Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 22, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | Enservco Corporation | ||
Entity Central Index Key | 319,458 | ||
Trading Symbol | ensv | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 38,130,160 | ||
Entity Public Float | $ 28,447,592 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 804,737 | $ 954,058 |
Accounts receivable, net | 7,037,419 | 14,679,858 |
Prepaid expenses and other current assets | 1,213,049 | 1,540,667 |
Inventories | 308,297 | 390,081 |
Income tax receivable | 222,447 | 1,776,035 |
Deferred tax assets | 237,411 | 135,055 |
Total current assets | 9,823,360 | 19,475,754 |
Property and equipment, net | 36,494,661 | 37,789,004 |
Goodwill | 301,087 | 301,087 |
Other assets | 573,030 | 716,836 |
TOTAL ASSETS | 47,192,138 | 58,282,681 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 3,039,859 | 5,472,163 |
Current portion of long-term debt | 314,263 | 340,520 |
Total current liabilities | 3,354,122 | 5,812,683 |
Long-Term Liabilities | ||
Senior revolving credit facility | 20,706,241 | 28,634,037 |
Long-term debt, less current portion | 590,505 | 801,968 |
Deferred income taxes, net | 4,654,454 | 4,992,681 |
Total long-term liabilities | 25,951,200 | 34,428,686 |
Total liabilities | $ 29,305,322 | $ 40,241,369 |
Commitments and Contingencies (Note 10) | ||
Stockholders’ Equity | ||
Preferred stock, $.005 par value, 10,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $.005 par value, 100,000,000 common shares authorized, 38,230,729 and 37,159,815 shares issued, respectively; 103,600 shares of treasury stock; and 38,127,129 and 37,056,215 shares outstanding, respectively | $ 190,634 | $ 185,282 |
Additional paid-in-capital | 13,852,563 | 12,751,389 |
Accumulated earnings | 3,843,619 | 5,104,641 |
Total stockholders’ equity | 17,886,816 | 18,041,312 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 47,192,138 | $ 58,282,681 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 38,230,729 | 37,159,815 |
Common stock, shares outstanding (in shares) | 38,127,129 | 37,056,215 |
Treasury stock (in shares) | 103,600 | 103,600 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 38,777,860 | $ 56,563,944 |
Cost of Revenue | 28,808,599 | 41,257,600 |
Gross Profit | 9,969,261 | 15,306,344 |
Operating Expenses | ||
General and administrative expenses | 4,260,539 | 4,393,129 |
Patent litigation and defense expenses | 536,582 | 562,486 |
Depreciation and amortization | 5,792,366 | 3,402,330 |
Total operating expenses | 10,589,487 | 8,357,945 |
Income (Loss) from Operations | (620,226) | 6,948,399 |
Other Income (Expense) | ||
Interest expense | (1,113,544) | (791,159) |
Gain (Loss) on sale and disposal of equipment | (8,160) | 179,903 |
Other income | 62,655 | 40,470 |
Total other expense | (1,059,049) | (570,786) |
Income (Loss) Before Tax Expense | (1,679,275) | 6,377,613 |
Income Tax Expense (Benefit) | 418,253 | (2,371,872) |
Net Income (Loss) | $ (1,261,022) | 4,005,741 |
Other comprehensive loss | (4,070) | |
Comprehensive Income (Loss) | $ (1,261,022) | $ 4,001,671 |
Earnings (Loss) per Common Share – Basic (in dollars per share) | $ (0.03) | $ 0.11 |
Earnings (Loss) per Common Share – Diluted (in dollars per share) | $ (0.03) | $ 0.10 |
Basic weighted average number of common shares outstanding (in shares) | 37,835,637 | 36,529,906 |
Add: Dilutive shares assuming exercise of options and warrants (in shares) | 2,469,099 | |
Diluted weighted average number of common shares outstanding (in shares) | 37,835,637 | 38,999,005 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2013 | 34,822,536 | ||||
Balance at Dec. 31, 2013 | $ 174,113 | $ 11,568,033 | $ 1,098,900 | $ 4,070 | $ 12,845,116 |
Stock Issued During Period Shares Warrants Exercised | 482,357 | 482,357 | |||
Exercise of warrants | $ 2,413 | 262,885 | $ 265,298 | ||
Exercise of stock options (in shares) | 244,999 | 273,332 | |||
Exercise of stock options | $ 1,225 | 126,762 | $ 127,987 | ||
Cashless exercise of warrants (in shares) | 1,482,041 | 1,925,357 | |||
Cashless exercise of warrants | $ 7,410 | (7,410) | |||
Cashless exercise of stock options (in shares) | 24,282 | ||||
Cashless exercise of stock options | $ 121 | (121) | |||
Stock-based compensation | 562,903 | $ 562,903 | |||
Tax benefits related to exercise of options and warrants | 238,337 | 238,337 | |||
Net income | 4,005,741 | 4,005,741 | |||
Other comprehensive loss | $ (4,070) | (4,070) | |||
Balance (in shares) at Dec. 31, 2014 | 37,056,215 | ||||
Balance at Dec. 31, 2014 | $ 185,282 | 12,751,389 | 5,104,641 | 18,041,312 | |
Stock Issued During Period Shares Warrants Exercised | 100,000 | ||||
Exercise of warrants | $ 500 | 76,600 | $ 77,100 | ||
Exercise of stock options (in shares) | 404,667 | 1,125,000 | |||
Exercise of stock options | $ 2,023 | 196,262 | $ 198,285 | ||
Cashless exercise of stock options (in shares) | 550,276 | ||||
Cashless exercise of stock options | $ 2,751 | (2,751) | |||
Stock-based compensation | 617,530 | 617,530 | |||
Tax benefits related to exercise of options and warrants | 203,231 | 203,231 | |||
Net income | (1,261,022) | $ (1,261,022) | |||
Other comprehensive loss | |||||
Balance (in shares) at Dec. 31, 2015 | 38,127,129 | ||||
Balance at Dec. 31, 2015 | $ 190,634 | 13,852,563 | $ 3,843,619 | $ 17,886,816 | |
Stock Issued During Period, Shares, Issued for Services | 15,971 | ||||
Stock issued for services | $ 78 | $ 10,302 | $ 10,380 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $ (1,261,022) | $ 4,005,741 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,792,366 | 3,402,330 |
Loss (Gain) on sale and disposal of equipment | 8,160 | (179,903) |
Deferred income taxes | (399,436) | 2,803,682 |
Stock-based compensation | 617,530 | $ 562,903 |
Stock issued for services | 10,380 | |
Amortization of Financing Costs | 125,404 | $ 253,803 |
Bad debt expense | 135,434 | 96,592 |
Changes in operating assets and liabilities | ||
Accounts receivable | 7,507,005 | (3,090,584) |
Inventories | 81,784 | (75,077) |
Prepaid expense and other current assets | 352,618 | (417,084) |
Income taxes receivable | 1,553,588 | (1,776,035) |
Other assets | 93,402 | (423,301) |
Accounts payable and accrued liabilities | $ (2,432,304) | 2,359,356 |
Income taxes payable | (1,278,599) | |
Net cash provided by operating activities | $ 12,143,762 | 6,225,338 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (4,533,352) | (23,955,603) |
Proceeds from sale and disposal of equipment | 27,169 | 370,000 |
Net cash used in investing activities | (4,506,183) | (23,585,603) |
FINANCING ACTIVITIES | ||
Net credit facility borrowings (repayments) | (7,927,796) | 28,634,037 |
Repayment of long-term debt | (237,720) | (12,619,701) |
Payment of debt issuance costs | (100,000) | (199,825) |
Proceeds from exercise of warrants | 77,100 | 265,298 |
Proceeds from exercise of stock options | 198,285 | 127,987 |
Excess tax benefits related to exercise of options and warrants | 203,231 | 238,337 |
Net cash (used in) provided by financing activities | (7,786,900) | 16,446,133 |
Net Decrease in Cash and Cash Equivalents | (149,321) | (914,132) |
Cash and Cash Equivalents, Beginning of Year | 954,058 | 1,868,190 |
Cash and Cash Equivalents, End of Year | 804,737 | 954,058 |
Cash paid for interest | 814,033 | 519,050 |
Cash (refund) paid for taxes | (1,742,057) | 2,412,681 |
Cashless exercise of stock options and warrants | $ 2,751 | $ 7,531 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Basis of Presentation The accompanying consolidated financial statements have been derived from the accounting records of Enservco Corporation (formerly Aspen Exploration Corporation), Heat Waves Hot Oil Service LLC (“Heat Waves”), Dillco Fluid Service, Inc. (“Dillco”), Heat Waves Water Management LLC (“HWWM”), Trinidad Housing LLC, HE Services LLC, and Real GC LLC (collectively, the “Company”) as of December 31, 2015 and 2014 and the results of operations for the years then ended. The below table provides an overview of the Company’s current ownership hierarchy: Name State of Formation Ownership Business Dillco Fluid Service, Inc. (“Dillco”) Kansas 100% by Enservco Oil and natural gas field fluid logistic services. Heat Waves Hot Oil Service LLC (“Heat Waves”) Colorado 100% by Enservco Oil and natural gas well services, including logistics and stimulation. Heat Waves Water Management LLC (“HWWM”) Colorado 100% by Enservco Water Transfer and Water Treatment Services (Organized on November 24, 2015 – No business operations during 2014 or 2015) HE Services LLC (“HES”) Nevada 100% by Heat Waves No active business operations. Owns construction equipment used by Heat Waves. Real GC, LLC (“Real GC”) Colorado 100% by Heat Waves No active business operations. Owns real property in Garden City, Kansas that is utilized by Heat Waves. The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) . Inter-company balances and transactions have been eliminated in the accompanying consolidated financial statements. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 - Summary of Significant Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. Accounts Receivable Accounts receivable are stated at the amount billed to customers less an allowance for doubtful accounts. The Company provides an allowance for doubtful accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The allowance for doubtful accounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management's best estimate of uncollectible amounts and is determined based on historical collection experience related to accounts receivable coupled with a review of the current status of existing receivables. The losses ultimately incurred could differ materially in the near term from the amounts estimated in determining the allowance. As of December 31, 2015 and December 31, 2014, the Company had an allowance for doubtful accounts of $158,800 and $100,000, respectively. For the years ended December 31, 2015 and 2014 the Company has recorded bad debt expense (net of recoveries) of $135,434 and $96,592, respectively. Concentrations As of December 31, 2015, two customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 28% and 10%, respectively. Revenues from these two customers represented 11% and 3% of total revenues, respectively, for the year ended December 31, 2015. Additionally, one other customer exceeded 10% of total revenues at approximately 10% of total revenues for the year ended December 31, 2015. As of December 31, 2014, three customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 12%, 12% and 10%, respectively. Revenues from these three customers represented 18%, 6% and 8% of total revenues, respectively, for the year ended December 31, 2014. No other customer exceeded 10% of total revenues for the year ended December 31, 2014. Inventories Inventory consists primarily of propane, diesel fuel and chemicals that are used in the servicing of oil wells and is carried at the lower of cost or market in accordance with the first in, first out method. The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. Property and Equipment Property and equipment consists of (1) trucks, trailers and pickups; (2) trucks that are in various stages of fabrication; (3) real property which includes land and buildings used for office and shop facilities and wells used for the disposal of water; and (4) other equipment such as tools used for maintaining and repairing vehicles, office furniture and fixtures, and computer equipment. Property and equipment is stated at cost less accumulated depreciation. The Company capitalizes interest on certain qualifying assets that are undergoing activities to prepare them for their intended use. Interest costs incurred during the fabrication period are capitalized and amortized over the life of the assets. The Company charges repairs and maintenance against income when incurred and capitalizes renewals and betterments, which extend the remaining useful life, expand the capacity or efficiency of the assets. Depreciation is recorded on a straight-line basis over estimated useful lives of 5 to 30 years. Leases The Company conducts a major part of its operations from leased facilities. Each of these leases is accounted for as operating leases. Normally, the Company records rental expense on its operating leases over the lease term as it becomes payable. If rental payments are not made on a straight-line basis, per terms of the agreement, the Company records a deferred rent expense and recognizes the rental expense on a straight-line basis throughout the lease term. The majority of the Company’s facility leases contain renewal clauses and expire through June 2022. