Delaware
|
47-2150172
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification Number)
|
400 Avenue D, Suite 10
Williston, Vermont
|
05495
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Large accelerated filer
|
☐ |
Accelerated filer
|
☐ | |
Non-accelerated filer
|
☒ |
Smaller reporting company
|
☒ | |
Emerging growth company
|
☒ |
Item 1.
|
4 | |
Item 1A.
|
12 | |
Item 1B.
|
30 | |
Item 2.
|
30 | |
Item 3.
|
30 | |
Item 4.
|
30 | |
Item 5.
|
30 | |
Item 6.
|
30 | |
Item 7.
|
30 | |
Item 7A.
|
37 |
|
Item 8.
|
37 |
|
Item 9.
|
68 |
|
Item 9A.
|
69 |
|
Item 9B.
|
69 | |
Item 10.
|
70 | |
Item 11.
|
71 | |
Item 12.
|
72 | |
Item 13.
|
73 | |
Item 14.
|
73 | |
Item 15.
|
74 | |
Item 16.
|
78 |
• |
The impact of the coronavirus pandemic (COVID-19) on general market and economic conditions has yet to be determined and is likely to have a material adverse effect on our business and results of operations.
|
• |
We have had an extensive and profitable operating history, with the exception of 2019 and 2020, but it may be difficult to accurately evaluate our future business and prospects.
|
• |
Our management discovered a material weakness in our disclosure controls and procedures and internal control over financial reporting as required to be implemented by Section 404 of the Sarbanes-Oxley Act of 2002.
|
• |
We may require substantial additional funding which may not be available to us on acceptable terms, or at all. If we fail to raise the necessary additional capital, we may be unable to achieve growth of our
operations.
|
• |
A material reduction in the retail price of traditional utility generated electricity or electricity from other sources could harm our business, financial condition, results of operations and prospects.
|
• |
Existing electric utility industry regulations, and changes to regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems that may significantly reduce
demand for our solar energy systems.
|
• |
Our growth strategy depends on the widespread adoption of solar power technology.
|
• |
Our business currently depends on the availability of rebates, tax credits and other financial incentives. The expiration, elimination or reduction of these rebates, credits and incentives would adversely impact
our business.
|
• |
Our business depends in part on the regulatory treatment of third-party owned solar energy systems.
|
• |
Our ability to provide solar energy systems to customers on an economically viable basis depends on our ability to help customers arrange financing for such systems.
|
• |
We may not realize the anticipated benefits of future acquisitions, and integration of these acquisitions may disrupt our business and management.
|
• |
We may require additional financing to sustain our operations, without which we may not be able to continue operations, and the terms of subsequent financings may adversely impact our stockholders.
|
• |
The share price of our Common Stock is subject to fluctuation, has been and may continue to be volatile and may decline regardless of our operating performance, resulting in substantial losses for investors who
have purchased shares of our Common Stock.
|
Item 1. |
Business.
|
● |
the impact of the COVID-19 pandemic on our business;
|
● |
our limited operating history;
|
● |
our ability to raise additional capital to meet our objectives;
|
● |
our ability to compete in the solar power industry;
|
● |
our ability to sell solar power systems;
|
● |
our ability to arrange financing for our customers;
|
● |
government incentive programs related to solar energy;
|
● |
our ability to increase the size of our company and manage growth;
|
● |
our ability to acquire and integrate other businesses;
|
● |
disruptions to our supply chain from protective tariffs on imported components, supply shortages and/or fluctuations in pricing;
|
● |
our ability or inability to attract and/or retain competent employees;
|
● |
relationships with employees, consultants, customers, and suppliers; and
|
● |
the concentration of our business in one industry in limited geographic areas;
|
● |
warrants exercisable for 2,097,250 shares of Common Stock, consisting of 3,900,000 warrants originally sold as part of units in the Jensyn IPO and 294,500 warrants sold as part of the units issued in a private
placement simultaneously with the consummation of the Jensyn IPO. Each warrant entitled its holder to purchase one-half of one share of Common Stock at an exercise price of $5.75 per half share ($11.50 per whole share).
|
● |
Warrants exercisable for 195,000 shares of Common Stock, consisting of 390,000 warrants originally sold as part of Firm Units in the IPO. Each warrant entitled its holder to purchase one-half of one share of
Common Stock at an exercise price of $5.75 per half share ($11.50 per whole share).
|
● |
Purchase option for 390,000 Units was originally sold as part of the IPO. Each Unit has an exercise price of $12.00 per Unit and consists of the following:
|
● |
One share of Common Stock
|
● |
One right to receive one-tenth (1/10) of a share of Common Stock issued upon exercise of the Unit
|
● |
One warrant entitling its holder to purchase one-half of one share of Common Stock at an exercise price of $5.75 per half share ($11.50 per whole share).
|
Item 1A. |
Risk Factors.
|
● |
construction of a significant number of new power generation plants, including plants utilizing natural gas, nuclear, coal, renewable energy or other generation technologies;
|
● |
relief of transmission constraints that enable local centers to generate energy less expensively;
|
● |
reductions in the price of natural gas;
|
● |
utility rate adjustment and customer class cost reallocation;
|
● |
energy conservation technologies and public initiatives to reduce electricity consumption;
|
● |
development of new or lower-cost energy storage technologies that have the ability to reduce a customer’s average cost of electricity by shifting load to off-peak times; or
|
● |
development of new energy generation technologies that provide less expensive energy.
|
● |
cost-effectiveness of solar power technologies as compared with conventional and non-solar alternative energy technologies;
|
● |
performance and reliability of solar power products as compared with conventional and non-solar alternative energy products;
|
● |
fluctuations in economic and market conditions which impact the viability of conventional and non-solar alternative energy sources, such as increases or decreases in the prices of oil and other fossil fuels;
|
● |
continued deregulation of the electric power industry and broader energy industry; and
|
● |
availability of governmental subsidies and incentives.
|
● |
the state of financial and credit markets;
|
● |
changes in the legal or tax risks associated with these financings; and
|
● |
non-renewal of these incentives or decreases in the associated benefits.
|
● |
difficulty in assimilating the operations and personnel of the acquired company;
|
● |
difficulty in effectively integrating the acquired technologies or products with our current technologies;
|
● |
difficulty in maintaining controls, procedures and policies during the transition and integration;
|
● |
disruption of our ongoing business and distraction of management and employees from other opportunities and challenges due to integration issues;
|
● |
difficulty integrating the acquired company’s accounting, management information, and other administrative systems;
|
● |
inability to retain key technical and managerial personnel of the acquired business;
|
● |
inability to retain key customers, vendors, and other business partners of the acquired business;
|
● |
inability to achieve the financial and strategic goals for the acquired and combined businesses;
|
● |
incurring acquisition-related costs or amortization costs for acquired intangible assets that could impact operating results;
|
● |
potential failure of the due diligence processes to identify significant issues with product quality, legal and financial liabilities, among other things;
|
● |
potential inability to assert that internal controls over financial reporting are effective; and
|
● |
potential inability to obtain, or obtain in a timely manner, approvals from governmental authorities, which could delay or prevent such acquisitions.
|
● |
A classified Board of Directors with three-year staggered terms, which may delay the ability of stockholders to the change the membership of a majority of our Board of Directors;
|
● |
no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;
|
● |
the exclusive right of our Board of Directors to elect a director to fill a vacancy created by the expansion of the Board of Directors or the resignation, death, or removal of a director, which prevents
stockholders from being able to fill vacancies on our Board of Directors;
|
● |
the ability of our Board of Directors to determine whether to issue shares of our preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without
stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;
|
● |
a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an Annual or Special Meeting of our Stockholders;
|
● |
the requirement that an Annual Meeting of Stockholders may be called only by the Chairman of the Board of Directors, the Chief Executive officer, or the Board of Directors, which may delay the ability of our
stockholders to force consideration of a proposal or to take action, including the removal of directors;
|
● |
limiting the liability of, and providing indemnification to, our directors and officers;
|
● |
controlling the procedures for the conduct and scheduling of stockholder meetings;
|
● |
providing that directors may be removed prior to the expiration of their terms by stockholders only for cause; and
|
● |
advance notice procedures that stockholders must comply with in order to nominate candidates to our Board of Directors or to propose matters to be acted upon at a stockholders’ meeting, which may discourage or
deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of the Company.
|
● |
actual or anticipated fluctuations in our operating results;
|
● |
the financial projections we may provide to the public, any changes in these projections or our failure to meet these projections;
|
● |
failure of securities analysts to initiate or maintain coverage of our company, changes in financial estimates by any securities analysts who follow our company, or our failure to meet these estimates or the
expectations of investors;
|
● |
ratings changes by any securities analysts who follow our company;
|
● |
announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures or capital commitments;
|
● |
changes in operating performance and Common stock market valuations of other technology companies generally;
|
● |
price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole;
|
● |
changes in our Board of Directors or management;
|
● |
sales of large blocks of our Common Stock, including sales by our executive officers, directors and significant stockholders;
|
● |
potential lawsuits threatened or filed against us;
|
● |
short sales, hedging and other derivative transactions involving our Common Stock;
|
● |
general economic conditions in the United States and abroad; and
|
● |
other events or factors, including those resulting from war, incidents of terrorism or responses to these events.
|
● |
are not required to obtain an attestation and report from our auditors on our management’s assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act (the “Sarbanes-Oxley
Act”);
|
● |
are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives (commonly referred to as “compensation
discussion and analysis”);
|
● |
are not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements (commonly referred to as the “say-on-pay,” “say-on-frequency” and
“say-on-golden-parachute” votes);
|
● |
are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;
|
● |
may present only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) disclosure; and
|
● |
are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act.
|
Item 1B. |
Unresolved Staff Comments.
|
Item 2. |
Properties.
|
Item 3. |
Legal Proceedings.
|
Item 4. |
Mine Safety Disclosures.
|
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Year ended
December 31,
|
||||||||
2020
|
2019
|
|||||||
Net loss
|
$
|
(4,328
|
)
|
$
|
(427,795
|
)
|
||
Depreciation and amortization
|
585,690
|
621,233
|
||||||
Interest expense
|
302,542
|
244,068
|
||||||
Income tax (benefit)
|
(487,173
|
)
|
1,104,840
|
|||||
EBITDA
|
396,731
|
1,542,346
|
||||||
Other costs (1)
|
-
|
273,819
|
||||||
Adjusted EBITDA
|
396,731
|
1,816,165
|
||||||
Weighted Average shares outstanding
|
5,301,471
|
4,447,681
|
||||||
Adjusted EPS
|
0.07
|
0.41
|
(1) |
Other costs consist of one-time expenses of multiple year financial audits and other legal and professional fees associated with the Reverse Merger and Recapitalization. Prior to the Reverse Merger and Recapitalization, the Company did not
require annual financial statement audits. As part of the preparation for being a publicly traded entity, the Company was required to undergo financial statement audit for the years ended December 31, 2017. The cost of this expense is included
in other costs.
|
(2) |
As the forgiveness of the PPP loan is considered a one-time expense, the Company considered including the forgiveness of $1,496,468 as a reconciling item. The Company excluded the forgiveness on the basis that
had it not been awarded a PPP loan, the Company would have terminated, furlough or reduced its workforce during the COVID-19 pandemic shutdown.
