Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Enservco Corporation | |
Entity Central Index Key | 0000319458 | |
Trading Symbol | ensv | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 55,757,829 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 506,000 | $ 257,000 |
Accounts receivable, net | 8,628,000 | 10,729,000 |
Prepaid expenses and other current assets | 1,001,000 | 1,081,000 |
Inventories | 372,000 | 514,000 |
Income tax receivable, current | 85,000 | 85,000 |
Current assets of discontinued operations | 37,000 | 864,000 |
Total current assets | 10,629,000 | 13,530,000 |
Property and equipment, net | 30,306,000 | 33,057,000 |
Goodwill | 546,000 | 546,000 |
Intangible assets, net | 931,000 | 1,033,000 |
Income taxes receivable, non-current | 28,000 | 28,000 |
Right-of-use asset - financing, net | 777,000 | |
Right-of-use asset - operating, net | 4,899,000 | |
Other assets | 556,000 | 650,000 |
Non-current assets of discontinued operations | 177,000 | |
TOTAL ASSETS | 48,672,000 | 49,021,000 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 2,961,000 | 3,391,000 |
Note payable | 3,868,000 | |
Lease liability - financing, current | 197,000 | |
Lease liability - operating, current | 846,000 | |
Current portion of long-term debt | 144,000 | 149,000 |
Current liabilities of discontinued operations | 44,000 | |
Total current liabilities | 4,148,000 | 7,452,000 |
Long-Term Liabilities | ||
Senior revolving credit facility | 31,862,000 | 33,882,000 |
Subordinated debt | 1,857,000 | 1,832,000 |
Long-term debt, less current portion | 246,000 | 312,000 |
Lease liability - financing, less current portion | 441,000 | |
Lease liability - operating, less current portion | 4,056,000 | |
Other liability | 89,000 | 941,000 |
Total long-term liabilities | 38,551,000 | 36,967,000 |
Total liabilities | 42,699,000 | 44,419,000 |
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 shares authorized, 55,432,829 and 54,389,829 shares issued, respectively; 103,600 shares of treasury stock; and 55,329,229 and 54,286,229 shares outstanding, respectively | 277,000 | 271,000 |
Additional paid-in capital | 21,960,000 | 21,797,000 |
Accumulated deficit | (16,264,000) | (17,466,000) |
Total stockholders' equity | 5,973,000 | 4,602,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 48,672,000 | $ 49,021,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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) | 55,432,829 | 54,389,829 |
Common stock, shares outstanding (in shares) | 55,329,229 | 54,286,229 |
Treasury stock, shares (in shares) | 103,660 | 103,660 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | $ 7,206 | $ 7,934 | $ 33,446 | $ 28,214 |
Expenses | ||||
Cost of Revenue | 7,724 | 7,060 | 25,276 | 21,253 |
Sales, general, and administrative expenses | 1,460 | 1,236 | 3,078 | 2,589 |
Patent litigation and defense costs | 1 | 55 | 10 | 75 |
Severance and transition costs | 0 | 593 | 633 | |
Loss (gain) on disposal of assets | 12 | (53) | 12 | (53) |
Impairment loss | 0 | 127 | 0 | |
Depreciation and amortization | 1,736 | 1,520 | 3,419 | 3,019 |
Total operating expenses | 10,933 | 10,411 | 31,922 | 27,516 |
(Loss) Income from Operations | (3,727) | (2,477) | 1,524 | 698 |
Other (Expense) Income | ||||
Interest expense | (658) | (511) | (1,542) | (1,011) |
Other income (expense) | 1,208 | (85) | 1,144 | (506) |
Total other income (expense) | 550 | (596) | (398) | (1,517) |
(Loss) income from continuing operations before tax benefit | (3,177) | (3,073) | 1,126 | (819) |
Income tax (expense) benefit | (32) | (32) | (32) | (32) |
Income from continuing operations | (3,209) | (3,105) | 1,094 | (851) |
Loss from operations of discontinued operations | (177) | (390) | ||
Income tax benefit | ||||
Loss from discontinued operations | (177) | 0 | (390) | |
Net income (loss) | $ (3,209) | $ (3,282) | $ 1,094 | $ (1,241) |
(Loss) earnings from continuing operations per common share - basic (in dollars per share) | $ (0.06) | $ (0.06) | $ 0.02 | $ (0.02) |
Loss from discontinued operations per common share - basic (in dollars per share) | ||||
Net (loss) income per share - basic (in dollars per share) | (0.06) | (0.06) | 0.02 | (0.02) |
(Loss) Earnings from continuing operations per common share - diluted (in dollars per share) | (0.06) | (0.06) | 0.02 | (0.02) |
Loss from discontinued operations per common share - diluted (in dollars per share) | ||||
Net (loss) income per share - diluted (in dollars per share) | $ (0.06) | $ (0.06) | $ 0.02 | $ (0.02) |
Basic weighted average number of common shares outstanding (in shares) | 54,978 | 51,677 | 54,589 | 51,413 |
Add: Dilutive shares (in shares) | 1,215 | |||
Diluted weighted average number of common shares outstanding (in shares) | 54,978 | 51,677 | 55,804 | 51,413 |
Well Enhancement Services Segment [Member] | ||||
Revenue | $ 6,339 | $ 7,005 | $ 31,151 | $ 26,290 |
Expenses | ||||
Cost of Revenue | 6,150 | 5,900 | 21,362 | 18,991 |
Water Transfer Services Segment [Member] | ||||
Revenue | 867 | 929 | 2,295 | 1,924 |
Expenses | ||||
Cost of Revenue | 1,287 | 979 | 3,472 | 1,936 |
Unallocated and Other Segments [Member] | ||||
Expenses | ||||
Cost of Revenue | $ 287 | $ 181 | $ 442 | $ 326 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 51,094,000 | |||
Balance at Dec. 31, 2017 | $ 255 | $ 19,571 | $ (11,601) | $ 8,225 |
Stock-based compensation, net of issuance costs | 63 | 73 | ||
Cashless option exercise (in shares) | 66,000 | |||
Cashless option exercise | ||||
Net income (loss) | 2,041 | 2,041 | ||
Balance (in shares) at Mar. 31, 2018 | 51,160,000 | |||
Balance at Mar. 31, 2018 | $ 255 | 19,634 | (9,560) | 10,329 |
Balance (in shares) at Dec. 31, 2017 | 51,094,000 | |||
Balance at Dec. 31, 2017 | $ 255 | 19,571 | (11,601) | $ 8,225 |
Cashless option exercise (in shares) | 1,230,002 | |||
Net income (loss) | $ (1,241) | |||
Balance (in shares) at Jun. 30, 2018 | 54,426,000 | |||
Balance at Jun. 30, 2018 | $ 271 | 21,594 | (12,842) | 9,023 |
Balance (in shares) at Mar. 31, 2018 | 51,160,000 | |||
Balance at Mar. 31, 2018 | $ 255 | 19,634 | (9,560) | 10,329 |
Stock-based compensation, net of issuance costs | 105 | 105 | ||
Cashless option exercise (in shares) | 663,000 | |||
Cashless option exercise | $ 3 | (3) | ||
Net income (loss) | (3,282) | (3,282) | ||
Restricted share issuance (in shares) | 990,000 | |||
Restricted share issuance | $ 5 | (5) | ||
Cashless exercise of warrants (in shares) | 1,613,000 | |||
Cashless exercise of warrants | $ 8 | 1,863 | 1,871 | |
Balance (in shares) at Jun. 30, 2018 | 54,426,000 | |||
Balance at Jun. 30, 2018 | $ 271 | 21,594 | (12,842) | 9,023 |
Balance (in shares) at Dec. 31, 2018 | 54,286,000 | |||
Balance at Dec. 31, 2018 | $ 271 | 21,797 | (17,466) | 4,602 |
Net income (loss) | 4,303 | 4,303 | ||
Opening balance adjustment | 108 | 108 | ||
Stock-based compensation, net of issuance costs | 92 | 92 | ||
Restricted share cancellation (in shares) | (55,000) | |||
Restricted share cancellation | ||||
Balance (in shares) at Mar. 31, 2019 | 54,231,000 | |||
Balance at Mar. 31, 2019 | $ 271 | 21,889 | (13,055) | 9,105 |
Balance (in shares) at Dec. 31, 2018 | 54,286,000 | |||
Balance at Dec. 31, 2018 | $ 271 | 21,797 | (17,466) | $ 4,602 |
Cashless option exercise (in shares) | 0 | |||
Net income (loss) | $ 1,094 | |||
Balance (in shares) at Jun. 30, 2019 | 55,329,000 | |||
Balance at Jun. 30, 2019 | $ 277 | 21,960 | (16,264) | 5,973 |
Balance (in shares) at Mar. 31, 2019 | 54,231,000 | |||
Balance at Mar. 31, 2019 | $ 271 | 21,889 | (13,055) | 9,105 |
Net income (loss) | (3,209) | (3,209) | ||
Restricted share issuance (in shares) | 1,123,000 | |||
Restricted share issuance | $ 6 | (6) | ||
Stock-based compensation, net of issuance costs | 77 | 77 | ||
Restricted share cancellation (in shares) | (25,000) | |||
Restricted share cancellation | ||||
Balance (in shares) at Jun. 30, 2019 | 55,329,000 | |||
Balance at Jun. 30, 2019 | $ 277 | $ 21,960 | $ (16,264) | $ 5,973 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 1,094,000 | $ (1,241,000) |
Net loss from discontinued operations | 0 | (390,000) |
Net income (loss) from continuing operations | 1,094,000 | (851,000) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 3,419,000 | 3,186,000 |
Loss (gain) on disposal of equipment | 12,000 | (53,000) |
Impairment loss | 127,000 | 0 |
Gain on settlement (Note 4) | (1,252,000) | |
Change in fair value of warrant liability | 0 | 540,000 |
Stock-based compensation | 168,000 | 188,000 |
Amortization of debt issuance costs and discount | 226,000 | 126,000 |
Provision for bad debt expense | 3,000 | 33,000 |
Changes in operating assets and liabilities | ||
Accounts receivable | 2,098,000 | 6,839,000 |
Inventories | 142,000 | 82,000 |
Prepaid expense and other current assets | (21,000) | 195,000 |
Amortization of operating lease assets | 329,000 | |
Other assets | 138,000 | (60,000) |
Accounts payable and accrued liabilities | (429,000) | (3,101,000) |
Operating lease liabilities | (322,000) | |
Other liabilities | 99,000 | 0 |
Net cash provided by operating activities - continuing operations | 5,831,000 | 7,124,000 |
Net cash provided by (used in) operating activities - discontinued operations | 23,000 | (599,000) |
Net cash provided by - operating activities | 5,854,000 | 6,525,000 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (567,000) | (1,426,000) |
Proceeds from disposals of property and equipment | 219,000 | 145,000 |
Proceeds from insurance claims | 27,000 | 122,000 |
Net cash used in investing activities - continuing operations | (321,000) | (1,159,000) |
Net cash provided by (used in) investing activities - discontinued operations | 760,000 | (44,000) |
Net cash provided by (used in) investing activities | 439,000 | (1,203,000) |
FINANCING ACTIVITIES | ||
Net line of credit payments | (2,071,000) | (5,386,000) |
Repayment of long-term debt | (70,000) | (66,000) |
Payments of finance leases | (202,000) | |
Repayment of note | (3,700,000) | 0 |
Other financing activities | (1,000) | (26,000) |
Net cash used in financing activities | (6,044,000) | (5,478,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | 249,000 | (156,000) |
Cash and Cash Equivalents, beginning of period | 257,000 | 391,000 |
Cash and Cash Equivalents, end of period | 506,000 | 235,000 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 1,254,000 | 863,000 |
Cash paid for taxes | 32,000 | 32,000 |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ||
Non-cash proceeds from revolving credit facilities | 49,000 | |
Cashless exercise of stock options | 994,000 | |
Non-cash proceeds of warrant exercise | 500,000 | |
Non-cash subordinated debt principal repayment | (500,000) | |