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company has leased trucks and equipment in the normal course of business, which was recorded as an operating lease. The Company recorded rental expense on equipment under operating leases over the lease term as it becomes payable; there were no rent escalation terms associated with these equipment leases. The equipment leases contained a purchase options that allowed the Company to purchase the leased equipment at the end of the lease term, based on the market price of the equipment at the time of the lease termination. In October 2015, the Company exercised the purchase option on three frac heaters. There are no significant equipment leases outstanding as of December 31, 2015. Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired. No impairments were recorded during the years ended December 31, 2015 or 2014. Earnings (Loss) Per Share Earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income (loss) by the diluted weighted average number of common shares. The diluted weighted average number of common shares is computed using the treasury stock method for common stock that may be issued for outstanding stock options and warrants. As of December 31, 2015 and 2014, there were outstanding stock options and warrants to acquire an aggregate of 3,635,169 and 3,750,169 shares of Company common stock , respectively, which have a potentially dilutive impact on earnings per share. For the year ended December 31, 2014, the incremental shares of the options and warrants to be included in the calculation of diluted earnings per share had a dilutive impact on the Company’s earnings per share of 2,469,099 shares. Dilution is not permitted if there are net losses during the period. As such, the Company does not show dilutive earnings per share for the year ended December 31, 2015. Intangible Assets Goodwill Goodwill represents the excess of the cost over the fair value of net assets acquired, including identified intangible assets, recorded in connection with the acquisitions of Heat Waves. Goodwill is not amortized but is assessed for impairment at least annually. Impairment Derivative Instruments The Company has swap agreements in place to hedge against changes in interest rates. The fair value of the Company’s derivative instruments is reflected as assets or liabilities on the balance sheets. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the resulting designation. Transactions related to the Company’s derivative instruments accounted for as hedges are classified in the same category as the item hedged in the statement of cash flows. The Company does not hold derivative instruments for trading purposes. For derivative instruments designated as fair-value hedges, the changes in the fair value of the derivative instrument is recorded in earnings. For derivative instruments designated as cash-flow hedges, the effective portion of changes in the fair value of the derivative instruments are deferred in Accumulated other comprehensive loss Accumulated other comprehensive loss The Company has designated its interest rate swap agreement with PNC as a fair value hedge. As such, changes in the fair value of the interest rate swap agreement are recorded in earnings. Income Taxes The Company recognizes deferred tax liabilities and assets ( Note 7) based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities will be recognized in income in the period that includes the enactment date. Deferred income taxes are classified as a net current or non-current asset or liability based on the classification of the related asset or liability for financial reporting purposes. A deferred tax asset or liability that is not related to an asset or liability for financial reporting is classified according to the expected reversal date. The Company records a valuation allowance to reduce deferred tax assets to an amount that it believes is more likely than not expected to be realized. The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized in the financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, the Company is required to make many subjective assumptions and judgments regarding income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to the Company’s subjective assumptions and judgments which can materially affect amounts recognized in the consolidated balance sheets and consolidated statements of income. The result of the reassessment of the Company’s tax positions did not have an impact on the consolidated financial statements. Interest and penalties associated with tax positions are recorded in the period assessed as income tax expense. The Company files income tax returns in the United States and in the states in which it conducts its business operations. The Company’s United States federal income tax filings for tax years 2012 through 2015 remain open to examination. In general, the Company’s various state tax filings remain open for tax years 2011 to 2015. Fair Value The Company follows authoritative guidance that applies to all financial assets and liabilities required to be measured and reported on a fair value basis. The Company also applies the guidance to non-financial assets and liabilities measured at fair value on a nonrecurring basis, including non-competition agreements and goodwill. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. During the year ended December 31, 2015, the Company did not change any of its valuation techniques. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities; Level 2: Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. Stock-based Compensation The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for all stock options awarded to employees, officers, and directors. The expected term of the options is based upon evaluation of historical and expected further exercise behavior. The risk-free interest rate is based upon U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life of the grant. Volatility is determined upon historical volatility of our stock and adjusted if future volatility is expected to vary from historical experience. The dividend yield is assumed to be none as we have not paid dividends nor do we anticipate paying any dividends in the foreseeable future. The Company also uses the Black-Scholes valuation model to determine the fair value of warrants. Expected volatility is based upon the weighted average of historical volatility over the contractual term of the warrant and implied volatility. The risk-free interest rate is based upon implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the contractual term of the warrants. The dividend yield is assumed to be none. Loan Fees and Other Deferred Costs In the normal course of business, the Company often enters into loan agreements with its primary lending institutions. The majority of these lending agreements require origination fees and other fees in the course of executing the agreements. For all costs associated with the execution of the lending agreements, the Company defers these costs and amortizes them as interest expense over the term of the loan agreement using the effective interest method. These deferred costs are classified on the balance sheet as current or long-term assets based on the contractual terms of the loan agreements. All other costs not associated with the execution of the loan agreements are expensed as incurred. See Note 4 for loan fees recorded in the current period. Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, the fee is fixed or determinable, services are provided and collection is reasonably assured. Management Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the realization of accounts receivable, stock based compensation expense, income tax provision, the valuation of deferred taxes, and the valuation of the Company’s interest rate swap. Actual results could differ from those estimates. Accounting Pronouncements Recently Issued In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015 the FASB agreed to defer the effective date by one year, the new standard becomes effective for us on January 1, 2018. Early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In April 2015, the FASB issued ASU 2015-03, “ Simplifying the Presentation of Debt Issuance Costs. In July 2015, Simplifying the Measurement of Inventory The adoption of this guidance is not expected to impact the Company’s consolidated financial statements. Balance Sheet Classification of Deferred Taxes” The adoption of this guidance is expected to have an immaterial impact on the Company’s total assets and liabilities. In February 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842) |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3 - Property and Equipment Property and equipment consists of the following at: December 31, 2015 2014 Trucks and vehicles $ 54,153,487 $ 48,020,268 Other equipment 3,335,170 3,135,916 Buildings and improvements 3,752,841 3,396,280 Trucks in process - 2,366,758 Land 873,428 776,420 Disposal wells 391,003 367,330 Total property and equipment 62,505,929 58,062,972 Accumulated depreciation (26,011,268 ) (20,273,968 ) Property and equipment – net $ 36,494,661 $ 37,789,004 Depreciation expense on property and equipment for the years ended December 31, 2015 and 2014 totaled $5,792,366 and $3,402,330, respectively. |
Note 4 - PNC Credit Facility
