10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

☐  TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

ENERGY & TECHNOLOGY, CORP.

(Exact name of registrant as specified in Charter)

DELAWARE	333-143215	26-0198662
(State or other jurisdiction of incorporation or organization)	(Commission File No.)	(IRS Employee Identification No.)

Petroleum Towers, Suite 530

3639 Ambassador Caffery Blvd

Mail to: P.O. Box 52523

Lafayette, LA 70505

(Address of Principal Executive Offices)

+ 1-337- 984-2000

(Issuer Telephone number)

+ 1-337- 988-1777

Issuer Fax Number

www.engt.com

www.energyntechnology.com

Securities registered under Section 12(b) of the Exchange Act:	None.
Securities registered under Section 12(g) of the Exchange Act:	Common stock, par value $0.001 per share.
	(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 the Securities Act. Yes ☐   No ☒ 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐   No ☒ 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
(Do not check if a smaller reporting company)		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No ☒

According to the Company’s transfer agent of record, Olde Monmoth Stock Transfer Agent’s latest records, the number of shares outstanding of each of the Company’s classes of common equity, as of the end of the fiscal quarter covered by this report, is 165,560,766 shares of common stock. The company has issued no stock since that date.

ENERGY & TECHNOLOGY, CORP.

FORM 10-Q

June 30, 2018

INDEX

PART I—FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15
Item 4.	Control and Procedures	15
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	16
Item 2.	Risk Factors	16
Item 3.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 4.	Defaults Upon Senior Securities	16
Item 5.	Submission of Matters to a Vote of Security Holders	16
Item 6.	Other Information	16
Item 7.	Exhibits and Reports on Form 8-K	16
SIGNATURE		17

i

INTRODUCTORY NOTE

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Energy & Technology, Corp. (the “Company”) and our subsidiaries, Technical Industries, Inc. (TII), Energy Pipe, LLC (EP), (a variable interest entity), and Energy Technology Manufacturing & Threading, LLC (ETMT), (a variable interest entity), that are subject to risks and uncertainties. Forward-looking statements include information concerning future financial performance, business strategy, projected plans and objectives. Statements preceded by, followed by or that otherwise include the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “may increase,” “may fluctuate” and similar expressions of future or conditional verbs such as “will,” “should,” “would,” and “could” are generally forward-looking in nature and not historical facts. Actual results may differ materially from those projected, implied, anticipated or expected in the forward-looking statements. Readers of this quarterly report should not rely solely on the forward-looking statements and should consider all uncertainties and risks throughout this report. The statements are representative only as of the date they are made. The Company, Technical Industries, Inc. (TII), Energy Pipe, LLC (EP), and Energy Technology Manufacturing & Threading, LLC (ETMT), (sometimes referred to herein on a consolidated basis as the Company, we, us, or similar phrasing) undertakes no obligation to update any forward-looking statement.

These forward-looking statements, implicitly and explicitly, include the assumptions underlying the statements and other information with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, financial condition, results of operations, future performance and business, including management’s expectations and estimates with respect to revenues, expenses, return on equity, return on assets, efficiency ratio, asset quality and other financial data and capital and performance ratios.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, these statements involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond the control of the Company. The following factors, among others, could cause the Company’s results or financial performance to differ materially from its goals, plans, objectives, intentions, expectations and other forward-looking statements:

● general economic and industry conditions;

● our capital requirements and dependence on the sale of our equity securities;

● the liquidity of the Company’s common stock will be affected by the lack of a trading market;

● industry competition;

● shortages in availability of qualified personnel;

● legal and financial implications of unexpected catastrophic events;

● regulatory or legislative changes effecting the industries we serve; and

● reliance on, and the ability to attract, key personnel.

For a discussion of these and other risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s S-1 Report filed with the SEC, which is available on the SEC’s website at www.sec.gov. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this Quarterly Report on Form 10-Q to reflect events or circumstances after the date hereof. New factors emerge from time to time, and it is not possible for us to predict which factors, if any, will arise. In addition, the Company cannot assess the impact of each factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

ii

PART I. Financial Information

ITEM 1. Financial Statements

ENERGY & TECHNOLOGY, CORP.

Consolidated Balance Sheets

As of June 30, 2018 and December 31, 2017

	June 30,			December 31,
	2018			2017
	(Unaudited)			(Unaudited)
Assets
Current Assets
Cash and Cash Equivalents	$	97,480		$	36,168
Investments		2,332			2,289
Accounts Receivable
Trade, Net		417,052			273,183
Inventory, Net		903,373			903,373
Prepaid Expenses		21,150			50,835
Other Current Assets		180,724			126,168
Total Current Assets		1,622,112			1,392,016
Property and Equipment, Net
Held for Operations, Net		1,997,250			2,099,840
Construction in Progress		350,418			350,418
		2,347,668			2,450,258
Total Assets	$	3,969,779		$	3,842,274
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts Payable	$	1,008,104		$	978,740
Accrued Liabilities		50,157			82,035
Accrued Rent		2,482,500			2,407,500
Current Maturities of Notes Payable		4,509,806			4,425,147
Due to Affiliates		792,673			856,687
Income Taxes Payable		25,287			25,287
Total Current Liabilities		8,868,527			8,775,396
Long-Term Liabilities
Notes Payable	$	8,684		$	13,142
Total Liabilities	$	8,877,211		$	8,788,538
Stockholders’ Equity
Preferred Stock - $.001 Par Value; 10,000,000 Shares Authorized, None Issued		-			-
Common Stock - $.001 Par Value; 250,000,000 Shares Authorized, 169,198,117 Shares Issued at March 31, 2018 and December 31, 2017, respectively		169,198			169,198
Paid-In Capital		4,209,592			4,209,592
Treasury Stock, at cost (3,637,351 Shares)		(4,076,441	)		(4,076,441	)
Retained Earnings		(5,209,782	)		(5,250,470	)
Total Stockholders’ Equity		(4,907,432	)		(4,948,121	)
Total Liabilities and Stockholders’ Equity	$	3,969,779		$	3,840,416

See notes to consolidated financial statements.

1

ENERGY & TECHNOLOGY, CORP.

Consolidated Statements of Operations (Unaudited)

For the Three Months Ended June 30, 2018 and June 30, 2017

For the Six Months Ended June 30, 2018 and June 30, 2017

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30
	2018			2017			2018			2017
Revenues	$	1,040,629		$	835,028		$	1,834,327			856,362
Cost of Revenues
Materials and Supplies		71,398			121,688			128,776			36,452
Subcontract Labor		173,407			170,061			294,964			153,521
Depreciation		36,247			64,463			55,944			140,759
Employees and Related Costs		148,286			120,041			286,384			173,738
Repairs and Maintenance		39,071			45,704			69,237			7,401
Insurance		56,932			15,267			64,922			40,266
Other Costs		132,477			152,475			262,782			180,543
Total Cost of Revenues		657,818			689,699			1,163,009			732,679
Gross Profit		382,811			145,329			671,319			123,683
Operating Expenses
Selling, General, and Administration		323,797			355,537			547,300			454,765
Depreciation		27,054			27,525			54,108			55,450
Total Operating Expenses		350,851			383,062			601,408			510,215
Loss from Operations		31,959			(237,733	)		69,911			(386,532	)
Income from Lawsuit Settlement					109,583			78,281			-
Investment Income (Expense)		15			(735	)		73			(1,760	)
Interest Expense		(53,417	)		(6,312	)		(107,576	)		(8,152	)
Total Other Income (Expense)		(53,402	)		102,536			(29,222	)		(9,912	)
Loss Before Provision for Income Taxes		(21,442	)		(135,197	)		40,689			(396,443	)
Benefit for Income Taxes		0			0			0			0
Income/(Loss)	$	(21,442	)	$	(135,197	)	$	40,689		$	(396,443	)
Loss per Share - Basic	$	NM		$	NM		$	NM		$	NM
Loss per Share - Diluted	$	NM		$	NM		$	NM		$	NM

See notes to consolidated financial statements.