|
Item 7A. |
Quantitative and Qualitative Disclosures about Market Risk
|
Item 8. |
Financial Statements and Supplementary Data.
|
2020
|
2019
|
|||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash
|
$
|
699,154
|
$
|
95,930
|
||||
Accounts receivable, net of allowance
|
6,215,957
|
7,294,605
|
||||||
Costs and estimated earnings in excess of billings
|
1,354,602
|
1,272,372
|
||||||
Other current assets
|
214,963
|
201,326
|
||||||
Total current assets
|
8,484,676
|
8,864,233
|
||||||
Property and equipment:
|
||||||||
Building and improvements
|
672,727
|
672,727
|
||||||
Vehicles
|
1,199,535
|
1,283,364
|
||||||
Tools and equipment
|
508,846
|
517,602
|
||||||
Solar arrays
|
6,386,025
|
6,386,025
|
||||||
8,767,133
|
8,859,718
|
|||||||
Less accumulated depreciation
|
(2,647,333
|
)
|
(2,193,007
|
)
|
||||
6,119,800
|
6,666,711
|
|||||||
Other Assets:
|
||||||||
Captive insurance investment
|
198,105
|
140,875
|
||||||
Investment in GreenSeed Investors, LLC
|
4,724,444
|
-
|
||||||
Investment in Solar Partner Projects, LLC
|
96,052
|
-
|
||||||
5,018,601
|
140,875
|
|||||||
Total assets
|
$
|
19,623,077
|
$
|
15,671,819
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable, includes book overdraft of $1,246,437 and $1,496,695 at December 31, 2020 and 2019, respectively
|
$
|
4,086,173
|
$
|
4,274,517
|
||||
Accrued expenses
|
172,021
|
119,211
|
||||||
Billings in excess of costs and estimated earnings on uncompleted contracts
|
1,140,125
|
126,026
|
||||||
Due to stockholders
|
24,315
|
342,718
|
||||||
Line of credit
|
2,482,127
|
3,185,041
|
||||||
Current portion of deferred compensation
|
28,656
|
27,880
|
||||||
Current portion of long-term debt
|
308,394
|
426,254
|
||||||
Total current liabilities
|
8,241,811
|
8,501,647
|
||||||
Long-term liabilities:
|
||||||||
Deferred compensation, net of current portion
|
62,531
|
88,883
|
||||||
Deferred tax liability
|
610,558
|
1,098,481
|
||||||
Long-term debt, net of current portion
|
1,701,495
|
1,966,047
|
||||||
Total liabilities
|
10,616,395
|
11,655,058
|
||||||
Commitments and Contingencies (Note 9)
|
||||||||
Stockholders’ equity:
|
||||||||
Preferred stock – 0.0001 par value 200,000 shares authorized, 200,000 and 0 issued and outstanding at December 31, 2020 and December 31, 2019, respectively (Liquidation Value of $5,000,000)
|
20
|
-
|
||||||
Common stock – 0.0001 par value 49,000,000 shares authorized, 5,313,268 and 5,298,159 issued and outstanding as of December 31, 2020 and 2019, respectively
|
531
|
529
|
||||||
Additional paid-in capital
|
5,682,139
|
412,356
|
||||||
Retained earnings
|
3,323,992
|
3,603,876
|
||||||
Total Stockholders’ equity
|
9,006,682
|
4,016,761
|
||||||
Total liabilities and stockholders’ equity
|
$
|
19,623,077
|
$
|
15,671,819
|
2020
|
2019
|
|||||||
Earned revenue
|
$
|
21,052,211
|
$
|
28,221,569
|
||||
Cost of earned revenue
|
18,709,074
|
24,050,197
|
||||||
Gross profit
|
2,343,137
|
4,171,372
|
||||||
Warehouse and other operating expenses
|
684,669
|
864,359
|
||||||
General and administrative expenses
|
3,343,895
|
2,385,900
|
||||||
Total operating expenses
|
4,028,564
|
3,250,259
|
||||||
Operating (loss) income
|
(1,685,427
|
)
|
921,113
|
|||||
Other expenses
|
||||||||
Gain on forgiveness of PPP loan
|
1,496,468
|
-
|
||||||
Interest expense
|
(302,542
|
)
|
(244,068
|
)
|
||||
(Loss) income before income taxes
|
(491,501
|
)
|
677,045
|
|||||
(Benefit) provision for income taxes
|
(487,173
|
)
|
1,104,840
|
|||||
Net loss
|
(4,328
|
)
|
(427,795
|
)
|
||||
Net income applicable to preferred stock dividend
|
(275,556
|
)
|
-
|
|||||
Net loss available to shares of common stockholders
|
$
|
(279,884
|
)
|
$
|
(427,795
|
)
|
||
Weighted average shares of common stock outstanding
|
||||||||
Basic and diluted
|
5,301,471
|
4,447,681
|
||||||
Basic and diluted
|
$
|
(0.05
|
)
|
$
|
(0.10
|
)
|
Preferred Stock
|
Common Stock
|
Additional
Paid-In
|
Retained
|
|||||||||||||||||||||||||
Shares
|
Amounts
|
Shares
|
Amounts
|
Capital
|
Earnings
|
Total
|
||||||||||||||||||||||
Balance as of January 1, 2019
|
-
|
$
|
-
|
3,234,501
|
$
|
323
|
$
|
552,630
|
$
|
4,518,085
|
$
|
5,071,038
|
||||||||||||||||
Cash distributions to shareholders
|
-
|
-
|
-
|
-
|
-
|
(486,414
|
)
|
(486,414
|
)
|
|||||||||||||||||||
Conversion of rights to common shares
|
-
|
-
|
419,450
|
42
|
-
|
-
|
42
|
|||||||||||||||||||||
Combination with Peck Electric Co.
|
-
|
-
|
1,820,744
|
182
|
(129,324
|
)
|
-
|
(129,142
|
)
|
|||||||||||||||||||
Shares issued for equity line
|
-
|
-
|
81,263
|
8
|
(10,976
|
)
|
-
|
(10,968
|
)
|
|||||||||||||||||||
Forfeitures
|
-
|
-
|
(257,799
|
)
|
(26
|
)
|
26
|
-
|
-
|
|||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(427,795
|
)
|
(427,795
|
)
|
|||||||||||||||||||
Balance as of December 31, 2019
|
-
|
$
|
-
|
5,298,159
|
$
|
529
|
$
|
412,356
|
$
|
3,603,876
|
$
|
4,016,761
|
||||||||||||||||
Investment in Green Seed Investors, LLC
|
200,000
|
20
|
-
|
-
|
4,999,980
|
-
|
5,000,000
|
|||||||||||||||||||||
Investment in Solar Project Partners, LLC
|
-
|
-
|
-
|
-
|
96,052
|
-
|
96,052
|
|||||||||||||||||||||
Preferred stock dividend
|
-
|
-
|
-
|
-
|
-
|
(275,556
|
)
|
(275,556
|
)
|
|||||||||||||||||||
Exercise of warrants
|
-
|
-
|
15,109
|
2
|
173,751
|
-
|
173,753
|
|||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(4,328
|
)
|
(4,328
|
)
|
|||||||||||||||||||
Balance as of, December 31, 2020
|
200,000
|
$
|
20
|
5,313,268
|
$
|
531
|
$
|
5,682,139
|
$
|
3,323,992
|
$
|
9,006,682
|
2020
|
2019
|
|||||||
Cash flows from operating activities
|
||||||||
Net loss
|
$
|
(4,328
|
)
|
$
|
(427,795
|
)
|
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||
Depreciation
|
585,690
|
621,233
|
||||||
Bad debt expense
|
164,292
|
69,000
|
||||||
Gain on forgiveness of PPP loan
|
(1,496,468
|
)
|
-
|
|||||
Deferred finance charge amortization
|
3,073
|
1,544
|
||||||
(Benefit) provision for deferred income taxes
|
(487,923
|
)
|
1,098,481
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
914,356
|
(5,309,192
|
)
|
|||||
Prepaid expenses
|
(13,637
|
)
|
(201,326
|
)
|
||||
Costs and estimated earnings in excess of billings
|
(82,230
|
)
|
(553,388
|
)
|
||||
Accounts payable
|
(188,344
|
)
|
2,778,732
|
|||||
Accrued expenses
|
52,810
|
(117,249
|
)
|
|||||
Billings in excess of costs and estimated earnings on uncompleted contracts
|
1,014,099
|
(54,601
|
)
|
|||||
Accrued losses on contract in progress
|
-
|
(9,128
|
)
|
|||||
Deferred compensation
|
(25,576
|
)
|
(27,005
|
)
|
||||
Net cash provided by (used in) operating activities
|
435,814
|
(2,130,694
|
)
|
|||||
Cash flows from investing activities:
|
||||||||
Purchase of equipment
|
(8,121
|
)
|
(39,612
|
)
|
||||
Cash surrender value – life insurance
|
-
|
224,530
|
||||||
Investment costs
|
-
|
(129,142
|
)
|
|||||
Investment in captive insurance
|
(57,230
|
)
|
(60,052
|
)
|
||||
Net cash used in investing activities
|
(65,351
|
)
|
(4,276
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from line of credit
|
18,080,985
|
13,927,654
|
||||||
Payments of line of credit
|
(18,783,899
|
)
|
(11,715,137
|
)
|
||||
Proceeds from long-term debt
|
-
|
9,338
|
||||||
Deferred finance charges
|
-
|
(21,547
|
)
|
|||||
Payments of long-term debt
|
(416,143
|
)
|
(347,356
|
)
|
||||
Due to stockholders
|
(318,403
|
)
|
295,299
|
|||||
Proceeds from PPP loan
|
1,496,468
|
-
|
||||||
Proceeds from warrant exercise
|
173,753
|
-
|
||||||
Equity line issuance costs
|
-
|
(10,968
|
)
|
|||||
Stockholder distributions paid
|
-
|
(219,600
|
)
|
|||||
Net cash provided by financing activities
|
232,761
|
1,917,683
|
||||||
Net increase (decrease) in cash
|
603,224
|
(217,287
|
)
|
|||||
Cash, beginning of year
|
95,930
|
313,217
|
||||||
Cash, end of year
|
$
|
699,154
|
$
|
95,930
|
||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
$
|
293,751
|
$
|
244,068
|
||||
Income taxes
|
750
|
5,859
|
||||||
Supplemental schedule of non-cash investing and financing activities:
|
||||||||
Shares of Preferred Stock issued for investment
|
$
|
5,000,000
|
$
|
-
|
||||
Warrants issued for investment
|
$
|
96,052
|
$
|
-
|
||||
Preferred dividends satisfied with distribution from investment
|
$
|
275,556
|
$
|
-
|
||||
Vehicles purchased and financed
|
$
|
30,658
|
$
|
126,793
|
||||
Shares of Common Stock issued for equity line, at par
|
$
|
-
|
$
|
8
|
||||
Accrued S corporation distributions which have not been paid
|
$
|
-
|
$
|
266,814
|
1.