Note 4 - PNC Credit Facility | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 4 – PNC Credit Facility 2014 PNC Credit Facility In September 2014, the Company entered into an Amended and Restated Revolving Credit and Security Agreement (the "2014 Credit Agreement") with PNC Bank, National Association ("PNC") which provides for a five-year $30 million senior secured revolving credit facility which replaced a prior revolving credit facility and term loan with PNC that totaled $16 million (the "2012 Credit Agreement"). The 2014 Credit Agreement allows the Company to borrow up to 85% of eligible receivables and 85% of the appraised value of trucks and equipment. Under the 2014 Credit Agreement, there are no required principal payments until maturity and the Company had the option to pay variable interest rate based on (i) 1, 2 or 3 month LIBOR plus an applicable margin ranging from 2.50% to 3.50% for LIBOR Rate Loans or (ii) interest at PNC Base Rate plus an applicable margin of 1.00% to 2.00% for Domestic Rate Loans. Interest is calculated monthly and added to the principal balance of the loan. Additionally, the Company incurs an unused credit line fee of 0.375%. The revolving credit facility is collateralized by substantially all of the Company’s assets and subject to financial covenants. The interest rate at December 31, 2015 ranged from 2.92% to 3.01% for the $20,250,000 of outstanding LIBOR Rate Loans and 4.25% for the $456,241 of outstanding Domestic Rate Loans. Effective February 27, 2015, the Company entered into a Consent and First Amendment (the “First Amendment”) with respect to the 2014 Credit Agreement. The First Amendment, among other things, (i) modified certain financial covenants, and (ii) consented to a $100,000 principal prepayment by the Company to a third party bank that eliminated a monthly fee of $12,500 paid to the guarantor of that indebtedness. Effective March 29, 2015, the Company entered into a second amendment to the 2014 Credit Agreement with PNC to increase the Company’s leverage ratio, as defined from 2.75 to 1 to 3.50 to 1 and to exclude certain capital expenditures from the calculation of the fixed charge ratio. In July and October 2015, the Company entered into a third and fourth amendment, respectively, to the 2014 Credit Agreement with PNC. The amendments were made to administrative terms of the agreement and did not modify any terms of the financial covenants. Effective December 31, 2015, the Company entered into a fifth amendment to the 2014 Credit Agreement. The fifth amendment, among other things, (i) increased the applicable margin for Domestic Rate Loans and LIBOR Rate Loans by 25 basis points (ii) adjusted the Company’s leverage ratio, as defined to 4.25 to 1.00 as of December 31, 2015, 4.50 to 1.00 as of March 31, 2016, and 3.50 to 1.0 as of June 30, 2016 and each quarter thereafter, and (iii) limited capital expenditures, as defined to an aggregate amount of $7,800,000 during the period commencing October 1, 2015 through June 30, 2016. As of December 31, 2015, the Company had an outstanding loan balance of $20,706,241. The outstanding loan balance matures in September 2019. As of December 31, 2015, approximately $9,900,000 was available under the revolving credit facility. On March 29, 2016, the Company entered into a sixth amendment to the 2014 Credit Agreement. The sixth amendment, among other things, (i) reduced the revolving line of credit commitment from $40 million back to its original $30 million (ii) reset the fixed charge coverage ratio to build to a trailing four quarters beginning with the quarter ended December 31, 2015 (iii) added a new covenant which establishes a minimum monthly availability requirement for the period of March 2016 through March 2017 ranging from $1.5 million to $8.0 million (iv) converted the leverage and fixed charge coverage ratios to springing covenants which would only be triggered upon failure to meet the new availability covenant until it expires in February 2017; thereafter they will be individually tested quarterly (v) increased the applicable margin for Domestic Rate Loans and LIBOR Rate Loans by 175 basis points, and (vi) reinstated a full cash dominion requirement. Debt Issuance Costs In November 2012, the Company incurred $922,685 of debt issuance costs related to the 2012 Credit Agreement and these costs were being amortized to interest expense over the term of the credit facility using the effective interest method. An additional $50,422 of debt issuance costs was incurred in connection with the 2012 Credit Agreement loan amendment in November 2013. In September 2014, the Company incurred an additional $199,825 of debt issuance costs related to the 2014 Credit Agreement. Due to the debt modification in September 2014 with the 2014 Credit Agreement the unamortized debt issuance costs associated with the 2012 Credit Agreement in the amount of $378,023 and additional debt issuance costs of $199,825 are amortized over the 60 month term of the 2014 Credit Agreement. In September 2015, the Company incurred an additional $100,000 of debt issuance costs related to the 2014 Credit Agreement due to the payment of the second half of the commitment fee in accordance with the 2014 Credit Agreement. As of December 31, 2015 and 2014, $140,570 and $115,570, respectively of unamortized debt issuance costs were included in Prepaid expenses and other current assets Other Assets Interest Expense Interest Rate Swaps On November 13, 2012 the Company entered into an interest rate swap agreement with PNC with a notional value of $11,000,000 in order to hedge the cash flow requirements for the variable interest rate associated with the PNC Term Loan. The floating variable interest rate associated with the Term Loan debt of 4.25% plus LIBOR was swapped for a fixed rate of 4.25% plus 0.64% for the duration of the PNC Term Loan. This swap agreement expired in November 2015. On September 17, 2015, the Company entered into an interest rate swap agreement with PNC which the Company designated as a fair value hedge against the variability in future interest payments related to its 2014 Credit Agreement. The terms of the interest rate swap agreement include a notional amount of $10,000,000, a fixed payment rate of 1.88% plus applicable a margin ranging from 2.50% to 3.50% paid by the Company and a floating payment rate equal to LIBOR plus applicable margin of 2.50% to 3.50% paid by PNC. The purpose of the swap agreement is to adjust the interest rate profile of the Company’s debt obligations and to achieve a targeted mix of floating and fixed rate debt. During the year ended December 31, 2015, the fair market value of the interest rate swap decreased by $163,000 which was recorded as interest expense. The corresponding liability of $163,000 for the interest rate swap is including in accounts payable and accrued liabilities on the consolidated balance sheet as of December 31, 2015. |
Note 5 - Long-Term Debt
Note 5 - Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | Note 5 – Long-Term Debt Long-term debt consists of the following at December 31, 2015 and 2014: December 31, 2015 2014 Real Estate Loan for our facility in North Dakota, interest at 3.75%, monthly principal and interest payment of $5,255 ending October 3, 2028. Collateralized by land and property purchased with the loan. 536,038 677,204 Note payable to the seller of Heat Waves. The note was garnished by the Internal Revenue Service (“IRS”) in 2009 and is due on demand; payable in monthly installments of $3,000 per agreement with the IRS. 206,000 242,000 Mortgage payable to a bank, interest at 5.9%, monthly principal and interest payments of $1,550 through January 2017 with a balloon payment of $88,118 on February 1, 2017; secured by land. 103,191 115,317 Mortgage payable to a bank; interest at 7.25%, due in monthly principal and interest payments of $4,555 through February 2017, secured by land. 59,539 107,967 Total 904,768 1,142,488 Total current portion (314,263 ) (340,520 ) Long term debt, net of current portion 590,505 801,968 Aggregate maturities of debt, excluding the Senior Revolving Credit Facility described in Note 4, are as follows: Year Ended December 31, 2016 $ 314,263 2017 142,944 2018 46,851 2019 48,663 2020 50,509 Thereafter 301,538 Total $ 904,768 |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 6 - Fair Value Measurements The following tables present the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy: Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurement December 31, 2015 Derivative Instrument Interest rate swap $ - $ 163,000 $ - $ 163,000 December 31, 2014 Derivative Instrument Interest rate swap $ - $ 9,895 $ - $ 9,895 The interest rate swap as of December 31, 2015 and 2014 consists of a liability of $163,000 and $9,895, respectively (classified within Accounts payable and accrued liabilities The Company’s derivative instrument (e.g. interest rate swap, or “swap”) is valued using models which require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, and correlations of such inputs. Some of the model inputs used in valuing the derivative instruments trade in liquid markets therefore the derivative instrument is classified within Level 2 of the fair value hierarchy. For applicable financial assets carried at fair value, the credit standing of the counterparties is analyzed and factored into the fair value measurement of those assets. The fair value estimate of the swap does not reflect its actual trading value. |
Note 7 - Income Taxes
Note 7 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 7 – Income Taxes The income tax provision (benefit) from operations consists of the following: December 31, 2015 2014 Current Federal $ (18,817 ) $ (431,810 ) State - - Total Current (18,817 ) (431,810 ) Deferred Federal (361,830 ) 2,603,115 State (37,606 ) 200,567 Total Deferred (399,436 ) 2,803,682 Total Income Tax Provision $ (418,253 ) $ 2,371,872 A reconciliation of computed income taxes by applying the statutory federal income tax rate of 34% to income (loss) from operations before taxes to the provision (benefit) for income taxes for the years ended December 31, 2015 and 2014 is as follows: December 31, 2015 2014 Computed income taxes at 34% $ (570,954 ) $ 2,168,389 Increase in income taxes resulting from: State and local income taxes, net of federal impact (50,378 ) 191,328 Change in tax rate - (97,350 ) Stock-based compensation 137,296 79,841 Other 65,783 29,664 Provision (benefit) for income taxes $ (418,253 ) $ 2,371,872 In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. We have a requirement of reporting of taxes based on tax positions which meet a more likely than not standard and which are measured at the amount that is more likely than not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. This standard also provides guidance on the presentation of tax matters and the recognition of potential IRS interest and penalties. As of December 31, 2015 and 2014, the Company does not have an unrecognized tax liability. The Company has approximately $5.1 million of net operating losses that will begin to expire in the year 2036. The components of deferred income taxes for the years ended December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Current Long-Term Current Long-Term Deferred tax assets Reserves and accruals $ 237,411 $ - $ 135,055 $ - Amortization - 136,673 - 173,700 Capital losses - - - 3,661 Non-qualified stock option expense - 406,896 - 400,009 Loss Carryforwards - 2,116,303 - 71,710 Total deferred tax assets 237,411 2,659,872 135,055 649,080 Deferred tax liabilities Depreciation - (7,314,326 ) - (5,641,761 ) Total deferred tax liabilities - (7,314,326 ) - (5,641,761 ) Net deferred tax assets (liabilities) $ 237,411 $ (4,654,454 ) $ 135,055 $ (4,992,681 ) As of December 31, 2015 and 2014, the Company did not record any valuation allowances. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. Interest and penalties of $3,740 and $19,760 were recognized in the statement of operations for the fiscal years ended December 31, 2015 and 2014, respectively. The Company files tax returns in the United States, in various states including Colorado, Kansas, North Dakota, Ohio and Pennsylvania. The Company’s United States federal income tax filings for tax years 2012 through 2015 remain open to examination. In general, the Company’s various state tax filings remain open for tax years 2011 to 2015. |
Note 8 - Stockholders Equity