2

ENERGY & TECHNOLOGY CORP.

Consolidated Statements of Changes in Stockholders’ Equity

For the Years Ended December 31, 2017 and the Six Months Ended June 30, 2018

											Additional					Total
	Common Stock				Treasury Stock						Paid-In		Retained			Stockholders’
	Shares		Amount		Shares			Amount			Capital		Earnings			Equity
Balance at January 1, 2017		169,198,117	$	169,198		(3,637,351	)	$	(4,076,441	)	$	4,209,591		(3,940,586	)	$	(3,638,238	)
Net (Loss)		-		-					-			-		(1,309,884	)	$	(1,309,884	)
Balance at December 31, 2017		169,198,117	$	169,198		(3,637,351	)	$	(4,076,441	)	$	4,209,591	$	(5,250,470	)	$	(4,948,121	)
Balance at January 1, 2018		169,198,117		169,198		(3,637,351	)		(4,076,441	)		4,209,591		(5,250,470	)		(4,948,121	)
Net Income		-		-								-		40,689		$	40,689
Balance at June 30, 2018		169,198,117	$	169,198	$	(3,637,351	)	$	(4,076,441	)	$	4,209,591	$	(5,209,781	)	$	(4,907,432	)

See notes to consolidated financial statements.

3

ENERGY & TECHNOLOGY, CORP.

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2018 and 2017

	Six Months Ended
	June 30,			June 30,
	2018			2017
Cash Flows from Operating Activities
Net Income (Loss)		40,689			(443,240	)
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Depreciation		110,051			183,977
Fair Value of Investments		(43	)		1,539
Changes in Assets and Liabilities
Trade Receivables		(143,869	)		(206,046	)
Inventory		-			104,748
Prepaid Expenses		29,685			(19,887	)
Accounts Payable		29,364			60,748
Accrued Payroll and Payroll Liabilities		(31,878	)		(26,287	)
Accrued Rent		75,000			75,000
Net Cash Provided by Operating Activities		108,999			(269,448	)
Cash Flows from Investing Activities
Other Assets		(54,556	)		(37,414	)
Purchase of Property and Equipment		(7,461	)		6,248
Net Cash Provided by (Used in) Investing Activities		(62,017	)		(31,166	)
Cash Flows from Financing Activities
Borrowings (Principal Repayments) to Affiliates		(65,871	)		334,190
Borrowings (Principal Repayments) on Notes Payable		80,201			4,202
Net Cash Provided by (Used in) Financing Activities		14,330			338,392
Net Increase (Decrease) in Cash and Cash Equivalents		61,312			37,778
Cash and Cash Equivalents, Beginning of Year		36,168			158,068
Cash and Cash Equivalents, End of Year		97,480			195,846
Supplemental Disclosure of Cash Flow Information
Cash Paid During the Period for Interest		28,871			11,700
Cash Paid During the Period for Income Taxes		-			-

See notes to consolidated financial statements.

4

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 1. Organization

This Financial statement is unaudited.

Energy and Technology, Corp. (the Company) was formed November 29, 2006 under the laws of the State of Delaware in order to acquire and to take over the assets and business of Technical Industries, Inc. (TII).  On that date, the Company issued 125,000,000 shares of common stock to American Interest, LLC, in exchange for founder services rendered. The fair value of these services was considered immaterial, and no amounts were recognized in the financial statements. At the time the shares were issued to American Interest, LLC, the Company had no assets, operations, or cash flows. As such, the stock had no value at the time the Company was established.  The par value was arbitrarily established in order to comply with the State of Delaware laws.  In order to reflect the par value of the shares issued, the Company recognized a discount on capital stock as a contra-equity account within the equity section of the consolidated balance sheets.

On January 3, 2007, the Company entered into a Stock Exchange Agreement and Share Exchange (the Agreement) whereby the sole shareholder of TII exchanged all of the outstanding shares of TII to the Company in exchange for 50,000,000 shares of Company stock.  Accordingly, TII became a wholly-owned subsidiary of the Company.  The assets acquired and liabilities assumed were recorded at the carrying value to TII since TII and the Company were under common control prior to the acquisition.  

TII specializes in the non-destructive testing of structures, vessels, oilfield equipment and pipe, including magnetic and ultrasonic testing, utilizing the latest technologies.  These technologies enable TII to (i) provide detailed information to customers regarding each pipe tested, and (ii) reach energy reserves present technology cannot reach without extra cost to the oil and gas companies.  Because of the intense scrutiny applied to each section of pipe, TII is able to generate data which allows the pipe to be used in the most extreme conditions, and has been proven especially useful in critical and deep water drilling operations in the Gulf of Mexico.

On August 29, 2009, the Company effected a name change from Technical Industries & Energy Corp. to Energy & Technology, Corp. to better reflect the nature of the Company’s business.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Technical Industries, Inc., the accounts of Energy Pipe, LLC (a variable interest entity), and the accounts of Energy Technology Manufacturing & Threading, LLC (a variable interest entity).  All significant intercompany balances and transactions have been eliminated.

The consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of financial information for the interim periods presented.  These adjustments are of a normal recurring nature and include appropriate estimated provisions.

Basis of Accounting

Assets, liabilities, revenues and expenses are recognized on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements.  Accordingly, actual results could differ from those estimates due to information that becomes available subsequent to the issuance of the financial statements or for other reasons.

5

ENERGY & TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 2. Summary of Significant Accounting Policies (Continued)

Revenue Recognition

Revenue for inspection services and manufacturing and threading services is recognized upon completion of the services rendered.  Revenue for the sales of pipe is recognized when pipe is delivered and the customer takes ownership and assumes the risks of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable.

Trade Receivables

Trade accounts receivable are carried at their estimated collectible amounts.  Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. Trade accounts receivable are periodically evaluated for collectability based on past credit.

Allowance for Doubtful Accounts

The company calculates the allowance based on the history with customers and their current financial condition. Provisions of uncollectible amounts are determined based on management’s estimate of collectability. Allowance for doubtful accounts was $3,078 and $3,078 at June 30, 2018 and at December 31, 2017, respectively.

Inventory

Inventory is stated at the lower of cost determined by the specific identification method or market.  At June 30, 2018 and at December 31, 2017, inventory consisted of pipe available for sale.

Property and Equipment

Property and equipment are stated at cost.  Expenditures for property and equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.  The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.

Valuation of Long-Lived Assets

In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of Financial Accounting Standards Board (FASB) ASC 360-10-35.  Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.

6

ENERGY & TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 2. Summary of Significant Accounting Policies (Continued)

Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. Concentration of credit risk with respect to trade receivables is limited due to the Company’s large number of customers. At the end of the fiscal quarter covered by this report, the balance due from three customers represented 69.16 % of receivables, and sales to three customers represented 67.47% of revenues.

The Company maintains cash balances at several financial institutions, and periodically maintains cash in bank accounts in excess of insured limits.  The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.

Advertising

The Company charges the costs of advertising to expense as incurred. Advertising expense was $879 and $6,461, for the six months ended June 30, 2018 and 2017, respectively.

Cash Flows

For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Income Taxes

The Company recognizes income taxes in accordance with FASB ASC 740, “Income Taxes” (formerly Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes). ASC 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.

Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits would be classified as additional income taxes in the statement of operations.

Emerging Growth Company Critical Accounting Policy Disclosure

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company may elect to take advantage of the benefits of this extended transition period in the future.

Recent Accounting Pronouncements

Management does not expect any impact from the adoption of new accounting pronouncements.

Comprehensive Income

The Company had no components of comprehensive income. Therefore, net income (loss) equals comprehensive income (loss) for the periods presented.

Note 3. Patent

On September 4, 2007, the Company was awarded a patent from the United States Patent and Trademark Office pertaining to the development of specialized testing procedures for tubing casing, line pipe, and expandable liners utilized by oil-exploration companies.

In a prior year, the Company’s costs associated with its development of these testing procedures and application for patent have been capitalized and recognized as an asset in the Company’s balance sheet, and was being amortized over 20 years. Audit findings for 2014 resulted in the write off of the Patents and the related Accumulated Amortization due to the fact that they were internally created. The Company now has capitalized all legal expenses incurred in the defense of the Patent.