|
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
|
a) |
Organization
|
b)
|
Principles of Consolidation
|
c)
|
Emerging Growth Company Status
|
d)
|
Revenue Recognition
|
2020
|
2019
|
|||||||
Solar Operations
|
||||||||
Performance obligations satisfied at a point in time
|
$
|
-
|
$
|
4,220,000
|
||||
Performance obligations satisfied over time
|
$
|
17,354,852
|
$
|
17,849,945
|
||||
$
|
17,354,852
|
$
|
22,069,945
|
|||||
Electric Operations
|
||||||||
Performance obligations satisfied at a point in time
|
$
|
-
|
$
|
-
|
||||
Performance obligations satisfied over time
|
$
|
2,459,373
|
$
|
4,962,539
|
||||
$
|
2,459,373
|
$
|
4,962,539
|
|||||
Data and Network Operations
|
||||||||
Performance obligations satisfied at a point in time
|
$
|
-
|
$
|
-
|
||||
Performance obligations satisfied over time
|
$
|
1,237,986
|
$
|
1,189,085
|
||||
$
|
1,237,986
|
$
|
1,189,085
|
|||||
Total
|
||||||||
Performance obligations satisfied at a point in time
|
$
|
-
|
$
|
4,220,000
|
||||
Performance obligations satisfied over time
|
$
|
21,052,211
|
$
|
24,001,569
|
||||
Total
|
$
|
21,052,211
|
$
|
28,221,569
|
|
e)
|
Accounts Receivable
|
f)
|
Project Assets
|
g)
|
Property and Equipment
|
Buildings and improvements
|
39 years
|
Vehicles
|
3-5 years
|
Tools and equipment
|
3-7 years
|
Solar arrays
|
20 years
|
h)
|
Long-Lived Assets
|
|
i)
|
Asset Retirement Obligations
|
|
j)
|
Concentration and Credit Risks
|
|
k)
|
Income Taxes
|
|
l)
|
Sales Tax
|
|
m)
|
Use of Estimates
|
n)
|
Recently Issued Accounting Pronouncements
|
o)
|
Deferred Finance Costs
|
p)
|
Fair Value of Financial Instruments
|
q)
|
Debt Extinguishment
|
r)
|
Segment Information
|
2.
|
EXCHANGE AGREEMENT/REVERSE MERGER AND RECAPITALIZATION
|
a)
|
Exchange of Shares
|
o
|
One share of Common Stock
|
|
o
|
One right to receive one-tenth (1/10) of a share of Common Stock issued upon exercise of the Unit
|
|
o
|
One warrant entitling its holder to purchase one-half of one share of Common Stock at an exercise price of $5.75 per half share ($11.50 per whole share).
|
b)
|
Earnout
|
c)
|
Issuance of Additional Shares and Forfeiture of Sponsor Shares
|
3.
|
EXCHANGE AND SUBSCRIPTION AGREEMENT
|
December 31,
2020
|
December 31,
2019
|
|||||||
Initial value as of April 22, 2020
|
$
|
5,000,000
|
$
|
-
|
||||
Return of capital |
(275,556
|
)
|
-
|
|||||
Total
|
$
|
4,724,444
|
$
|
-
|
4. |
LIQUIDITY AND FINANCIAL CONDITION
|
5. |
ACCOUNTS RECEIVABLE
|
December 31,
2020
|
December 31,
2019
|
|||||||
Accounts receivable - contracts in progress
|
$
|
6,206,760
|
$
|
7,190,412
|
||||
Accounts receivable - retainage
|
93,197
|
188,193
|
||||||
6,299,957
|
7,378,605
|
|||||||
Allowance for doubtful accounts
|
(84,000
|
)
|
(84,000
|
)
|
||||
Total
|
$
|
6,215,957
|
$
|
7,294,605
|
December 31,
2020
|
December 31,
2019
|
|||||||
Costs in excess of billings
|
$
|
216,261
|
$
|
1,066,159
|
||||
Unbilled receivables, included in costs in excess of billings
|
1,138,341
|
206,213
|
||||||
1,354,602
|
1,272,372
|
|||||||
Retainage
|
93,197
|
188,193
|
||||||
$
|
1,447,799
|
$
|
1,460,565
|
December 31,
2020
|
December 31,
2019
|
|||||||
Billings in excess of costs
|
$
|
1,140,125
|
$
|
126,026
|
||||
6. |
CONTRACTS IN PROGRESS
|
December 31,
2020
|
December 31,
2019
|
|||||||
Expenditures to date on uncompleted contracts
|
$
|
7,764,622
|
$
|
4,699,855
|
||||
Estimated earnings thereon
|
2,178,868
|
1,409,060
|
||||||
9,943,490
|
6,108,915
|
|||||||
Less billings to date
|
(10,867,354
|
)
|
(5,168,782
|
)
|
||||
(923,864
|
)
|
940,133
|
||||||
Plus under billings remaining on contracts 100% complete
|
1,138,341
|
206,213
|
||||||
Total
|
$
|
214,477
|
$
|
1,146,346
|
December 31,
2020
|
December 31,
2019
|
|||||||
Cost and estimated earnings in excess of billings
|
$
|
1,354,602
|
$
|
1,272,372
|
||||
Billings in excess of costs and estimated earnings on uncompleted contracts
|
(1,140,125
|
)
|
(126,026
|
)
|
||||
$
|
214,477
|
$
|
1,146,346
|
7. |
LONG-TERM DEBT
|
December 31,
2020
|
December 31,
2019
|
|||||||
NBT Bank, National Association, 4.25% interest rate, secured by all business assets, payable in monthly installments of $5,869 through September 2026, with a balloon payment at maturity.
|
$
|
683,268
|
$
|
723,230
|
||||
NBT Bank, National Association, 4.00% interest rate, secured by all business assets, payable in monthly installments of $12,070 through January 2021.
|
12,050
|
153,258
|
||||||
NBT Bank, National Association, 4.20% interest rate, secured by building, payable in monthly installments of $3,293 through September 2026, with a balloon payment at maturity.
|
246,135
|
274,476
|
||||||
NBT Bank, National Association, 4.15% interest rate, secured by all business assets, payable in monthly installments of $3,677 through April 2026.
|
210,475
|
244,920
|
||||||
NBT Bank, National Association, 4.20% interest rate, secured by all business assets, payable in monthly installments of $5,598 through October 2026, with a balloon payment at maturity.
|
426,624
|
474,464
|
||||||
NBT Bank, National Association, 4.85% interest rate, secured by a piece of equipment, payable in monthly installments of $2,932 including interest, through May 2023.
|
80,001
|
110,413
|
||||||
Various vehicle loans, interest ranging from 0% to 6.99%, total current monthly installments of approximately $8,150, secured by vehicles, with varying terms through September 2025.
|
294,799
|
333,510
|
||||||
National Bank of Middlebury, 3.95% interest rate for the initial 5 years, after which the loan rate will adjust equal to the Federal Home Loan Bank of Boston 5/10 – year Advance Rate plus 2.75%, loan is
subject to a floor rate of 3.95%, secured by solar panels and related equipment, payable in monthly installments of $2,388 including interest, through December 2024.
|
73,467
|
98,033
|
||||||
2,026,819
|
2,412,304
|
|||||||
Less current portion
|
(308,394
|
)
|
(426,254
|
)
|
||||
1,718,425
|
1,986,050
|
|||||||
Less debt issuance costs
|
(16,930
|
)
|
(20,003
|
)
|
||||
Long-term debt
|
$
|
1,701,495
|
$
|
1,966,047
|
Year ending December 31:
|
Amount
|
|||
2021
|
$
|
308,394
|
||
2022
|
305,857
|
|||
2023
|
265,765
|
|||
2024
|
222,606
|
|||
2025
|
209,858
|
|||
Thereafter
|
714,339
|
|||
$
|
2,026,819
|
8. |
LINE OF CREDIT
|
9. |
COMMITMENTS AND CONTINGENCIES
|
Year ending December 31:
|
Amount
|
|||
2021
|
$
|
162,363
|
||
2022
|
145,561
|
|||
2023
|
147,903
|
|||
2024
|
150,291
|
|||
2025
|
152,310
|
|||
Thereafter
|
1,070,016
|
|||
$
|
1,828,444
|
10. |
EQUITY FINANCINGS
|
11. |
UNION ASSESSMENTS
|
December 31,
2020
|
December 31,
2019
|
|||||||
Pension fund
|
$
|
310,023
|
$
|
374,020
|
||||
Welfare fund
|
971,720
|
1,192,831
|
||||||
National employees benefit fund
|
90,993
|
131,982
|
||||||
Joint apprenticeship and training committee
|
20,233
|
17,829
|
||||||
401(k) matching
|
43,998
|
38,521
|
||||||
Total
|
$
|
1,436,967
|
$
|
1,755,183
|
Contributions
|
|||||||||||||||||||||||
For the Years Ended
December 31,
|
Pension Protection Act Zone Status
|
||||||||||||||||||||||
Multiemployer Pension Plan
|
Employer
Identification
Number
|
Plan
Number
|
2020
|
2019
|
Expiration
Date of
CBA |
2020
|
As of
|
2019
|
As of
|
FIP/RP
Status
|
Surcharge
|
||||||||||||
National Electrical Benefit Fund
|
53-0181657
|
1
|
90,993
|
131,982
|
5/31/2022
|
Green
|
12/31/2020
|
Green
|
12/31/2019
|
NA
|
No
|
12. |
PROVISION FOR INCOME TAXES
|
2020
|
2019
|
|||||||
Current
|
||||||||
Federal
|
$
|
-
|
$
|
-
|
||||
State
|
750
|
6,359
|
||||||
Total Current
|
750
|
6,359
|
||||||
Deferred
|
||||||||
Federal
|
(369,705
|
)
|
751,432
|
|||||
State
|
(118,218
|
)
|
347,049
|
|||||
Total Deferred
|
$
|
(487,923
|
)
|
1,098,481
|
||||
(Benefit) Provision for Income Taxes
|
$
|
(487,173
|
)
|
$
|
1,104,840
|
2020
|
2019
|
|||||||
Deferred tax assets (liabilities)
|
||||||||
Accruals and reserves
|
$
|
23,758
|
$
|
4,157
|
||||
Net operating loss
|
812,996
|
421,940
|
||||||
Total deferred tax assets
|
836,754
|
426,097
|
||||||
Property and equipment
|
(1,447,312
|
)
|
(1,524,578
|
)
|
||||
Total deferred tax liabilities
|
(1,447,312
|
)
|
(1,524,578
|
)
|
||||
Net deferred tax asset (liabilities)
|
$
|
(610,558
|
)
|
$
|
(1,098,481
|
)
|
2020
|
2019
|
|||||||
Income tax expense at federal statutory rate
|
$
|
(103,215
|
)
|
$
|
142,179
|
|||
Federal taxes on period Company was a flow through entity
|
-
|
(220,005
|
)
|
|||||
Paycheck Protection Program tax exempt loan forgiveness
|
(412,295
|
)
|
-
|
|||||
Permanent differences
|
44,816
|
2,049
|
||||||
Deferred tax expense recorded upon conversion to C-Corp
|
-
|
1,134,772
|
||||||
Other adjustments
|
15,726
|
-
|
||||||
State and local taxes net of federal benefit
|
(32,205
|
)
|
45,845
|
|||||
Income tax expense
|
$
|
(487,173
|
)
|
$
|
1,104,840
|
13.