Note 8 - Stockholders Equity | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 8 – Stockholders Equity Registration Rights Agreement In conjunction with a private placement transaction in November 2012, the Company and each private placement investor entered into a registration rights agreement; which agreement requires the payment of penalty fees to the equity investor in the event the Company is unable to timely register the shares of common stock acquired by the equity investor pursuant to the stock subscription agreement. The Company filed a registration statement for these shares which was declared effective June 21, 2013. If the Company fails to maintain the effectiveness of this registration statement, it may be subject to a penalty in cash or shares equal to 1.0% per month (prorated for any partial months), for the period(s) of time that the Company fails to maintain effectiveness of the registration statement underlying these shares. Liquidated Damages shall not exceed 8% of the original purchase price of such shares. The Company has not recorded an obligation for liquidated damages as the possibility of failing to maintain effectiveness is remote. Warrants In conjunction with a private placement transaction and subordinated debt conversion in November 2012, the Company granted warrants to purchase 5,185,714 shares of the Company’s common stock, exercisable at $0.55 per share for a five year term. Each of the warrants may be exercised on a cashless basis. The warrants also provide that subject to various conditions, the holders have piggy-back registration rights with respect to the shares of common stock that may be acquired upon the exercise of the warrants. As of December 31, 2015, 150,001 of these warrants remain outstanding. A summary of warrant activity for the years ended December 31, 2015 and 2014 is as follows: Warrants Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2014 2,657,714 $ 0.55 3.7 $ 3,359,170 Issued - - Exercised (2,407,713 ) 0.54 Forfeited/cancelled - - Outstanding at December 31, 2014 250,001 $ 0.64 2.3 $ 242,901 Issued - - Exercised (100,000 ) 0.77 Forfeited/Cancelled - - Outstanding at December 31, 2015 150,001 $ 0.55 1.9 $ - Exercisable at December 31, 2015 150,001 $ 0.55 1.9 $ - During the year ended December 31, 2015, warrants to acquire 100,000 shares were exercised for cash payments totaling $77,100. The warrants exercised had a total intrinsic value of $102,000 at the time of exercise. No warrants were issued during the year ended December 31, 2015. During the year ended December 31, 2014, warrants to acquire 1,925,357 shares of common stock were exercised by way of cashless exercise whereby the warrant holders elected to receive 1,482,041 shares without payment of the exercise price and the remaining warrants for 443,316 shares were cancelled. In addition, warrants to acquire 482,357 shares were exercised for cash payments totaling $265,298. The warrants exercised had a total intrinsic value of $4,425,344 at the time of exercise. Stock Issued for Services During the fiscal year ended December 31, 2015, the Company issued 15,971 shares of common stock to a consultant as partial compensation for services provided to the Company. The shares were granted under the 2010 Stock Incentive Plan and were fully vested and unrestricted at the time of issuance. For the year ended December 31, 2015, the Company recorded $10,400 of stock based compensation expense for these services in the accompanying consolidated statement of operations and comprehensive income (loss). |
Note 9 - Stock Options
Note 9 - Stock Options | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9 – Stock Options On July 27, 2010 the Company’s board of directors adopted the 2010 Stock Incentive Plan (the “2010 Plan”). The aggregate number of shares of common stock that may be granted under the 2010 Plan is reset at the beginning of each year based on 15% of the number of shares of common stock then outstanding. As such, on January 1, 2016, the 2010 plan was reset to 5,719,069 shares based upon 38,127,129 shares outstanding on that date. Options are typically granted with an exercise price equal to the estimated fair value of the Company's common stock at the date of grant with a vesting schedule of one to three years and a contractual term of 5 years. As of December 31, 2015, there were 3,485,168 options outstanding under the 2010 Plan. A summary of the range of assumptions used to value stock options granted for the years ended December, 2015 and 2014 are as follows: For the Years Ended December 31, 2015 2014 Expected volatility 107 - 109% 114 - 124% Risk-free interest rate 0.75 - 0.86% 0.72 - 0.99% Dividend yield - - Expected term (in years) 3.3 - 3.5 2.5 - 3.5 During the year December 31, 2015, the Company granted options to acquire 1,123,500 shares of common stock with a weighted-average grant-date fair value of $1.19 per share. During the year ended December 31, 2015, options to acquire 720,333 shares of common stock were exercised by way of a cashless exercise whereby the option holders elected to receive 550,276 shares of common stock without payment of the exercise price and the remaining options for 170,057 shares were cancelled. The options had an intrinsic value of $1,131,371 at the time of exercise. In addition, options to acquire 404,667 shares of common stock were exercised for cash payments of $198,285. The options had an intrinsic value of $423,837 at the time of exercise. During the year ended December 31, 2014, the Company granted options to acquire 462,500 shares of common stock with a weighted-average grant-date fair value of $1.67 per share. During the year ended December 31, 2014, options to acquire 28,333 shares of common stock were exercised by way of a cashless exercise whereby the option holder elected to receive 24,282 shares of common stock without payment of the exercise price and the remaining options for 4,051 shares were cancelled. The options had an intrinsic value of $75,837 at the time of exercise. In addition, options to acquire 244,999 shares of common stock were exercised for cash payments of $127,987. The options had an intrinsic value of $531,609 at the time of exercise. The following is a summary of stock option activity for all equity plans for the years ended December 31, 2015 and 2014: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2014 3,375,000 $ 0.70 2.60 $ 3,760,325 Granted 462,500 2.37 Exercised (273,332 ) 0.51 Forfeited or Expired (64,000 ) 2.27 Outstanding at December 31 , 2014 3,500,168 $ 0.90 2.02 $ 2,785,893 Granted 1,123,500 1.75 Exercised (1,125,000 ) 0.48 Forfeited or Expired (13,500 ) 2.06 Outstanding at December 31, 2015 3,485,168 $ 1.31 2.53 $ 63,067 Vested or Expected to Vest at December 31, 2015 2,161,499 $ 1.03 1.61 $ 63,067 Exercisable at December 31, 2015 2,161,499 $ 1.03 1.61 $ 63,067 The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the estimated fair value of the Company’s common stock and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they exercised their options on December 31, 2015. During the years ended December 31, 2015 and 2014, the Company recognized stock-based compensation costs for stock options of $617,530 and $562,903, respectively in general and administrative expenses. The Company currently expects all outstanding options to vest. Compensation cost is revised if subsequent information indicates that the actual number of options vested is likely to differ from previous estimates. A summary of the status of non-vested shares underlying the options are presented below: Number of Shares Weighted- Average Grant- Date Fair Value Non-vested at January 1, 2014 666,668 $ 0.54 Granted 462,500 1.67 Vested (566,664 ) 0.87 Forfeited (64,000 ) 1.74 Non-vested at December 31, 2014 498,504 $ 1.05 Granted 1,123,500 1.19 Vested (287,835 ) 0.83 Forfeited (10,500 ) 1.48 Non-vested at December 31, 2015 1,323,669 $ 1.22 As of December 31, 2015 there was $1,048,303 of total unrecognized compensation costs related to non-vested shares under the qualified stock option plans which will be recognized over the remaining weighted-average period of 1.7 years. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 10 – Commitments and Contingencies Operating Leases As of December 31, 2015, the Company leases facilities under lease commitments that expire through June 2022. All of these facility leases are accounted for as operating leases. Future minimum lease commitments for these facilities and other operating leases are as follows: Year Ended December 31, 2016 $ 592,752 2017 567,342 2018 463,518 2019 470,194 2020 415,370 Thereafter 331,488 Total $ 2,840,664 Rent expense under operating leases for the years ended December 31, 2015 and 2014 was $828,098 and $1,113,581, respectively. Equipment Purchase Commitments As of December 31, 2015, the Company did not have any outstanding purchase commitments related to the purchase of equipment and construction of building facilities. Self-Insurance In June 2015, the Company became self-insured under its Employee Group Medical Plan for the first $75,000 per individual participant. The Company has accrued a liability of approximately $39,500 as of December 31, 2015 for insurance claims that it anticipates paying in the future related to incidents that occurred during the period ended December 31, 2015. Litigation In October 2014, the Company was served with a complaint filed in the United States District Court for the Northern District of Texas, Dallas Division (Civil Action No. 3:14-cv-03631) by Heat-On-The-Fly, LLC (“HOTF”), naming Enservco Corporation (“Enservco”) and its subsidiary Heat Waves Hot Oil Service LLC (“Heat Waves”) as defendants. The complaint alleges that Enservco and Heat Waves, in offering and selling frac water heating services, infringed and induced others to infringe two patents owned by HOTF (U.S. Patent Nos. 8,171,993 (“the ‘993 Patent”) and 8,739,875 (“the ‘875 Patent”)). The complaint seeks various remedies including injunctive relief and unspecified damages and relates to only a portion of Heat Waves’ frac water heating services. In May 2015, the case was transferred to the U.S. District Court for the District of Colorado, Civil Action No. 1:15-cv-00983-RBJ (“Colorado Case”). Heat Waves has answered the complaint, denied HOTF’s allegations of infringement and asserted counterclaims asking the Court to find, among other things, that it does not infringe either patent and that both patents are invalid. HOTF has replied to and denied those counterclaims. In July 2015, the Company and HOTF jointly asked the Colorado Court to stay the case pending any appeal by HOTF of the partial summary judgment ruling invalidating the ‘993 Patent referenced below, and on July 20, 2015, the Court granted the parties’ joint request. The Colorado case is now stayed pending resolution of appeal by HOTF of the Court’s invalidity ruling and the pending ‘993 Patent reexamination proceeding, also referenced below. HOTF is currently involved in another litigation with a group of energy companies (which does not include Enservco or Heat Waves) that sought, among other things, to invalidate the ‘993 Patent (“North Dakota Case”). In March 2015, the North Dakota Court granted the energy companies’ partial summary judgment motion, finding that the ‘993 Patent was invalid and later entered a judgment on this issue. In September 2015, a jury trial was conducted. While it did not find that HOTF committed the tort of deceit, the jury found that HOTF represented to a customer of one of the accused energy companies that HOTF had a valid patent and this representation was made in bad faith. The jury also found, among other things, that HOTF unlawfully interfered with a contract and prospective business relationship with that customer and as such, awarded the energy company $750,000 in