7

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 4. Property and Equipment

Property and equipment consists of the following at June 30, 2018 and December 31, 2017, respectively:

	2018		2017
Buildings and Improvements	$	3,157,937	$	3,157,937
Equipment		5,982,669		5,975,208
Autos and Trucks		276,682		276,682
Office Furniture		34,025		34,025
Construction in Progress		350,418		350,418
		9,801,731		9,794,270
Less: Accumulated Depreciation		-7,454,064		-7,344,013
Total	$	2,347,669	$	2,450,258

Depreciation expense amounted to $110,052 and $183,977 for the six months ended June 30, 2018 and 2017, respectively.

Note 5. Related Party Transactions

Energy & Technology, Corp is a holding company. Its subsidiaries include: Technical Industries, Inc. (NDT Inspection Services, maintenance, and storage are done in this company), Energy Technology Manufacturing & Threading, LLC (threading and manufacturing services are done in this company), and Energy Pipe, LLC (pipe sales are done in this company). All significant intercompany transactions are eliminated in consolidation.

Additionally, St. Charles Real Estate Corp LLC owns the land in Houston, Texas where the Company maintains its pipe inventory, as well as the Houston facility. The Company has a month to month lease for $12,500 with St. Charles Real Estate but is accruing rent instead of paying. As of June 30, 2018 and December 31, 2017 the total owed is $2,482,500 and $2,407,500, respectively. St. Charles Real Estate Corp LLC is owned by various members of the Sfeir family.

Note 6. Notes Payable

Notes payable at June 30, 2018 and December 31, 2017 consist of the following:

	2018		2017
Secured fixed term note of $48,601.50 due November 2020; fixed interest rate of 3.39%		17,600		22,057
Unsecured variable term note of $3,935,217 ; fixed interest rate of 4.0%		4,494,936		4,416,232
Secured fixed term note of $22,214 due December 2018; fixed interest rate of 6.95%		5,954		-
	$	4,518,490	$	4,438,289
Less: Current Portion		4,509,806		4,425,147
Long-Term Portion	$	8,684	$	13,142

Following are maturities of long-term debt at December 31, 2017:

Fiscal Year Ending
December 31,	Amount
2018	$	8,280
2019		4,862
Total	$	13,142

Note 7. Equity

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $.001 per share. The number of shares issued and outstanding are 165,560,766 as of June 30, 2018 and December 31, 2017. The Company is authorized to issue 10,000,000 shares of preferred stock. As of June 30, 2018 and December 31, 2017, there were no shares issued and outstanding. In 2014, the company attempted to exchange debt for 3,617,075 shares of common stock now in Treasury, However, due to the company’s failure to obtain the approval of the shareholders of the 3,617,075 shares to exchange for debt the transaction did not happen.

8

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 8. Earnings per Share

Earnings (loss) per share are calculated in accordance with ASC 260 “Earnings per Share”. The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised. Potentially dilutive common shares consist of stock options and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive.

There were no potentially dilutive common stock equivalents as of the end of the fiscal quarter covered by this report, therefore basic earnings per share equals diluted earnings per share for the fiscal quarter covered by this report. As the Company incurred a net loss during the fiscal quarter covered by this report, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive.

The weighted average common shares outstanding were 165,560,766 for the fiscal quarter covered by this report and the year ended December 31, 2017.

Note 9. Commitments

The Company leases office premises, operating facilities, and equipment under operating leases expiring in various years through 2030. The Company also leases land for operating purposes on a month to month basis.

Note 10. Litigation and Contingent Liabilities

In the ordinary course of our business, we are, from time to time, subject to various legal proceedings, including matters involving employees, customers, and suppliers. We may enter into discussions regarding settlement of claims or lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations, or liquidity.

Note 11. Major Customers

For the end of the fiscal quarter covered by this report, the Company had three customers which generated revenues in excess of 10% of the Company’s total revenues. Revenues for these customers were approximately 67.47% of total revenues, and total balance due from these customers at the end of the fiscal quarter covered by this report was $290,571.

9

ENERGY &TECHNOLOGY, CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

Note 12. Estimated Fair Value of Financial Instruments

The following disclosure is made in accordance with the requirements of FASB ASC 825, Financial Instruments. Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash. In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.

The result of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment. Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments. ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

While these estimates of fair value are based on management’s judgment of appropriate factors, there is no assurance that if the Company had disposed of such items at June 30, 2018 or December 31, 2017, the estimated fair values would have been achieved. Market values may differ depending on various circumstances not taken into consideration in this methodology. The estimated fair values at June 30, 2018 and December 31, 2017, should not necessarily be considered to apply at subsequent dates.

	June 30,				December 31,
	2018				2017
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial Assets
Investments	$	2,332	$	2,332	$	2,289	$	2,289
	$	2,332	$	2,332	$	2,289	$	2,289

The following methods and assumptions were used by the Company in estimating fair values for financial instruments:

Cash and cash equivalents: The carrying amount reported in the balance sheet approximates fair value.

Notes Payable: The fair value of notes payable approximates the carrying amount reported in the balance sheet.

Due to Affiliates: The carrying amount of due to affiliates approximates fair values.

Note 13. Subsequent Events

In accordance with the subsequent events topic of the FASB ASC, Topic No. 855, Subsequent Events, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The effects of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements at the end of the fiscal quarter covered by this report. In preparing these financial statements, the Company evaluated the events and transactions through the date these financial statements were issued.

10

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

Headquartered in Lafayette, Louisiana, with production facilities in Houston, Texas and Abbeville, Louisiana, Energy & Technology, Corp. provides non-destructive testing (NDT) services, OCTG and oilfield pipe sales, service and storage, and rig and equipment sales. Originally founded on May 11, 1971 as an inspection company, Energy & Technology, Corp. currently serves customers throughout the oil patch of Louisiana and Texas as well as in Canada, Mexico, and in the Gulf of Mexico. The Company’s customer base of over 130 accounts consists of major oil companies, steel mills, material suppliers, drilling companies, tool rental companies, and natural gas storage operators. As noted in Note 11, the company is dependent on a few customers, mainly from the U.S. Government and D.O.T. sub-contracts, due to the oil industry decline. The company’s customers base has slowed down and many closed or bankrupt. Due to the nature of its technology, the Company maintains competitive advantages in offshore deep water and other onshore critical projects. In order to increase revenue and add services andproduct in the current depressed energy industry, the company is now involved in project management, contracting, engineering, manufacturing, procurement, rentals, equipment and supplies providers, coating, storage, maintenance, drilling completion, and logistics.

Technical Industries, Inc., a wholly owned subsidiary of Energy & Technology, Corp., manufactures its own proprietary NDT equipment. The Company’s patented ultrasonic systems have some of the largest OD and pipe length capabilities in the industry and the deepest penetration capability offered for wall thickness measurement. The Company holds patents on certain exclusive inspection technology that allows oil and gas companies to use their current drill strings and other equipment to reach depths that were previously unreachable. This technology can make wells safer, increase the success rate for critical wells, and greatly reduce the chances of a failure. As the industry moves to ever deeper reserves and makes advances in horizontal drilling, oil and gas wells are becoming more and more expensive and difficult to drill, making this technology more of a necessity.

In the oilfield pipe sales and storage segment, Energy & Technology, Corp utilizes a state-of-the-art web based inventory management system that allows each client to view and track projects during processing, to locate inventory throughout the plant, and access reports, bill of ladings, tally sheets, logs and other required information.

Key Ongoing Operational Processes:

Update ISO Certification

Energy & Technology, Corp. recognizes that quality is every bit as important as price and prompt service. This is even truer of the Company’s typical client, who often contracts for services that other companies are not able to provide. In response to our clients’ requirements, the Company has obtained the latest ISO: 9001 certification by Moody’s, recognized in the industry as representing the highest quality control available. As the Company’s business lines are very synergistic, management feels that it can leverage this dominant position to increase share in the markets in which it competes, and likely more in the critical service arena.

