment. The note
11,708,919
11,708,919
Secured promissory notes for Jake Oilfield Solutions LLC, SMG Industries, Inc, and 5J Trucking LLC, with Small Business Administration Economic Injury Disaster Loans, bearing interest 3.75% annually and matures in June, August, and September 2050.
390,000
390,000
Secured promissory note issued on June 20, 2020. The note is due and payable in thirty-six monthly installments of $45,585 commencing on July 20, 2020 and the final installment is due on July 1, 2023. Deferred financing costs associated with this agreement were $279,572 as of March 31, 2021.
1,411,456
1,570,617
18,355,941
Less discounts and deferred finance costs
(612,838)
(644,907)
Less current maturities
(5,224,918)
(4,010,627)
Long term secured notes payable, net of current maturities and discounts
$
$
14,038,409
Summary of future maturities of all the Company's debtFuture maturities of all the Company’s debt as of March 31, 2021 are as follows:
2022
$
12,388,226
2023
8,212,576
2024
8,954,773
2025
2,119,275
2026
710,757
Total
$
32,385,607
Unsecured Debt [Member]
NOTES PAYABLE
Schedule of notes payableNotes Payable – Unsecured
March 31,
December 31,
2021
2020
Unsecured promissory note for 5J Oilfield Services LLC with Small Business Administration Paycheck Protection Program (“PPP1”), bearing interest 1.00% annually and matures in April 2022.
$
3,148,100
$
3,148,100
Unsecured promissory notes for 5J Oilfield Services LLC, Jake Oilfield Solutions LLC and SMG Industries, Inc. Small Business Administration Paycheck Protection Program (“PPP2”), bearing interest 1.00% annually and matures in April 2026.
1,874,002

Insurance premium financing note with original principal of $1,310,835, monthly payments of $133,939, with stated interest of 4.76%, maturing on December 1, 2021.
1,179,752

Unsecured note payable with a shareholder who as of March 31, 2021 controls 5.2% of votes. Note issued on August 10, 2018 for $40,000, due December 30, 2018 (extended to June 30, 2020) and 10% interest per year, balance of payable is due on demand. Additional $25,000 advanced and due on demand Note is currently past due. If a default notice is received, the interest rate will be 15%.
44,559
44,559
Unsecured advances from the sellers of Momentum Water Transfer Services LLC, non-interest bearing and due on demand
35,000
35,000
Notes payable - unsecured
6,281,413
3,227,659
Less discount


6,281,413
3,227,659
Less current portion
(4,449,569)
(2,187,436)
Notes payable - unsecured, net of current portion
$
1,831,844
$
1,040,223

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)3 Months Ended
Mar. 31, 2021
STOCK OPTIONS AND WARRANTS
Schedule of stock option informationSummary stock option information is as follows:
Aggregate
Weighted
Aggregate
Exercise
Exercise
Average
Number
Price
Price Range
Exercise Price
Outstanding, December 31, 2020
2,060,000
$
688,750
$0.24-0.75
$
0.33
Granted




Exercised




Cancelled, forfeited or expired




Outstanding, March 31, 2021
2,060,000
$
688,750
$0.24-0.75
$
0.33
Exercisable, March 31, 2021
1,067,000
$
387,100
$0.24-0.75
$
0.36
Schedule of stock warrant informationSummary Stock warrant information is as follows:
Aggregate
Weighted
Aggregate
Exercise
Exercise
Average
Number
Price
Price Range
Exercise Price
Outstanding, December 31, 2020
1,763,335
$
496,667
$0.15-$0.75
$
0.28
Granted




Exercised




Cancelled, forfeited or expired




Outstanding, March 31, 2021
1,763,335
$
496,667
$0.15 - 0.75
$
0.28
Exercisable, March 31, 2021
1,763,335
$
496,667
$0.15 - 0.75
$
0.28