Non-cash conversion of warrant liability to equity | $ 1,371,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Basis of Presentation Enservco Corporation (“Enservco”) through its wholly-owned subsidiaries (collectively referred to as the “Company”, “we” or “us”) provides various services to the domestic onshore oil and natural gas industry. These services include frac water heating, hot oiling and acidizing (well enhancement services) and water transfer and water treatment services (water transfer services). The accompanying unaudited condensed consolidated financial statements have been derived from the accounting records of Enservco Corporation, Heat Waves Hot Oil Service LLC (“Heat Waves”), . (“Dillco”), Heat Waves Water Management LLC (“HWWM”), and Adler Hot Oil Service, LLC ("Adler") (collectively, the “Company”) as of June 30, 2019 December 31, 2018 three six June 30, 2019 2018. The below table provides an overview of the Company ’s current ownership hierarchy: Name State of Formation Ownership Business Heat Waves Hot Oil Service LLC Colorado 100% by Enservco Oil and natural gas well services, including logistics and stimulation. Adler Hot Oil Service, LLC Delaware 100% by Enservco Oil and natural gas well services, including logistics and stimulation Heat Waves Water Management LLC Colorado 100% by Enservco Water Transfer Services. Dillco Fluid Service, Inc Kansas 100% by Enservco Discontinued operation in 2018 HE Services LLC Nevada 100% by Heat Waves No active business operations. Owns construction equipment used by Heat Waves. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10 8 X. not not The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and follow the same accounting policies and methods of their application as the most recent annual financial statements. These interim financial statements should be read in conjunction with the financial statements and related footnotes included in the Annual Report on Form 10 December 31, 2018. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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 may Accounts Receivable Accounts receivable are stated at the amounts billed to customers, net of an allowance for uncollectible accounts. The Company provides an allowance for uncollectible accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The allowance for uncollectible amounts 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 June 30, 2019, December 31, 2018, $139,000. he three six June 30, 2019, $3,000 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 net realizable value in accordance with the first first three six 30 2019, not write-downs or write-offs of inventory . Property and Equipment Property and equipment consists of (i) trucks, trailers and pickups; (ii) water transfer pumps, pipe, lay flat hose, trailers, and other support equipment; (iii) real property which includes land and buildings used for office and shop facilities and wells used for the disposal of water; (iv) other equipment such as tools used for maintaining and repairing vehicles, and (v) 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 30 Any difference between net book value of the property and equipment and the proceeds of an assets’ sale or settlement of an insurance claim is recorded as a gain or loss in the Company’s earnings. Leases The Company assesses whether an arrangement is a lease at inception. Leases with an initial term of 12 not not not The Company conducts a major part of its operations from leased facilities. Each of these leases is accounted for as an operating lease. Normally, the Company records rental expense on its operating leases over the lease term as it becomes payable. If rental payments are not ’s facility leases contain renewal clauses and expire through April 2024. June 30, 2019, December 31, 2018, 15,000 and $64,000 , respectively. The Company has leased trucks and equipment in the normal course of business, which may rental expense on equipment under operating leases over the lease term as it becomes payable; there were no 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 not $127,000 2019. Goodwill and Other Intangible Assets Goodwill represents the excess purchase price over the fair value of identifiable assets received attributable to business acquisitions and combinations. Goodwill and other intangible assets are measured for impairment at least annually and/or whenever events and circumstances arise that indicate impairment may Revenue Recognition We have adopted Accounting Standards Update 2014 09, 606, January 1, 2018, no 30 60 not The Company’s agreements with its customers are often referred to as “price sheets” and sometimes provide pricing for multiple services. However, these agreements generally do not not Revenue is recognized for certain projects that take more than one Disaggregation of revenue See Note 13 Earnings per Common Share - Basic is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Earnings per Common Share - Diluted earnings 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 As of June 30, 2019 and 2018 , there were outstanding stock options and warrants to acquire an aggregate of 2,203,499 and 2,662,766 shares of Company common stock, respectively, which have a potentially dilutive impact on earnings per share. As of June 30, 2019, June 30 , 2019, of outstanding stock options and warrants was approximately $103 ,000 Derivative Instruments From time to time, the Company has interest rate swap agreements in place to hedge against changes in interest rates. The fair value of the Company’s derivative instruments are reflected as assets or liabilities on the balance sheet. 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 consolidated statement of cash flows. The Company did not 30, 2019 December 31, 2018, On February 23, 2018, 2017 $10.0 2.52% Income Taxes The Company recognizes deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated 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. A deferred tax asset or liability that is not not The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if, in the Company’s opinion, it is more likely than not 50% may not Interest and penalties associated with tax positions are recorded in the period assessed as Other 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 2015 2018 2014 2018. 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. 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. Beginning in 2017 not three six 30, 2019 The hierarchy is broken down into three 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 Stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award as described below, and is recognized over the requisite service period, which is generally the vesting period of the equity grant. The Company uses the Black-Scholes pricing model as a method for determining the estimated grant date fair value for all stock options awarded to employees, independent contractors, officers, and directors. The expected term of the options is based upon evaluation of historical and expected 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 not The Company uses a Lattice model to determine the fair value of certain warrants. The expected term used was the remaining contractual term. Expected volatility is based upon historical volatility over a term consistent with the remaining term. The risk-free interest rate is derived from the yield on zero The Company used the market-value of Company stock to determine the fair value of the performance-based restricted stock awarded in 2018 2019. The Company used a Monte Carlo simulation program to determine the fair value of market-based restricted stock awarded in 2018 2019. Management Estimates The preparation of the Company’s consolidated 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, evaluation of impairment of long-lived assets, stock-based compensation expense, income tax provision, the valuation of warrant liability and the Company's interest rate swaps, and the valuation of deferred taxes. Actual results could differ from those estimates. Reclassifications Certain prior-period amounts have been reclassified for comparative purposes to conform to the current presentation. These reclassifications have no Business Combinations We recognize and measure the assets acquired and liabilities assumed in a business combination based on their estimated fair values at the acquisition date, with any remaining difference recorded as goodwill or gain from a bargain purchase. For material acquisitions, management typically engages an independent valuation specialist to assist with the determination of fair value of the assets acquired, liabilities assumed, noncontrolling interest, if any, and goodwill, based on recognized business valuation methodologies. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition, and not one may 4 Recently Adopted Accounting Pronouncements In February 2016, 2016 02, December 15, 2018, August 2018, 2018 11, 842, not 842, January 1, 2019 2018 11. one $2.4 not not not not not 10 In January 2017, 2017 01, 805 not not 1 2 not first 2018 not In May 2017, 2017 09, 718 718. January 1, 2018, not |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3 - Property and Equipment Property and equipment consists of the following (amounts in thousands): June 30, December 31, 2019 2018 Trucks and vehicles $ 59,621 $ 59,535 Water transfer equipment 5,190 4,952 Other equipment 1,032 961 Buildings and improvements 2,955 2,822 Land 378 378 Disposal wells - 400 Total property and equipment 69,176 69,048 Accumulated depreciation (38,870 ) (35,991 ) Property and equipment, net $ 30,306 $ 33,057 |
Note 4 - Business Combinations
Note 4 - Business Combinations | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 4 Acquisition of Adler Hot Oil Service, LLC On October 26, 2018, $12.5 $500,000 The consideration paid or to be paid by Enservco under the Agreement originally included: (i) $3.7 $4.8 $2.5 $1.0 2019; $1.0 18 October 26, 2018, On April 4, 2019 $4,800,000 $4,500,000, March 31, 2019 April 10, 2019, nine one one second 2019, not not not no may not not The acquisition of Adler qualified as a business combination and as such, we estimated the fair value of the assets acquired and liabilities assumed as of the closing date. Additionally, we estimated the fair value of contingent consideration given. The fair value measure of the assets acquired and liabilities assumed applied various valuation methods to estimate the value of the intangibles that would provide a fair and reasonable value to a market participant, in view of the facts available at the time. Each valuation method was analyzed to determine which method would generate the most reasonable estimate of value of the Company’s intangible assets as of October 26, 2018. In connection with the execution of the Settlement Agreement, we reviewed our estimates and allocation of the fair value of assets acquired, consideration transferred, and contingent consideration given in connection with the Transaction. In our judgment, the reduction in the fair value of the consideration did not $908,000, $44,000, $300,000 The goodwill of approximately $245,000 None The following tables represent the consideration paid to the Seller and the estimated fair value of the assets acquired and liabilities assumed. Consideration paid to Seller: Cash consideration, including payment to retire Adler debt $ 6,206 Subordinated note, net of discount 4,580 Indemnity holdback at fair value 873 Earnout at fair value 44 Net purchase price $ 11,703 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 43 Accounts receivable, net 1,317 Prepaid expenses and other current assets 239 Property, plant, and equipment 9,664 Intangible assets 1,045 Accounts payable and accrued liabilities (850 ) Total identifiable net assets 11,458 Goodwill 245 Total identifiable assets acquired $ 11,703 Below are consolidated results of operations for the three six June 30, 2018, January 1, 2018. Three Months Ended Six Months Ended June 30, June 30, 2018 2018 Total revenues $ 9,623 $ 39,173 Income from continuing operations $ (3,978 ) $ 679 Income per common share - basic and diluted $ (0.08 ) $ 0.09 The pro forma results for the three six June 30, 2018, - Elimination of Adler interest expense. - Additional interest expense related to long-term debt issued to fund the acquisition. - Adjustment to depreciation expense based on the adjustment of Adler's Property, plant, and equipment to fair value. - Adjustment to remove certain professional fees from Adler's expenses. - Adjustment to remove gain on extinguishment of debt from Adler's results. Subordinated Note In connection with the Transaction and pursuant to the terms of the Agreement, on October 26, 2018, $4.8 $4.5 8% November 30, 2018 $800,000, February 28, 2019 $200,000, April 9, 2019, 10 April 19, 2019, no Second Amendment to Loan and Security Agreement and Consent In connection with the Transaction, on October 26, 2018, August 10, 2017 $37.0 $6.2 $3.0 $2.5 On October 26, 2018, |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 5 The components of our intangible assets as of June 30, 2019, December 31, 2018, June 30, 2019 December 31, 2018 Customer relationships $ 626 $ 626 Patents and trademarks 441 441 Total intangible assets 1,067 1,067 Accumulated amortization (136 ) (34 ) Net carrying value $ 931 $ 1,033 The useful lives of our intangible assets are estimated to be five $51,000 $102,000 three six June 30, 2019. The following table represents the amortization expense for the next five twelve June 30 ( 2020 2021 2022 2023 2024 Customer relationships $ 125 $ 125 $ 125 $ 125 $ 41 Patents and trademarks 90 90 90 90 30 Total intangible asset amortization expense $ 215 $ 215 $ 215 $ 215 $ 71 |