Increased Sales and Marketing Effort

Energy & Technology, Corp. hired three qualified personnel in order to help the marketing and sales effort. New business was generated from referrals, technical sessions given to oil and gas and industry related companies, the Company website, and through the use of a marketing company on a limited basis. Recently, several new deep water well permits were issued in the Gulf of Mexico. As a result, ENGT has experienced significant new interest from major oil and gas companies - including site visits and evaluations - for its VisonArray™ deep water and critical well technologies, and ENGT Manufacturing facilities.   Currently, there are several employees whose duties are focused on sales, and one marketing and promotional activity director.  Management believes revenue can be greatly increased by expanding the Company’s sales force.  

11

Diversification

Energy & Technology, Corp. has diligently worked to diversify its business model by adding sales, service, and storage of OCTG and all types of oilfield pipe, as well as equipment leasing and sales. Additional growth will come domestically, but management feels that overseas expansion is critical to the ultimate success of the business plan.

Critical Accounting Policies

The Company has identified the following accounting policies to be the critical accounting policies of the Company:

Revenue Recognition. Revenue for inspection services and manufacturing and threading services are recognized upon completion of the services rendered. Revenue for the sales of pipe is recognized when pipe is delivered and the customer takes ownership and assumes the risks of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable.

Inventory. Inventory is stated at the lower of cost determined by the specific identification method or market. At the end of the fiscal quarter covered by this report, inventory consisted of pipe available for sale.

Property and Equipment. Property and equipment are stated at cost. Expenditures for property and equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred. The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.

Valuation of Long-Lived Assets. In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of SFAS Financial Accounting Standards Board (FASB) ASC 360-10-35. Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.

Discussion of Changes in Financial Condition from December 31, 2017 to June 30, 2018

At June 30, 2018, total assets amounted to $3,969,779 compared to $3,842,274 at December 31, 2017, an increase of $127,505, or 3.32%. The increase is primarily due to an increase in cash and cash equivalents of $61,312 and by an increase in net accounts receivable of $143,869, partially offset by a decrease in net property plant and equipment of $102,590

Our liabilities at June 30, 2018, totaled $8,877,211 compared to $8,788,538 at December 31, 2017, an increase of $88,673, or 1.01%. The increase is primarily due to an increase in accrued rent of $75,000 and an increase in notes payable of $80,201.

Total stockholder’s equity increased from ($4,948,121) at December 31, 2017, to ($4,907,432) at June 30, 2018. This increase was due to our net income for the end of the period covered by this report.

12

Cash and Cash Equivalents

Cash and Cash Equivalents totaled $97,480 at June 30, 2018, an increase of $61,312 from the balance of $36,168 at December 31, 2017. The increase in cash and cash equivalents was primarily due to the cash generated from operating activities partially offset by the amounts used to reduce debt for the end of the fiscal quarter covered by this report.

Inventory

Inventory consists primarily of pipe held for sale to our customers. We began purchasing pipe for sale to customers in December, 2007. This was an opportunity for us to expand our services to our customers. It is anticipated that the Company will continue its efforts to expand its sales of pipe.

Property and Equipment

The decrease in property and equipment is primarily due to depreciation for the end of the fiscal quarter covered by this report of $102,590.

Accounts Payable

Accounts payable at June 30, 2018 totaled $1,008,104 compared to $978,740 at December 31, 2017, an increase of $29,364. The increase is primarily due to the accounts owed in the course of operations.

Discussion of Results of Operations for the Three Months Ended June 30, 2018 compared to the Three Months Ended June 30, 2017

Revenues

Our revenue for the three months ended June 30, 2018, was $1,040,629, compared to $4,835,028, for the three months ended June 30, 2017 an increase of $205,601, or 25%. The increase is attributable primarily to an increase in exploration technologies.

The following table presents the composition of revenue for the three months ended June 30, 2018 and 2017:

	2018					2017					Variance
	Dollars		Percentage			Dollars		Percentage			Dollars
Revenue:
Exploration Technologies	$	636,437		61.2	%	$	488,497		46.9	%	$	147,940
Drilling, OCTG, & Equipment Sales	$	6,757		0.6	%	$	66,841		6.4	%	$	(60,084	)
Warehouse & Storage Fees	$	73,506		7.1	%	$	76,217		7.3	%	$	(2,711	)
Rebillable Income	$	141,020		13.6	%	$	85,593		8.2	%	$	55,426
Manufacturing	$	182,910		17.6	%	$	117,880		11.3	%	$	65,030
Total Revenue	$	1,040,629		100.0	%	$	835,028		100.0	%	$	205,601

Cost of Revenue and Gross Profit

Our cost of revenue for the three months ended June 30, 2018, was $657,818, or 63.25% of revenues, compared to $689,699, or 82.60% of revenues, for the three months ended June 30, 2017. The overall decrease in our cost of revenue is primarily due to a decrease in Materials and Supplies which includes the cost of pipe sold.

The following table presents the composition of cost of revenue for the three months ended June 30, 2018 and 2017:

	2018					2017					Variance
	Dollars		Percentage			Dollars		Percentage			Dollars
Cost of Revenue:
Employee and Related Costs	$	148,286		22.5	%	$	120,041		18.2	%	$	28,245
Materials and Supplies		71,398		10.9	%		121,688		18.5	%	$	(50,290	)
Subcontract Labor		173,407		26.4	%		170,061		25.9	%	$	3,346
Depreciation and Amortization		36,247		5.5	%		64,463		9.8	%	$	(28,216	)
Repairs and Maintenance		39,071		5.9	%		45,704		6.9	%	$	(6,633	)
Insurance		56,932		8.7	%		15,267		2.3	%	$	41,665
Other Costs		132,477		20.1	%		152,475		23.2	%	$	(19,998	)
Total Cost of Revenues	$	657,818		100.0	%	$	689,699		104.8	%	$	(31,881	)

Due to limitations with the pool of qualified individuals, we utilized the services of subcontractors to assist us in providing timely and quality service to our customers.  We will continue our efforts to attract employ and retain qualified individuals to serve the needs of our customers.

Operating Expenses

For the three months ended June 30, 2018, our operating expenses totaled $350,851 as compared to $383,062 in 2017, representing a decrease of $32,211, or 8.41%. The largest components of our operating expense for 2018 consist of salaries and wages and professional services. Salaries and wages for general and administrative personnel was $156,996 for the three months ended June 30, 2018, compared to $165,612 for the three months ended June 30, 2017, a decrease of $8,616, or 5.2%. The decrease is primarily attributable to the company managing labor more efficiently. Professional services expense decreased from $56,906 for the three months ended June 30, 2017, to $19,295 for the three months ended June 30, 2018, a decrease of $37,611, or 66.1%. The decrease is primarily a result of a decrease in consulting fees.

Other Income and Expense

Other income and expense consists of investment income, interest expense, and gains and losses from the sale and disposal of assets. Other Income, net, totaled $102,536 for the three months ended June 30, 2017, compared to other expense, net, of $53,402, for the three months ended June 30, 2018, a decrease of $155,938 or 152.08%. This increase is primarily due to the settlement of a lawsuit.

13

Interest expense totaled $6,312 for the three months ended June 30, 2017, as compared to $53,417 for the three months ended June 30, 2018, an increase of $47,105, or 746.27%.  Interest expense pertains primarily to amounts due to affiliates as well as to our notes payable with third parties.

Discussion of Results of Operations for the Six Months Ended June 30, 2018 compared to the Six Months Ended June 30, 2017

Revenues

Our revenue for the six months ended June 30, 2018, was $1,834,327, compared to $1,379,682, for the six months ended June 30, 2017, an increase of $454,645, or 32.95%. The increase is attributable primarily to an increase in exploration technologies.