DISPOSITION OF BUSINESSES (Tabl

DISPOSITION OF BUSINESSES (Tables)3 Months Ended
Mar. 31, 2021
DISPOSITION OF BUSINESSES
Summary of balance sheets and statements of operations of Trinity and MG combinedMarch 31,
December 31,
2021
2020
Cash and cash equivalents
$
3,607
$
591
Accounts receivable, net
87,752
360,541
Prepaid expenses and other current assets
47,462
76,655
Current assets of discontinued operations
138,821
437,787
Property and equipment, net
1,449,626
1,500,000
Other assets
1,500
1,500
Right of use assets - operating lease
63,343
67,200
Other assets of discontinued operations
1,514,469
1,568,700
Total assets of discontinued operations
$
1,653,290
$
2,006,487
Accounts payable
$
563,385
$
597,266
Accrued expenses and other liabilities
248,142
198,833
Right of use liabilities - operating leases short term
44,740
38,206
Secured line of credit
54,290
278,301
Current portion of unsecured notes payable
305,016
440,331
Current portion of secured notes payable, net
727,746
690,100
Current liabilities of discontinued operations
1,943,319
2,243,037
Notes payable - secured, net of current portion
815,390
855,995
Notes payable - unsecured, net of current portion
147,980
101,374
Right of use liabilities - operating leases, net of current portion
46,602
50,993
Long term liabilities of discontinued operations
1,009,972
1,008,362
Total liabilities of discontinued operations
$
2,953,291
$
3,251,399
The statements of operations of Trinity and MG combined are summarized below:
March 31,
March 31,
2021
2020
Revenues
$
104,440
$
1,616,019
Cost of revenues
(173,542)
(1,347,277)
Selling, general and administrative
(141,699)
(399,574)
Loss from operations
(210,801)
(130,832)
Gain on extinguishment of debt
196,469

Other expense
(2,913)

Interest expense, net
(39,210)
(102,492)
Net loss from discontinued operations
$
(56,455)
$
(233,324)

LEASES (Tables)

LEASES (Tables)3 Months Ended
Mar. 31, 2021
LEASES
Schedule of components of lease cost for operating and finance leasesThe components of lease cost for operating leases for the three months ended March 31, 2021 and 2020 were as follows:
Three Months Ended
Three Months Ended
March 31, 2021
March 31, 2020
Lease Cost
Operating lease cost
$
125,110
$
43,109
Short-term lease cost
56,598
21,336
Variable lease cost


Sublease income


Total lease cost
$
181,708
$
64,445
Schedule of supplemental cash flow informationSupplemental cash flow information related to leases was as follows:
Three Months Ended
Three Months Ended
March 31, 2021
March 31, 2020
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
19,688
$
11,807
Schedule of lease position related assets and liabilities recorded in the consolidated balance sheetsThe following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at March 31, 2021:
Lease Position
March 31, 2021
December 31, 2020
Operating Leases
Operating lease right-of-use assets
$
1,182,400
$
1,270,989
Right of use liability operating lease current portion
$
608,097
$
575,517
Right of use liability operating lease long term
793,944
846,212
Total operating lease liabilities
$
1,402,041
$
1,421,729
Schedule of operating lease other informationThe Company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable.
Lease Term and Discount Rate
March 31, 2021
December 31, 2020
Weighted-average remaining lease term (years)
Operating leases
2.9
3.6
Weighted-average discount rate
Operating leases
8.1
%
8.4
%
Schedule of maturities of lease liabilitiesOperating
Leases
Maturity of Lease Liabilities at March 31, 2021
2021 (Nine months remaining)
$
547,372
2022
423,001
2023
391,501
2024
192,000
2025
10,750
Total future undiscounted lease payments
1,564,624
Less: Interest
(162,583)
Present value of lease liabilities
$
1,402,041

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of basic and diluted loss (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Basic and Diluted Loss
Net loss from continuing operations $ (3,808,568) $ (2,745,907)
Net loss from discontinued operations(56,455)(233,324)
Net loss(3,865,023)(2,979,231)
Preferred stock dividends(25,000)(42,123)
Net loss attributable to common shareholders $ (3,890,023) $ (3,021,354)
Basic and Dilutive Shares:
Weighted average basic shares outstanding (in shares)19,516,258 15,686,520
Dilutive shares (in shares)19,516,258 15,686,520

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - shares3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Convertible Notes Payable [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount29,413,660 6,500,000
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount2,060,000 2,860,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount1,763,335 1,763,335
Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount4,000,000 4,000,000
Series B Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount4,806,388

REVENUE (Details)

REVENUE (Details)3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Customer concentration | Revenues
Concentration Risk [Line Items]
Concentration risk percentage12.00%18.00%
Credit concentration | Accounts receivable
Concentration Risk [Line Items]
Concentration risk percentage10.00%10.00%