Note 6 - Discontinued Operation
Note 6 - Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 6 Dillco Effective November 1, 2018, December 2018, $129,000. $130,000 December 31, 2018. The following table represents a reconciliation of the carrying amounts of major classes of assets and liabilities disclosed as discontinued operations in the Balance Sheets: June 30, December 31, 2019 2018 Carrying amount of major classes of assets included as part of discontinued operations: Accounts receivable, net $ 30 $ 97 Inventories - - Property and equipment, net - 177 Receivable from equipment sales - 760 Prepaid expenses and other current assets 7 7 Total major classes of assets of the discontinued operation $ 37 $ 1,041 Carrying amounts of major classes of liabilities included as part of discontinued operations: Accounts payable and accrued liabilities - 44 Total liabilities included as part of discontinued operations $ - $ 44 The following table represents a reconciliation of the major classes of line items constituting pretax loss of discontinued operations that are disclosed as discontinued operations in the Statements of Operations: Three months ended June 30, 2019 2018 Revenue $ - $ 858 Cost of sales - (953 ) Sales, general, and administrative expenses - (5 ) Depreciation and amortization - (78 ) Other income and expense items that are not major - 1 Pretax loss of discontinued operations related to major classes of pretax profit - (177 ) Pretax gain on sale at auction - - Loss on disposal - - Pretax loss on impairment - - Income tax benefit - - Total loss on discontinued operations that is presented in the Statements of Operations $ - $ (177 ) Six months ended June 30, 2019 2018 Revenue $ - $ 1,699 Cost of sales - (1,901 ) Sales, general, and administrative expenses - (22 ) Depreciation and amortization - (167 ) Other income and expense items that are not major - 1 Pretax loss of discontinued operations related to major classes of pretax profit - (390 ) Pretax gain on sale at auction - - Loss on disposal - - Pretax loss on impairment - - Income tax benefit - - Total loss on discontinued operations that is presented in the Statements of Operations $ - $ (390 ) |
Note 7 - Debt
Note 7 - Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 7 – Debt East West Bank Revolving Credit Facility On August 10, 2017, 2017 which provides for a three $37 2017 85% 85% 2017 no 1 3.5% 1.75%. 0.5% August 10, 2020. 2017 one As of June 30, 2019, $31.9 5.98% $27.0 7.25% $4.9 June 30, 2019, $753,000 July 3, 2019, July 1, 2019 August 12, 2019, $3.0 $1.5 Under the 2017 ( 1 Fixed Charge Coverage Ratio (“FCCR”) of not 1.10 1.00 January 1, 2017, December 31, 2017, twelve ( 2 twelve 1.20 1.00, o maintain minimum liquidity of $1,500,000 As of June 30, 2019, $506,000 As of June 30, 2019, 2017 Debt Issuance Costs We have capitalized certain debt issuance costs incurred in connection with the Credit Facility discussed above and these costs are being amortized to interest expense over the term of the facility on a straight-line basis. The long-term portion of debt issuance costs of approximately $ 152,000 and $208,000 June 30, 2019, December 31, 2018, three six 30, 2019 24,000 and $ 58,000, of these costs to Interest Expense. During the three six 30, 2018 24,000 and $ 47,000, of these costs to Interest Expense . Notes Payable Long-term debt (excluding borrowings under our Credit Facility described above) consists of the following (in thousands): June 30, December 31, 2019 2018 Seller Subordinated Note. Interest is at 8%. Matured March 31, 2019 (1) $ - $ 4,000 Subordinated Promissory Note with related party. Interest is at 10% and is paid quarterly. Matures June 28, 2022 1,000 1,000 Subordinated Promissory Note with related party. Interest is at 10% and is paid quarterly. Matures June 28, 2022 1,000 1,000 Real Estate Loan for a facility in North Dakota, interest at 5.75%, and monthly principal and interest payment of $5,254.64 until October 3, 2028. Collateralized by land and property purchased with the loan. 243 258 Vehicle loans for three pickups, interest at 8.59% monthly principal and interest payments of $3,966, matures in August 2021 94 113 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; paid in annual installments of $36,000 per agreement with the IRS 53 89 Total 2,390 6,460 Less debt discount (143 ) (299 ) Less current portion (144 ) (4,017 ) Long-term debt, net of debt discount and current portion $ 2,103 $ 2,144 ( 1 4 April 10, 2019, nine April 19, 2019, no Aggregate maturities of debt, (excluding the 2017 ), are as follows (in thousands): Twelve Months Ending June 30, 2020 $ 144 2021 98 2022 2,064 2023 60 2024 24 Thereafter - Total $ 2,390 |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 8 – Fair Value Measurements The following table presents 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(in thousands): 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 June 30 , 2019 Derivative Instrument Interest rate swap liability $ - $ 18 $ - $ 18 December 31, 2018 Derivative Instrument Interest rate swap asset $ - $ 75 $ - $ 75 Earn-Out Payment liability $ - $ - $ 44 $ 44 Indemnity Holdback Payment liability - - 887 887 $ - $ - $ 931 $ 931 The fair value of the interest rate swap is estimated using a discounted cash flow model. Such models involve using market-based observable inputs, including interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our nonperformance risk and respective counterparty’s nonperformance risk in the fair value measurements, which we have concluded are not not 2. The fair value of the Indemnity Holdback Payment liability was estimated based on the present value using a risk-adjusted interest rate of 9.5%. 9.5%. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not June 30, 2019, December 31, 2018, The Company did not 1, 2 3 three six 30, 2019 . |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 9 – Income Taxes Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provision for income taxes for the six June 30, 2019 2018 21 The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not may In assessing the realization of deferred tax assets, management considers whether it is more likely than not not 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 recorded a valuation allowance to reduce its net deferred tax assets to zero. During the six June 30, 2019 2018, $314,000 $235,000, |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 10 – Commitments and Contingencies Operating Leases On January 1, 2019, 842, January 1, 2019 842, 840. January 1, 2019, $2.4 $2.4 one six June 30, 2019, $845,000 $108,000 January 1, 2019. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not not The Company has elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one 12 12 not not The Company elected the expedient to account for lease and non-lease components as a single component for our entire population of operating lease assets. As of June 30, 2019, June 2026. Twelve Months Ending June 30, Operating Leases Financing Leases 2020 $ 1,096 $ 275 2021 1,041 239 2022 933 191 2023 644 - 2024 613 - Thereafter 717 - 5,044 705 Impact of discounting (142 ) (67 ) Discounted value of lease obligations $ 4,902 $ 638 The following table summarizes the components of our gross operating lease costs incurred during the three six June 30, 2019 ( Three Months Ended Six Months Ended June 30, 2019 Operating lease expense: Current lease cost $ 175 $ 367 Long-term lease cost 197 322 Total operating lease cost $ 372 $ 689 Finance lease expense: Amortization of right-of-use assets $ 68 $ 68 Interest on lease liabilities 9 9 Total lease cost $ 77 $ 77 Our weighted-average lease term and discount rate used during the six June 30, 2019 Six Months Ended June 30, 2019 Operating Weighted-average lease term (years) 4.96 Weighted-average discount rate 6.08 % Financing Weighted-average lease term (years) 2.66 Weighted-average discount rate 6.10 % Self-Insurance In June 2015, first $50,000 $1.8 The Company had an accrued liability of approximately $ 68,000 and $60,000 as of June 30, 2019 December 31, 2018, June 30, 2019 December 31, 2018, Effective April 1, 2015, March 31, 2018. $1.8 June 30, 2019, not December 31, 2017, June 30, 2019, $1.8 $1.8 $1.6 $189,000 June 30, 2019, April 1, 2018, no Litigation Enservco and Heat Waves were defendants in a civil lawsuit in federal court in Colorado, Civil Action No. 1:15 00983 two i.e. ‘993 ‘875 March 2019, March 15, 2019, HOTF dismissed its claims with regard to the ‘993 ‘875 not ‘875 March 13, 2019. While the Colorado Case was pending, HOTF was issued two ‘993 ‘875 not March 2015, not ‘993 ‘993 ‘993 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 11 – Stockholders ’ Equity Warrants In June 2016, 30,000 $0.36 one 15,000 December 21, 2016 15,000 June 21, 2017. June 30, 2019 , June 21, 2021 $0.70 In June 2017, two five 1,612,902 $0.31 20 May 11, 2017. $0.19 June 28, 2017. June 29, 2018 1,612,902 $0.005 $500,000 $1.4 A summary of warrant activity for the six months ended June 30, 2019 Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Warrants Shares Price Life (Years) Value Outstanding at December 31, 2018 30,000 $ 0.70 2.5 $ - Issued - - - - Exercised - - - - Forfeited/Cancelled - - - - Outstanding at June 30, 2019 30,000 $ 0.70 2.0 - Exercisable at June 30, 2019 30,000 $ 0.70 2.0 - Stock Issued for Services During the three six 30, 2019 not |
Note 12 - Stock Options and Res