The following table presents the composition of revenue for the six months ended June 30, 2018 and 2017:

	2018					2017					Variance
	Dollars		Percentage			Dollars		Percentage			Dollars
Revenue:
Exploration Technologies	$	1,101,007		105.8	%	$	727,481		69.9	%	$	373,526
Drilling, OCTG, & Equipment Sales	$	98,292		9.4	%	$	95,712		9.2	%	$	2,580
Warehouse & Storage Fees	$	143,968		13.8	%	$	152,618		14.7	%	$	(8,650	)
Rebillable Income	$	208,948		20.1	%	$	118,957		11.4	%	$	89,990
Manufacturing	$	282,113		27.1	%	$	284,914		27.4	%	$	(2,801	)
Total Revenue	$	1,834,327		100.0	%	$	1,379,682		100.0	%	$	454,645

Cost of Revenue and Gross Profit

Our cost of revenue for the six months ended June 30, 2018, was $1,163,009, or 63.40% of revenues, compared to $1,190,624, or 86.3% of revenues, for the six months ended June 30, 2017. The overall decrease in our cost of revenue is primarily due to a decrease in Depreciation.

The following table presents the composition of cost of revenue for the six months ended June 30, 2018 and 2017:

	2018					2017					Variance
Cost of Revenue:	Dollars		Percentage			Dollars		Percentage			Dollars
Employee and Related Costs	$	286,384		24.6	%	$	222,947		19.2	%	$	63,437
Materials and Supplies		128,776		11.1	%		188,929		16.2	%	$	(60,153	)
Subcontract Labor		294,964		25.4	%		283,808		24.4	%	$	11,156
Depreciation and Amortization		55,944		4.8	%		128,926		11.1	%	$	(72,982	)
Repairs and Maintenance		69,237		6.0	%		74,039		6.4	%	$	(4,802	)
Insurance		64,922		5.6	%		32,263		2.8	%	$	32,660
Other Costs		262,782		22.6	%		259,714		22.3	%	$	3,069
Total Cost of Revenues	$	1,163,009		100.0	%	$	1,190,624		102.4	%	$	(27,616	)

Due to limitations with the pool of qualified individuals, we utilized the services of subcontractors to assist us in providing timely and quality service to our customers.  We will continue our efforts to attract employ and retain qualified individuals to serve the needs of our customers.

14

Operating Expenses

For the six months ended June 30, 2018, our operating expenses totaled $601,408 as compared to $728,720 in 2017, representing a decrease of $127,312, or 17.47%. The largest components of our operating expense for 2018 consist of salaries and wages and Professional Services. Salaries and wages for general and administrative personnel was $265,534 for the six months ended June 30, 2018, compared to $296,787 for the six months ended June 30, 2017, a decrease of $31,253, or 10.53%.

Professional Services decreased from $132,376 for the six months ended June 30, 2017, to $27,665 for the six months ended June 30, 2018, a decrease of $104,711, or 79.10%.

Other Income and Expense

Other income and expense consists of investment income, interest expense, and gains and losses from the sale and disposal of assets. Other Income, net, totaled $29,222 for the six months ended June 30, 2018, compared to other expense, net, of $9,912, for the six months ended June 30, 2017, a decrease of $125,644 or 429.96%. This is primarily the result from Income from Lawsuits settled. Interest expense totaled $8,152 for the six months ended June 30, 2017, as compared to $107,576 for the six months ended June 30, 2018, an increase of $95,875, or 89.12%.  Interest expense pertains primarily to amounts due to affiliates as well as to our notes payable with third parties.

Capital Resources and Liquidity

As of the end of the fiscal quarter covered by this report, we had $97,480 in cash and cash equivalents. Our cash outflows have consisted primarily of expenses associated with our operations. These outflows have been offset by the timely inflows of cash from our customers for sales that have been made. We have been able to utilize our relationships with affiliated entities to stabilize our liquidity needs.

We believe we can satisfy our cash requirements for the next twelve months only with our current cash and additional loans. However, completion of our plan of operation is subject to attaining adequate revenue. We cannot assure investors that adequate revenues will be generated. In the absence of our projected revenues, we may be unable to proceed with our plan of operations. Even without adequate revenues within the next twelve months, we still anticipate being able to continue with our present activities, but we will require financing to potentially achieve our growth goals.

In the event we are not successful in reaching our initial revenue targets, additional funds may be required, and we may not be able to proceed with our business plan for the development and marketing of our core services.  Should this occur, we would likely seek additional financing to support the continued operation of our business.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We do not hold any derivative instruments and do not engage in any hedging activities.

Item 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls. The Company maintains a set of disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports filed or submitted under the Securities Exchange Act of 1934, as amended (“Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely discussion regarding required disclosure. Management, with the participation of the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, the CEO and CFO concluded that the disclosure controls and procedures were effective as of the period covered by this report.

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

(b) Changes in internal control over financial reporting. There have been no changes in the Company’s internal control over financial reporting during the second quarter of 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

15

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

In the ordinary course of our business, we are, from time to time, subject to various legal proceedings, including matters involving employees, customers, and suppliers. We may enter into discussions regarding settlement of claims or lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations, or liquidity. Nevertheless, a disgruntled employee sued for the purchase back of his bonus stock which is in violation of applicable laws.  An adverse decision, which is not anticipated, would not have material adverse effect on our financial condition or results of operations.

Item 1A. Risk Factors.

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None

Item 6. Exhibits and Reports of Form 8-K.

(a) Exhibits

31.1	Certification of George M. Sfeir, President, Chief Executive Officer, Chief Financial Officer, Treasurer, and a Director of Energy & Technology Corp., pursuant to Rule 15d-14(a) of the Securities Exchange Act of 1934 as amended.
32.1	Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002

(b) Reports of Form 8-K

None. 

Item 7. Up-dates and Clarifications to prior non-financial information

None.

16

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ENERGY & TECHNOLOGY, CORP.
Date: August 14, 2018	By:	/s/ George M. Sfeir
		George M. Sfeir
		Chief Executive Officer, Chief Financial Officer, President, Director, and Treasurer

17

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, George M. Sfeir, certify that:

1.	I have reviewed this Form 10-Q of Energy & Technology Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants of, and for, the periods present in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financing reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	ENERGY & TECHNOLOGY, CORP.
Date: August 14, 2018	By:	/s/ George M. Sfeir
		George M. Sfeir
		Chief Executive Officer, Chief Financial Officer, President, Director, and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Annual Report of Energy and Technology, Corp. (the “Company”) on Form 10-Q for the period ending June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, George M. Sfeir, Chief Executive Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

1.	Such Annual Report on Form 10-Q for the period ending June 30, 2018, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in such Annual Report on Form 10-Q for the period ending June 30, 2018, fairly presents, in all material respects, the financial condition and results of operations of Energy and Technology, Corp.

	ENERGY & TECHNOLOGY, CORP.
Date: August 14, 2018	By:	/s/ George M. Sfeir
		George M. Sfeir
		Chief Executive Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	ENERGY & TECHNOLOGY CORP.
Entity Central Index Key	0001432963
Trading Symbol	ENGT
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		165,560,766

XML

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and Cash Equivalents	$ 97,480	$ 36,168
Investments	2,332	2,289
Accounts Receivable
Trade, Net	417,052	273,183
Inventory, Net	903,373	903,373
Prepaid Expenses	21,150	50,835
Other Current Assets	180,724	126,168
Total Current Assets	1,622,112	1,392,016
Property and Equipment, Net
Held for Operations, Net	1,997,250	2,099,840
Construction in Progress	350,418	350,418
Total Property & Equipment	2,347,668	2,450,258
Total Assets	3,969,779	3,842,274
Current Liabilities
Accounts Payable	1,008,104	978,740
Accrued Liabilities	50,157	82,035
Accrued Rent	2,482,500	2,407,500
Current Maturities of Notes Payable	4,509,806	4,425,147
Due to Affiliates	792,673	856,687
Income Taxes Payable	25,287	25,287
Total Current Liabilities	8,868,527	8,775,396
Long-Term Liabilities
Notes Payable	8,684	13,142
Total Liabilities	8,877,211	8,788,538
Stockholders' Equity
Preferred Stock - $.001 Par Value; 10,000,000 Shares Authorized, None Issued
Common Stock - $.001 Par Value; 250,000,000 Shares Authorized, 169,198,117 Shares Issued at March 31, 2018 and December 31, 2017, respectively	169,198	169,198
Paid-In Capital	4,209,592	4,209,592
Treasury Stock, at cost (3,637,351 Shares)	(4,076,441)	(4,076,441)
Retained Earnings	(5,209,782)	(5,250,470)
Total Stockholders' Equity	(4,907,432)	(4,948,121)
Total Liabilities and Stockholders' Equity	$ 3,969,779	$ 3,840,416