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)Mar. 31, 2021Dec. 31, 2020
Property, Plant and Equipment, Gross $ 21,795,339 $ 22,329,486
Less: accumulated depreciation(6,882,957)(5,991,572)
Property, Plant and Equipment, Net14,912,382 16,337,914
Equipment [Member]
Property, Plant and Equipment, Gross7,738,597 8,549,824
Truckers and Trailers [Member]
Property, Plant and Equipment, Gross11,342,119 11,062,588
Downhole oil tools [Member]
Property, Plant and Equipment, Gross659,873 659,873
Vehicles [Member]
Property, Plant and Equipment, Gross1,538,528 1,550,335
Building [Member]
Property, Plant and Equipment, Gross493,626 493,626
Furniture, fixtures and other [Member]
Property, Plant and Equipment, Gross $ 22,596 $ 13,240

PROPERTY AND EQUIPMENT, NET - A

PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
PROPERTY AND EQUIPMENT, NET
Depreciation $ 1,418,401 $ 542,493

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)Mar. 31, 2021Dec. 31, 2020
ACCRUED EXPENSES AND OTHER LIABILITIES
Payroll and payroll taxes payable $ 214,387 $ 490,033
Sales tax payable1,627 1,627
State income tax payable146,912 144,800
Property tax payable70,000 0
Interest payable1,227,830 839,240
Credit cards payable3,759 31,422
Accrued operational expenses1,875,808 664,710
Accrued general and administrative expenses153,244 79,067
Accrued dividend132,652 107,658
Other10,000 14,500
Total Accrued Expenses & Other Liabilities $ 3,836,219 $ 2,373,057

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)Mar. 09, 2021Jun. 20, 2020Dec. 07, 2018Mar. 31, 2021Dec. 31, 2020
Notes payable:
Notes Payable $ 18,355,941 $ 18,693,943
Less discounts and deferred finance costs(612,838)(644,907)
Less current maturities(5,224,918)(4,010,627)
Long term secured notes payable, net of current maturities and discounts12,518,185 14,038,409
Monthly installments $ 23,750
5J Entities
Notes payable:
Notes Payable11,708,919 11,708,919
Monthly installments95,000
Secured Note January 2018 [Member]
Notes payable:
Notes Payable0 22,293
Secured Note Dec 2018 One [Member]
Notes payable:
Notes Payable100,000 100,000
Secured Note Dec 2018 Two [Member]
Notes payable:
Notes Payable100,000 100,000
Secured Note Dec 2018 Three [Member]
Notes payable:
Notes Payable100,000 100,000
Secured Note Dec 2018 Four [Member]
Notes payable:
Notes Payable792,470 792,470
Monthly installments $ 7,500
Secured Note June 2019 [Member]
Notes payable:
Notes Payable100,000 100,000
Secured Note May 2019 One [Member]
Notes payable:
Notes Payable80,000 80,000
Secured Note December, 2019
Notes payable:
Notes Payable25,000 25,000
Secured Note July 2019 [Member]
Notes payable:
Notes Payable123,818 123,818
Secured Note February 2020 One [Member]
Notes payable:
Notes Payable2,000,000 2,000,000
Various Secured Notes Payable Maturing From January 2023 Through March 2023 [Member]
Notes payable:
Notes Payable528,838 568,589
Secured Note February 2020 Two [Member]
Notes payable:
Notes Payable895,440 1,012,237
Secured Promissory Notes [Member]
Notes payable:
Notes Payable390,000 390,000
Secured Promissory Notes, June 2020 [Member]
Notes payable:
Notes Payable $ 1,411,456 $ 1,570,617
Monthly installments $ 45,585

NOTES PAYABLE - Future maturiti

NOTES PAYABLE - Future maturities of secured notes payable (Details)Mar. 31, 2021USD ($)
NOTES PAYABLE.
2022 $ 12,388,226
20238,212,576
20248,954,773
20252,119,275
2026710,757
Total $ 32,385,607