damages. Lastly, the Court also held a bench trial on the energy companies’ claim that the ‘993 Patent is unenforceable due to inequitable conduct by the inventor of the ‘993 Patent before the U.S. Patent and Trademark Office (“USPTO”). In January 2016, the Court ruled that the ‘993 Patent is unenforceable due to inequitable conduct by the inventor and/or HOTF. In February 2016, HOTF filed a notice of its intent to appeal to the U.S. Court of Appeals for the Federal Circuit all judgments and adverse orders related to those judgments issued by the North Dakota Court. Although the first 12 claims of the ‘993 Patent survived a prior reexamination, the USPTO granted a second request in July 2014 to reexamine the ‘993 Patent in its entirety (all 99 claims, including the prior 12 claims that survived the prior, limited reexamination) based on different reasoning. In February 2015, the USPTO issued initial findings in the second reexamination proceeding and rejected all 99 claims of the ‘993 Patent as being unpatentable. In April 2015, HOTF filed a response with the USPTO seeking to overcome these pending rejections, but no subsequent decision has been made by the USPTO. The timing of a response from the USPTO and any decision resulting therefrom is uncertain and is subject to appeal by HOTF. Further, HOTF has at least two additional pending patent applications based on the ‘993 and ‘875 Patents, which, if granted, could be asserted against the Company. As the ‘993 Patent and the ‘875 Patent are based on the same subject matter, management believes that a final finding of invalidity and/or unenforceability of the ‘993 Patent could serve as a basis to affect the validity of the ‘875 Patent. If these Patents are ultimately held to be invalid, the Colorado Case would become moot. As noted above, the Colorado Case has been stayed. However, in the event that HOTF’s appeal is successful and the ‘993 Patent is found to be valid and/or enforceable in the North Dakota Case and the pending reexamination with the USPTO, the Colorado Case may resume. To the extent that Enservco and Heat Waves are unsuccessful in their defense of the Colorado Case, they could be liable for damages (which may be significant) and Heat Waves could possibly be enjoined from using any technology that is determined to be infringing. Either result could negatively impact Heat Waves’ business and operations. At this time, the Company is unable to predict the outcome of this case, and accordingly has not recorded an accrual for any potential loss. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 11 – Related Party Transactions The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Loan Guaranty: On October 3, 2013, the Company refinanced its real estate loan for its facility in North Dakota as described in Note 5. Under the terms of the agreement, $100,000 of the loan is guaranteed by Mike Herman, the Company’s former Chairman and Chief Executive Officer, and the Company had agreed to pay Mr. Herman a fee for so long as he guaranteed Company indebtedness of $12,500 per month ($150,000 annually). The agreement with the lender provided that if the Company makes a principal payment equal to or greater than $100,000, the guaranty is released in full. The Company made that payment in March 2015 and is no longer obligated to pay Mr. Herman the guaranty fee. Sale of Equipment: On February 3, 2014, the Board of Directors approved the sale of two trucks and a trailer to an entity owned 50% by the Company’s former Chairman and Chief Executive Officer for $50,000. The equipment had not been in service for over two years and was not economically feasible to repair and return to service. The Company was holding this equipment primarily for salvage purposes. At the time of the sale, the equipment had a net book value of $38,000 which resulted in a gain of $12,000. The Company believes the price paid was at least equal to the fair market value of the units had they been sold through auction or in the open market. |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 12 – Subsequent Events On November 24, 2015, HWWM was organized in state of Colorado as a wholly owned subsidiary of Enservco for the purposes of launching a new water management division. Effective January 1, 2016, HWWM acquired the water management assets of HII Technologies, Inc. (HIIT), and WET Oilfield Services, LLC (WET) for approximately $4.0 million dollars which was funded through an advance under the PNC revolving credit facility. HWWM will provide water transfer services and water treatment services to the oil and natural gas sector. Additionally in accordance with FASB Accounting Standards Codification 805, Business Combinations, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are stated at the amount billed to customers less an allowance for doubtful accounts. The Company provides an allowance for doubtful accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The allowance for doubtful accounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management's best estimate of uncollectible amounts and is determined based on historical collection experience related to accounts receivable coupled with a review of the current status of existing receivables. The losses ultimately incurred could differ materially in the near term from the amounts estimated in determining the allowance. As of December 31, 2015 and December 31, 2014, the Company had an allowance for doubtful accounts of $158,800 and $100,000, respectively. For the years ended December 31, 2015 and 2014 the Company has recorded bad debt expense (net of recoveries) of $135,434 and $96,592, respectively. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations As of December 31, 2015, two customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 28% and 10%, respectively. Revenues from these two customers represented 11% and 3% of total revenues, respectively, for the year ended December 31, 2015. Additionally, one other customer exceeded 10% of total revenues at approximately 10% of total revenues for the year ended December 31, 2015. As of December 31, 2014, three customers each comprised more than 10% of the Company’s accounts receivable balance; at approximately 12%, 12% and 10%, respectively. Revenues from these three customers represented 18%, 6% and 8% of total revenues, respectively, for the year ended December 31, 2014. No other customer exceeded 10% of total revenues for the year ended December 31, 2014. |
Inventory, Policy [Policy Text Block] | Inventories Inventory consists primarily of propane, diesel fuel and chemicals that are used in the servicing of oil wells and is carried at the lower of cost or market in accordance with the first in, first out method. The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment consists of (1) trucks, trailers and pickups; (2) trucks that are in various stages of fabrication; (3) real property which includes land and buildings used for office and shop facilities and wells used for the disposal of water; and (4) other equipment such as tools used for maintaining and repairing vehicles, office furniture and fixtures, and computer equipment. Property and equipment is stated at cost less accumulated depreciation. The Company capitalizes interest on certain qualifying assets that are undergoing activities to prepare them for their intended use. Interest costs incurred during the fabrication period are capitalized and amortized over the life of the assets. The Company charges repairs and maintenance against income when incurred and capitalizes renewals and betterments, which extend the remaining useful life, expand the capacity or efficiency of the assets. Depreciation is recorded on a straight-line basis over estimated useful lives of 5 to 30 years. |
Lease, Policy [Policy Text Block] | Leases The Company conducts a major part of its operations from leased facilities. Each of these leases is accounted for as operating leases. Normally, the Company records rental expense on its operating leases over the lease term as it becomes payable. If rental payments are not made on a straight-line basis, per terms of the agreement, the Company records a deferred rent expense and recognizes the rental expense on a straight-line basis throughout the lease term. The majority of the Company’s facility leases contain renewal clauses and expire through June 2022. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company has leased trucks and equipment in the normal course of business, which was recorded as an operating lease. The Company recorded rental expense on equipment under operating leases over the lease term as it becomes payable; there were no rent escalation terms associated with these equipment leases. The equipment leases contained a purchase options that allowed the Company to purchase the leased equipment at the end of the lease term, based on the market price of the equipment at the time of the lease termination. In October 2015, the Company exercised the purchase option on three frac heaters. There are no significant equipment leases outstanding as of December 31, 2015. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired. No impairments were recorded during the years ended December 31, 2015 or 2014. |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) Per Share Earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income (loss) by the diluted weighted average number of common shares. The diluted weighted average number of common shares is computed using the treasury stock method for common stock that may be issued for outstanding stock options and warrants. As of December 31, 2015 and 2014, there were outstanding stock options and warrants to acquire an aggregate of 3,635,169 and 3,750,169 shares of Company common stock , respectively, which have a potentially dilutive impact on earnings per share. For the year ended December 31, 2014, the incremental shares of the options and warrants to be included in the calculation of diluted earnings per share had a dilutive impact on the Company’s earnings per share of 2,469,099 shares. Dilution is not permitted if there are net losses during the period. As such, the Company does not show dilutive earnings per share for the year ended December 31, 2015. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Goodwill Goodwill represents the excess of the cost over the fair value of net assets acquired, including identified intangible assets, recorded in connection with the acquisitions of Heat Waves. Goodwill is not amortized but is assessed for impairment at least annually. Impairment |