|
CAPTIVE INSURANCE
|
Total assets
|
$
|
96,020,037
|
||
Total liabilities
|
$
|
46,176,680
|
||
Comprehensive income
|
$
|
8,820,830
|
2020
|
2019
|
|||||||
Investment in NCL
|
||||||||
Capital
|
$
|
36,000
|
$
|
36,000
|
||||
Cash security
|
158,785
|
101,555
|
||||||
Investment income in excess of losses (incurred and reserves)
|
3,320
|
3,320
|
||||||
Total deferred tax assets
|
$
|
198,105
|
$
|
140,875
|
14. |
RELATED PARTY TRANSACTIONS
|
December 31,
2020
|
December 31,
2019
|
|||||||
Due to stockholders consists of unsecured notes to stockholders with interest at the mid-term AFR rate (2.08% at December 31, 2020).
|
$
|
24,315
|
$
|
342,718
|
15. |
DEFERRED COMPENSATION PLAN
|
16. |
EARNINGS (LOSS) PER SHARE
|
Years Ended December 31,
|
||||||||
2020
|
2019
|
|||||||
Numerator:
|
||||||||
Net loss
|
$
|
(4,328
|
)
|
$
|
(427,795
|
)
|
||
Net income applicable to preferred shareholders
|
(275,556
|
)
|
-
|
|||||
Net loss available to common stock shareholders
|
(279,884
|
)
|
(427,795
|
)
|
||||
Denominator:
|
||||||||
Weighted average shares outstanding:
|
||||||||
Basic
|
5,301,471
|
4,447,681
|
||||||
Diluted
|
5,301,471
|
4,447,681
|
||||||
Basic income (loss) per share
|
(0.05
|
)
|
(0.10
|
)
|
||||
Diluted income (loss) per share
|
(0.05
|
)
|
(0.10
|
)
|
Years Ended December 31,
|
||||||||
2020
|
2019
|
|||||||
Earnout provision, includes new shares of Common Stock that may be issued to former Peck Electric Co. shareholders
|
-
|
898,473
|
||||||
Earnout provision, includes new shares of Common Stock that may be issued to Exit Strategy
|
-
|
11,231
|
||||||
Earnout provision, including new shares of Common Stock that may be issued to holders of forfeited and canceled shares
|
-
|
257,799
|
||||||
Option to purchase Common Stock, from Jensyn’s IPO
|
429,000
|
429,000
|
||||||
Warrants to purchase Common Stock, from Jensyn’s IPO
|
2,277,141
|
2,292,250
|
||||||
Warrants to purchase Common Stock, from Solar Project Partners, LLC. Exchange and Subscription Agreement
|
275,000
|
-
|
||||||
Conversion of Preferred Stock to Common Stock from GreenSeed Investors, LLC Exchange and Subscription Agreement
|
370,370
|
-
|
17. |
PREFERRED STOCK
|
18. |
SUBSEQUENT EVENTS
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
101.INS XBRL Instance Document
|
101.SCH XBRL Taxonomy Extension Schema Document
|
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF XBRL Taxonomy Extension Definition Linkbase
|
101.LABXBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
(b) Exhibits.
|
|
See (a)(3) above.
|
|
(c) Financial Statement Schedules.
|
|
See (a)(2) above.
|
Exhibit
No.
|
Description
|
Included
|
Form
|
Filing
Date
|
||||
Underwriting Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Chardan Capital Markets, LLC, as representative of the underwriters named on Schedule A thereto.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Sales Agreement, dated December 4, 2020, between The Peck Company Holdings, Inc. and A.G.P./Alliance Global Partners
|
By Reference
|
S-3
|
December 4, 2020
|
|||||
Share Exchange Agreement, dated as of February 26, 2019, by and among Jensyn Acquisition Corp., Peck Electric Co. and the stockholders of Peck Electric Co.
|
By Reference
|
8-K
|
March 1, 2019
|
|||||
First Amendment to Share Exchange Agreement, dated as of February 26, 2019, by and among Jensyn Acquisition Corp., Peck Electric Co. and the stockholders of Peck Electric Co.
|
By Reference
|
8-K
|
June 3, 2019
|
|||||
Membership Interest Purchase Agreement dated as of November 3, 2017 among Jensyn Acquisition Corp., BAE Energy Management, LLC, Victor Ferreira and Karen Ferreira.
|
By Reference
|
8-K
|
November 9, 2017
|
|||||
Share Exchange Agreement by and among Jensyn Acquisition Corp., Oneness Global and the Stockholders of Oneness Global
|
By Reference
|
10-Q
|
August 20, 2018
|
|||||
Exchange and Subscription Agreement, dated April 22, 2020, among The Peck Company Holdings, Inc., GreenSeed Investors, LLC and Solar Project Partners, LLC
|
By Reference
|
8-K
|
April 28, 2020
|
|||||
Agreement and Plan of Merger, dated January 19, 2021, by and among iSun Energy LLC and iSun, Inc. and Peck Mercury, Inc.
|
By Reference
|
8-K
|
January 25, 2021
|
|||||
Amended and Restated Certificate of Incorporation.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Amendment to Amended and Restated Certificate of Incorporation dated March 6, 2018.
|
By Reference
|
8-K
|
March 6, 2018
|
|||||
Amendment to Amended and Restated Certificate of Incorporation dated June 4, 2018.
|
By Reference
|
8-K
|
June 8, 2018
|
|||||
Amendment to Amended and Restated Certificate of Incorporation dated August 29, 2018.
|
By Reference
|
8-K
|
September 4, 2018
|
|||||
Amendment to Amended and Restated Certificate of Incorporation dated January 2, 2019.
|
By Reference
|
8-K
|
January 3, 2019
|
|||||
Certificate of Designation, Preferences and Rights of Preferred Stock of The Peck Company Holdings, Inc.
|
By Reference
|
8-K
|
April 28, 2020
|
Bylaws.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Specimen Unit Certificate.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Specimen Common Stock Certificate.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Specimen Right Certificate.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Specimen Warrant Certificate.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Promissory Note, dated September 17, 2019, issued to NBT Bank, National Association
|
By Reference
|
10-Q
|
November 18, 2019
|
|||||
Warrant Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Unit Purchase Option, dated March 7, 2016, between Jensyn Acquisition Corp. and Chardan Capital Markets, LLC.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Rights Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Warrant, dated April 22, 2020, issued by The Peck Company Holdings, Inc. to GreenSeed Investors, LLC
|
By Reference
|
8-K
|
April 28, 2020
|
|||||
Promissory Note, dated January 13, 2020, issued by Peck Electric Co. to NBT Bank, National Association
|
By Reference
|
8-K
|
April 28, 2020
|
|||||
Paycheck Protection Program Note and Disbursement Authorization, dated April 24, 2020 issued by Peck Electric Co. to NBT Bank, National Association
|
By Reference
|
8-K
|
April 28, 2020
|
|||||
Business Loan Agreement, dated September 17, 2019, between Peck Electric Co. and NBT Bank, National Association, as lender
|
By Reference
|
10-Q
|
November 18, 2019
|
|||||
Commercial Security Agreement, dated September 17 2019, between Peck Electric Co. and NBT Bank, National Association
|
By Reference
|
10-Q
|
November 18, 2019
|
|||||
Commercial Guaranty, dated September 17, 2019
|
By Reference
|
10-Q
|
November 18, 2019
|
|||||
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Jeffrey Raymond.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Rebecca Irish.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Joseph Raymond.
|
By Reference
|
8-K
|
March 10, 2016
|
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Peter Underwood.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Philip Politziner.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Joseph Anastasio.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Richard C. Cook.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Jensyn Capital, LLC.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Investment Management Trust Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Amendment No 1 to Investment Management Trust Agreement dated as of March 6, 2018 between Jensyn Acquisition Corp and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Amendment No 2 to Investment Management Trust Agreement dated as of March 2, 2018 between Jensyn Acquisition Corp and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
June 8, 2018
|
|||||
Amendment No 3 to Investment Management Trust Agreement dated as of March 2, 2018 between Jensyn Acquisition Corp and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
August 29, 2018
|
|||||
Amendment No 4 to Investment Management Trust Agreement dated as of March 2, 2018 between Jensyn Acquisition Corp and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
January 3, 2019
|
|||||
Stock Escrow Agreement, dated March 2, 2016, among Jensyn Acquisition Corp., the Initial Stockholders identified therein and Continental Stock Transfer & Trust Company.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Registration Rights Agreement, dated March 2, 2016, among Jensyn Acquisition Corp. and the Investors identified therein.
|
By Reference
|
8-K
|
March 10, 2016
|
Form of Indemnity Agreement.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Administrative Services Agreement, dated December 1, 2014, by and between Jensyn Acquisition Corp. and Jensyn Integration Services, LLC
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Private Units Purchase Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Chardan Capital Markets, LLC.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Private Units Purchase Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Jensyn Capital, LLC.
|
By Reference
|
8-K
|
March 10, 2016
|
|||||
Letter Agreement, dated June 11, 2015, between Jensyn Acquisition Corp. and Corinthian Partners, LLC.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Form of Rights of First Refusal and Corporate Opportunities Agreement.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
Joinder Agreement dated November 11, 2016 executed by Stewart Martin.
|
By Reference
|
10-K
|
March 27, 2017
|
|||||
Form of Guaranty of Funding dated March 7, 2017 issued by Insiders
|
By Reference
|
10-K
|
March 27, 2017
|
|||||
Letter Agreement dated as of January 31, 2018 among Jensyn Acquisition Corp., Victor Ferreira and Karen Ferreira.
|
By Reference
|
10-K
|
March 29, 2018
|
|||||
Promissory Note dated March 6, 2018 issued to Jensyn Capital, LLC
|
By Reference
|
10-Q
|
May 21, 2018
|
|||||
Promissory Note dated June 22, 2018 issued to Jensyn Capital, LLC
|
By Reference
|
10-Q
|
August 20, 2018
|
|||||
Second Original Discount Promissory Note dated March 7, 2019 issued to Riverside Merchant Partners, LLC
|
By Reference
|
8-K
|
March 14, 2019
|
|||||
Voting Agreement dated March 7, 2019 among Riverside Merchant Partners, LLC and the shareholders that are a signatory thereto
|
By Reference
|
8-K
|
March 14, 2019
|
|||||
Voting Agreement, dated June 20, 2019, between Peck Company Holdings Inc. and Jeffrey Peck
|
By Reference
|
10-K
|
April 14, 2020
|
|||||
Business Loan Agreement, dated January 13, 2020 between Peck Electric Co. and NBT Bank, National Association
|
By Reference
|
8-K
|
April 28, 2020
|
|||||
Commercial Guaranty, dated January 13, 2020, issued by Jeffrey Peck to NBT Bank, National Association
|
By Reference
|
8-K
|
April 28, 2020
|
|||||
Lease Agreement, dated December 7, 2020, between Peck Electric Co. and Unsworth Properties, LLC as agent for Meach, LLC, 306 West Indian, LLC, Cooper Two, LLC, Trek Communities, LLC, Masthead, LLC and Stephen and Shona Unsworth
|
By Reference
|
8-K
|
December 10, 2020
|
|||||
Form of Code of Ethics.
|
By Reference
|
S-1
|
November 23, 2015
|
|||||
List of subsidiaries of iSun, Inc.
|
Herewith
|
10-K |
March 15, 2021 |
|||||
23 |
Independent Registered Public Accounting Firm’s Consent |
Herewith | 10-K | March 15, 2021 | ||||
31.1 | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Herewith | 10-K | March 15, 2021 | ||||
31.2 |
Certification of Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Herewith | 10-K | March 15, 2021 | ||||
32.1 |
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
Herewith | 10-K | March 15, 2021 |
Name:
|
Jurisdiction of
Incorporation/Organization:
|
Peck Electric Co.