NOTES PAYABLE - Unsecured notes

NOTES PAYABLE - Unsecured notes payable (Details) - USD ($)Mar. 31, 2021Dec. 31, 2020
Notes payable:
Unsecured Debt $ 6,281,413 $ 3,227,659
Less discount0 0
Unsecured Debt Current And Noncurrent6,281,413 3,227,659
Less current portion(4,449,569)(2,187,436)
Notes payable - unsecured, net of current portion1,831,844 1,040,223
Unsecured Note August 10 2018 [Member]
Notes payable:
Unsecured Debt44,559 44,559
Unsecured Advances from Momentum Water Transfer Service LLC [Member]
Notes payable:
Unsecured Debt35,000 35,000
Unsecured Note April and May 2022 [Member]
Notes payable:
Unsecured Debt3,148,100 3,148,100
Unsecured Note April and May 2022 Two [Member]
Notes payable:
Unsecured Debt1,874,002 0
Insurance Premium Financing Note December 2021 [Member]
Notes payable:
Unsecured Debt $ 1,179,752 $ 0

NOTES PAYABLE - Additional Info

NOTES PAYABLE - Additional Information (Details)Jul. 27, 2021USD ($)Apr. 14, 2021USD ($)$ / sharesMar. 09, 2021USD ($)Feb. 04, 2021USD ($)Feb. 03, 2021USD ($)Jan. 28, 2021USD ($)Jun. 20, 2020USD ($)Apr. 28, 2020USD ($)Apr. 22, 2020USD ($)Feb. 27, 2020USD ($)$ / sharessharesDec. 07, 2018USD ($)Jul. 31, 2021USD ($)Jun. 30, 2021USD ($)Jun. 25, 2021USD ($)Mar. 31, 2021USD ($)sharesMar. 31, 2020USD ($)Dec. 31, 2020USD ($)individual$ / sharessharesFeb. 27, 2022Feb. 27, 2021Sep. 30, 2020USD ($)Dec. 12, 2019Jul. 26, 2019Jun. 17, 2019USD ($)May 01, 2019Apr. 30, 2019USD ($)$ / sharesAug. 10, 2018USD ($)Jan. 02, 2018
Debt Instrument, Face Amount $ 2,228,071
Notes Payable18,355,941 $ 18,693,943
Repayments of Notes Payable338,001 $ 139,842
Convertible notes, related party balance1,931,071
Repayments of Lines of Credit354,214
Proceeds from Lines of Credit5,719,410
Amortization of Debt Discount (Premium)150,000
Unamortized Debt Discount921,847
Notes payable to related parties1,931,071
Conversion price | $ / shares $ 0.50
Beneficial conversion feature on convertible notes payable $ 175,051
Stock Issued During Period, Shares, Other | shares393,107
Long-term Line of Credit $ 3,718,730 4,046,256
Amortization of deferred financing costs245,722 $ 80,954
Current portion of convertible note50,000 50,000
Convertible notes payable, net2,691,321 2,417,335
Line of Credit, Current3,718,730 4,046,256
Debt Instrument, Unamortized Discount921,847
Debt discount amortized to interest expense150,000
Monthly periodic payment $ 23,750
5J Oilfield Services LLC
Proceeds from Issuance of Debt $ 70,000 $ 35,000 $ 1,769,002 $ 3,148,100
Proceeds from issuance of debt $ 70,000 $ 35,000 $ 1,769,002 $ 3,148,100
Secured Note January 2018 [Member]
Notes Payable0 22,293
Unsecured Note August 10 2018 [Member]
Debt Instrument, Face Amount $ 40,000
Debt Instrument Additional Face Amount $ 25,000
Percentage of Voting Interests Held By Shareholder5.20%
Unsecured Note August 10 2018 [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage15.00%
Unsecured Note August 10 2018 [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage10.00%
Secured Note Dec 2018 One [Member]
Debt Instrument, Face Amount $ 100,000
Notes Payable100,000 100,000
Percentage of Voting Interests Held By Shareholder9.70%
Secured Note Dec 2018 One [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage14.00%
Secured Note Dec 2018 One [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage10.00%
Secured Note Dec 2018 Two [Member]
Debt Instrument, Face Amount $ 100,000
Notes Payable100,000 100,000
Percentage of Voting Interests Held By Shareholder5.20%
Secured Note Dec 2018 Two [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage14.00%
Secured Note Dec 2018 Two [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage10.00%
Secured Note Dec 2018 Three [Member]
Debt Instrument, Face Amount $ 100,000
Notes Payable100,000 100,000
Secured Note Dec 2018 Three [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage14.00%
Secured Note Dec 2018 Three [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage10.00%
Secured Note Dec 2018 Four [Member]
Debt Instrument, Interest Rate, Stated Percentage6.00%
Notes Payable792,470 792,470
Monthly periodic payment $ 7,500
Secured Note May 2019 One [Member]
Notes Payable $ 80,000 80,000
Percentage of Voting Interests Held By Shareholder9.70%
Secured Note May 2019 One [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage14.00%
Secured Note May 2019 One [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage10.00%
Secured Note November, 2019
Equipment Refinance, Basis, Percentage75.00%
Secured Note July 2019 [Member]
Notes Payable $ 123,818 123,818
Secured Note July 2019 [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage10.00%
Secured Note July 2019 [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage7.00%
Secured Note December, 2019
Notes Payable25,000 25,000
Percentage of Voting Interests Held By Shareholder9.70%
Secured Note December, 2019 | Maximum