XML

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	169,198,117	169,198,117
Treasury stock, shares	3,637,351	3,637,351

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Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenues	$ 1,040,629	$ 835,028	$ 1,834,327	$ 856,362
Cost of Revenues
Materials and Supplies	71,398	121,688	128,776	36,452
Subcontract Labor	173,407	170,061	294,964	153,521
Depreciation	36,247	64,463	55,944	140,759
Employees and Related Costs	148,286	120,041	286,384	173,738
Repairs and Maintenance	39,071	45,704	69,237	7,401
Insurance	56,932	15,267	64,922	40,266
Other Costs	132,477	152,475	262,782	180,543
Total Cost of Revenues	657,818	689,699	1,163,009	732,679
Gross Profit	382,811	145,329	671,319	123,683
Operating Expenses
Selling, General, and Administration	323,797	355,537	547,300	454,765
Depreciation	27,054	27,525	54,108	55,450
Total Operating Expenses	350,851	383,062	601,408	510,215
Loss from Operations	31,959	(237,733)	69,911	(386,532)
Income from Lawsuit Settlement		109,583	78,281
Investment Income (Expense)	15	(735)	73	(1,760)
Interest Expense	(53,417)	(6,312)	(107,576)	(8,152)
Total Other Income (Expense)	(53,402)	102,536	(29,222)	(9,912)
Loss Before Provision for Income Taxes	(21,442)	(135,197)	40,689	(396,443)
Benefit for Income Taxes	0	0	0	0
Income/(Loss)	$ (21,442)	$ (135,197)	$ 40,689	$ (396,443)
Loss per Share - Basic
Loss per Share - Diluted

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Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Total
Beginning balance at Dec. 31, 2016	$ 169,198	$ (4,076,441)	$ 4,209,591	$ (3,940,586)	$ (3,638,238)
Beginning balance, Shares at Dec. 31, 2016	169,198,117	(3,637,351)
Net Income (Loss)				(1,309,884)	(1,309,884)
Ending balance at Dec. 31, 2017	$ 169,198	$ (4,076,441)	4,209,591	(5,250,470)	(4,948,121)
Ending balance, Shares at Dec. 31, 2017	169,198,117	(3,637,351)
Net Income (Loss)				40,689	40,689
Ending balance at Jun. 30, 2018	$ 169,198	$ (4,076,441)	$ 4,209,591	$ (5,209,781)	$ (4,907,432)
Ending balance, Shares at Jun. 30, 2018	169,198,117	(3,637,351)

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Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities
Net Income (Loss)	$ 40,689	$ (396,443)
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Depreciation	110,051	183,977
Fair Value of Investments	(43)	1,539
Changes in Assets and Liabilities
Trade Receivables	(143,869)	(206,046)
Inventory		104,748
Prepaid Expenses	29,685	(19,887)
Accounts Payable	29,364	60,748
Accrued Payroll and Payroll Liabilities	(31,878)	(26,287)
Accrued Rent	75,000	75,000
Net Cash Provided by Operating Activities	108,999	(269,448)
Cash Flows from Investing Activities
Other Assets	(54,556)	(37,414)
Purchase of Property and Equipment	(7,461)	6,248
Net Cash Provided by (Used in) Investing Activities	(62,017)	(31,166)
Cash Flows from Financing Activities
Borrowings (Principal Repayments) to Affiliates	(65,871)	334,190
Borrowings (Principal Repayments) on Notes Payable	80,201	4,202
Net Cash Provided by (Used in) Financing Activities	14,330	338,392
Net Increase (Decrease) in Cash and Cash Equivalents	61,312	37,778
Cash and Cash Equivalents, Beginning of Year	36,168	158,068
Cash and Cash Equivalents, End of Year	97,480	195,846
Supplemental Disclosure of Cash Flow Information
Cash Paid During the Period for Interest	28,871	11,700
Cash Paid During the Period for Income Taxes

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Organization

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Note 1. Organization

This Financial statement is unaudited.

Energy and Technology, Corp. (the Company) was formed November 29, 2006 under the laws of the State of Delaware in order to acquire and to take over the assets and business of Technical Industries, Inc. (TII).  On that date, the Company issued 125,000,000 shares of common stock to American Interest, LLC, in exchange for founder services rendered. The fair value of these services was considered immaterial, and no amounts were recognized in the financial statements. At the time the shares were issued to American Interest, LLC, the Company had no assets, operations, or cash flows. As such, the stock had no value at the time the Company was established.  The par value was arbitrarily established in order to comply with the State of Delaware laws.  In order to reflect the par value of the shares issued, the Company recognized a discount on capital stock as a contra-equity account within the equity section of the consolidated balance sheets.

On January 3, 2007, the Company entered into a Stock Exchange Agreement and Share Exchange (the Agreement) whereby the sole shareholder of TII exchanged all of the outstanding shares of TII to the Company in exchange for 50,000,000 shares of Company stock.  Accordingly, TII became a wholly-owned subsidiary of the Company.  The assets acquired and liabilities assumed were recorded at the carrying value to TII since TII and the Company were under common control prior to the acquisition.  

TII specializes in the non-destructive testing of structures, vessels, oilfield equipment and pipe, including magnetic and ultrasonic testing, utilizing the latest technologies.  These technologies enable TII to (i) provide detailed information to customers regarding each pipe tested, and (ii) reach energy reserves present technology cannot reach without extra cost to the oil and gas companies.  Because of the intense scrutiny applied to each section of pipe, TII is able to generate data which allows the pipe to be used in the most extreme conditions, and has been proven especially useful in critical and deep water drilling operations in the Gulf of Mexico.

On August 29, 2009, the Company effected a name change from Technical Industries & Energy Corp. to Energy & Technology, Corp. to better reflect the nature of the Company’s business.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Technical Industries, Inc., the accounts of Energy Pipe, LLC (a variable interest entity), and the accounts of Energy Technology Manufacturing & Threading, LLC (a variable interest entity).  All significant intercompany balances and transactions have been eliminated.

The consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of financial information for the interim periods presented.  These adjustments are of a normal recurring nature and include appropriate estimated provisions.

Basis of Accounting

Assets, liabilities, revenues and expenses are recognized on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements.  Accordingly, actual results could differ from those estimates due to information that becomes available subsequent to the issuance of the financial statements or for other reasons.

Revenue Recognition

Revenue for inspection services and manufacturing and threading services is recognized upon completion of the services rendered.  Revenue for the sales of pipe is recognized when pipe is delivered and the customer takes ownership and assumes the risks of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable.

Trade Receivables

Trade accounts receivable are carried at their estimated collectible amounts.  Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. Trade accounts receivable are periodically evaluated for collectability based on past credit.

Allowance for Doubtful Accounts

The company calculates the allowance based on the history with customers and their current financial condition. Provisions of uncollectible amounts are determined based on management’s estimate of collectability. Allowance for doubtful accounts was $3,078 and $3,078 at June 30, 2018 and at December 31, 2017, respectively.

Inventory

Inventory is stated at the lower of cost determined by the specific identification method or market.  At June 30, 2018 and at December 31, 2017, inventory consisted of pipe available for sale.

Property and Equipment

Property and equipment are stated at cost.  Expenditures for property and equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.  The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.

Valuation of Long-Lived Assets

In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of Financial Accounting Standards Board (FASB) ASC 360-10-35.  Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.

Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. Concentration of credit risk with respect to trade receivables is limited due to the Company’s large number of customers. At the end of the fiscal quarter covered by this report, the balance due from three customers represented 69.16 % of receivables, and sales to three customers represented 67.47% of revenues.

The Company maintains cash balances at several financial institutions, and periodically maintains cash in bank accounts in excess of insured limits.  The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.

Advertising

The Company charges the costs of advertising to expense as incurred. Advertising expense was $879 and $6,461, for the six months ended June 30, 2018 and 2017, respectively.

Cash Flows

For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Income Taxes

The Company recognizes income taxes in accordance with FASB ASC 740, “Income Taxes” (formerly Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes). ASC 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.

Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits would be classified as additional income taxes in the statement of operations.

Emerging Growth Company Critical Accounting Policy Disclosure

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company may elect to take advantage of the benefits of this extended transition period in the future.

Recent Accounting Pronouncements

Management does not expect any impact from the adoption of new accounting pronouncements.

Comprehensive Income

The Company had no components of comprehensive income. Therefore, net income (loss) equals comprehensive income (loss) for the periods presented.

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Patent

6 Months Ended

Jun. 30, 2018

Patent [Abstract]

Patent

Note 3. Patent

On September 4, 2007, the Company was awarded a patent from the United States Patent and Trademark Office pertaining to the development of specialized testing procedures for tubing casing, line pipe, and expandable liners utilized by oil-exploration companies.

In a prior year, the Company’s costs associated with its development of these testing procedures and application for patent have been capitalized and recognized as an asset in the Company’s balance sheet, and was being amortized over 20 years. Audit findings for 2014 resulted in the write off of the Patents and the related Accumulated Amortization due to the fact that they were internally created. The Company now has capitalized all legal expenses incurred in the defense of the Patent.

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Property and Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 4. Property and Equipment

Property and equipment consists of the following at June 30, 2018 and December 31, 2017, respectively:

	2018		2017
Buildings and Improvements	$	3,157,937	$	3,157,937
Equipment		5,982,669		5,975,208
Autos and Trucks		276,682		276,682
Office Furniture		34,025		34,025
Construction in Progress		350,418		350,418
		9,801,731		9,794,270
Less: Accumulated Depreciation		-7,454,064		-7,344,013
Total	$	2,347,669	$	2,450,258

Depreciation expense amounted to $110,052 and $183,977 for the six months ended June 30, 2018 and 2017, respectively.

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Related Party Transactions

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions

Note 5. Related Party Transactions

Energy & Technology, Corp is a holding company. Its subsidiaries include: Technical Industries, Inc. (NDT Inspection Services, maintenance, and storage are done in this company), Energy Technology Manufacturing & Threading, LLC (threading and manufacturing services are done in this company), and Energy Pipe, LLC (pipe sales are done in this company). All significant intercompany transactions are eliminated in consolidation.

Additionally, St. Charles Real Estate Corp LLC owns the land in Houston, Texas where the Company maintains its pipe inventory, as well as the Houston facility. The Company has a month to month lease for $12,500 with St. Charles Real Estate but is accruing rent instead of paying. As of June 30, 2018 and December 31, 2017 the total owed is $2,482,500 and $2,407,500, respectively. St. Charles Real Estate Corp LLC is owned by various members of the Sfeir family.

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Notes Payable

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Notes Payable

Note 6. Notes Payable

Notes payable at June 30, 2018 and December 31, 2017 consist of the following:

	2018		2017
Secured fixed term note of $48,601.50 due November 2020; fixed interest rate of 3.39%		17,600		22,057
Unsecured variable term note of $3,935,217 ; fixed interest rate of 4.0%		4,494,936		4,416,232
Secured fixed term note of $22,214 due December 2018; fixed interest rate of 6.95%		5,954		-
	$	4,518,490	$	4,438,289
Less: Current Portion		4,509,806		4,425,147
Long-Term Portion	$	8,684	$	13,142

Following are maturities of long-term debt at December 31, 2017:

Fiscal Year Ending
December 31,	Amount
2018	$	8,280
2019		4,862
Total	$	13,142

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Equity

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Equity

Note 7. Equity

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $.001 per share. The number of shares issued and outstanding are 165,560,766 as of June 30, 2018 and December 31, 2017. The Company is authorized to issue 10,000,000 shares of preferred stock. As of June 30, 2018 and December 31, 2017, there were no shares issued and outstanding. In 2014, the company attempted to exchange debt for 3,617,075 shares of common stock now in Treasury, However, due to the company’s failure to obtain the approval of the shareholders of the 3,617,075 shares to exchange for debt the transaction did not happen.

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings per Share

Note 8. Earnings per Share

Earnings (loss) per share are calculated in accordance with ASC 260 “Earnings per Share”. The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised. Potentially dilutive common shares consist of stock options and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive.

There were no potentially dilutive common stock equivalents as of the end of the fiscal quarter covered by this report, therefore basic earnings per share equals diluted earnings per share for the fiscal quarter covered by this report. As the Company incurred a net loss during the fiscal quarter covered by this report, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive.

The weighted average common shares outstanding were 165,560,766 for the fiscal quarter covered by this report and the year ended December 31, 2017.

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Commitments

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments

Note 9. Commitments

The Company leases office premises, operating facilities, and equipment under operating leases expiring in various years through 2030. The Company also leases land for operating purposes on a month to month basis.

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Litigation and Contingent Liabilities

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Litigation and Contingent Liabilities

Note 10. Litigation and Contingent Liabilities

In the ordinary course of our business, we are, from time to time, subject to various legal proceedings, including matters involving employees, customers, and suppliers. We may enter into discussions regarding settlement of claims or lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations, or liquidity.

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Major Customers

6 Months Ended

Jun. 30, 2018

Major Customers [Abstract]

Major Customers

Note 11. Major Customers

For the end of the fiscal quarter covered by this report, the Company had three customers which generated revenues in excess of 10% of the Company’s total revenues. Revenues for these customers were approximately 67.47% of total revenues, and total balance due from these customers at the end of the fiscal quarter covered by this report was $290,571.

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Estimated Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Estimated Fair Value of Financial Instruments

Note 12. Estimated Fair Value of Financial Instruments

The following disclosure is made in accordance with the requirements of FASB ASC 825, Financial Instruments. Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash. In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.

The result of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment. Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments. ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

While these estimates of fair value are based on management’s judgment of appropriate factors, there is no assurance that if the Company had disposed of such items at June 30, 2018 or December 31, 2017, the estimated fair values would have been achieved. Market values may differ depending on various circumstances not taken into consideration in this methodology. The estimated fair values at June 30, 2018 and December 31, 2017, should not necessarily be considered to apply at subsequent dates.

	June 30,				December 31,
	2018				2017
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial Assets
Investments	$	2,332	$	2,332	$	2,289	$	2,289
	$	2,332	$	2,332	$	2,289	$	2,289

The following methods and assumptions were used by the Company in estimating fair values for financial instruments:

Cash and cash equivalents: The carrying amount reported in the balance sheet approximates fair value.

Notes Payable: The fair value of notes payable approximates the carrying amount reported in the balance sheet.

Due to Affiliates: The carrying amount of due to affiliates approximates fair values.

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Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Note 13. Subsequent Events

In accordance with the subsequent events topic of the FASB ASC, Topic No. 855, Subsequent Events, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The effects of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements at the end of the fiscal quarter covered by this report. In preparing these financial statements, the Company evaluated the events and transactions through the date these financial statements were issued.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Technical Industries, Inc., the accounts of Energy Pipe, LLC (a variable interest entity), and the accounts of Energy Technology Manufacturing & Threading, LLC (a variable interest entity).  All significant intercompany balances and transactions have been eliminated.

The consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of financial information for the interim periods presented.  These adjustments are of a normal recurring nature and include appropriate estimated provisions.

Basis of Accounting

Basis of Accounting

Assets, liabilities, revenues and expenses are recognized on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements.  Accordingly, actual results could differ from those estimates due to information that becomes available subsequent to the issuance of the financial statements or for other reasons.