Derivatives, Policy [Policy Text Block] | Derivative Instruments The Company has swap agreements in place to hedge against changes in interest rates. The fair value of the Company’s derivative instruments is reflected as assets or liabilities on the balance sheets. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the resulting designation. Transactions related to the Company’s derivative instruments accounted for as hedges are classified in the same category as the item hedged in the statement of cash flows. The Company does not hold derivative instruments for trading purposes. For derivative instruments designated as fair-value hedges, the changes in the fair value of the derivative instrument is recorded in earnings. For derivative instruments designated as cash-flow hedges, the effective portion of changes in the fair value of the derivative instruments are deferred in Accumulated other comprehensive loss Accumulated other comprehensive loss The Company has designated its interest rate swap agreement with PNC as a fair value hedge. As such, changes in the fair value of the interest rate swap agreement are recorded in earnings. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company recognizes deferred tax liabilities and assets ( Note 7) based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities will be recognized in income in the period that includes the enactment date. Deferred income taxes are classified as a net current or non-current asset or liability based on the classification of the related asset or liability for financial reporting purposes. A deferred tax asset or liability that is not related to an asset or liability for financial reporting is classified according to the expected reversal date. The Company records a valuation allowance to reduce deferred tax assets to an amount that it believes is more likely than not expected to be realized. The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized in the financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, the Company is required to make many subjective assumptions and judgments regarding income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to the Company’s subjective assumptions and judgments which can materially affect amounts recognized in the consolidated balance sheets and consolidated statements of income. The result of the reassessment of the Company’s tax positions did not have an impact on the consolidated financial statements. Interest and penalties associated with tax positions are recorded in the period assessed as income tax expense. The Company files income tax returns in the United States and in the states in which it conducts its business operations. The Company’s United States federal income tax filings for tax years 2012 through 2015 remain open to examination. In general, the Company’s various state tax filings remain open for tax years 2011 to 2015. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value The Company follows authoritative guidance that applies to all financial assets and liabilities required to be measured and reported on a fair value basis. The Company also applies the guidance to non-financial assets and liabilities measured at fair value on a nonrecurring basis, including non-competition agreements and goodwill. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. During the year ended December 31, 2015, the Company did not change any of its valuation techniques. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities; Level 2: Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for all stock options awarded to employees, officers, and directors. The expected term of the options is based upon evaluation of historical and expected further exercise behavior. The risk-free interest rate is based upon U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life of the grant. Volatility is determined upon historical volatility of our stock and adjusted if future volatility is expected to vary from historical experience. The dividend yield is assumed to be none as we have not paid dividends nor do we anticipate paying any dividends in the foreseeable future. The Company also uses the Black-Scholes valuation model to determine the fair value of warrants. Expected volatility is based upon the weighted average of historical volatility over the contractual term of the warrant and implied volatility. The risk-free interest rate is based upon implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the contractual term of the warrants. The dividend yield is assumed to be none. |
Loan Fees and Other Deferred Costs [Policy Text Block] | Loan Fees and Other Deferred Costs In the normal course of business, the Company often enters into loan agreements with its primary lending institutions. The majority of these lending agreements require origination fees and other fees in the course of executing the agreements. For all costs associated with the execution of the lending agreements, the Company defers these costs and amortizes them as interest expense over the term of the loan agreement using the effective interest method. These deferred costs are classified on the balance sheet as current or long-term assets based on the contractual terms of the loan agreements. All other costs not associated with the execution of the loan agreements are expensed as incurred. See Note 4 for loan fees recorded in the current period. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, the fee is fixed or determinable, services are provided and collection is reasonably assured. |
Use of Estimates, Policy [Policy Text Block] | Management Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the realization of accounts receivable, stock based compensation expense, income tax provision, the valuation of deferred taxes, and the valuation of the Company’s interest rate swap. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Recently Issued In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015 the FASB agreed to defer the effective date by one year, the new standard becomes effective for us on January 1, 2018. Early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In April 2015, the FASB issued ASU 2015-03, “ Simplifying the Presentation of Debt Issuance Costs. In July 2015, Simplifying the Measurement of Inventory The adoption of this guidance is not expected to impact the Company’s consolidated financial statements. Balance Sheet Classification of Deferred Taxes” The adoption of this guidance is expected to have an immaterial impact on the Company’s total assets and liabilities. In February 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842) |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Current Ownership Hierarchy [Table Text Block] | Name State of Formation Ownership Business Dillco Fluid Service, Inc. (“Dillco”) Kansas 100% by Enservco Oil and natural gas field fluid logistic services. Heat Waves Hot Oil Service LLC (“Heat Waves”) Colorado 100% by Enservco Oil and natural gas well services, including logistics and stimulation. Heat Waves Water Management LLC (“HWWM”) Colorado 100% by Enservco Water Transfer and Water Treatment Services (Organized on November 24, 2015 – No business operations during 2014 or 2015) HE Services LLC (“HES”) Nevada 100% by Heat Waves No active business operations. Owns construction equipment used by Heat Waves. Real GC, LLC (“Real GC”) Colorado 100% by Heat Waves No active business operations. Owns real property in Garden City, Kansas that is utilized by Heat Waves. |
Note 3 - Property and Equipme21
Note 3 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 2014 Trucks and vehicles $ 54,153,487 $ 48,020,268 Other equipment 3,335,170 3,135,916 Buildings and improvements 3,752,841 3,396,280 Trucks in process - 2,366,758 Land 873,428 776,420 Disposal wells 391,003 367,330 Total property and equipment 62,505,929 58,062,972 Accumulated depreciation (26,011,268 ) (20,273,968 ) Property and equipment – net $ 36,494,661 $ 37,789,004 |
Note 5 - Long-Term Debt (Tables
Note 5 - Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2015 2014 Real Estate Loan for our facility in North Dakota, interest at 3.75%, monthly principal and interest payment of $5,255 ending October 3, 2028. Collateralized by land and property purchased with the loan. 536,038 677,204 Note payable to the seller of Heat Waves. The note was garnished by the Internal Revenue Service (“IRS”) in 2009 and is due on demand; payable in monthly installments of $3,000 per agreement with the IRS. 206,000 242,000 Mortgage payable to a bank, interest at 5.9%, monthly principal and interest payments of $1,550 through January 2017 with a balloon payment of $88,118 on February 1, 2017; secured by land. 103,191 115,317 Mortgage payable to a bank; interest at 7.25%, due in monthly principal and interest payments of $4,555 through February 2017, secured by land. 59,539 107,967 Total 904,768 1,142,488 Total current portion (314,263 ) (340,520 ) Long term debt, net of current portion 590,505 801,968 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year Ended December 31, 2016 $ 314,263 2017 142,944 2018 46,851 2019 48,663 2020 50,509 Thereafter 301,538 Total $ 904,768 |
Note 6 - Fair Value Measureme23
Note 6 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurement Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurement December 31, 2015 Derivative Instrument Interest rate swap $ - $ 163,000 $ - $ 163,000 December 31, 2014 Derivative Instrument Interest rate swap $ - $ 9,895 $ - $ 9,895 |
Note 7 - Income Taxes (Tables)
Note 7 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | December 31, 2015 2014 Current Federal $ (18,817 ) $ (431,810 ) State - - Total Current (18,817 ) (431,810 ) Deferred Federal (361,830 ) 2,603,115 State (37,606 ) 200,567 Total Deferred (399,436 ) 2,803,682 Total Income Tax Provision $ (418,253 ) $ 2,371,872 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | December 31, 2015 2014 Computed income taxes at 34% $ (570,954 ) $ 2,168,389 Increase in income taxes resulting from: State and local income taxes, net of federal impact (50,378 ) 191,328 Change in tax rate - (97,350 ) Stock-based compensation 137,296 79,841 Other 65,783 29,664 Provision (benefit) for income taxes $ (418,253 ) $ 2,371,872 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2015 December 31, 2014 Current Long-Term Current Long-Term Deferred tax assets Reserves and accruals $ 237,411 $ - $ 135,055 $ - Amortization - 136,673 - 173,700 Capital losses - - - 3,661 Non-qualified stock option expense - 406,896 - 400,009 Loss Carryforwards - 2,116,303 - 71,710 Total deferred tax assets 237,411 2,659,872 135,055 649,080 Deferred tax liabilities Depreciation - (7,314,326 ) - (5,641,761 ) Total deferred tax liabilities - (7,314,326 ) - (5,641,761 ) Net deferred tax assets (liabilities) $ 237,411 $ (4,654,454 ) $ 135,055 $ (4,992,681 ) |
Note 8 - Stockholders Equity (T
Note 8 - Stockholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Warrants Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2014 2,657,714 $ 0.55 3.7 $ 3,359,170 Issued - - Exercised (2,407,713 ) 0.54 Forfeited/cancelled - - Outstanding at December 31, 2014 250,001 $ 0.64 2.3 $ 242,901 Issued - - Exercised (100,000 ) 0.77 Forfeited/Cancelled - - Outstanding at December 31, 2015 150,001 $ 0.55 1.9 $ - Exercisable at December 31, 2015 150,001 $ 0.55 1.9 $ - |
Note 9 - Stock Options (Tables)
Note 9 - Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the Years Ended December 31, 2015 2014 Expected volatility 107 - 109% 114 - 124% Risk-free interest rate 0.75 - 0.86% 0.72 - 0.99% Dividend yield - - Expected term (in years) 3.3 - 3.5 2.5 - 3.5 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2014 3,375,000 $ 0.70 2.60 $ 3,760,325 Granted 462,500 2.37 Exercised (273,332 ) 0.51 Forfeited or Expired (64,000 ) 2.27 Outstanding at December 31 , 2014 3,500,168 $ 0.90 2.02 $ 2,785,893 Granted 1,123,500 1.75 Exercised (1,125,000 ) 0.48 Forfeited or Expired (13,500 ) 2.06 Outstanding at December 31, 2015 3,485,168 $ 1.31 2.53 $ 63,067 Vested or Expected to Vest at December 31, 2015 2,161,499 $ 1.03 1.61 $ 63,067 Exercisable at December 31, 2015 2,161,499 $ 1.03 1.61 $ 63,067 |
Schedule of Nonvested Share Activity [Table Text Block] | Number of Shares Weighted- Average Grant- Date Fair Value Non-vested at January 1, 2014 666,668 $ 0.54 Granted 462,500 1.67 Vested (566,664 ) 0.87 Forfeited (64,000 ) 1.74 Non-vested at December 31, 2014 498,504 $ 1.05 Granted 1,123,500 1.19 Vested (287,835 ) 0.83 Forfeited (10,500 ) 1.48 Non-vested at December 31, 2015 1,323,669 $ 1.22 |