Debt Instrument, Interest Rate, Stated Percentage14.00%
Secured Note December, 2019 | Minimum
Debt Instrument, Interest Rate, Stated Percentage12.00%
Secured Note February 2020 One [Member]
Debt Instrument, Interest Rate, Stated Percentage10.00%
Notes Payable2,000,000 2,000,000
Various Secured Notes Payable Maturing From January 2023 Through March 2023 [Member]
Notes Payable $ 528,838 568,589
Various Secured Notes Payable Maturing From January 2023 Through March 2023 [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage5.50%
Various Secured Notes Payable Maturing From January 2023 Through March 2023 [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage5.32%
Secured Note February 2020 Two [Member]
Debt Instrument, Interest Rate, Stated Percentage10.00%
Notes Payable $ 895,440 1,012,237
Percentage of Voting Interests Held By Shareholder12.20%
Deferred Financing Cost $ 3,504
Secured Promissory Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage3.75%
Notes Payable $ 390,000 390,000
Secured Promissory Notes, June 2020 [Member]
Notes Payable1,411,456 1,570,617
Monthly periodic payment $ 45,585
Deferred Financing Cost $ 279,572
Secured Promissory Notes, June 2020 [Member] | Minimum
Number of monthly installments36
Unsecured Note April and May 2022 [Member]
Debt Instrument, Interest Rate, Stated Percentage1.00%
Unsecured Note April and May 2022 Two [Member]
Debt Instrument, Interest Rate, Stated Percentage1.00%
Insurance Premium Financing Note December 2021 [Member]
Debt Instrument, Face Amount $ 1,310,835
Debt Instrument, Interest Rate, Stated Percentage4.76%
Monthly periodic payment $ 133,939
Amerisource Note
Debt Instrument, Face Amount $ 1,600,000
Debt Instrument, Interest Rate, Stated Percentage10.00%12.00%11.00%
Amortization of Debt Discount (Premium)34,982
Unamortized Debt Discount268,198
Number of shares issued to investors | shares2,498,736
Conversion price | $ / shares $ 0.25
Equity ownership13.90%
Debt Instrument, Unamortized Discount268,198
Debt discount amortized to interest expense34,982
Deferred Financing Cost $ 419,788
Secured Note June 2019 [Member]
Debt Instrument, Face Amount $ 100,000
Notes Payable100,000 100,000
Percentage of Voting Interests Held By Shareholder9.70%
Secured Note June 2019 [Member] | Maximum
Debt Instrument, Interest Rate, Stated Percentage14.00%
Secured Note June 2019 [Member] | Minimum
Debt Instrument, Interest Rate, Stated Percentage10.00%
SBA PPP1 program
Proceeds from Issuance of Debt $ 195,000
Proceeds from issuance of debt $ 195,000
Notes Payable to Banks [Member] | Secured Note January 2018 [Member]
Debt Instrument, Interest Rate, Stated Percentage6.29%
5J Entities
Notes Payable11,708,919 11,708,919
Amortization of Debt Discount (Premium)26,688
Unamortized Debt Discount98,158
Equipment Refinance Amount11,950,000
Debt Instrument, Unamortized Discount98,158
Debt discount amortized to interest expense $ 26,688
Effective interest rate18.7%
Monthly periodic payment $ 95,000
Deferred Financing Cost223,558 329,762
5J Entities | Amerisource AR Facility
Debt Instrument, Face Amount10,000,000
Maximum borrowing capacity $ 10,000,000
Maximum availability (as a percent)85.00%
Basis spread on variable rate (as a percent)4.50%
Initial collateral management fee (as a percent)0.75%
Non-usage fee (as a percent)0.35%
One time commitment fee $ 100,000
Number of days written notice for termination of debt60 days
Early termination fee, if more than 12months remaining in the debt term (as a percent)2.00%
Early termination fee, if twelve months or less remaining in the debt term (as a percent)1.00%
5J Entities | Amerisource Equipment Loan
Debt Instrument, Face Amount $ 1,401,559
5J Entities | Amerisource Bridge Facility
Debt Instrument, Face Amount $ 550,690
Subsequent Event
Debt Instrument, Face Amount $ 300,000
Conversion price | $ / shares $ 0.10
Term (in years)24 months
Monthly periodic payment $ 448,000 $ 112,000
Subsequent Event | 5J Entities
Monthly periodic payment $ 448,000 $ 112,000
Convertible Notes Payable [Member]
Debt Instrument, Face Amount $ 2,019,000 $ 50,000
Debt Instrument, Interest Rate, Stated Percentage10.00%10.00%8.50%
Convertible notes, related party balance1,931,071
Amortization of Debt Discount (Premium)151,984
Unamortized Debt Discount175,051 $ 1,057,710 $ 1,057,710
Notes payable to related parties1,931,071
Number of individual investors for the purchase and sale of convertible promissory note | individual9
Number of shares issuable to investors | shares3,028,500
Conversion price | $ / shares $ 0.10
Term (in years)2 years
Current portion of convertible note50,000 $ 50,000
Convertible notes, net2,741,321 2,467,335
Debt Instrument, Unamortized Discount175,051 1,057,710 $ 1,057,710
Debt discount amortized to interest expense151,984
Convertible Notes Payable [Member] | Notes Payable To Related Party [Member]
Current portion of convertible note $ 2,691,321 $ 2,417,335