|
Vermont
|
iSun Energy LLC
|
Delaware
|
iSUN, INC.
|
|
By:
|
/s/ Jeffrey Peck
|
Jeffrey Peck
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
By:
|
/s/ John Sullivan
|
John Sullivan
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
Dated: March 15, 2021
|
By:
|
/s/ Jeffrey Peck
|
Jeffrey Peck
|
|
Chief Executive Officer and Chairman of the Board
|
|
(Principal Executive Officer)
|
By:
|
/s/ John Sullivan
|
John Sullivan
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
By:
|
/s/ Fredrick Myrick
|
Fredrick Myrick
|
|
Executive Vice President and Director
|
By:
|
/s/ Stewart Martin
|
Stewart Martin
|
|
Director
|
By:
|
/s/ Daniel Dus
|
Daniel Dus
|
|
Director
|
By:
|
/s/ Claudia Meer
|
Claudia Meer
|
|
Director
|
/s/ Jeffrey Peck
|
|
Chief Executive Officer & President
|
|
(Principal Executive Officer)
|
|
/s/ John Sullivan
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
|
/s/ Jeffrey Peck
|
|
Chief Executive Officer
|
|
/s/ John Sullivan
|
|
Chief Financial Officer
|
|
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Mar. 12, 2021 |
Jun. 30, 2020 |
|
Cover Page [Abstract] | |||
Entity Registrant Name | ISUN, INC. | ||
Entity Central Index Key | 0001634447 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | VT | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 19.8 | ||
Entity Common Stock, Shares Outstanding | 8,478,584 |
Consolidated Balance Sheets (Parenthetical) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Current Liabilities: | ||
Book overdraft | $ 1,246,437 | $ 1,496,695 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 200,000 | 0 |
Preferred stock, shares outstanding (in shares) | 200,000 | 0 |
Preferred stock, liquidation value | $ 5,000,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 49,000,000 | 49,000,000 |
Common stock, shares issued (in shares) | 5,313,268 | 5,298,159 |
Common stock, shares outstanding (in shares) | 5,313,268 | 5,298,159 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES |
iSun, Inc.(formerly known as The Peck Holdings, Inc.) is a solar engineering, construction and procurement contractor for commercial and industrial customers across the Northeastern United States. The Company also provides electrical contracting services and data and communication services. The work is performed under fixed-price and modified fixed-price contracts and time and materials contracts. The Company is incorporated in the State of Delaware and has its corporate headquarters in Williston, Vermont. Effective January 19, 2021, the Company changed its corporate name from The Peck Company Holdings, Inc. to iSun, Inc. (the “Name Change”). The Name Change was affected through a parent/subsidiary short-form merger of iSun, Inc., our wholly-owned Delaware subsidiary formed solely for the purpose of the name change, with and into us. We were the surviving entity. To effectuate the short-form merger, we filed a Certificate of Merger with the Secretary of State of the State of Delaware on January 19, 2021. The merger became effective on January 19, 2021 with the State of Delaware and, for purposes of the quotation of our Common Stock on the Nasdaq Capital Market (“Nasdaq”), effective at the open of the market on January 20, 2021. On February 26, 2019, Peck Electric Co., a privately-held company, entered into a Share Exchange Agreement (the “Exchange Agreement”) with Jensyn Acquisition Corp. (“Jensyn”), a publicly-held company whose primary business objective was to acquire, through a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination (the “Reverse Merger and Recapitalization”), with one or more target businesses (a special purpose acquisition company or “SPAC”). On June 20, 2019, with the approval of the stockholders of each of Peck Electric Co. and Jensyn, the Reverse Merger and Recapitalization was completed. In connection with the Reverse Merger and Recapitalization, Jensyn issued 3,234,501 shares of Jensyn’s Common Stock, par value $0.0001 per share (the “Common Stock”), to the stockholders of the Peck Electric Co. in exchange for all of the equity securities of Peck Electric Co., and Peck Electric Co. became a wholly-owned subsidiary of Jensyn. While Jensyn was the surviving legal entity, iSun, Inc. (formerly known as The Peck Company Holdings, Inc.) was deemed the acquiring entity for accounting purposes. Concurrent with the completion of the Reverse Merger and Recapitalization, Jensyn changed its name from “Jensyn Acquisition Corp.” to “The Peck Company Holdings, Inc.” Unless the context otherwise requires, “we,” “us,” “our,” “iSun” and the “Company” refer to the combined company. As a SPAC Jensyn had substantially no business operations prior to June 20, 2019. For financial accounting and reporting purposes the Exchange Agreement was accounted for as a “reverse recapitalization” in accordance with U.S. GAAP. Under this method of accounting, Jensyn was treated as the “acquired” company for financial reporting purposes. This determination was primarily based on Peck Electric Co shareholders having a majority of the voting power of the combined company, Peck Electric Co. comprising the ongoing operations of the combined entity, Peck Electric Co. comprising a majority of the governing body of the combined company, and Peck Electric Co.’s senior management comprising the senior management of the combined company. Accordingly, for accounting purposes, the Exchange Agreement was treated as the equivalent of the Peck Electric Co. issuing stock for the net assets and equity of Jensyn, consisting of $0 assets, accompanied by a recapitalization (referred to as “the Exchange Agreement”). The net assets of Jensyn were stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Exchange Agreement are those of Peck Electric Co. Prior to June 20, 2019, Peck Electric Co. was a “pass-through” (S-corporation) entity for income tax purposes and had no material income tax accounting reflected in its financial statements for financial reporting purposes since taxable income and deductions were “passed through” to Peck Electric Co.’s stockholders. As of the date of the completion of the Exchange Agreement, Peck Electric effectively became a C-Corporation, which changed the level of taxation from the stockholders to the Company. The deferred tax assets and liabilities that arise out of the change of tax status have been recorded to account for the temporary differences that existed on the date of the resulting in a deferred tax liability of $1,506,362. The financial statements of the Company now account for income taxes in accordance with Accounting Standards Codification (“ASC”) 740, Income taxes.
The accompanying consolidated financial statements include the accounts of iSun, Inc. and its wholly owned operating subsidiary, Peck Electric Co. All material intercompany transactions have been eliminated upon consolidation of these entities.
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”). Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. The Company would cease to be an “emerging growth company” upon the earliest to occur of: the last day of the fiscal year in which it has more than $1.07 billion in annual revenue; the date it qualifies as a “large accelerated filer,” with at least $700 million of equity securities held by non-affiliates; the issuance, in any three-year period, by it of more than $1.0 billion in non-convertible debt or December 31, 2021.
The majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. 1) Revenue Recognition Policy Solar Power Systems Sales and Engineering, Procurement, and Construction Services The Company recognizes revenue from the sale of solar power systems, Engineering, Procurement and Construction (“EPC”) services, and other construction type contracts over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. Construction contracts, such as the sale of a solar power system combined with EPC services, are generally accounted for as a single unit of account (a single performance obligation) and are not segmented between types of services. Our contracts often require significant services to integrate complex activities and equipment into a single deliverable, and are therefore generally accounted for as a single performance obligation, even when delivering multiple distinct services. For such services, the Company recognizes revenue using the cost to cost method, based primarily on contract cost incurred to date compared to total estimated contract cost. The cost to cost method (an input method) is the most faithful depiction of the Company’s performance because it directly measures the value of the services transferred to the customer. Cost of revenue includes an allocation of indirect costs including depreciation and amortization. Subcontractor materials, labor and equipment, are included in revenue and cost of revenue when management believes that the Company is acting as a principal rather than as an agent (i.e., the Company integrates the materials, labor and equipment into the deliverables promised to the customer). Changes to total estimated contract cost or losses, if any, are recognized in the period in which they are determined as assessed at the contract level. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the customer. As of December 31, 2020 and 2019, the Company had $0 in pre-contract costs classified as a current asset under contract assets on the Consolidated Balance Sheet. Project mobilization costs are generally charged to project costs as incurred when they are an integrated part of the performance obligation being transferred to the client. Customer payments on construction contracts are typically due within 30 to 45 days of billing, depending on the contract. Sales and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. For sales of solar power systems in which the Company sells a controlling interest in the project to a customer, revenue is recognized for the consideration received when control of the underlying project is transferred to the customer. Revenue may also be recognized for the sale of a solar power system after it has been completed due to the timing of when a sales contract has been entered into with the customer. Energy Generation Revenue from net metering credits is recorded as electricity is generated from the solar arrays and billed to customers (PPA off-taker) at the price rate stated in the applicable power purchase agreement (PPA). Operation and Maintenance and Other Miscellaneous Services Revenue for time and materials contracts is recognized as the service is provided. 2) Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue based on the timing of satisfaction of performance obligations for the years ended December 31:
3) Variable Consideration The nature of the Company’s contracts gives rise to several types of variable consideration, including claims and unpriced change orders; award and incentive fees; and liquidated damages and penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in the Company’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. If the requirements for recognizing revenue for claims or unapproved change orders are met, revenue is recorded only when the costs associated with the claims or unapproved change orders have been incurred. Back charges to suppliers or subcontractors are recognized as a reduction of cost when it is determined that recovery of such cost is probable and the amounts can be reliably estimated. Disputed back charges are recognized when the same requirements described above for claims accounting have been satisfied. 4) Remaining Performance Obligation Remaining performance obligations, or backlog, represents the aggregate amount of the transaction price allocated to the remaining obligations that the Company has not performed under its customer contracts. The Company has elected to use the optional exemption in ASC 606-10-50-14, which exempts an entity from such disclosures if a performance obligation is part of a contract with an original expected duration of one year or less. 5) Warranties The Company generally provides limited workmanship warranties up to five years for work performed under its construction contracts. The warranty periods typically extend for a limited duration following substantial completion of the Company’s work on a project. Historically, warranty claims have not resulted in material costs incurred, and any estimated costs for warranties are included in the individual contract cost estimates for purposes of accounting for long-term contracts.
Accounts receivable are recorded when invoices are issued and presented on the balance sheet net of the allowance for doubtful accounts. The allowance, which was $84,000 at December 31, 2020 and $84,000 at December 31, 2019, is estimated based on historical losses, the existing economic condition, and the financial stability of the Company’s customers. Accounts are written off against the reserve when they are determined to be uncollectible.
Project assets primarily consist of costs related to solar power projects that are in various stages of development that are capitalized prior to the completion of the sale of the project, and are actively marketed and intended to be sold. In contrast to contract assets, the Company holds a controlling interest in the project itself. These project related costs include costs for land, development, and construction of a PV solar power system. Development costs may include legal, consulting, permitting, transmission upgrade, interconnection, and other similar costs. The Company typically classifies project assets as noncurrent due to the nature of solar power projects (long-lived assets) and the time required to complete all activities to develop, construct, and sell projects, which is typically longer than 12 months. Once the Company enters into a definitive sales agreement, such project assets are classified as current until the sale is completed and the Company has met all of the criteria to recognize the sale as revenue. Any income generated by a project while it remains within project assets is accounted for as a reduction to the basis in the project. If a project is completed and begins commercial operation prior to the closing of a sales arrangement, the completed project will remain in project assets until placed in service. All expenditures related to the development and construction of project assets, whether fully or partially owned, are presented as a component of cash flows from operating activities. Project assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A project is considered commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. A partially developed or partially constructed project is considered to be commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. The Company examines a number of factors to determine if the project is expected to be recoverable, including whether there are any changes in environmental, permitting, market pricing, regulatory, or other conditions that may impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, we impair the respective project assets and adjust the carrying value to the estimated fair value, with the resulting impairment recorded within “Selling, general and administrative” expense. Project Asset were $0 for the years ended December 31, 2020 and 2019, respectively.