Note 12 - Stock Options and Restricted Stock | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 12 – Stock Options and Restricted Stock Stock Options On July 27, 2010, 2010 “2010 2010 15% January 1, 2016 2010 5,719,069 38,127,129 one three 5 2010 no 2010 June 30, 2019, 574,666 2010 On July 18, 2016, 2016 “2016 September 29, 2016. may 2016 8,000,000 2010 2,391,711 10,391,711 June 30, 2019, 1,598,833 1,857,166 2016 We have not three six months ended June 30, 2019 three six months ended June 30, 2018. During the six June 30 , 2019, no six 30, 2018, 1,230,002 663,938 six months ended June 30 2019: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31 , 2018 2,544,665 $ 0.85 2.54 $ 93 Granted - - - - Exercised - - - - Forfeited or Expired (371,166 ) 1.50 - - Outstanding at June 30 , 2019 2,173,499 $ 0.73 2.24 $ 103 Vested or Expected to Vest at June 30, 2019 2,098,998 $ 0.74 2.21 102 Exercisable at June 30, 2019 2,098,998 $ 0.74 2.21 $ 102 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 on June 30 , 2019, June 30 , 2019. During the three six 30 , 2019 $29,000 $71,000, three six 30 , 2018 $61,000 $134,000 pectively, in sales, 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 due to service 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 December 31, 2018 593,833 $ 0.20 Granted - - Vested (489,332 ) 0.19 Forfeited (30,000 ) 0.22 Non-vested at June 30, 2019 74,501 $ 0.22 As of June 30, 2019, $13,000 of total unrecognized compensation costs related to non-vested shares under the Company’s stock option plans which will be recognized over the remaining weighted-average period of 0.94 years. Restricted Stock Restricted shares issued pursuant to restricted stock awards under the 2016 three may not A summary of the restricted stock activity is presented below: Number of Shares Weighted-Average Grant- Date Fair Value Restricted shares at December 31, 2018 836,667 $ 0.98 Granted 1,123,000 0.27 Vested (37,501 ) 1.38 Forfeited (65,000 ) 1.0 Restricted shares at June 30, 2019 1,857,166 $ 0.51 During the three six June 30, 2019, stock-based compensation costs for restricted stock of approximately $ 48,000 and $ 97,000 in sales, general, and administrative expenses. Compensation cost is revised if subsequent information indicates that the actual number of restricted stock vested due to service is likely to differ from previous estimates. The following table sets forth the weighted average outstanding of potentially dilutive instruments for the three six June 30, 2019 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options 2,229,378 3,376,984 2,332,836 3,764,147 Warrants 30,000 1,625,178 30,000 1,633,991 Weighted average 2,259,378 5,002,162 2,362,836 5,398,138 |
Note 13 - Segment Reporting
Note 13 - Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 13 - Segment Reporting Enservco’s reportable business segments are Well Enhancement Services and Water Transfer Services. These segments have been selected based on management’s resource allocation and performance assessment in making decisions regarding the Company. The following is a description of the segments. Well Enhancement Services : This segment utilizes a fleet of frac water heating units, hot oil trucks and acidizing units to provide maintenance and completion services to the domestic oil and gas industry. These services include frac water heating, hot oil services, pressure testing, and acidizing services. Water Transfer Services : This segment utilizes high and low volume pumps, lay flat hose, aluminum pipe and manifolds and related equipment to move fresh and/or recycled water from a water source such as a pond, lake, river, stream, or water storage facility to frac tanks at drilling locations to be used in connection with well completion activities. Unallocated and other includes general overhead expenses and assets associated with managing all reportable operating segments which have not The following tables set forth certain financial information with respect to Enservco’s reportable segments (in thousands): Well Enhancement Water Transfer Services Unallocated & Other Total Three Months Ended June 30, 2019: Revenues $ 6,339 $ 867 $ - $ 7,206 Cost of Revenue 6,150 1,287 287 7,724 Segment Profit (Loss) $ 189 $ (420 ) $ (287 ) $ (518 ) Depreciation and $ 1,430 $ 294 $ 12 $ 1,736 Capital Expenditures (Excluding Acquisitions) $ 167 $ 87 $ 2 $ 256 Identifiable assets (1) $ 41,331 $ 2,819 $ 1,388 $ 45,538 Three Months Ended June 30, 2018: Revenues $ 7,005 $ 929 $ - $ 7,934 Cost of Revenue 5,900 979 181 $ 7,060 Segment Profit (Loss) $ 1,105 $ (50 ) $ (181 ) $ 874 Depreciation and $ 1,226 $ 289 $ 5 $ 1,520 Capital Expenditures $ 245 $ 106 $ 1 $ 352 Identifiable assets (1) $ 29,169 $ 3,235 $ 516 $ 32,920 ( 1 Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; and other assets. Well Enhancement Water Transfer Services Unallocated & Other Total Six Months Ended June 30, 2019: Revenues $ 31,151 $ 2,295 $ - $ 33,446 Cost of Revenue 21,362 3,472 442 25,276 Segment Profit (Loss) $ 9,789 $ (1,177 ) $ (442 ) $ 8,170 Depreciation and Amortization $ 2,817 $ 577 $ 25 $ 3,419 Capital Expenditures (Excluding Acquisitions) $ 254 $ 275 $ 38 $ 567 Six Months Ended June 30, 2018: Revenues $ 26,290 $ 1,924 $ - $ 28,214 Cost of Revenue 18,991 1,936 326 $ 21,253 Segment Profit (Loss) $ 7,299 $ (12 ) $ (326 ) $ 6,961 Depreciation and Amortization $ 2,455 $ 552 $ 12 $ 3,019 Capital Expenditures (Excluding Acquisitions) $ 786 $ 647 $ 8 $ 1,441 The following table reconciles the segment profits reported above to the income from operations reported in the consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Segment profit $ (518 ) $ 874 $ 8,170 $ 6,961 Sales, general, and administrative expenses (1,460 ) (1,236 ) (3,078 ) (2,589 ) Patent litigation and defense costs (1 ) (55 ) (10 ) (75 ) Severance and transition costs - (593 ) - (633 ) (Loss) gain on disposals of equipment (12 ) 53 (12 ) 53 Impairment - - (127 ) - Depreciation and amortization (1,736 ) (1,520 ) (3,419 ) (3,019 ) (Loss) income from Operations $ (3,727 ) $ (2,477 ) $ 1,524 $ 698 Geographic Areas The Company only does business in the United States, in what it believes are three three three six June 30, 2019 2018 Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 BY GEOGRAPHY Well Enhancement Services: Rocky Mountain Region (1) $ 4,114 $ 4,671 $ 20,988 $ 16,257 Central USA Region (2) 1,935 2,154 6,471 7,077 Eastern USA Region (3) 290 180 3,692 2,956 Total Well Enhancement Services 6,339 7,005 31,151 26,290 Water Transfer Services: Rocky Mountain Region (1) 867 929 2,295 1,924 Central USA Region (2) - - - - Eastern USA Region (3) - - - - Total Water Transfer Services 867 929 2,295 1,924 Total Revenues $ 7,206 $ 7,934 $ 33,446 $ 28,214 Notes to tables: ( 1 Includes the D-J Basin/Niobrara field (northeastern Colorado and southeastern Wyoming), the San Juan Basin (southeastern Colorado and northeastern New Mexico, the Powder River and Green River Basins (northeastern and southwestern Wyoming), the Bakken area (western North Dakota and eastern Montana). ( 2 Includes the Scoop/Stack Shale in Oklahoma and the Eagle Ford Shale in Texas. ( 3 Consists of the southern region of the Marcellus Shale formation (southwestern Pennsylvania and northern West Virginia) and the Utica Shale formation (eastern Ohio). |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 may |
Accounts Receivable [Policy Text Block] | Accounts Receivable Accounts receivable are stated at the amounts billed to customers, net of an allowance for uncollectible accounts. The Company provides an allowance for uncollectible accounts based on a review of outstanding receivables, historical collection information and existing economic conditions. The allowance for uncollectible amounts 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 June 30, 2019, December 31, 2018, $139,000. he three six June 30, 2019, $3,000 |
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 net realizable value in accordance with the first first three six 30 2019, not write-downs or write-offs of inventory . |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment consists of (i) trucks, trailers and pickups; (ii) water transfer pumps, pipe, lay flat hose, trailers, and other support equipment; (iii) real property which includes land and buildings used for office and shop facilities and wells used for the disposal of water; (iv) other equipment such as tools used for maintaining and repairing vehicles, and (v) 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 30 Any difference between net book value of the property and equipment and the proceeds of an assets’ sale or settlement of an insurance claim is recorded as a gain or loss in the Company’s earnings. |
Lessee, Leases [Policy Text Block] | Leases The Company assesses whether an arrangement is a lease at inception. Leases with an initial term of 12 not not not The Company conducts a major part of its operations from leased facilities. Each of these leases is accounted for as an operating lease. Normally, the Company records rental expense on its operating leases over the lease term as it becomes payable. If rental payments are not ’s facility leases contain renewal clauses and expire through April 2024. June 30, 2019, December 31, 2018, 15,000 and $64,000 , respectively. The Company has leased trucks and equipment in the normal course of business, which may rental expense on equipment under operating leases over the lease term as it becomes payable; there were no |
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 not $127,000 2019. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Goodwill represents the excess purchase price over the fair value of identifiable assets received attributable to business acquisitions and combinations. Goodwill and other intangible assets are measured for impairment at least annually and/or whenever events and circumstances arise that indicate impairment may |
Revenue [Policy Text Block] | Revenue Recognition We have adopted Accounting Standards Update 2014-09, Revenue - Revenue from Contracts with Customers, Accounting Standards Codification ("ASC") Topic 606, beginning January 1, 2018, using the modified retrospective approach, which we have applied to contracts within the scope of the standard. There was no material impact on the Company's condensed consolidated financial statements from adoption of this new standard. The Company evaluates revenue when we can identify the contract with the customer, the performance obligations in the contract, the transaction price, and we are certain that the performance obligations have been met. Revenue is recognized when the service has been provided to the customer. The vast majority of the Company's services and product offerings are short-term in nature. The time between invoicing and when payment is due under these arrangements is generally 30 to 60 days. Revenue is not generated from contractual arrangements that include multiple performance obligations. The Company’s agreements with its customers are often referred to as “price sheets” and sometimes provide pricing for multiple services. However, these agreements generally do not authorize the performance of specific services or provide for guaranteed throughput amounts. As customers are free to choose which services, if any, to use based on the Company’s price sheet, the Company prices its separate services on the basis of their standalone selling prices. Customer agreements generally do not provide for performance, cancellation, termination, or refund type provisions. Services based on price sheets with customers are generally performed under separately issued “work orders” or “field tickets” as services are requested. Revenue is recognized for certain projects that take more than one day projects over time based on the number of days during the reporting period and the agreed upon price as work progresses on each project. Disaggregation of revenue See Note 13 |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) Per Share Earnings per Common Share - Basic is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Earnings per Common Share - Diluted earnings 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 As of June 30, 2019 and 2018 , there were outstanding stock options and warrants to acquire an aggregate of 2,203,499 and 2,662,766 shares of Company common stock, respectively, which have a potentially dilutive impact on earnings per share. As of June 30, 2019, June 30 , 2019, of outstanding stock options and warrants was approximately $103 ,000 |