Note 10 - Commitments and Con27
Note 10 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Ended December 31, 2016 $ 592,752 2017 567,342 2018 463,518 2019 470,194 2020 415,370 Thereafter 331,488 Total $ 2,840,664 |
Note 1 - Current Ownership Hier
Note 1 - Current Ownership Hierarchy (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Dillco Fluid Service Inc at Kansas [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Heat Waves Hot Oil Service LLC at Colorado [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Heat Waves Water Management LLC [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
HE Services LLC at Nevada [Member] | Heat Waves [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Real GC LLC at Colorado [Member] | Heat Waves [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2015 | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | |
Latest Tax Year [Member] | |||
Open Tax Year | 2,015 | ||
Earliest Tax Year [Member] | |||
Open Tax Year | 2,011 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 28.00% | 12.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 10.00% | 12.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Number of Major Customers | 2 | 3 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 11.00% | 18.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 3.00% | 6.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||
Number of Major Customers | 1 | ||
Concentration Risk, Percentage | 10.00% | 8.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Number of Major Customers | 2 | 3 | |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Contractual Obligation | $ 0 | ||
Asset Impairment Charges | 0 | $ 0 | |
Allowance for Doubtful Accounts Receivable, Current | 158,800 | 100,000 | |
Provision for Doubtful Accounts | $ 135,434 | $ 96,592 | |
Number of Equipment, Exercised Purchase Options, Operating Leases | 3 | ||
Number of Outstanding Stock Based Option Awards and Warrants | shares | 3,635,169 | 3,750,169 | |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | shares | 2,469,099 |
Note 3 - Property and Equipme30
Note 3 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation | $ 5,792,366 | $ 3,402,330 |
Note 3 - Summary of Property an
Note 3 - Summary of Property and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Vehicles [Member] | ||
Property and Equipment - Gross | $ 54,153,487 | $ 48,020,268 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and Equipment - Gross | 3,335,170 | 3,135,916 |
Building and Building Improvements [Member] | ||
Property and Equipment - Gross | $ 3,752,841 | 3,396,280 |
Trucks in Process [Member] | ||
Property and Equipment - Gross | 2,366,758 | |
Land [Member] | ||
Property and Equipment - Gross | $ 873,428 | 776,420 |
Disposal Wells [Member] | ||
Property and Equipment - Gross | 391,003 | 367,330 |
Property and Equipment - Gross | 62,505,929 | 58,062,972 |
Accumulated depreciation | (26,011,268) | (20,273,968) |
Property and equipment – net | $ 36,494,661 | $ 37,789,004 |
Note 4 - PNC Credit Facility (D
Note 4 - PNC Credit Facility (Details Textual) | Mar. 29, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 17, 2015USD ($) | Feb. 27, 2015USD ($) | Oct. 03, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Nov. 30, 2012USD ($) | Nov. 13, 2012USD ($) | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015USD ($) | Mar. 28, 2015 | Sep. 30, 2015 | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 28, 2016USD ($) |
Two Thousand Fourteen Credit Agreement [Member] | Subsequent Event [Member] | Labor Rate Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.75% | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Subsequent Event [Member] | Domestic Rate Loans [Member] | Base Rate [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.75% | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||||||||
Line of Credit, Minimum Excess Availability | $ 1,500,000 | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||||||
Line of Credit, Minimum Excess Availability | 8 | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | $ 40,000,000 | ||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Subsequent Event [Member] | ||||||||||||||||||
Leverage Ratio | 4.5 | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Domestic Rate Loans [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Domestic Rate Loans [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Domestic Rate Loans [Member] | ||||||||||||||||||
Long-term Debt | $ 456,241 | $ 456,241 | $ 456,241 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | 4.25% | |||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | 2.92% | ||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | 3.01% | ||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||
Long-term Debt | $ 20,250,000 | $ 20,250,000 | $ 20,250,000 | |||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument, Term | 5 years | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | $ 30,000,000 | ||||||||||||||||
Line of Credit Facility Limitation on Borrowings Percentage of Eligible Receivables | 85.00% | 85.00% | ||||||||||||||||
Line of Credit Facility Limitation on Borrowings Percentage of Appraised Value of Trucks and Equipment | 85.00% | 85.00% | ||||||||||||||||
Long-term Debt | 20,706,241 | 20,706,241 | 20,706,241 | |||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 9,900,000 | 9,900,000 | $ 9,900,000 | |||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Scenario, Forecast [Member] | ||||||||||||||||||
Leverage Ratio | 3.5 | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | Additional Costs [Member] | ||||||||||||||||||
Debt Issuance Cost | $ 100,000 | |||||||||||||||||
Two Thousand Fourteen Credit Agreement [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | |||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||||||||||||||
Leverage Ratio | 2.75 | 3.5 | 4.25 | |||||||||||||||
Maximum Capital Expenditures | 7,800,000 | |||||||||||||||||
Two Thousand Twelve Credit Agreement [Member] | Additional Costs [Member] | ||||||||||||||||||
Debt Issuance Cost | $ 199,825 | $ 50,422 | ||||||||||||||||
Two Thousand Twelve Credit Agreement [Member] | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 16,000,000 | $ 16,000,000 | ||||||||||||||||
Debt Issuance Cost | $ 922,685 | |||||||||||||||||
Unamortized Debt Issuance Expense | $ 378,023 | $ 378,023 | ||||||||||||||||
Guaranteed Loan [Member] | Chief Executive Officer [Member] | ||||||||||||||||||
Debt Instrument Monthly Payment | $ 12,500 | $ 12,500 | ||||||||||||||||
Guaranteed Loan [Member] | ||||||||||||||||||
Principal Prepayment Eliminate Monthly Fee | $ 100,000 | |||||||||||||||||
Term Loan [Member] | Interest Rate Swap [Member] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.64% | |||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.25% | |||||||||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.25% | |||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | PNC Bank [Member] | ||||||||||||||||||
Derivative, Basis Spread on Variable Rate | 2.50% | |||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | PNC Bank [Member] | ||||||||||||||||||
Derivative, Basis Spread on Variable Rate | 3.50% | |||||||||||||||||
Minimum [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||||||||||||||||
Derivative, Swaption Interest Rate, Applicable Margin | 2.50% | |||||||||||||||||
Maximum [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||||||||||||||||
Derivative, Swaption Interest Rate, Applicable Margin | 3.50% | |||||||||||||||||
Prepaid Expenses and Other Current Assets [Member] | ||||||||||||||||||
Unamortized Debt Issuance Expense | $ 140,570 | 140,570 | $ 140,570 | $ 115,570 | ||||||||||||||
Other Assets [Member] | ||||||||||||||||||
Unamortized Debt Issuance Expense | 392,300 | 392,300 | 392,300 | 442,704 | ||||||||||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||||||||||||||
Derivative, Notional Amount | $ 11,000,000 | |||||||||||||||||
Interest Rate Swap [Member] | Fair Value Hedging [Member] | Interest Expense [Member] | ||||||||||||||||||
Unrealized Gain (Loss) on Derivatives | 163,000 | |||||||||||||||||
Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||||||||||||||||
Derivative, Notional Amount | $ 10,000,000 | |||||||||||||||||
Derivative, Swaption Interest Rate | 1.88% | |||||||||||||||||
Long-term Debt | $ 904,768 | $ 904,768 | 904,768 | 1,142,488 | ||||||||||||||
Amortization of Financing Costs | $ 125,404 | $ 253,803 |
Note 5 - Summary of Long-Term D
Note 5 - Summary of Long-Term Debt Instruments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Real Estate Loan 1 [Member] | ||
Long -term debt | $ 536,038 | $ 677,204 |
Long -term debt | 536,038 | 677,204 |
Note Payable To Seller Of Heat Waves [Member] | ||
Long -term debt | 206,000 | 242,000 |
Long -term debt | 206,000 | 242,000 |
Mortgage Payable Through February 2017 [Member] | ||
Long -term debt | 103,191 | 115,317 |
Long -term debt | 103,191 | 115,317 |
Mortgage Payable Through February 2017 Without Balloon Payment [Member] | ||
Long -term debt | 59,539 | 107,967 |
Long -term debt | 59,539 | 107,967 |
Long -term debt | 904,768 | 1,142,488 |
Long -term debt | 904,768 | 1,142,488 |
Total current portion | (314,263) | (340,520) |
Long term debt, net of current portion | $ 590,505 | $ 801,968 |
Note 5 - Summary of Long-Term34
Note 5 - Summary of Long-Term Debt Instruments (Details) (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Real Estate Loan 1 [Member] | ||
Debt Instrument, Periodic Payment | $ 5,255 | $ 5,255 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.75% | 3.75% |
Debt Instrument, Maturity Date | Oct. 3, 2028 | Oct. 3, 2028 |
Debt Instrument, Periodic Payment | $ 5,255 | $ 5,255 |
Note Payable To Seller Of Heat Waves [Member] | ||
Debt Instrument, Periodic Payment | 3,000 | 3,000 |
Debt Instrument, Periodic Payment | 3,000 | 3,000 |
Mortgage Payable Through February 2017 [Member] | ||
Debt Instrument, Periodic Payment | $ 1,550 | $ 1,550 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.90% | 5.90% |
Debt Instrument, Maturity Date | Feb. 1, 2017 | Feb. 1, 2017 |
Debt Instrument, Periodic Payment | $ 1,550 | $ 1,550 |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 88,118 | 88,118 |
Mortgage Payable Through February 2017 Without Balloon Payment [Member] | ||
Debt Instrument, Periodic Payment | $ 4,555 | $ 4,555 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.25% | 7.25% |
Debt Instrument, Periodic Payment | $ 4,555 | $ 4,555 |
Note 5 - Summary of Maturities
Note 5 - Summary of Maturities of Long-Term Debt (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 314,263 |
2,017 | 142,944 |
2,018 | 46,851 |
2,019 | 48,663 |
2,020 | 50,509 |
Thereafter | 301,538 |
Total | $ 904,768 |
Note 6 - Fair Value Measureme36
Note 6 - Fair Value Measurements (Details Textual) - Interest Rate Swap [Member] - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable and Accrued Liabilities [Member] | ||
Derivative Liability | $ 163,000 | $ 9,895 |
Derivative Liability | $ 163,000 | $ 9,895 |
Note 6 - Financial Assets and L
Note 6 - Financial Assets and Liabilities Measured on Recurring Basis (Details) - Interest Rate Swap [Member] - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||
Interest rate swap | ||
Fair Value, Inputs, Level 2 [Member] | ||
Interest rate swap | $ 163,000 | $ 9,895 |
Fair Value, Inputs, Level 3 [Member] | ||
Interest rate swap | ||
Interest rate swap | $ 163,000 | $ 9,895 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 |
Operating Loss Carryforwards | 5,100,000 | |