Revenue Recognition

Revenue Recognition

Revenue for inspection services and manufacturing and threading services is recognized upon completion of the services rendered.  Revenue for the sales of pipe is recognized when pipe is delivered and the customer takes ownership and assumes the risks of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable.

Trade Receivables

Trade Receivables

Trade accounts receivable are carried at their estimated collectible amounts.  Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. Trade accounts receivable are periodically evaluated for collectability based on past credit.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The company calculates the allowance based on the history with customers and their current financial condition. Provisions of uncollectible amounts are determined based on management’s estimate of collectability. Allowance for doubtful accounts was $3,078 and $3,078 at June 30, 2018 and at December 31, 2017, respectively.

Inventory

Inventory

Inventory is stated at the lower of cost determined by the specific identification method or market.  At June 30, 2018 and at December 31, 2017, inventory consisted of pipe available for sale.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost.  Expenditures for property and equipment and items that substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.  The cost and related accumulated depreciation of property and equipment disposed of are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided utilizing the straight-line method over the estimated useful lives of the assets capitalized.

Valuation of Long-Lived Assets

Valuation of Long-Lived Assets

In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of Financial Accounting Standards Board (FASB) ASC 360-10-35.  Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.

Credit Risk

Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. Concentration of credit risk with respect to trade receivables is limited due to the Company’s large number of customers. At the end of the fiscal quarter covered by this report, the balance due from three customers represented 69.16 % of receivables, and sales to three customers represented 67.47% of revenues.

The Company maintains cash balances at several financial institutions, and periodically maintains cash in bank accounts in excess of insured limits.  The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.

Advertising

Advertising

The Company charges the costs of advertising to expense as incurred. Advertising expense was $879 and $6,461, for the six months ended June 30, 2018 and 2017, respectively.

Cash Flows

Cash Flows

For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Income Taxes

Income Taxes

The Company recognizes income taxes in accordance with FASB ASC 740, “Income Taxes” (formerly Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes). ASC 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.

Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits would be classified as additional income taxes in the statement of operations.

Emerging Growth Company Critical Accounting Policy Disclosure

Emerging Growth Company Critical Accounting Policy Disclosure

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company may elect to take advantage of the benefits of this extended transition period in the future.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Management does not expect any impact from the adoption of new accounting pronouncements.

Comprehensive Income

Comprehensive Income

The Company had no components of comprehensive income. Therefore, net income (loss) equals comprehensive income (loss) for the periods presented.

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Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Summary of property and equipment

	2018			2017
Buildings and Improvements		$	3,157,937		$	3,157,937
Equipment			5,982,669			5,975,208
Autos and Trucks			276,682			276,682
Office Furniture			34,025			34,025
Construction in Progress			350,418			350,418
			9,801,731			9,794,270
Less: Accumulated Depreciation			-7,454,064			-7,344,013
Total		$	2,347,669		$	2,450,258

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Notes Payable (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of notes payable

	2018			2017
Secured fixed term note of $48,601.50 due November 2020; fixed interest rate of 3.39%			17,600			22,057
Unsecured variable term note of $3,935,217 ; fixed interest rate of 4.0%			4,494,936			4,416,232
Secured fixed term note of $22,214 due December 2018; fixed interest rate of 6.95%			5,954			-
		$	4,518,490		$	4,438,289
Less: Current Portion			4,509,806			4,425,147
Long-Term Portion		$	8,684		$	13,142

Summary of maturities of long-term debt

Fiscal Year Ending
December 31,	Amount
2018	$	8,280
2019		4,862
Total	$	13,142

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Estimated Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Summary of estimated fair value of financial instruments

	June 30,					December 31,
		2018					2017
		Carrying		Fair			Carrying		Fair
		Amount		Value			Amount		Value
Financial Assets
Investments		$	2,332	$	2,332		$	2,289	$	2,289
		$	2,332	$	2,332		$	2,289	$	2,289

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Organization (Details)	6 Months Ended
	Jun. 30, 2018 shares
Organization (Textual)
Common stock, shares issued to American interest, LLC, in exchange for founder services	125,000,000
Stock issued in exchange of all outstanding shares of Technical Industries, Inc.	50,000,000

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Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) Customer	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	67.47%
Allowance for doubtful accounts | $	$ 3,078		$ 3,078
Advertising expense | $	$ 879	$ 6,461
Tax benefit	More than 50%.
Sales Revenue, Goods, Net [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	10.00%
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies (Textual)
Number of major customers | Customer	3
Concentration risk, percentage	67.47%
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies (Textual)
Number of major customers | Customer	3
Concentration risk, percentage	69.16%

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Property and Equipment (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Summary of property and equipment
Property and equipment, gross	$ 9,801,731	$ 9,758,769
Less: Accumulated Depreciation	(7,454,064)	(7,344,013)
Total	2,347,668	2,450,258
Office Furniture [Member]
Summary of property and equipment
Property and equipment, gross	34,025	34,025
Autos and Trucks [Member]
Summary of property and equipment
Property and equipment, gross	276,682	276,682
Equipment [Member]
Summary of property and equipment
Property and equipment, gross	5,982,669	5,975,208
Buildings and Improvements [Member]
Summary of property and equipment
Property and equipment, gross	3,157,937	3,157,937
Construction in Progress [Member]
Summary of property and equipment
Property and equipment, gross	$ 350,418	$ 350,418

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Property and Equipment (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Property and Equipment (Textual)
Depreciation expense	$ 110,051	$ 183,977

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Related Party Transactions (Details) - St. Charles Real Estate Corp LLC - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Related Party Transactions (Textual)
Lease	$ 12,500
Total due to related party	$ 2,482,500	$ 2,407,500

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Notes Payable (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Summary of notes payable
Notes payable	$ 4,518,490	$ 4,438,289
Less: Current Portion	4,509,806	4,425,147
Long-Term Portion	8,684	13,142
Due November 2020 [Member]
Summary of notes payable
Notes payable	17,600	22,057
Due December 2018 [Member]
Summary of notes payable
Notes payable	5,954
Unsecured variable term note [Member]
Summary of notes payable
Notes payable	$ 4,494,936	$ 4,416,232

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Notes Payable (Details 1)	Dec. 31, 2017 USD ($)
Maturities of long-term debt
2018	$ 8,280
2019	4,862
Total	$ 13,142

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Notes Payable (Details Textual)	6 Months Ended
	Jun. 30, 2018 USD ($)
Notes Payable Due Date [Member]
Notes payable (Textual)
Secured notes payable amount	$ 48,601.50
Due date of notes payable	Nov. 30, 2020
Interest rate	3.39%
Notes Payable Due Date One [Member]
Notes payable (Textual)
Secured notes payable amount	$ 22,214
Due date of notes payable	Dec. 31, 2018
Interest rate	6.95%
Unsecured Variable Term Note [Member]
Notes payable (Textual)
Unsecured notes payable amount	$ 3,935,217
Interest rate	4.00%

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Equity (Details) - $ / shares	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2014
Equity (Textual)
Common stock, shares authorized	250,000,000	250,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	169,198,117	169,198,117
Common stock, shares outstanding	165,560,766	165,560,766
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Purchase of common stock in treasury shares			3,617,075

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Earnings Per Share (Details) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Earnings Per Share (Textual)
Weighted average common shares outstanding	165,560,766	165,560,766

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Commitments (Details)	6 Months Ended
	Jun. 30, 2018
Commitments (Textual)
Operating lease expiration period	Operating leases expiring in various years through 2030.

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Major Customers (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) Customer
Major Customers (Textual)
Concentration risk, percentage	67.47%
Balance of due from customer | $	$ 2,905,710
Sales Revenue, Goods, Net [Member]
Major Customers (Textual)
Number of major customers for revenues generation | Customer	3
Concentration risk, percentage	10.00%

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Estimated Fair Value of Financial Instruments (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Financial Assets
Investments, Carrying Amount	$ 2,332	$ 2,889
Investments, Fair Value	2,332	2,889
Total Investments, Carrying Amount	2,332	2,289
Total Investments, Fair Value	$ 2,332	$ 2,889