Derivatives, Policy [Policy Text Block] | Derivative Instruments From time to time, the Company has interest rate swap agreements in place to hedge against changes in interest rates. The fair value of the Company’s derivative instruments are reflected as assets or liabilities on the balance sheet. 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 consolidated statement of cash flows. The Company did not 30, 2019 December 31, 2018, On February 23, 2018, 2017 $10.0 2.52% |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company recognizes deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated 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. A deferred tax asset or liability that is not not The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if, in the Company’s opinion, it is more likely than not 50% may not Interest and penalties associated with tax positions are recorded in the period assessed as Other 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 2015 2018 2014 2018. |
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. 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. Beginning in 2017 not three six 30, 2019 The hierarchy is broken down into three 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 Payment Arrangement [Policy Text Block] | Stock-based Compensation Stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award as described below, and is recognized over the requisite service period, which is generally the vesting period of the equity grant. The Company uses the Black-Scholes pricing model as a method for determining the estimated grant date fair value for all stock options awarded to employees, independent contractors, officers, and directors. The expected term of the options is based upon evaluation of historical and expected 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 not The Company uses a Lattice model to determine the fair value of certain warrants. The expected term used was the remaining contractual term. Expected volatility is based upon historical volatility over a term consistent with the remaining term. The risk-free interest rate is derived from the yield on zero The Company used the market-value of Company stock to determine the fair value of the performance-based restricted stock awarded in 2018 2019. The Company used a Monte Carlo simulation program to determine the fair value of market-based restricted stock awarded in 2018 2019. |
Use of Estimates, Policy [Policy Text Block] | Management Estimates The preparation of the Company’s consolidated 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, evaluation of impairment of long-lived assets, stock-based compensation expense, income tax provision, the valuation of warrant liability and the Company's interest rate swaps, and the valuation of deferred taxes. Actual results could differ from those estimates. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior-period amounts have been reclassified for comparative purposes to conform to the current presentation. These reclassifications have no |
Business Combinations Policy [Policy Text Block] | Business Combinations We recognize and measure the assets acquired and liabilities assumed in a business combination based on their estimated fair values at the acquisition date, with any remaining difference recorded as goodwill or gain from a bargain purchase. For material acquisitions, management typically engages an independent valuation specialist to assist with the determination of fair value of the assets acquired, liabilities assumed, noncontrolling interest, if any, and goodwill, based on recognized business valuation methodologies. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition, and not one may 4 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In February 2016, 2016 02, December 15, 2018, August 2018, 2018 11, 842, not 842, January 1, 2019 2018 11. one $2.4 not not not not not 10 In January 2017, 2017 01, 805 not not 1 2 not first 2018 not In May 2017, 2017 09, 718 718. January 1, 2018, not |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Current Ownership Hierarchy [Table Text Block] | Name State of Formation Ownership Business Heat Waves Hot Oil Service LLC Colorado 100% by Enservco Oil and natural gas well services, including logistics and stimulation. Adler Hot Oil Service, LLC Delaware 100% by Enservco Oil and natural gas well services, including logistics and stimulation Heat Waves Water Management LLC Colorado 100% by Enservco Water Transfer Services. Dillco Fluid Service, Inc Kansas 100% by Enservco Discontinued operation in 2018 HE Services LLC Nevada 100% by Heat Waves No active business operations. Owns construction equipment used by Heat Waves. |
Note 3 - Property and Equipme_2
Note 3 - Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, December 31, 2019 2018 Trucks and vehicles $ 59,621 $ 59,535 Water transfer equipment 5,190 4,952 Other equipment 1,032 961 Buildings and improvements 2,955 2,822 Land 378 378 Disposal wells - 400 Total property and equipment 69,176 69,048 Accumulated depreciation (38,870 ) (35,991 ) Property and equipment, net $ 30,306 $ 33,057 |
Note 4 - Business Combinations
Note 4 - Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Consideration paid to Seller: Cash consideration, including payment to retire Adler debt $ 6,206 Subordinated note, net of discount 4,580 Indemnity holdback at fair value 873 Earnout at fair value 44 Net purchase price $ 11,703 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 43 Accounts receivable, net 1,317 Prepaid expenses and other current assets 239 Property, plant, and equipment 9,664 Intangible assets 1,045 Accounts payable and accrued liabilities (850 ) Total identifiable net assets 11,458 Goodwill 245 Total identifiable assets acquired $ 11,703 |
Business Acquisition, Pro Forma Information [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2018 2018 Total revenues $ 9,623 $ 39,173 Income from continuing operations $ (3,978 ) $ 679 Income per common share - basic and diluted $ (0.08 ) $ 0.09 |
Note 5 - Intangible Assets (Tab
Note 5 - Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2019 December 31, 2018 Customer relationships $ 626 $ 626 Patents and trademarks 441 441 Total intangible assets 1,067 1,067 Accumulated amortization (136 ) (34 ) Net carrying value $ 931 $ 1,033 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2020 2021 2022 2023 2024 Customer relationships $ 125 $ 125 $ 125 $ 125 $ 41 Patents and trademarks 90 90 90 90 30 Total intangible asset amortization expense $ 215 $ 215 $ 215 $ 215 $ 71 |
Note 6 - Discontinued Operati_2
Note 6 - Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | June 30, December 31, 2019 2018 Carrying amount of major classes of assets included as part of discontinued operations: Accounts receivable, net $ 30 $ 97 Inventories - - Property and equipment, net - 177 Receivable from equipment sales - 760 Prepaid expenses and other current assets 7 7 Total major classes of assets of the discontinued operation $ 37 $ 1,041 Carrying amounts of major classes of liabilities included as part of discontinued operations: Accounts payable and accrued liabilities - 44 Total liabilities included as part of discontinued operations $ - $ 44 Three months ended June 30, 2019 2018 Revenue $ - $ 858 Cost of sales - (953 ) Sales, general, and administrative expenses - (5 ) Depreciation and amortization - (78 ) Other income and expense items that are not major - 1 Pretax loss of discontinued operations related to major classes of pretax profit - (177 ) Pretax gain on sale at auction - - Loss on disposal - - Pretax loss on impairment - - Income tax benefit - - Total loss on discontinued operations that is presented in the Statements of Operations $ - $ (177 ) Six months ended June 30, 2019 2018 Revenue $ - $ 1,699 Cost of sales - (1,901 ) Sales, general, and administrative expenses - (22 ) Depreciation and amortization - (167 ) Other income and expense items that are not major - 1 Pretax loss of discontinued operations related to major classes of pretax profit - (390 ) Pretax gain on sale at auction - - Loss on disposal - - Pretax loss on impairment - - Income tax benefit - - Total loss on discontinued operations that is presented in the Statements of Operations $ - $ (390 ) |
Note 7 - Debt (Tables)
Note 7 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | June 30, December 31, 2019 2018 Seller Subordinated Note. Interest is at 8%. Matured March 31, 2019 (1) $ - $ 4,000 Subordinated Promissory Note with related party. Interest is at 10% and is paid quarterly. Matures June 28, 2022 1,000 1,000 Subordinated Promissory Note with related party. Interest is at 10% and is paid quarterly. Matures June 28, 2022 1,000 1,000 Real Estate Loan for a facility in North Dakota, interest at 5.75%, and monthly principal and interest payment of $5,254.64 until October 3, 2028. Collateralized by land and property purchased with the loan. 243 258 Vehicle loans for three pickups, interest at 8.59% monthly principal and interest payments of $3,966, matures in August 2021 94 113 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; paid in annual installments of $36,000 per agreement with the IRS 53 89 Total 2,390 6,460 Less debt discount (143 ) (299 ) Less current portion (144 ) (4,017 ) Long-term debt, net of debt discount and current portion $ 2,103 $ 2,144 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Twelve Months Ending June 30, 2020 $ 144 2021 98 2022 2,064 2023 60 2024 24 Thereafter - Total $ 2,390 |
Note 8 - Fair Value Measureme_2
Note 8 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30 , 2019 Derivative Instrument Interest rate swap liability $ - $ 18 $ - $ 18 December 31, 2018 Derivative Instrument Interest rate swap asset $ - $ 75 $ - $ 75 Earn-Out Payment liability $ - $ - $ 44 $ 44 Indemnity Holdback Payment liability - - 887 887 $ - $ - $ 931 $ 931 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Twelve Months Ending June 30, Operating Leases Financing Leases 2020 $ 1,096 $ 275 2021 1,041 239 2022 933 191 2023 644 - 2024 613 - Thereafter 717 - 5,044 705 Impact of discounting (142 ) (67 ) Discounted value of lease obligations $ 4,902 $ 638 |
Lease, Cost [Table Text Block] | Three Months Ended Six Months Ended June 30, 2019 Operating lease expense: Current lease cost $ 175 $ 367 Long-term lease cost 197 322 Total operating lease cost $ 372 $ 689 Finance lease expense: Amortization of right-of-use assets $ 68 $ 68 Interest on lease liabilities 9 9 Total lease cost $ 77 $ 77 Six Months Ended June 30, 2019 Operating Weighted-average lease term (years) 4.96 Weighted-average discount rate 6.08 % Financing Weighted-average lease term (years) 2.66 Weighted-average discount rate 6.10 % |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Warrants Shares Price Life (Years) Value Outstanding at December 31, 2018 30,000 $ 0.70 2.5 $ - Issued - - - - Exercised - - - - Forfeited/Cancelled - - - - Outstanding at June 30, 2019 30,000 $ 0.70 2.0 - Exercisable at June 30, 2019 30,000 $ 0.70 2.0 - |