STOCKHOLDERS' DEFICIT (Details)

STOCKHOLDERS' DEFICIT (Details)3 Months Ended
Mar. 31, 2021shares
STOCKHOLDERS' DEFICIT
Stock Issued During Period, Shares, Other393,107

STOCK OPTIONS AND WARRANTS (Det

STOCK OPTIONS AND WARRANTS (Details) - Employee Stock Option [Member] - USD ($)3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Outstanding - Aggregate Number - Beginning Balance2,060,000
Outstanding - Aggregate Number - Ending Balance2,060,000
Outstanding - Exercisable1,067,000
Outstanding - Aggregate Exercise Price - Beginning Balance $ 688,750
Outstanding - Aggregate Exercise Price - Ending Balance688,750
Outstanding - Exercisable Aggregate Exercise Price $ 387,100
Outstanding - Weighted Average Exercise Price - Beginning Balance $ 0.33
Granted - Weighted Average Exercise Price0
Exercised - Weighted Average Exercise Price0
Cancelled, Forfeited or Expired - Weighted Average Exercise Price0
Outstanding - Weighted Average Exercise Price - Ending Balance0.33
Outstanding - Exercisable Weighted Average Exercise Price0.36
Minimum
Outstanding - Exercise Price Range0.24 $ 0.24
Exercisable - Exercise Price Range0.24
Maximum
Outstanding - Exercise Price Range0.75 $ 0.75
Exercisable - Exercise Price Range $ 0.75

STOCK OPTIONS AND WARRANTS - St

STOCK OPTIONS AND WARRANTS - Stock warrant information (Details)3 Months Ended
Mar. 31, 2021USD ($)$ / sharesshares
Outstanding - Aggregate Number - Beginning Balance | shares1,763,335
Outstanding - Aggregate Number - Ending Balance | shares1,763,335
Outstanding - Exercisable | shares1,763,335
Outstanding - Aggregate Exercise Price - Beginning Balance | $ $ 496,667
Granted - Aggregate Exercise Price | $0
Outstanding - Aggregate Exercise Price - Ending Balance | $496,667
Outstanding - Exercisable Aggregate Exercise Price | $ $ 496,667
Outstanding - Weighted Average Exercise Price - Beginning Balance $ 0.28
Outstanding - Weighted Average Exercise Price - Ending Balance0.28
Outstanding - Exercisable Weighted Average Exercise Price0.28
Minimum
Outstanding - Exercise Price Range - Beginning Balance0.15
Outstanding - Exercise Price Range - Ending Balance0.15
Outstanding - Exercisable Exercise Price Range0.15
Maximum
Outstanding - Exercise Price Range - Beginning Balance0.75
Outstanding - Exercise Price Range - Ending Balance0.75
Outstanding - Exercisable Exercise Price Range $ 0.75