Income Tax Examination, Penalties and Interest Expense | $ 3,740 | $ 19,760 |
Note 7 - Components of Income T
Note 7 - Components of Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current | ||
Federal | $ (18,817) | $ (431,810) |
State | ||
Total Current | $ (18,817) | $ (431,810) |
Deferred | ||
Federal | (361,830) | 2,603,115 |
State | (37,606) | 200,567 |
Total Deferred | (399,436) | 2,803,682 |
Total Income Tax Provision | $ (418,253) | $ 2,371,872 |
Note 7 - Reconciliation of Comp
Note 7 - Reconciliation of Computed Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Computed income taxes at 34% | $ (570,954) | $ 2,168,389 |
ensv_IncreaseInIncomeTaxesResultingFromAbstract | ||
State and local income taxes, net of federal impact | $ (50,378) | 191,328 |
Change in tax rate | (97,350) | |
Stock-based compensation | $ 137,296 | 79,841 |
Other | 65,783 | 29,664 |
Provision (benefit) for income taxes | $ (418,253) | $ 2,371,872 |
Note 7 - Deferred Tax Assets an
Note 7 - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax, Current [Member] | ||
Reserves and accruals | $ 237,411 | $ 135,055 |
Total deferred tax assets | 237,411 | 135,055 |
Net deferred tax assets (liabilities) | 237,411 | 135,055 |
Deferred Tax, Noncurrent [Member] | ||
Amortization | 136,673 | 173,700 |
Capital losses | 3,661 | |
Non-qualified stock option expense | 406,896 | 400,009 |
Loss Carryforwards | 2,116,303 | 71,710 |
Total deferred tax assets | 2,659,872 | 649,080 |
Depreciation | (7,314,326) | (5,641,761) |
Total deferred tax liabilities | (7,314,326) | (5,641,761) |
Net deferred tax assets (liabilities) | (4,654,454) | (4,992,681) |
Net deferred tax assets (liabilities) | 237,411 | 135,055 |
Net deferred tax assets (liabilities) | $ (4,654,454) | $ (4,992,681) |
Note 8 - Stockholders Equity (D
Note 8 - Stockholders Equity (Details Textual) - USD ($) | Nov. 30, 2012 | Nov. 30, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Maximum [Member] | |||||
Liquidated Damages Percentage | 8.00% | ||||
Mr Herman [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 5,185,714 | 5,185,714 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.55 | $ 0.55 | |||
Warrants Expiration Period | 5 years | ||||
Warrant [Member] | |||||
Share Based Compensation Warrants Outstanding | 150,001 | 250,001 | 2,657,714 | ||
Option Plan 2010 Member | Consultant [Member] | |||||
Stock Issued During Period, Shares, Issued for Services | 15,971 | ||||
Allocated Share-based Compensation Expense | $ 10,400 | ||||
Class of Warrant or Right, Issued During Period | 0 | ||||
Registration Right Agreement Fee, Monthly Percent Fee | 1.00% | ||||
Stock Issued from Exercise of Warrants | 100,000 | ||||
Proceeds from Warrant Exercises | $ 77,100 | $ 265,298 | |||
Aggregate Intrinsic Value Of Warrants Exercised | 102,000 | $ 4,425,344 | |||
Stock Issued During Period Shares Cashless Exercise of Warrants | 1,925,357 | ||||
Stock Issued from Cashless Exercise of Warrants | 1,482,041 | ||||
Stock Issued During Period Shares Warrants Cancelled | 443,316 | ||||
Stock Issued During Period Shares Warrants Exercised | 482,357 | ||||
Allocated Share-based Compensation Expense | $ 617,530 | $ 562,903 |
Note 8 - Summary of Warrant Act
Note 8 - Summary of Warrant Activity (Details) - Warrant [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Outstanding, shares (in shares) | 250,001 | 2,657,714 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.64 | $ 0.55 | ||
Outstanding, Weighted Average Remaining Contractual Life | 1 year 328 days | 2 years 109 days | 3 years 255 days | |
Outstanding, aggregate intrinsic value | $ 242,901 | $ 3,359,170 | ||
Exercised (in shares) | (100,000) | (2,407,713) | ||
Exercised (in dollars per share) | $ 0.77 | $ 0.54 | ||
Outstanding, shares (in shares) | 150,001 | 250,001 | 2,657,714 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 0.55 | $ 0.64 | $ 0.55 | |
Outstanding, aggregate intrinsic value | $ 242,901 | $ 3,359,170 | ||
Outstanding, shares (in shares) | 150,001 | 2,657,714 | 2,657,714 | 150,001 |
Exercisable, Shares (in shares) | 150,001 | |||
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0.55 | |||
Exercisable, Weighted Average Remaining Contractual Life | 1 year 328 days | |||
Exercisable, Aggregate Intrinsic Value |
Note 9 - Stock Options (Details
Note 9 - Stock Options (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2016 | Dec. 31, 2013 | |
Option Plan 2010 Member | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,719,069 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 38,127,129 | |||
Option Plan 2010 Member | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Option Plan 2010 Member | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Option Plan 2010 Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 15.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,485,168 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||
Cashless Exercise [Member] | ||||
Number Of Common Shares Options Exercised | 720,333 | 28,333 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 550,276 | 24,282 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 170,057 | 4,051 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,131,371 | $ 75,837 | ||
Exercised For Cash Payments [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 404,667 | 244,999 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 423,837 | $ 531,609 | ||
Proceeds from Stock Options Exercised | $ 198,285 | $ 127,987 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,485,168 | 3,500,168 | 3,375,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,123,500 | 462,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.19 | $ 1.67 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,125,000 | 273,332 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 13,500 | 64,000 | ||
Proceeds from Stock Options Exercised | $ 198,285 | $ 127,987 | ||
Allocated Share-based Compensation Expense | 617,530 | $ 562,903 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,048,303 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days |
Note 9 - Summary of Stock Valua
Note 9 - Summary of Stock Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||
Expected volatility | 109.00% | 124.00% |
Risk-free interest rate | 0.86% | 0.99% |
Expected term (in years) | 3 years 182 days | 3 years 182 days |
Expected volatility | 107.00% | 114.00% |
Risk-free interest rate | 0.75% | 0.72% |
Expected term (in years) | 3 years 109 days | 2 years 182 days |
Note 9 - Summary of Stock Optio
Note 9 - Summary of Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding, Shares (in shares) | 3,500,168 | 3,375,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 0.90 | $ 0.70 | |
Outstanding, weighted average remaining contractual term | 2 years 193 days | 2 years 7 days | 2 years 219 days |
Outstanding, aggregate intrinsic value | $ 2,785,893 | $ 3,760,325 | |
Granted, Shares (in shares) | 1,123,500 | 462,500 | |
Granted, Weighted Average Exercise Price (in dollars per share) | $ 1.75 | $ 2.37 | |
Exercised, Shares (in shares) | (1,125,000) | (273,332) | |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ 0.48 | $ 0.51 | |
Forfeited or Expired, Shares (in shares) | (13,500) | (64,000) | |
Forfeited or Expired, Weighted Average Exercise Price (in dollars per share) | $ 2.06 | $ 2.27 | |
Outstanding, Shares (in shares) | 3,485,168 | 3,500,168 | 3,375,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.31 | $ 0.90 | $ 0.70 |
Outstanding, aggregate intrinsic value | $ 63,067 | $ 2,785,893 | $ 3,760,325 |
Granted, Weighted Average Exercise Price (in dollars per share) | $ 1.75 | $ 2.37 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0.48 | 0.51 | |
Forfeited or Expired, Weighted Average Exercise Price (in dollars per share) | $ 2.06 | $ 2.27 | |
Vested or Expected to Vest at December 31, 2015 (in shares) | 2,161,499 | ||
Vested or Expected to Vest at December 31, 2015 (in dollars per share) | $ 1.03 | ||
Vested or Expected to Vest at December 31, 2015 | 1 year 222 days | ||
Vested or Expected to Vest at December 31, 2015 | $ 63,067 | ||
Exercisable, Shares (in shares) | 2,161,499 | ||
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 1.03 | ||
Exercisable, weighted average remaining contractual term | 1 year 222 days | ||
Exercisable, aggregate intrinsic value | $ 63,067 |
Note 9 - Summary of the Status
Note 9 - Summary of the Status of Non-vested Shares (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance, non-vested (in shares) | 498,504 | 666,668 |
Balance, non-vested (in dollars per share) | $ 1.05 | $ 0.54 |
Granted (in shares) | 1,123,500 | 462,500 |
Granted (in dollars per share) | $ 1.19 | $ 1.67 |
Vested (in shares) | (287,835) | (566,664) |
Vested (in dollars per share) | $ 0.83 | $ 0.87 |
Forfeited (in shares) | (10,500) | (64,000) |
Forfeited (in dollars per share) | $ 1.48 | $ 1.74 |
Balance, non-vested (in shares) | 1,323,669 | 498,504 |
Balance, non-vested (in dollars per share) | $ 1.22 | $ 1.05 |
Granted, Shares (in shares) | 1,123,500 | 462,500 |
Granted (in dollars per share) | $ 1.19 | $ 1.67 |
Vested (in shares) | (287,835) | (566,664) |
Vested (in dollars per share) | $ 0.83 | $ 0.87 |
Forfeited (in shares) | (10,500) | (64,000) |
Forfeited (in dollars per share) | $ 1.48 | $ 1.74 |
Note 10 - Commitments and Con48
Note 10 - Commitments and Contingencies (Details Textual) | Feb. 11, 2015 | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2014 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Capital Addition Purchase Commitments [Member] | ||||||
Unrecorded Unconditional Purchase Obligation | $ 0 | $ 0 | ||||
Patent 993 And Patent 875 [Member] | Unasserted Claim [Member] | ||||||
Loss Contingency, Pending Claims, Number | 2 | 2 | ||||
Patent 993 And Patent 875 [Member] | ||||||
Self-insured Amount per Individual Claim | $ 75,000 | |||||
Self Insurance Reserve | $ 39,500 | $ 39,500 | ||||
Patent 993 [Member] | Heat-On-The-Fly, LLC (HOTF) [Member] | ||||||
Loss Contingency, Damages Awarded, Value | $ 750,000 | |||||
Patent 993 [Member] | Prior Reexamination [Member] | ||||||
Loss Contingency, Claims Settled, Number | 12 | |||||
Patent 993 [Member] | Reexamination [Member] | ||||||
Loss Contingency, Claims Dismissed, Number | 99 | |||||
Operating Leases, Rent Expense | $ 828,098 | $ 1,113,581 |
Note 10 - Summary of Future Min
Note 10 - Summary of Future Minimum Operating Lease Commitments (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 592,752 |
2,017 | 567,342 |
2,018 | 463,518 |
2,019 | 470,194 |
2,020 | 415,370 |
Thereafter | 331,488 |
Total | $ 2,840,664 |
Note 11 - Related Party Trans50
Note 11 - Related Party Transactions (Details Textual) - USD ($) | Feb. 27, 2015 | Oct. 03, 2013 | Feb. 03, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Chief Executive Officer [Member] | Guaranteed Loan [Member] | |||||
Long-term Debt, Gross | $ 100,000 | ||||
Debt Instrument Monthly Payment | $ 12,500 | 12,500 | |||
Debt Instrument Annual Payments | $ 150,000 | ||||
Board of Directors Chairman [Member] | |||||
Proceeds from Sale of Machinery and Equipment | $ 50,000 | ||||
Property, Plant and Equipment, Net | 38,000 | ||||
Gain (Loss) on Disposition of Assets | $ 12,000 | ||||
Proceeds from Sale of Machinery and Equipment | $ 27,169 | $ 370,000 | |||
Property, Plant and Equipment, Net | $ 36,494,661 | $ 37,789,004 |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details Textual) $ in Millions | Jan. 01, 2016USD ($) |
Subsequent Event [Member] | Water Management Assets of HII Technologies and Wet Oilfield Services, LLC [Member] | HWWM [Member] | |
Business Combination, Consideration Transferred | $ 4 |