Note 12 - Stock Options and R_2
Note 12 - Stock Options and Restricted Stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31 , 2018 2,544,665 $ 0.85 2.54 $ 93 Granted - - - - Exercised - - - - Forfeited or Expired (371,166 ) 1.50 - - Outstanding at June 30 , 2019 2,173,499 $ 0.73 2.24 $ 103 Vested or Expected to Vest at June 30, 2019 2,098,998 $ 0.74 2.21 102 Exercisable at June 30, 2019 2,098,998 $ 0.74 2.21 $ 102 |
Schedule of Nonvested Share Activity [Table Text Block] | Number of Shares Weighted-Average Grant- Date Fair Value Non-vested at December 31, 2018 593,833 $ 0.20 Granted - - Vested (489,332 ) 0.19 Forfeited (30,000 ) 0.22 Non-vested at June 30, 2019 74,501 $ 0.22 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Number of Shares Weighted-Average Grant- Date Fair Value Restricted shares at December 31, 2018 836,667 $ 0.98 Granted 1,123,000 0.27 Vested (37,501 ) 1.38 Forfeited (65,000 ) 1.0 Restricted shares at June 30, 2019 1,857,166 $ 0.51 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options 2,229,378 3,376,984 2,332,836 3,764,147 Warrants 30,000 1,625,178 30,000 1,633,991 Weighted average 2,259,378 5,002,162 2,362,836 5,398,138 |
Note 13 - Segment Reporting (Ta
Note 13 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Well Enhancement Water Transfer Services Unallocated & Other Total Three Months Ended June 30, 2019: Revenues $ 6,339 $ 867 $ - $ 7,206 Cost of Revenue 6,150 1,287 287 7,724 Segment Profit (Loss) $ 189 $ (420 ) $ (287 ) $ (518 ) Depreciation and $ 1,430 $ 294 $ 12 $ 1,736 Capital Expenditures (Excluding Acquisitions) $ 167 $ 87 $ 2 $ 256 Identifiable assets (1) $ 41,331 $ 2,819 $ 1,388 $ 45,538 Three Months Ended June 30, 2018: Revenues $ 7,005 $ 929 $ - $ 7,934 Cost of Revenue 5,900 979 181 $ 7,060 Segment Profit (Loss) $ 1,105 $ (50 ) $ (181 ) $ 874 Depreciation and $ 1,226 $ 289 $ 5 $ 1,520 Capital Expenditures $ 245 $ 106 $ 1 $ 352 Identifiable assets (1) $ 29,169 $ 3,235 $ 516 $ 32,920 Well Enhancement Water Transfer Services Unallocated & Other Total Six Months Ended June 30, 2019: Revenues $ 31,151 $ 2,295 $ - $ 33,446 Cost of Revenue 21,362 3,472 442 25,276 Segment Profit (Loss) $ 9,789 $ (1,177 ) $ (442 ) $ 8,170 Depreciation and Amortization $ 2,817 $ 577 $ 25 $ 3,419 Capital Expenditures (Excluding Acquisitions) $ 254 $ 275 $ 38 $ 567 Six Months Ended June 30, 2018: Revenues $ 26,290 $ 1,924 $ - $ 28,214 Cost of Revenue 18,991 1,936 326 $ 21,253 Segment Profit (Loss) $ 7,299 $ (12 ) $ (326 ) $ 6,961 Depreciation and Amortization $ 2,455 $ 552 $ 12 $ 3,019 Capital Expenditures (Excluding Acquisitions) $ 786 $ 647 $ 8 $ 1,441 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Segment profit $ (518 ) $ 874 $ 8,170 $ 6,961 Sales, general, and administrative expenses (1,460 ) (1,236 ) (3,078 ) (2,589 ) Patent litigation and defense costs (1 ) (55 ) (10 ) (75 ) Severance and transition costs - (593 ) - (633 ) (Loss) gain on disposals of equipment (12 ) 53 (12 ) 53 Impairment - - (127 ) - Depreciation and amortization (1,736 ) (1,520 ) (3,419 ) (3,019 ) (Loss) income from Operations $ (3,727 ) $ (2,477 ) $ 1,524 $ 698 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 BY GEOGRAPHY Well Enhancement Services: Rocky Mountain Region (1) $ 4,114 $ 4,671 $ 20,988 $ 16,257 Central USA Region (2) 1,935 2,154 6,471 7,077 Eastern USA Region (3) 290 180 3,692 2,956 Total Well Enhancement Services 6,339 7,005 31,151 26,290 Water Transfer Services: Rocky Mountain Region (1) 867 929 2,295 1,924 Central USA Region (2) - - - - Eastern USA Region (3) - - - - Total Water Transfer Services 867 929 2,295 1,924 Total Revenues $ 7,206 $ 7,934 $ 33,446 $ 28,214 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation - Current Ownership Hierarchy (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Heat Waves Hot Oil Service LLC at Colorado [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Adler Hot Oil Service, LLC [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Heat Waves Water Management LLC at Colorado [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Dillco Fluid Service, Inc. at Kansas [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
HE Services LLC at Nevada [Member] | |
Subsidiary or Equity Method Investee | 100.00% |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Feb. 23, 2018 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 139,000 | $ 139,000 | $ 139,000 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | 3,000 | 3,000 | $ 33,000 | |||||
Inventory Write-down | 0 | 0 | ||||||
Deferred Rent Credit | 15,000 | 15,000 | 64,000 | |||||
Asset Impairment Charges, Total | $ 0 | $ 127,000 | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding, Number | 2,203,499 | 2,662,766 | 2,203,499 | 2,662,766 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding, Aggregate Intrinsic Value | $ 103,000 | $ 103,000 | ||||||
Payments of Dividends, Total | 0 | |||||||
Operating Lease, Liability, Total | 4,902,000 | 4,902,000 | $ 2,400,000 | |||||
Operating Lease, Right-of-Use Asset | $ 4,899,000 | $ 4,899,000 | 2,400,000 | |||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Operating Lease, Liability, Total | 2,400,000 | |||||||
Operating Lease, Right-of-Use Asset | $ 2,400,000 | |||||||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||||||||
Open Tax Year | 2015 2016 2017 2018 | |||||||
State and Local Jurisdiction [Member] | ||||||||
Open Tax Year | 2014 2015 2016 2017 2018 | |||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||||
Derivative, Notional Amount | $ 10,000,000 | |||||||
Derivative, Fixed Interest Rate | 2.52% | |||||||
Disposal Wells [Member] | ||||||||
Asset Impairment Charges, Total | $ 127,000 | |||||||
Minimum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||||
Maximum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 30 years |
Note 3 - Property and Equipme_3
Note 3 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property and equipment, gross | $ 69,176 | $ 69,048 |
Accumulated depreciation | (38,870) | (35,991) |
Property and equipment, net | 30,306 | 33,057 |
Vehicles [Member] | ||
Property and equipment, gross | 59,621 | 59,535 |
Water Transfer Equipment [Member] | ||
Property and equipment, gross | 5,190 | 4,952 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and equipment, gross | 1,032 | 961 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 2,955 | 2,822 |
Land [Member] | ||
Property and equipment, gross | 378 | 378 |
Disposal Wells [Member] | ||
Property and equipment, gross | $ 400 |
Note 4 - Business Combination_2
Note 4 - Business Combinations (Details Textual) - USD ($) | Apr. 04, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Oct. 26, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Aug. 10, 2017 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (1,252,000) | |||||||
Goodwill, Ending Balance | $ 546,000 | $ 546,000 | ||||||
Subordinated Note Issued with Acquisition [Member] | ||||||||
Debt Instrument, Face Amount | $ 4,500,000 | $ 4,800,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||
Debt Instrument, Periodic Payment, Total | $ 200,000 | $ 800,000 | ||||||
Second Amendment to LSA [Member] | East West Bank [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 37,000,000 | |||||||
Proceeds from Long-term Lines of Credit | 6,200,000 | |||||||
Maximum Capital Expenditures | 3,000,000 | |||||||
The 2017 Credit Agreement [Member] | East West Bank [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 37,000,000 | |||||||
Maximum Capital Expenditures | 2,500,000 | |||||||
Adler Hot Oil Service, LLC [Member] | ||||||||
Business Combination, Consideration Transferred, Total | 12,500,000 | |||||||
Business Combination, Consideration, Working Capital Adjustments | 500,000 | |||||||
Payments to Acquire Businesses, Gross | 3,700,000 | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 4,800,000 | |||||||
Payments to Retire Acquiree's Debt | 2,500,000 | |||||||
Goodwill, Ending Balance | 245,000 | |||||||
Adler Hot Oil Service, LLC [Member] | Seller Subordinated Note [Member] | ||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 300,000 | |||||||
Adler Hot Oil Service, LLC [Member] | Earn-out Payment Subject to Satisfaction of EBITDA-related Performance [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,000,000 | |||||||
Adler Hot Oil Service, LLC [Member] | Cash Held by Acquier, Subject Offset by Indemnification Obligations [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 1,000,000 | |||||||
Adler Hot Oil Service, LLC [Member] | Indemnity Holdback Payment [Member] | Other Income (Expense) [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 908,000 | |||||||
Adler Hot Oil Service, LLC [Member] | Earn-out Payment [Member] | Other Income (Expense) [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 44,000 |
Note 4 - Business Combination_3
Note 4 - Business Combinations - Consideration Transferred and Assets Acquired and Liabilities Assumed (Details) - USD ($) | Oct. 26, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill, Ending Balance | $ 546,000 | $ 546,000 | |
Adler Hot Oil Service, LLC [Member] | |||
Cash consideration, including payment to retire Adler debt | $ 6,206,000 | ||
Subordinated note, net of discount | 4,580,000 | ||
Net purchase price | 11,703,000 | ||
Cash | 43,000 | ||
Accounts receivable, net | 1,317,000 | ||
Prepaid expenses and other current assets | 239,000 | ||
Property, plant, and equipment | 9,664,000 | ||
Intangible assets | 1,045,000 | ||
Accounts payable and accrued liabilities | (850,000) | ||
Total identifiable net assets | 11,458,000 | ||
Goodwill, Ending Balance | 245,000 | ||
Total identifiable assets acquired | 11,703,000 | ||
Adler Hot Oil Service, LLC [Member] | Cash Held by Acquier, Subject Offset by Indemnification Obligations [Member] | |||
Contingent consideration, net of discount | 873,000 | ||
Adler Hot Oil Service, LLC [Member] | Earn-out Payment Subject to Satisfaction of EBITDA-related Performance [Member] | |||
Contingent consideration, net of discount | $ 44,000 |
Note 4 - Business Combination_4
Note 4 - Business Combinations - Pro Forma Consolidated Results of Operations (Details) - Adler Hot Oil Service, LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Total revenues | $ 9,623 | $ 39,173 |
Income from continuing operations | $ (3,978) | $ 679 |
Income per common share - basic and diluted (in dollars per share) | $ (0.08) | $ 0.09 |
Note 5 - Intangible Assets (Det
Note 5 - Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Amortization of Intangible Assets, Total | $ 51,000 | $ 102,000 |
Note 5 - Intangible Assets - Co
Note 5 - Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Intangible assets, gross | $ 1,067 | $ 1,067 |
Accumulated amortization | (136) | (34) |
Net carrying value | 931 | 1,033 |
Customer Relationships [Member] | ||
Intangible assets, gross | 626 | 626 |
Intellectual Property [Member] | ||
Intangible assets, gross | $ 441 | $ 441 |
Note 5 - Intangible Assets - Ex
Note 5 - Intangible Assets - Expected Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Expected amortization expense, 2020 | $ 215 |
Expected amortization expense, 2021 | 215 |
Expected amortization expense, 2022 | 215 |
Expected amortization expense, 2023 | 215 |
Expected amortization expense, 2024 | 71 |
Customer Relationships [Member] | |
Expected amortization expense, 2020 | 125 |
Expected amortization expense, 2021 | 125 |
Expected amortization expense, 2022 | 125 |