Property and equipment greater than $1,000 are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the assets, required installation costs, and any expenditures that substantially add to the value or substantially extend the useful life of the assets. The solar arrays represent project assets that the Company may temporarily own and operate after being placed into service. The Company reports solar arrays at cost, less accumulated depreciation. The Company begins depreciation on the solar arrays when they are placed in service. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
Total depreciation expense for the years ended December 31, 2020 and 2019 was $585,690 and $621,233, respectively. The cost of assets sold, retired, or otherwise disposed of, and the related allowance for depreciation are eliminated from the accounts and any resulting gain or loss is included in operations. The cost of maintenance and repairs are charged to expense as incurred, while significant renewals or betterments are capitalized.
The Company assesses long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances arise, including consideration of technological obsolescence, that may indicate that the carrying amount of such assets may not be recoverable. These events and changes in circumstances may include a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; a significant adverse change in the business climate that could affect the value of a long-lived asset; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; a current period operating or cash flow loss combined with a history of such losses or a projection of future losses associated with the use of a long-lived asset; or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. When impairment indicators are present, the Company compares undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. If the carrying value of the asset group exceeds the undiscounted future cash flows, the Company measures any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted cash flows for the asset group, (ii) third-party valuations, and/or (iii) information available regarding the current market value for such assets. If the fair value of an asset group is determined to be less than its carrying value, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs. Estimating future cash flows requires significant judgment, and such projections may vary from the cash flows eventually realized. The Company considers a long-lived asset to be abandoned after the Company has ceased use of such asset and they have no intent to use or repurpose the asset in the future. Abandoned long-lived assets are recorded at their salvage value, if any.
The Company develops, constructs, and operates certain solar arrays with land lease agreements that include a requirement for the removal of the assets at the end of the term of the agreement. The Company recognizes such asset retirement obligations (“ARO”) in the period in which they are incurred based on the present value of estimated third-party recommissioning costs, and they capitalize the associated asset retirement costs as part of the carrying amount of the related assets. Once an asset is placed into service, the asset retirement cost is subsequently depreciated on a straight-line basis over the estimated useful life of the asset. Changes in AROs resulting from the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. The AROs were not deemed significant to the financial statements and were therefore, not recorded as a liability at December 31, 2020 and 2019.
The Company occasionally has cash balances in a single financial institution during the year in excess of the Federal Deposit Insurance Corporation (FDIC) limit of up to $250,000 per financial institution. The differences between book and bank balances are outstanding checks and deposits in transit. At December 31, 2020, the uninsured balances were approximately $422,000.
Through June 20, 2019 (the date of the completion of the Reverse Merger and Recapitalization) the former Peck Electric had elected to be taxed as an S-Corporation under the Internal Revenue Code and similar codes in states in which the Company was subject to taxation. While this election was in effect, the income (whether distributed or not) was taxed for federal income tax purposes to former Peck Electric stockholders. Accordingly, no provision for federal income tax was required. However, the Company did calculate a proforma provision. The provision for income taxes for former Peck Electric was primarily for Vermont minimum taxes. As of the date of the completion of the Reverse Merger and Recapitalization, the Company effectively became a C-Corporation, which changed the level of taxation from the stockholders to the Company. The deferred tax assets and liabilities that arise out of the change of tax status have been recorded to account for the temporary differences that existed on the date of the change resulting in a deferred tax liability of $1,506,362. At December 31, 2020 and 2019, the deferred tax liability was $610,558 and $1,098,481, respectively. The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The financial statements of the Company account for deferred tax assets and liabilities in accordance with Accounting Standards Codification (“ASC”) 740, Income taxes. The Company also uses a more-likely-than-not measurement for all tax positions taken or expected to be taken on a tax return in order for those tax positions to be recognized in the financial statements. If the Company were to incur interest and penalties related to income taxes, these would be included in the provision for income taxes. Generally, the three tax years previously filed remain subject to examination by federal and state tax authorities.
The Company’s accounting policy is to exclude state sales tax collected and remitted from revenues and costs of sales, respectively.
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates their estimates, including those related to inputs used to recognize revenue over time, investments, impairment on investments and valuation of deferred tax assets. Actual results could differ from those estimates.
Prior to June 20, 2019, the Company was defined as a non-public entity for purposes of applying transition guidance related to new or revised accounting standards under GAAP and was required to adopt new or revised accounting standards after the required adoption dates that applied to public companies. Subsequent to June 20, 2019, the Company maintains its emerging growth company status until no later than December 31, 2021. The Company will maintain the election available to an emerging growth company to use any extended transition period applicable to non-public companies when complying with a new or revised accounting standard. The Company retains its emerging growth status and therefore elects to adopt new or revised accounting standards on the adoption date required for a private company. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This ASU clarifies the interaction among accounting standards for equity securities, equity method investments and certain derivatives. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. This guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020 and adoption must be as of the beginning of the Company’s annual fiscal year. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In September 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470). This ASU amends SEC paragraphs pursuant to SEC release No. 33-10762. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. This guidance is effective for fiscal years beginning after December 15, 2021 with early adoption permitted. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either operating or financing, with such classifications affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. This standard is effective for the Company’s annual reporting period beginning after December 15, 2021. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. In June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842), to provide a one-year deferral of the effective dates. We are adopting the deferral and currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. In June 2016 the FASB issued ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326). This new guidance will change how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. The update will replace the current incurred loss model with an expected loss model. Under the incurred loss model, a loss (or allowance) is recognized only when an event has occurred (such as a payment delinquency) that causes the entity to believe that a loss is probable (that is has been “incurred”). Under the expected loss model, a loss (or allowance) is recognized upon initial recognitions of the asset that reflects all future events that leads to a loss being realized, regardless of whether it is probable that the future event will occur. The incurred loss model considers past events and conditions, while the expected loss model includes expectations for the future which have yet to occur. ASU 2018-19 was issued in November 2018 and excludes operating leases from the new guidance. The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. As an Emerging Growth Company, the standard is effective for the Company’s 2021 annual reporting period and interim periods beginning first quarter of 2022. The Company is evaluating the impact of ASU 2016-13 will have on its consolidated financial statements and associated disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740). This ASU reduces the complexity over accounting for income taxes by removing certain exceptions and amending guidance to improve consistent application of accounting over income taxes. We are currently assessing the provision of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. The Company is currently evaluating the impact of ASU No. 2019-12 will have on its consolidated financial statements.
Deferred financing costs relate to the Company’s debt and equity instruments. Deferred financing costs relating to debt instruments are amortized over the terms of the related instrument using the effective interest method. The Company incurred $0 and $21,547 of deferred financing costs during the year ended December 31, 2020 and 2019, respectively, in connection with a refinance of its revolving line of credit. Amortization expense associated with deferred financing costs, which is included in interest expense, totaled $3,073 and $1,544 for the years ended December 31, 2020 and 2019, respectively. Debt financing costs relating to the equity credit line were offset against additional paid in capital as the shares issued were fully earned on the execution of the agreement. The Company incurred $0 and $413,032 of deferred financing costs that was recorded to additional paid in capital for the year ended December 31, 2020 and 2019, respectively.
The Company’s financial instruments include cash and cash equivalents, accounts receivable, cash collateral deposited with insurance carriers, deferred compensation plan liabilities, accounts payable and other current liabilities, and debt obligations. Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value guidance establishes a valuation hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: (i) Level 1 - quoted market prices in active markets for identical assets or liabilities; (ii) Level 2 - observable market-based inputs or other observable inputs; and (iii) Level 3 - significant unobservable inputs that cannot be corroborated by observable market data, which are generally determined using valuation models incorporating management estimates of market participant assumptions. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Management’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Fair values of financial instruments are estimated using public market prices, quotes from financial institutions and other available information. Due to their short-term maturity, the carrying amounts of cash, accounts receivable, accounts payable and other current liabilities approximate their fair values. Management believes the carrying values of notes and other receivables, cash collateral deposited with insurance carriers, and outstanding balances on its line of credit and long-term debt approximate their fair values as these amounts are estimated using public market prices, quotes from financial institutions and other available information. At December 31, 2019, the earnout provision of the Share Exchange was considered a Level 3 measurement. Given that the earnout provision was not met, it is no longer considered a Level 3 investment at December 31, 2020. The Company determined that it was unlikely that the earnout provision would be met, therefore no value was assigned.
Under ASC 470, debt should be derecognized when the debt is extinguished, in accordance with the guidance in ASC 405-20, Liabilities: Extinguishments of Liabilities. Under this guidance, debt is extinguished when the debt is paid, or the debtor is legally released from being the primary obligor by the creditor. On December 1, 2020, the Company received notification from NBT Bank that the Small Business Administration has approved the forgiveness of the PPP loan in its entirety and as such, the full $1,496,468 has been recognized in the income statement as a gain upon debt extinguishment for the year ended December 31, 2020.
Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding the method to allocate resources and assess performance. The Company currently has one reportable segment with different product offerings for financial reporting purposes, which represents the Company’s core business. |
EXCHANGE AGREEMENT/REVERSE MERGER AND RECAPITALIZATION |
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EXCHANGE AGREEMENT/REVERSE MERGER AND RECAPITALIZATION [Abstract] | |||||||||||||||||||||
EXCHANGE AGREEMENT/REVERSE MERGER AND RECAPITALIZATION |
As discussed in Note 1, on June 20, 2019, the Company consummated the business combination pursuant to the Reverse Merger and Recapitalization between Jensyn and Peck Electric Co. The material actions arising from the Exchange Agreement are outlined below:
Upon the closing of the Exchange Agreement, the stockholders of Peck Electric Co. exchanged their shares of capital stock in Peck Electric Co. for 3,234,501 shares of the Jensyn’s Common Stock (the “Share Exchange”), representing approximately 59% of Jensyn’s outstanding shares after giving effect to the Reverse Merger and Recapitalization. As a result of the Share Exchange, Peck Electric became a wholly owned subsidiary of the Company. Upon the closing of the Reverse Merger and Recapitalization and after giving effect to the issuances of Common Stock and the conversion of 4,194,500 rights to purchase Common Stock into 419,450 shares of Common Stock. In addition, 1,819,482 shares of the Company were issued to Jensyn shareholders upon the closing of the Reverse Merger and Recapitalization. The Company also redeemed a total of 492,037 shares of its Common Stock pursuant to the terms of the Company’s Second Amended and Restated Certificate of Incorporation resulting in a total payment to redeeming stockholders of $5,510,814. i. warrants exercisable for 2,097,250 shares of Common Stock, consisting of 3,900,000 warrants originally sold as part of units in Jensyn’s initial public offering (the “IPO”) and 294,500 warrants sold as part of the units issued in a private placement simultaneously with the consummation of the Jensyn IPO. Each warrant entitles its holder to purchase one-half of one share of Common Stock at an exercise price of $5.75 per half share ($11.50 per whole share) ii. warrants exercisable for 195,000 shares of Common Stock, consisting of 390,000 private warrants originally sold as part of Firm Units in the IPO. Each warrant entitled its holder to purchase one-half of one share of Common Stock at an exercise price of $5.75 per half share ($11.50 per whole share). iii. Purchase option for 390,000 Units was originally sold as part of the IPO. Each Unit has an exercise price of $12.00 per Unit and consists of the following:
The Exchange Agreement contained a provision that if certain conditions were met by June 30, 2020, the end of the Earnout Period, the Company would issue 898,473 shares of Common Stock to the original Peck Electric Co. stockholders, issue 11,231 shares of Common Stock to Exit Strategy Partners, LLC, and issue shares of Common Stock to certain of the initial stockholders of the Company a number of shares of the Company’s Common Stock equal to the number of shares of the Company’s Common Stock forfeited and canceled by such stockholders to the extent that such shares are used to satisfy Company obligations or to induce investors to make an equity investment in the Company at or prior to the Closing as described below under “Issuance of Additional Shares and Forfeiture of Sponsor Shares.” The Board of Directors of the Company established a Special Committee of the Board of Directors to determine whether the conditions were met. Based on the findings of the Special Committee, the Board of Directors has determined that the conditions were not met. Accordingly, no shares were issued pursuant to this provision.
