Financials

v3.8.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current Assets    
Cash and cash equivalents $ 479,851 $ 620,764
Accounts receivable, net 3,880,464 4,814,276
Prepaid expenses and other current assets 944,142 970,802
Inventories 431,462 407,379
Income tax receivable 223,847
Total current assets 5,735,919 7,037,068
Property and Equipment, net 30,928,820 34,617,961
Deferred Tax Asset, net 1,962,979
Other Assets 1,255,610 714,967
TOTAL ASSETS 39,883,328 42,369,996
Current Liabilities    
Accounts payable and accrued liabilities 3,095,793 3,682,599
Senior revolving credit facility (1) 23,543,802
Current portion of long-term debt 176,956 318,499
Total current liabilities 26,816,551 4,001,098
Long-Term Liabilities    
Senior revolving credit facility 23,180,514
Subordinated debt 2,213,796
Long-term debt, less current portion 265,465 304,373
Deferred income taxes, net 468,565
Warrant liability 586,312
Total long-term liabilities 3,065,573 23,953,452
Total liabilities 29,882,124 27,954,550
Commitments and Contingencies (Note 9)
Stockholders' Equity    
Preferred stock, $.005 par value, 10,000,000 shares authorized, no shares issued or outstanding 0 0
Common stock, $.005 par value, 100,000,000 shares authorized, 51,171,260 and 51,171,260 shares issued, respectively; 103,600 shares of treasury stock; and 51,067,660 and 51,067,660 shares outstanding, respectively 255,337 255,337
Additional paid-in capital 19,439,609 18,867,702
Accumulated deficit (9,693,742) (4,707,593)
Total stockholders' equity 10,001,204 14,415,446
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 39,883,328 $ 42,369,996
v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues $ 5,742,126 $ 5,503,211 $ 26,623,167 $ 17,948,622
Cost of Revenue 6,002,212 5,961,540 22,812,886 17,669,806
General and administrative expenses 1,138,741 966,873 3,423,040 2,894,769
Patent litigation and defense costs 28,447 33,171 95,677 108,783
Severance and Transition Costs [1] 16,666 784,421
Depreciation and amortization 1,617,957 1,602,901 4,869,260 4,968,493
Total operating expenses 8,804,023 8,564,485 31,985,284 25,641,851
Income (Loss) from Operations (3,061,897) (3,061,274) (5,362,117) (7,693,229)
Interest expense (599,616) (553,049) (1,809,320) (1,426,500)
Gain (Loss) on disposals of equipment 233,473
Other (expense) income (263,713) 5,198 (221,734) 12,204
Total other expense (863,329) (547,851) (2,031,054) (1,180,823)
Income (Loss) Before Tax Expense (3,925,226) (3,609,125) (7,393,171) (8,874,052)
Income Tax Benefit (Expense) 1,415,494 1,251,301 2,407,023 3,060,008
Net Loss $ (2,509,732) $ (2,357,824) $ (4,986,148) $ (5,814,044)
Earnings (Loss) per Common Share - Basic (in dollars per share) $ (0.05) $ (0.06) $ (0.10) $ (0.15)
Earnings (Loss) per Common Share – Diluted (in dollars per share) $ (0.05) $ (0.06) $ (0.10) $ (0.15)
Basic weighted average number of common shares outstanding (in shares) 51,067,660 38,130,160 51,067,660 38,129,994
Add: Dilutive shares assuming exercise of options and warrants (in shares)
Diluted weighted average number of common shares outstanding (in shares) 51,067,660 38,130,160 51,067,660 38,129,994
Well Enhancement Services Segment [Member]        
Revenues $ 4,033,487 $ 3,060,565 $ 21,836,551 $ 12,880,914
Cost of Revenue 4,162,171 3,016,337 16,935,563 10,763,483
Depreciation and amortization 1,192,724 1,211,202 3,616,847 3,788,420
Water Transfer Services Segment [Member]        
Revenues 797,805 1,855,811 31,688
Cost of Revenue 822,322 254,304 2,114,094 1,133,556
Depreciation and amortization 253,304 215,946 731,100 647,839
Water Hauling Services Segment [Member]        
Revenues 910,834 917,767 2,676,739 2,922,207
Cost of Revenue 801,049 897,200 2,906,106 2,918,076
Depreciation and amortization 164,184 164,809 497,672 503,007
Construction Services Segment [Member]        
Revenues 1,524,879 254,066 2,113,813
Cost of Revenue 1,621,732 211,644 2,334,058
Depreciation and amortization
Unallocated and Other Segments [Member]        
Revenues
Cost of Revenue 216,670 171,967 645,479 520,633
Depreciation and amortization $ 7,745 $ 10,944 $ 23,641 $ 29,227
[1] Severance and transition costs comprise (i) payments and accruals for future payments to our former Chief Executive Officer and Chief Financial Officer and (ii) professional fees directly related to separation and transition activities.
v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
OPERATING ACTIVITIES    
Net loss $ (4,986,148) $ (5,814,044)
Adjustments to reconcile net loss to net cash provided by operating activities    
Depreciation and amortization 4,869,260 4,968,493
(Gain) loss on disposal of equipment (233,473)
Unrealized loss on warrant liability 279,665
Deferred income taxes (2,294,388) (3,073,082)
Stock-based compensation 571,909 493,458
Stock issued for services 1,714
Amortization of debt issuance costs and warrants 447,885 113,816
Bad debt expense 93,402 145,902
Changes in operating assets and liabilities    
Accounts receivable 755,430 3,520,841
Inventories (24,083) (54,285)
Prepaid expense and other current assets 66,679 155,926
Income taxes receivable 223,847 (1,400)
Other assets (610,369) 26,249
Accounts payable and accrued liabilities 55,727 901,243
Net cash (used in) provided by operating activities (551,184) 1,151,358
INVESTING ACTIVITIES    
Purchases of property and equipment (1,283,773) (4,804,328)
Proceeds from disposal of equipment 120,537 321,725
Net cash used in investing activities (1,163,236) (4,482,603)
FINANCING ACTIVITIES    
Net line of credit borrowings 789,667 3,465,363
Proceeds from issuance of long-term debt 1,000,000
Repayment of long-term debt (180,451) (107,580)
Payment of debt issuance costs (35,709) (50,000)
Net cash provided by financing activities 1,573,507 3,307,783
Net Decrease in Cash and Cash Equivalents (140,913) (23,462)
Cash and Cash Equivalents, beginning of period 620,764 804,737
Cash and Cash Equivalents, end of period 479,851 781,275
Supplemental cash flow information:    
Cash paid for interest 303,117 37,534
Cash (received) paid for taxes (222,110) 1,400
Supplemental Disclosure of Non-cash Investing and Financing Activities:    
Non-cash proceeds from subordinated debt borrowings [1] 1,500,000
Non-cash proceeds from revolving credit facilities [2] 1,123,621 1,146,980
Non-cash repayment of revolving credit facility [1] $ (1,500,000)
[1] As discussed in more detail in Note 5, during the nine months ended September 30, 2017, we received proceeds from two subordinated promissory notes issued to our largest shareholder. Proceeds from one of these borrowings were remitted directly to the PNC Bank, N.A. to reduce and subsequently extinguish the outstanding balance under our previous senior revolving credit facility.
[2] Non-cash proceeds from our revolving credit facilities comprise interest and other charges incurred pursuant to our senior revolving credit facilities, which were calculated periodically and added to the principal balance of the loans.

Investor Relations