STOCK OPTIONS AND WARRANTS - Ad

STOCK OPTIONS AND WARRANTS - Additional Information (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Intrinsic value of outstanding Stock option $ 0
Weighted average remaining contractual life2 years 6 months
Stock-based compensation related to outstanding stock options $ 17,973 $ 2,895
Unrecognized expenses related to options $ 142,783
Warrant [Member]
Weighted average remaining contractual life5 years 10 months 6 days
Intrinsic value of outstanding stock warrants $ 30,117

DISPOSITION OF BUSINESSES - Add

DISPOSITION OF BUSINESSES - Additional Information (Details) - USD ($)Dec. 22, 2020Feb. 28, 2021Dec. 31, 2020Mar. 31, 2021Mar. 31, 2020
Payment of consideration in cash $ 6,320,168
Revenues $ 7,602,328 4,360,381
Net loss $ (3,865,023)(2,979,231)
Par value $ 0.001 $ 0.001
Loss from discontinued operations $ (56,455)(233,324)
Trinity Services LLC [Member]
Revenues104,440 845,896
Net loss(54,180)(199,412)
Tangible Asset Impairment Charges $ 983,660
Mg Cleaners Llc [Member]
Total purchase price $ 150,000
Payment of consideration in cash $ 75,000 $ 75,000
Payments of consideration through sale of equipment40,000
Payments of consideration to MG Cleaners $ 35,000
Number of shares returned1,408,276
Par value $ 0.001
Unvested incentive stock options750,000
Revenues0 770,123
Loss from discontinued operations $ (2,275) $ (33,912)

DISPOSITION OF BUSINESSES - Bal

DISPOSITION OF BUSINESSES - Balance sheets (Details) - USD ($)Mar. 31, 2021Dec. 31, 2020
Balance sheets of Trinity and MG combined
Current assets of discontinued operations $ 138,821 $ 437,787
Other assets1,514,469 1,568,700
Current liabilities of discontinued operations1,943,319 2,243,037
Long term liabilities of discontinued operations1,009,972 1,008,362
Discontinued operation by sale | Trinity and MG
Balance sheets of Trinity and MG combined
Cash and cash equivalents3,607 591
Accounts receivable, net87,752 360,541
Prepaid expenses and other current assets47,462 76,655
Current assets of discontinued operations138,821 437,787
Property and equipment, net1,449,626 1,500,000
Other assets1,500 1,500
Right of use assets - operating lease63,343 67,200
Other assets of discontinued operations1,514,469 1,568,700
Total assets of discontinued operations1,653,290 2,006,487
Accounts payable563,385 597,266
Accrued expenses and other liabilities248,142 198,833
Right of use liabilities - operating leases short term44,740 38,206
Secured line of credit54,290 278,301
Current portion of unsecured notes payable305,016 440,331
Current portion of secured notes payable, net727,746 690,100
Current liabilities of discontinued operations1,943,319 2,243,037
Notes payable - secured, net of current portion815,390 855,995
Notes payable - unsecured, net of current portion147,980 101,374
Right of use liabilities - operating leases, net of current portion46,602 50,993
Long term liabilities of discontinued operations1,009,972 1,008,362
Total liabilities of discontinued operations $ 2,953,291 $ 3,251,399

DISPOSITION OF BUSINESSES - Sta

DISPOSITION OF BUSINESSES - Statements of operations (Details) - Discontinued operation by sale - Trinity and MG - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statements of operations of Trinity and MG
Revenues $ 104,440 $ 1,616,019
Cost of revenues(173,542)(1,347,277)
Selling, general and administrative(141,699)(399,574)
Loss from operations(210,801)(130,832)
Gain on extinguishment of debt196,469
Other expense(2,913)
Interest expense, net(39,210)(102,492)
Net loss from discontinued operations $ (56,455) $ (233,324)

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Additional Information (Details)Mar. 31, 2021USD ($)
COMMITMENTS AND CONTINGENCIES.
Letter of credit as collateral for insurance policy $ 323,516

LEASES (Details)