In connection with the Reverse Merger and Recapitalization arising out of the Exchange Agreement, the Company issued 493,299 shares of Common Stock in exchange for the cancellation of approximately $5,618,675 of obligations and, as contemplated by the Exchange Agreement, certain insiders and their transferees agreed to forfeit and cancel 281,758 shares of Common Stock. As of December 31, 2019, 257,799 shares of Common Stock were forfeited. No new shares will be issued as the earnout provisions of Exchange Agreement were not met by June 30, 2020, the end of the Earnout Period. The remaining 23,959 shares of Common Stock are pending forfeiture and cancellation as of December 31, 2020. |
EXCHANGE AND SUBSCRIPTION AGREEMENT |
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EXCHANGE AND SUBSCRIPTION AGREEMENT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EXCHANGE AND SUBSCRIPTION AGREEMENT |
The Company entered into an Exchange and Subscription Agreement (the “Exchange Agreement”) dated April 22, 2020 with GreenSeed Investors, LLC, a Delaware limited liability company (“GSI”), and Solar Project Partners, LLC, a Delaware limited liability company (“SPP”). The primary purpose of GSI is to facilitate the green bond platform and provide capital for the acquisition of solar projects by SPP. The investment in GSI provides access to early stage financing to support the Company’s EPC operations while establishing a large pipeline of projects. The investment in SPP provides the Company with the opportunity to retain a long-term ownership in the completed solar projects. As such, the Company recorded the investments as long-term other assets. Pursuant to the Exchange Agreement, the Company subscribed for 500,000 Units of Class B Preferred Membership units of GSI in exchange for 200,000 shares of the Company’s Series A Preferred Stock (the “Preferred Shares”). In addition to the investment of Preferred Shares by the Company, GSI obtain additional capital contributions which valued the Units at $10.00 per Unit. As the Company acquired 500,000 Units, the market transactions were utilized as a Level 1 fair value instruments in determining the valuation of the investment. As of April 22, 2020, the fair value of the investment in GSI was $5,000,000. Separately, the Company subscribed for and purchased 100,000 Units of SPP in exchange for the issuance by the Company of a Warrant to acquire 275,000 shares of the Company’s Common Stock at an exercise price of $15.00 per share. As of December 31, 2020, the fair value of the warrants was $96,052. The key assumptions used in the valuation of the warrants were as follows; a) volatility of 71.36%, b) term of 5 years, c) risk free rate of 0.36% and d) a dividend yield of 0%. The Exchange Agreement provides that as long as the dividend payment on the Preferred Shares in each calendar quarter is equal to the aggregate distribution with respect to the GSI Units, such payments and distributions shall be offset and neither GSI nor the Company need to make any cash payments to the other. For the year ended December 31, 2020, the Company received a return of capital from GSI in the amount of $275,556 which offset the dividends payable in accordance with the operating agreement between the Company and GSI. The Company granted to GSI the right to repurchase up to 400,000 (in tranches of 50,000) of the Units at a valuation of $10.00 per Unit totaling $4,000,000. The Company granted to GSI registration rights with respect to the Preferred Shares, the Warrant, and the Common Stock underlying the Warrant. The GSI and SPP investments are measured at cost, less impairment, if any, plus or minus changes resulting from observable price changes in ordinary transactions for the identical or similar investment of the same issuer. As the Company does not have significant influence over operating or financial policies of GSI and SPP, the cost method of accounting for the investment was determined to be appropriate. Changes in the fair value of the investment are recorded as net appreciation in fair value of investment in the Consolidated Statements of Operations. At December 31, 2020, the equity investment for GSI and SPP was $4,724,444 and $96,052, respectively. No net appreciation or depreciation in fair value of the investments was recorded during the year ended December 31, 2020, as there were no observable price changes.
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LIQUIDITY AND FINANCIAL CONDITION |
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Dec. 31, 2020 | |||
LIQUIDITY AND FINANCIAL CONDITION [Abstract] | |||
LIQUIDITY AND FINANCIAL CONDITION |
In 2020, the Company experienced a net operating loss but positive cash flow from operations. At December 31, 2020, the Company had balances of cash of $699,154 working capital of $242,865 and total stockholders’ equity of $9,006,682. To date, the Company has relied predominantly on operating cash flow to fund its operations and borrowings from its credit facilities. The Company does not expect to continue to incur losses from operations as the net operating loss was a result of the negative impact of the COVID-19 pandemic. The Company’s operations were delayed for approximately six months of the year ended December 31, 2020, which resulted in an overall reduction in revenue. On January 8, 2021 we entered into a Securities Purchase Agreement with two institutional investors providing for the issuance and sale by the Company of an aggregate 840,000 shares of our Common Stock in a registered direct offering at a purchase price of $12.50 per Share for gross proceeds of approximately $10.5 million before deducting fees and offering expenses. The Company’s Form S-3 Registration Statement is effective and allows the Company to offer, issue and sell up to $50,000,000 in the aggregate of our shares of Common Stock. After the registered direct offering, the Company has approximately $39.5 million available under the shelf registration. Under the terms of the equity line of credit, Lincoln Park Capital is required to purchase shares up to a total value of $15,000,000 pursuant to certain terms and conditions. The Company can require the purchase of 50,000 shares of Common Stock under a regular purchase. On the next day following a regular purchase, the Company can require the purchase of an accelerated purchase equal to 200% of the shares sold in the regular purchase as well as an additional accelerated purchase equal to 300% of the shares sold in the regular purchase. The total number of shares authorized under the Purchase Agreement total 3,024,194 which would allow the Company to maximize the equity line of credit within 10 business days. On various dates from January 1, 2021 through March 12, 2021, certain holders of the Company’s Public Warrants exercised the right to convert the warrants into shares of Common Stock. As of March 12, 2021, a total of 2,598,902 Public Warrants were submitted for exercise resulting in an issuance of 1,299,451 with net proceeds of $14,943,687 being received by the Company. Subsequent to the conversion of the warrants, the Company has approximately $22 million in cash availability. The Company believes its current cash on hand, proceeds generated from the registered direct offering, the availability under the equity line of credits, the collectability of its accounts receivable and project backlog are sufficient to meet its operating and capital requirements for at least the next twelve months from the date these financial statements are issued. |
ACCOUNTS RECEIVABLE |
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ACCOUNTS RECEIVABLE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE |
Accounts receivable consist of:
Bad debt expense was $164,292 and $69,000 for the years ended December 31, 2020 and 2019, respectively. Contract assets represent revenue recognized in excess of amounts billed, unbilled receivables, and retainage. Unbilled receivables represent an unconditional right to payment subject only to the passage of time, which are reclassified to accounts receivable when they are billed under the terms of the contract. Contract assets were as follows at December 31, 2020 and 2019:
Contract liabilities represent amounts billed to clients in excess of revenue recognized to date, billings in excess of costs, and retainage. The Company anticipates that substantially all incurred cost associated with contract assets as of December 31, 2020 will be billed and collected within one year. Contract liabilities were as follows at December 31, 2020 and 2019:
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CONTRACTS IN PROGRESS |
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CONTRACTS IN PROGRESS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONTRACTS IN PROGRESS |
Information with respect to contracts in progress are as follows:
Included in accompany balance sheets under the following captions:
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LONG-TERM DEBT |
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LONG-TERM DEBT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT |
A summary of long-term debt is as follows:
Maturities of long-term debt are as follows:
Payroll Protection Loan On April 24, 2020, the Company entered into a Promissory Note with NBT Bank, N.A. as the lender (“Lender”), pursuant to which the Lender agreed to make a loan to the Company under the Payroll Protection Program (“PPP Loan”) offered by the U.S. Small Business Administration (“SBA”) in a principal amount of $1,487,624 pursuant to Title 1 of the Coronavirus Aid, Relief and Economic Security Act (“CARES”). The PPP Loan proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves; rent; utilities; and interest on certain other outstanding debt. The amount that will be forgiven will be calculated in part with reference to the Company’s full-time headcount during the 24-week period following the funding of the PPP Loan. On December 1, 2020, the Company received notification from NBT Bank that the Small Business Administration has approved the forgiveness of the PPP loan in its entirety and as such, the full $1,496,468 has been recognized in the income statement as a gain upon debt extinguishment for the year ended December 31, 2020. |
LINE OF CREDIT |
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LINE OF CREDIT [Abstract] | |||
LINE OF CREDIT |
The Company has a working capital line of credit with NBT Bank with a limit of $6,000,000 and a variable interest rate based on the Wall Street Journal Prime rate, currently 3.25%. The line of credit is payable upon demand and subject to an annual review in September 2021. The balance outstanding was $2,482,127 and $2,675,041 at December 31, 2020 and December 31, 2019, respectively Borrowing is based on 80% of eligible accounts receivable. The line is secured by all business assets and is subject to certain financial covenants. These financial covenants consist of a minimum debt service coverage ratio of 1.20 to 1.00 measured on a quarterly basis. As of December 31, 2020, the Company was not in compliance with the financial covenants but received a waiver of covenant default from NBT Bank. The Company had a line of credit with NBT Bank with a limit of $2,000,000 to fund the development of certain solar arrays. The line had a variable interest rate based on the Wall Street Journal Prime rate, which was 4.75%. The maturity date was September 2020 and this line of credit has been closed. There were no borrowings at December 31, 2020 and the balance was $510,100 at December 31, 2019. The line was secured by all business assets and is subject to certain financial covenants. |
COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES |
In 2015, the Company entered into two twenty-five-year non-cancelable lease agreements for land on which they constructed solar arrays. One lease has fixed annual rent of $2,500. The second lease has annual rent of $2,500 with an annual increase of 2%. In 2017, the Company entered into a twenty-year non-cancelable lease agreement for land on which it constructed solar arrays. The lease has annual rent of $3,500 with an annual increase of 2%. In 2018, the Company entered into a twenty-year non-cancelable lease agreement for land on which it constructed solar arrays. The lease has annual rent of $26,000. In 2019, the Company entered into a two-year non-cancelable lease agreement for equipment used in solar installations. The lease has an annual rent of $45,832. In 2020, the Company entered into a ten year lease agreement for a new headquarters consisting of approximately 6,250 square feet of office space and 6,500 square feet of warehouse. The lease has annual rent of $108,162 with an annual increase of 2%. The Company leases a vehicle under a non-cancelable operating lease. In addition, the Company occasionally pays rent for storage on a month-to-month basis. Total rent expense for all of the non-cancelable leases above were $62,021 and $58,605 for the years ended December 31, 2020 and 2019, respectively. The Company also rents equipment to be used on jobs under varying terms not exceeding one year. Total rent expense under short term rental agreements was $228,667 and $384,536 for the year ended December 31, 2020 and 2019, respectively. Future minimum lease payments required under all of the non-cancelable operating leases are as follows:
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EQUITY FINANCINGS |
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EQUITY FINANCINGS [Abstract] | |||
EQUITY FINANCINGS |
On October 12, 2020, the Company received notification that 30,218 warrants issued in connection with the Company’s (Jensyn Acquisition Corp.) initial public offering were exercised and 15,109 shares of Common Stock were issued in connection with such exercise resulting in cash proceeds to the Company of $173,751. On September 26, 2019, the Company entered into a Purchase Agreement with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which, upon the terms and subject to the conditions and limitations set further therein, Lincoln Park has committed to purchase an aggregate of $15.0 million of the Company’s Common Stock from time to time at the sole discretion of the Company. (the “Purchase Agreement”) As consideration for entering into the Purchase Agreement, the Company issued to Lincoln Park as a commitment fee (the “Commitment Shares”) 81,263 share of Company Common Stock with a fair value of $4.96. The fair value of the shares issued was recorded to additional paid in capital at December 31, 2019. |
UNION ASSESSMENTS |
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UNION ASSESSMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNION ASSESSMENTS |
The Company employs members of the International Brotherhood of Electrical Workers Local 300 (IBEW). The union fee assessments payable are both withholdings from employees and employer assessments. Union fees are for monthly dues, defined contribution pension, health and welfare funds as part of multi-employer plans. All union assessments are based on the number of hours worked or a percentage of gross wages as stipulated in the agreement with the Union. The Company has an agreement with the IBEW in respect to rates of pay, hours, benefits, and other employment conditions that expires May 31, 2022. During the years ended December 31, 2020 and 2019, the Company incurred the following union assessments.