Expected amortization expense, 2023 | 125 |
Expected amortization expense, 2024 | 41 |
Patents and Trademarks [Member] | |
Expected amortization expense, 2020 | 90 |
Expected amortization expense, 2021 | 90 |
Expected amortization expense, 2022 | 90 |
Expected amortization expense, 2023 | 90 |
Expected amortization expense, 2024 | $ 30 |
Note 6 - Discontinued Operati_3
Note 6 - Discontinued Operations (Details Textual) - Dillco Fluid Service, Inc [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax, Total | |||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax, Total | |||||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax, Total | $ 129,000 | ||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax, Total | $ 130,000 |
Note 6 - Discontinued Operati_4
Note 6 - Discontinued Operations - Information by Major Classes of Line Items Disclosed as Discontinued Operations in the Consolidated Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Pretax loss of discontinued operations related to major classes of pretax profit | $ (177) | $ (390) | |||
Income tax benefit | |||||
Total loss on discontinued operations that is presented in the Statements of Operations | (177) | 0 | (390) | ||
Dillco Fluid Service, Inc [Member] | |||||
Accounts receivable, net | 30 | 30 | $ 97 | ||
Inventories | |||||
Property and equipment, net | 177 | ||||
Receivable from equipment sales | 760 | ||||
Prepaid expenses and other current assets | 7 | 7 | 7 | ||
Total major classes of assets of the discontinued operation | 37 | 37 | 1,041 | ||
Accounts payable and accrued liabilities | 44 | ||||
Total liabilities included as part of discontinued operations | $ 44 | ||||
Revenue | 858 | 1,699 | |||
Cost of sales | (953) | (1,901) | |||
Sales, general, and administrative expenses | (5) | (22) | |||
Depreciation and amortization | (78) | (167) | |||
Other income and expense items that are not major | 1 | 1 | |||
Pretax loss of discontinued operations related to major classes of pretax profit | (177) | (390) | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax, Total | |||||
Loss on disposal | |||||
Pretax loss on impairment | |||||
Income tax benefit | |||||
Total loss on discontinued operations that is presented in the Statements of Operations | $ (177) | $ (390) |
Note 7 - Debt (Details Textual)
Note 7 - Debt (Details Textual) | Aug. 10, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Aug. 01, 2019USD ($) | Jul. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Line of Credit, Current | $ 31,862,000 | $ 31,862,000 | $ 33,882,000 | |||||
Interest Expense [Member] | ||||||||
Amortization of Debt Issuance Costs | 24,000 | $ 24,000 | 58,000 | $ 47,000 | ||||
Other Assets [Member] | ||||||||
Unamortized Debt Issuance Expense | 152,000 | 152,000 | $ 208,000 | |||||
The 2017 Credit Agreement [Member] | East West Bank [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument, Term | 3 years | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 37,000,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity, Percent of Eligible Receivables | 85.00% | |||||||
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Trucks and Equipment | 85.00% | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||
Line of Credit, Current | 31,900,000 | 31,900,000 | ||||||
Line of Credit Facility, Excess Borrowing Over Borrowing Capacity | 753,000 | 753,000 | ||||||
Line of Credit Facility, Covenant Compliance, Minimum Fixed Charge Coverage Ratio | 1.1 | |||||||
Line of Credit Facility, Covenant Compliance, Trailing Twelve Month Fixed Charge Coverage Ratio | 1.2 | |||||||
Line of Credit Facility, Covenant Compliance, Minimum Liquidity | $ 1,500,000 | |||||||
Available Liquidity | 506,000 | 506,000 | ||||||
The 2017 Credit Agreement [Member] | East West Bank [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility, Allowable Capital Expenditures | $ 1,500,000 | $ 3,000,000 | ||||||
The 2017 Credit Agreement [Member] | East West Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||
Line of Credit, Current | $ 27,000,000 | $ 27,000,000 | ||||||
Line of Credit Facility, Interest Rate at Period End | 5.98% | 5.98% | ||||||
The 2017 Credit Agreement [Member] | East West Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||
Line of Credit, Current | $ 4,900,000 | $ 4,900,000 | ||||||
Line of Credit Facility, Interest Rate at Period End | 7.25% | 7.25% |
Note 7 - Debt - Summary of Long
Note 7 - Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Long-term debt | $ 2,390 | ||
Long-term debt, gross | 2,390 | $ 6,460 | |
Less debt discount | (143) | (299) | |
Less current portion | (144) | (4,017) | |
Long-term debt, net of debt discount and current portion | 2,103 | 2,144 | |
Real Estate Loan 1 [Member] | |||
Long-term debt | 243 | 258 | |
Vehicle Loans for Trucks [Member] | |||
Long-term debt | 94 | 113 | |
Note Payable To Seller Of Heat Waves [Member] | |||
Long-term debt | 53 | 89 | |
Seller Subordinated Note [Member] | Subordinated Debt [Member] | |||
Long-term debt | [1] | 4,000 | |
Subordinated Promissory Note 1 [Member] | Subordinated Debt [Member] | |||
Long-term debt | 1,000 | 1,000 | |
Subordinated Promissory Note 2 [Member] | Subordinated Debt [Member] | |||
Long-term debt | $ 1,000 | $ 1,000 | |
[1] | In accordance with the Settlement Agreement discussed in Notes 4 the agreed upon due date was extended to April 10, 2019, subject to a nine-day grace period. On April 19, 2019, Enservco made the final payment to settle the principal balance and accrued interest on the Seller Subordinated Note and has no further obligations to the Seller.000000 |
Note 7 - Debt - Summary of Lo_2
Note 7 - Debt - Summary of Long-term Debt (Details) (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Real Estate Loan 1 [Member] | ||
Interest rate | 5.75% | 5.75% |
Monthly principal and interest payment | $ 5,254,640 | $ 5,254,640 |
Vehicle Loans for Trucks [Member] | ||
Interest rate | 8.59% | 8.59% |
Monthly principal and interest payment | $ 3,966,000 | $ 3,966,000 |
Note Payable To Seller Of Heat Waves [Member] | ||
Monthly principal and interest payment | $ 36,000,000 | $ 36,000,000 |
Seller Subordinated Note [Member] | Subordinated Debt [Member] | ||
Interest rate | 8.00% | 8.00% |
Subordinated Promissory Note 1 [Member] | Subordinated Debt [Member] | ||
Interest rate | 10.00% | 10.00% |
Subordinated Promissory Note 2 [Member] | Subordinated Debt [Member] | ||
Interest rate | 10.00% | 10.00% |
Note 7 - Debt - Summary of Matu
Note 7 - Debt - Summary of Maturities of Long-term Debt (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2020 | $ 144 |
2021 | 98 |
2022 | 2,064 |
2023 | 60 |
2024 | 24 |
Thereafter | |
Total | $ 2,390 |
Note 8 - Fair Value Measureme_3
Note 8 - Fair Value Measurements (Details Textual) - Measurement Input, Risk Adjusted Interest Rate [Member] | Jun. 30, 2019 |
Indemnification Liability, Measurement Input | 0.095 |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.095 |
Note 8 - Fair Value Measureme_4
Note 8 - Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
$ 931 | ||
Interest Rate Swap [Member] | ||
Derivative liabilities | $ 18 | |
Interest rate swap asset | 75 | |
Earn Out Payment Liability [Member] | ||
Derivative liabilities | 44 | |
Indemnity Holdback Payment Liability [Member] | ||
Derivative liabilities | 887 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||
Derivative liabilities | ||
Interest rate swap asset | ||
Fair Value, Inputs, Level 1 [Member] | Earn Out Payment Liability [Member] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 1 [Member] | Indemnity Holdback Payment Liability [Member] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
Derivative liabilities | 18 | |
Interest rate swap asset | 75 | |
Fair Value, Inputs, Level 2 [Member] | Earn Out Payment Liability [Member] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | Indemnity Holdback Payment Liability [Member] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 3 [Member] | ||
931 | ||
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||
Derivative liabilities | ||
Interest rate swap asset | ||
Fair Value, Inputs, Level 3 [Member] | Earn Out Payment Liability [Member] | ||
Derivative liabilities | 44 | |
Fair Value, Inputs, Level 3 [Member] | Indemnity Holdback Payment Liability [Member] | ||
Derivative liabilities | $ 887 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Note 10 - Commitments and Con_3
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) | Jan. 01, 2019 | Jun. 30, 2015 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Lease, Right-of-Use Asset | $ 2,400,000 | $ 4,899,000 | |||
Operating Lease, Liability, Total | 2,400,000 | 4,902,000 | |||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 845,000 | ||||
Cumulative Effect on Retained Earnings, Net of Tax, Total | $ 108,000 | $ 108,000 | |||
Self-insured Amount per Individual Claim | $ 50,000 | ||||
Self-insured, Maximum Coverage Policy | $ 1,800,000 | ||||
Self Insurance Reserve | $ 68,000 | 60,000 | |||
Workers' Compensation, Maximum Coverage Policy | 1,800,000 | ||||
Workers' Compensation, Accumulated Payments on Claims | 1,800,000 | ||||
Workers' Compensation, Estimated Accruals | 1,600,000 | ||||
Other Noncurrent Assets [Member] | |||||
Worker's Compensation, Prepaid Amount | $ 189,000 |
Note 10 - Commitments and Con_4
Note 10 - Commitments and Contingencies - Future Minimum Lease Commitments (Details) - USD ($) | Jun. 30, 2019 | Jan. 01, 2019 |
2020, operating leases | $ 1,096,000 | |
2020, financing leases | 275,000 | |
2021, operating leases | 1,041,000 | |
2021, financing leases | 239,000 | |
2022, operating leases | 933,000 | |
2022, financing leases | 191,000 | |
2023, operating leases | 644,000 | |
2023, financing leases | ||
2024, operating leases | 613,000 | |
2024, financing leases | ||
Thereafter, operating leases | 717,000 | |
Thereafter, financing leases | ||
Operating leases | 5,044,000 | |
Financing leases | 705,000 | |
Impact of discounting, operating leases | (142,000) | |
Impact of discounting, financing leases | (67,000) | |
Discounted value of lease obligations, operating leases | 4,902,000 | $ 2,400,000 |
Discounted value of lease obligations, financing leases | $ 638,000 |
Note 10 - Commitments and Con_5
Note 10 - Commitments and Contingencies - Lease Cost (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Current lease cost | $ 175 | $ 367 |
Long-term lease cost | 197 | 322 |
Total operating lease cost | 372 | 689 |
Amortization of right-of-use assets | 68 | 68 |
Interest on lease liabilities | 9 | 9 |
Total lease cost | $ 77 | $ 77 |
Weighted-average lease term (years), operating (Year) | 4 years 350 days | 4 years 350 days |
Weighted-average discount rate, operating | 6.08% | 6.08% |
Weighted-average lease term (years), financing (Year) | 2 years 240 days | 2 years 240 days |
Weighted-average discount rate, financing | 6.10% | 6.10% |
Note 11 - Stockholders' Equit_2
Note 11 - Stockholders' Equity (Details Textual) - USD ($) | Jun. 29, 2018 | Jun. 21, 2017 | Dec. 21, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2019 |
Stock Issued During Period, Shares, Issued for Services | 0 | 0 | |||||
Cross River Partners, L.P. [Member] | |||||||
Class of Warrant or Right, Issued During Period | 1,612,902 | ||||||
Class of Warrant or Right, Grants in Period, Grant-date Fair Value | $ 0.19 | ||||||
Warrants Expiration Period | 5 years | ||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ 0.31 | ||||||