LEASES (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Finance lease cost
Operating lease cost within cost of sales $ 125,110 $ 43,109
Short-term lease cost56,598 21,336
Variable lease cost0 0
Sublease income0 0
Total lease cost $ 181,708 $ 64,445
Minimum
Operating lease, lease term1 year
Finance lease, lease term1 year
Maximum
Operating lease, lease term4 years
Finance lease, lease term4 years

LEASES - Supplemental cash flow

LEASES - Supplemental cash flow information (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 19,688 $ 11,807

LEASES - Lease-related assets a

LEASES - Lease-related assets and liabilities (Details) - USD ($)Mar. 31, 2021Dec. 31, 2020
Lease Position
Operating lease right-of-use assets $ 1,182,400 $ 1,270,989
Right of use liabilities operating leases current portion608,097 575,517
Right of use liability operating lease long term793,944 846,212
Total operating lease liabilities $ 1,402,041 $ 1,421,729

LEASES - Other information (Det

LEASES - Other information (Details)Mar. 31, 2021Dec. 31, 2020
Weighted-average remaining lease term (years)
Operating leases2 years 10 months 24 days3 years 7 months 6 days
Weighted-average discount rate
Operating leases8.10%8.40%

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details) - USD ($)Mar. 31, 2021Dec. 31, 2020
LEASES
2021 (Nine months remaining) $ 547,372
2022423,001
2023391,501
2024192,000
202510,750
Total future undiscounted lease payments1,564,624
Less: Interest(162,583)
Present value of lease liabilities $ 1,402,041 $ 1,421,729

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)3 Months Ended12 Months Ended
Mar. 31, 2021USD ($)leasesharesDec. 31, 2020USD ($)
Related Party Transaction [Line Items]
Notes payable to related parties $ 1,931,071
Convertible Notes Payable [Member]
Related Party Transaction [Line Items]
Notes payable to related parties1,931,071
Expenses reimbursed112,071 $ 225,000
Five J Properties LLC [Member]
Related Party Transaction [Line Items]
Current monthly rent payments for all leases with related party $ 14,250
Number of leases with related party | lease3
Terms of leases5 years
Lessee, Operating Lease, Existence of Option to Extend [true false]true
Trinity Services LLC [Member]
Related Party Transaction [Line Items]
Current monthly rent payments for all leases with related party $ 2,000
Series A Convertible Preferred Stock [Member] | Newton Dorsett [Member]
Related Party Transaction [Line Items]
Amount of Convertible Preferred Stock held $ 2,000,000
Series B Convertible Preferred Stock | James Frye [Member]
Related Party Transaction [Line Items]
Number of shares held by related party | shares6,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)Apr. 30, 2021USD ($)$ / sharessharesApr. 19, 2021USD ($)aitemApr. 14, 2021USD ($)$ / sharessharesMar. 31, 2021USD ($)Mar. 31, 2020USD ($)Apr. 30, 2019$ / shares
Subsequent Event [Line Items]
Amount of debt $ 2,228,071
Conversion price | $ / shares $ 0.50
Monthly payments $ 181,708 $ 64,445
Subsequent Event
Subsequent Event [Line Items]
Amount of debt $ 300,000
Term (in years)24 months
Interest rate10.00%
Conversion price | $ / shares $ 0.10
Number of shares issued to lender | shares450,000
Subsequent Event | Investor
Subsequent Event [Line Items]
Amount of debt $ 350,000
Term (in years)24 months
Interest rate10.00%
Conversion price | $ / shares $ 0.10
Number of shares issued to lender | shares525,000
Subsequent Event | Affiliate and stockholder
Subsequent Event [Line Items]
Amount of debt $ 195,000
Term (in years)24 months
Interest rate10.00%
Conversion price | $ / shares $ 0.10
Number of shares issued to lender | shares292,500
Subsequent Event | 5J Transportation LLC | Miller Investments & Properties
Subsequent Event [Line Items]
Area of land | a45
Area of land stabilized | a24
Termination optiontrue
Termination term3 years
Subsequent Event | 5J Transportation LLC | Miller Investments & Properties | Minimum
Subsequent Event [Line Items]
Monthly payments $ 55,000
Subsequent Event | 5J Transportation LLC | Miller Investments & Properties | Maximum
Subsequent Event [Line Items]
Monthly payments58,191
Subsequent Event | 5J Transportation LLC | BJJ Trailer
Subsequent Event [Line Items]
Monthly payments $ 22,500
Terms of leases12 months
Number of trailers used in hauling equipment and pipe | item40
Extension optiontrue