Class of Warrant or Right, Exercised During Period | 1,612,902 | ||||||
Class of Warrant or Right, Exercised During Period, Exercise Price | $ 0.005 | ||||||
Proceeds from Warrant Exercises | $ 500,000 | ||||||
Aggregate Intrinsic Value Of Warrants Exercised | $ 1,400,000 | ||||||
Warrants Issued in June 2016 [Member] | |||||||
Class of Warrant or Right, Issued During Period | 30,000 | ||||||
Class of Warrant or Right, Grants in Period, Grant-date Fair Value | $ 0.36 | ||||||
Class of Warrants or Rights, Vesting Period | 1 year | ||||||
Class of Warrants or Rights, Vested During the Period | 15,000 | 15,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.70 | $ 0.70 |
Note 11 - Stockholders Equity -
Note 11 - Stockholders Equity - Summary of Warrant Activity (Details) - Warrant [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Outstanding (in shares) | 30,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 0.70 | |
Outstanding, weighted average remaining contractual life (Year) | 2 years | 2 years 182 days |
Outstanding, aggregate intrinsic value | ||
Issued (in shares) | ||
Issued, weighted average exercise price (in dollars per share) | ||
Issued, weighted average remaining contractual life (Year) | ||
Issued, aggregate intrinsic value | ||
Exercised (in shares) | ||
Exercised, weighted average exercise price (in dollars per share) | ||
Forfeited/Cancelled (in shares) | ||
Forfeited/Cancelled, weighted average exercise price (in dollars per share) | ||
Outstanding (in shares) | 30,000 | 30,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ 0.70 | $ 0.70 |
Exercisable (in shares) | 30,000 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 0.70 | |
Exercisable, weighted average remaining contractual life (Year) | 2 years | |
Exercisable, aggregate intrinsic value |
Note 12 - Stock Options and R_3
Note 12 - Stock Options and Restricted Stock (Details Textual) - USD ($) | Jan. 01, 2016 | Jul. 27, 2010 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jul. 18, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 2,173,499 | 2,173,499 | 2,544,665 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 1,230,002 | ||||||
Stock Issued During Period, Shares, New Issues | 663,938 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 13,000 | $ 13,000 | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 343 days | |||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Share-based Payment Arrangement, Expense | $ 29,000 | $ 61,000 | $ 71,000 | $ 134,000 | ||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,857,166 | 1,857,166 | 836,667 | |||||
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member] | ||||||||
Share-based Payment Arrangement, Expense | $ 48,000 | $ 97,000 | ||||||
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, Number of Shares Available for Grant | 5,719,069 | 0 | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 38,127,129 | 574,666 | 574,666 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,391,711 | |||||||
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 | |||||||
The 2016 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 10,391,711 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 1,598,833 | 1,598,833 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 8,000,000 | |||||||
The 2016 Plan [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,857,166 | 1,857,166 |
Note 12 - Stock Options and R_4
Note 12 - Stock Options and Restricted Stock - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Outstanding (in shares) | 2,544,665 | |||||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.85 | |||||
Outstanding, weighted average remaining contractual life (Year) | 2 years 87 days | 2 years 197 days | ||||
Outstanding, aggregate intrinsic value | $ 103 | $ 103 | $ 93 | |||
Granted (in shares) | 0 | 0 | 0 | 0 | ||
Granted, weighted average exercise price (in dollars per share) | ||||||
Granted, weighted average remaining contractual life (Year) | ||||||
Granted, aggregate intrinsic value | ||||||
Exercised (in shares) | 0 | (1,230,002) | ||||
Exercised, weighted average exercise price (in dollars per share) | ||||||
Forfeited or Expired (in shares) | [1] | (371,166) | ||||
Forfeited or Expired, weighted average exercise price (in dollars per share) | $ 1.50 | |||||
Forfeited or Expired, weighted average remaining contractual life (Year) | ||||||
Outstanding (in shares) | 2,173,499 | 2,173,499 | 2,544,665 | |||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.73 | $ 0.73 | $ 0.85 | |||
Vested or Expected to Vest (in shares) | 2,098,998 | 2,098,998 | ||||
Vested or Expected to Vest, weighted average exercise price (in dollars per share) | $ 0.74 | $ 0.74 | ||||
Vested or Expected to Vest, weighted average remaining contractual life (Year) | 2 years 76 days | |||||
Vested or Expected, aggregate intrinsic value | $ 102 | $ 102 | ||||
Exercisable (in shares) | 2,098,998 | 2,098,998 | ||||
Exercisable, weighted average exercise price (in dollars per share) | $ 0.74 | $ 0.74 | ||||
Exercisable, weighted average remaining contractual life (Year) | 2 years 76 days | |||||
Exercisable, aggregate intrinsic value | $ 102 | $ 102 | ||||
[1] | 1,230,002 shares exercised using the cashless option resulted in 663,938 shares of common stock being issued. |
Note 12 - Stock Options and R_5
Note 12 - Stock Options and Restricted Stock - Summary of the Status of Non-vested Shares (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Balance, non-vested (in shares) | 593,833 | |||
Balance, non-vested, weighted average grant date fair value (in dollars per share) | $ 0.20 | |||
Granted, non-vested (in shares) | 0 | 0 | 0 | 0 |
Granted, weighted average grant date fair value (in dollars per share) | ||||
Vested, non-vested (in shares) | (489,332) | |||
Vested, weighted average grant date fair value (in dollars per share) | $ 0.19 | |||
Forfeited, non-vested (in shares) | (30,000) | |||
Forfeited, weighted average grant date fair value (in dollars per share) | $ 0.22 | |||
Balance, non-vested (in shares) | 74,501 | 74,501 | ||
Balance, non-vested, weighted average grant date fair value (in dollars per share) | $ 0.22 | $ 0.22 |
Note 12 - Stock Options and R_6
Note 12 - Stock Options and Restricted Stock - Summary of Restricted Stock Option (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Balance, Restricted shares (in shares) | shares | 836,667 |
Balance, Restricted shares, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 0.98 |
Granted, Restricted shares (in shares) | shares | 1,123,000 |
Granted, Restricted shares, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 0.27 |
Vested, Restricted shares (in shares) | shares | (37,501) |
Vested, Restricted shares, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 1.38 |
Forfeited, Restricted shares (in shares) | shares | (65,000) |
Forfeited, Restricted shares, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 1 |
Balance, Restricted shares (in shares) | shares | 1,857,166 |
Balance, Restricted shares, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 0.51 |
Note 12 - Stock Options and R_7
Note 12 - Stock Options and Restricted Stock - Potentially Dilutive Instruments (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Potentially dilutive instruments (in shares) | 2,259,378 | 5,002,162 | 2,362,836 | 5,398,138 |
Share-based Payment Arrangement, Option [Member] | ||||
Potentially dilutive instruments (in shares) | 2,229,378 | 3,376,984 | 2,332,836 | 3,764,147 |
Warrant [Member] | ||||
Potentially dilutive instruments (in shares) | 30,000 | 1,625,178 | 30,000 | 1,633,991 |
Note 13 - Segment Reporting - R
Note 13 - Segment Reporting - Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues | $ 7,206 | $ 7,934 | $ 33,446 | $ 28,214 | |
Cost of Revenue | 7,724 | 7,060 | 25,276 | 21,253 | |
Segment Profit (Loss) | (518) | 874 | 8,170 | 6,961 | |
Depreciation and amortization | 1,736 | 1,520 | 3,419 | 3,019 | |
Capital Expenditures (Excluding Acquisitions) | 256 | 352 | 567 | 1,441 | |
Identifiable assets(1) | [1] | 45,538 | 32,920 | 45,538 | 32,920 |
Well Enhancement Services Segment [Member] | |||||
Revenues | 6,339 | 7,005 | 31,151 | 26,290 | |
Cost of Revenue | 6,150 | 5,900 | 21,362 | 18,991 | |
Segment Profit (Loss) | 189 | 1,105 | 9,789 | 7,299 | |
Depreciation and amortization | 1,430 | 1,226 | 2,817 | 2,455 | |
Capital Expenditures (Excluding Acquisitions) | 167 | 245 | 254 | 786 | |
Identifiable assets(1) | [1] | 41,331 | 29,169 | 41,331 | 29,169 |
Water Transfer Services Segment [Member] | |||||
Revenues | 867 | 929 | 2,295 | 1,924 | |
Cost of Revenue | 1,287 | 979 | 3,472 | 1,936 | |
Segment Profit (Loss) | (420) | (50) | (1,177) | (12) | |
Depreciation and amortization | 294 | 289 | 577 | 552 | |
Capital Expenditures (Excluding Acquisitions) | 87 | 106 | 275 | 647 | |
Identifiable assets(1) | [1] | 2,819 | 3,235 | 2,819 | 3,235 |
Unallocated and Other Segments [Member] | |||||
Revenues | |||||
Cost of Revenue | 287 | 181 | 442 | 326 | |
Segment Profit (Loss) | (287) | (181) | (442) | (326) | |
Depreciation and amortization | 12 | 5 | 25 | 12 | |
Capital Expenditures (Excluding Acquisitions) | 2 | 1 | 38 | 8 | |
Identifiable assets(1) | [1] | $ 1,388 | $ 516 | $ 1,388 | $ 516 |
[1] | Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; and other assets. |
Note 13 - Segment Reporting - I
Note 13 - Segment Reporting - Income From Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sales, general, and administrative expenses | $ (1,460) | $ (1,236) | $ (3,078) | $ (2,589) |
Patent litigation and defense costs | (1) | (55) | (10) | (75) |
Severance and transition costs | 0 | (593) | (633) | |
(Loss) gain on disposals of equipment | (12) | 53 | (12) | 53 |
Impairment | 0 | (127) | 0 | |
Depreciation and amortization | (1,736) | (1,520) | (3,419) | (3,019) |
(Loss) income from Operations | $ (3,727) | $ (2,477) | $ 1,524 | $ 698 |
Note 13 - Segment Reporting -_2
Note 13 - Segment Reporting - Revenues by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenue | $ 7,206 | $ 7,934 | $ 33,446 | $ 28,214 | |
Well Enhancement Services Segment [Member] | |||||
Revenue | 6,339 | 7,005 | 31,151 | 26,290 | |
Water Transfer Services Segment [Member] | |||||
Revenue | 867 | 929 | 2,295 | 1,924 | |
Rocky Mountain Region [Member] | Well Enhancement Services Segment [Member] | |||||
Revenue | [1] | 4,114 | 4,671 | 20,988 | 16,257 |
Rocky Mountain Region [Member] | Water Transfer Services Segment [Member] | |||||
Revenue | [1] | 867 | 929 | 2,295 | 1,924 |
Central USA Region [Member] | Well Enhancement Services Segment [Member] | |||||
Revenue | [2] | 1,935 | 2,154 | 6,471 | 7,077 |
Central USA Region [Member] | Water Transfer Services Segment [Member] | |||||
Revenue | [2] | ||||
Eastern USA Region [Member] | Well Enhancement Services Segment [Member] | |||||
Revenue | [3] | 290 | 180 | 3,692 | 2,956 |
Eastern USA Region [Member] | Water Transfer Services Segment [Member] | |||||
Revenue | [3] | ||||
[1] | Includes the D-J Basin/Niobrara field (northeastern Colorado and southeastern Wyoming), the San Juan Basin (southeastern Colorado and northeastern New Mexico, the Powder River and Green River Basins (northeastern and southwestern Wyoming), the Bakken area (western North Dakota and eastern Montana). | ||||
[2] | Includes the Scoop/Stack Shale in Oklahoma and the Eagle Ford Shale in Texas. | ||||
[3] | Consists of the southern region of the Marcellus Shale formation (southwestern Pennsylvania and northern West Virginia) and the Utica Shale formation (eastern Ohio). |