Multiemployer Plans The Company is party to collective bargaining agreements with unions representing certain of their employees, which require the Company to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to Multi-Employer Pension Plans (“MEPP”). The Pension Plan Agreement (“PPA”) defines the funding rules for defined benefit pension plans and establishes funding classifications for U.S.-registered multiemployer pension plans. Under the PPA, plans are classified into one of the following five categories, based on multiple factors, also referred to as a plan’s “zone status”: Green (safe), Yellow (endangered), Orange (seriously endangered), and Red (critical or critical and declining). Factors included in the determination of a plan’s zone status include: funded percentage, cash flow position and whether the plan is projecting a minimum funding deficiency. A multiemployer plan that is so underfunded as to be in “endangered,” “seriously endangered,” “critical,” or “critical and declining” status (as determined under the PPA) is required to adopt a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”), which, among other actions, could include decreased benefits and increased employer contributions, which could take the form of a surcharge on benefit contributions. These actions are intended to improve their funding status over a period of years. If a pension fund is in critical status, a participating employer must pay an automatic surcharge in addition to contributions otherwise required under the collective bargaining agreement (“CBA”). With some exceptions, the surcharge is equal to 5% of required contributions for the initial critical year and 10% for each succeeding plan year in which the plan remains in critical status. The surcharge ceases on the effective date of a CBA (or other agreement) that includes contribution and benefit terms consistent with the rehabilitation plan. Certain plans in which the Company participates are in “endangered,” “seriously endangered,” “critical,” or “critical and declining” status. The amount of additional funds, if any, that the Company may be obligated to contribute to these plans in the future cannot be estimated due to the uncertainty of the future levels of work that could be required of the union employees covered by these plans, as well as the required future contribution rates and possible surcharges applicable to these plans. Details of significant multiemployer pension plans as of and for the periods indicated, based upon information available to the Company from plan administrators as well as publicly available information on the U.S. Department of Labor website, are provided in the following table:
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PROVISION FOR INCOME TAXES |
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PROVISION FOR INCOME TAXES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROVISION FOR INCOME TAXES |
In connection with the closing of the Reverse Merger and Recapitalization, the Company’s tax status changed from an S-corporation to a C-corporation. As a result, the Company is responsible for Federal and State income taxes and must record deferred tax assets and liabilities for the tax effects of any temporary differences that exist on the date of the change. When push down accounting does not apply as part of a business combination, U.S. GAAP requires the effect of the change in tax status to be recognized in the financial statements and the effect is included in income (loss) from continuing operations. The Company recorded deferred income tax expense and a corresponding deferred tax liability of $1,098,481 as of and for the year ended December 31, 2019, of which $1,506,362 was recorded at the time of conversion to a C-corporation (see note 1 (k) income taxes). For the year ended December 31, 2020 the Company recorded deferred income tax benefit of $487,923 and had a net deferred tax liability of $610,558. The Reverse Merger and Recapitalization between Jensyn and Peck Electric Co. on June 20, 2019 caused a stock ownership change for purposes of Section 382 of the Internal Revenue Code. The Company recognized tax net operating losses which it expects to fully utilize over time subject to annual limitations as set forth in the Internal Revenue Code. The provision for income taxes for the year ended December 31, 2020 and 2019 consists of the following:
The Company’s total deferred tax assets and liabilities at December 31, 2020 are as follows:
The Company uses a more-likely-than-not measurement for all tax positions taken or expected to be taken on a tax return in order for those tax positions to be recognized in the financial statements. There were no uncertain tax positions as of December 31, 2020 and 2019. If the Company were to incur interest and penalties related to income taxes, these would be included in the provision for income taxes, there were none for the year ended December 31, 2020 and 2019 respectively. Generally, the three tax years previously filed remain subject to examination by federal and state tax authorities. The Company does not expect a material change in uncertain tax positions to occur within the next 12 months. Reconciliation between the effective tax on income from operations and the statutory tax rate is as follows:
The Company received a loan under the CARES Act Payroll Protection Program (“PPP”) of $1,487,624. Proceeds from the loan were used to cover documented expenses related to payroll, rent and utilities, during the 24-week period, subsequent to the cash being received by the Company, are eligible to be forgiven. The “PPP” loan was forgiven in its entirety and the income is deemed to be non-taxable which results in the Company’s effective tax rate differing from the statutory rate. The Company has federal net operating losses of approximately $3,100,000 of which $1,138,000 will expire beginning in 2034, $1,962,000 of the net operating losses do not expire. Net operating losses incurred beginning in 2018 are not subject to expiration under the Tax Cuts and Jobs Act, but the annual usage is limited to 80% or pre net operating loss taxable income. We believe that it is more likely than not that the tax benefit of these net operating losses will be fully realized, as such no valuation allowance has been recorded. The deferred tax assets for the net operating losses are presented net with deferred tax liabilities, which primarily consist of book and tax depreciation differences. |
CAPTIVE INSURANCE |
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CAPTIVE INSURANCE |
The Company and other companies are members of an offshore heterogeneous group captive insurance holding company entitled Navigator Casualty, LTD. (NCL). NCL is located in the Cayman Islands and insures claims relating to workers’ compensation, general liability, and auto liability coverage. Premiums are developed through the use of an actuarially determined loss forecast. Premiums paid totaled $189,958 and $189,337 for the years ended December 31, 2020 and 2019, respectively. The loss funding, derived from the actuarial forecast, is broken-out into two categories by the actuary known as the “A & B” Funds. The “A” Fund pays for the first $100,000 of any loss and the “B” Fund contributes to the remainder of the loss layer up to $300,000 total per occurrence. Each shareholder has equal ownership and invests a one-time cash capitalization of $36,000. This is broken out into two categories, $35,900 of redeemable preference shares and $100 for a single common share. Each shareholder represents a single and equal vote on NCL’s Board of Directors. Summary financial information on NCL as of September 30, 2020 is:
NCL’s fiscal year end is September 30, 2020.
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RELATED PARTY TRANSACTIONS |
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RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||||||||||
RELATED PARTY TRANSACTIONS |
In 2014, the minority stockholders of Peck Electric Co., who sold the building that the Company formerly occupied, lent the proceeds to the majority stockholders of Peck Electric Co. who contributed $400,000 of the net proceeds as paid in capital. At December 31, 2020 and December 31, 2019, the amount owed of $73,000 and $117,605, respectively, is included in the “due to stockholders” as there is a right to offset. In May 2018, stockholders of the Company bought out a minority stockholder of Peck Electric Co. The Company advanced $250,000 for the stock purchase which is included in the “due from stockholders”. At December 31, 2020 and December 31, 2019, the amounts due of $602,463 and $337,000, respectively, are included in the “due to stockholders” as there is a right to offset. In 2019, the Company’s majority stockholders lent proceeds to the Company to help with cash flow needs. At December 31, 2020 and December 31, 2019, the amounts owed of $286,964 and $295,299, respectively, are included in the “due to stockholders” as there is a right to offset. The Company was an S-corporation through June 20, 2019 and as a result, the taxable income of the Company is reported on each stockholder’s tax returns and each stockholder are taxed individually. As a result, the Company has accrued a distribution for taxes of $266,814 at December 31, 2020 and December 31, 2019, respectively, to the former stockholders of Peck Electric Co. for the period during which the Company was an S-corporation, which is included in the “due to stockholders” value below. The amounts below include amounts due to/from stockholders as of December 31, 2020 and December 31, 2019:
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DEFERRED COMPENSATION PLAN |
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DEFERRED COMPENSATION PLAN [Abstract] | |||
DEFERRED COMPENSATION PLAN |
In 2018, the Company entered into a deferred compensation agreement with a former minority stockholder. The agreement provides for deferred income benefits and is payable over the post-retirement period. The Company accrues the present value of the estimated future benefit payments over the period from the date of the agreement to the retirement date. The minimum commitment for future compensation under the agreement is $155,000, the net present value of which is $91,187. The Company will also pay the former stockholder a solar management fee of 24.5% of the available cash flow from the solar arrays put into service on or before December 31, 2017 over the life of the arrays. The amount is de minimis and therefore not recorded on the balance sheet as of December 31, 2020 and 2019 and recorded in the statement of operations when incurred. |
EARNINGS (LOSS) PER SHARE |
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EARNINGS (LOSS) PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE |
Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of Common Stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into Common Stock. As a result of the Merger and Recapitalization, the Company has retrospectively adjusted the weighted average of shares of Common Stock outstanding prior to June 20, 2019 by multiplying such shares by the exchange ratio used to determine the number of shares of Common Stock into which they converted.
The Company has contingent share arrangements and warrants arising from the Reverse Merger and Recapitalization, Jensyn’s IPO discussed in Note 2 and the Exchange and Subscription Agreement discussed in Note 3. The potential issuance of additional shares of Common Stock from these arrangements were excluded from the diluted EPS calculation because the prevailing market and operating conditions at the present time do not indicate that any additional shares of Common Stock will be issued. These instruments could result in dilution in future periods. As of December 31, 2020, the earnout shares were forfeited. Below is a schedule of the potential share issuances arising from these contingencies that were excluded from the calculations above:
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PREFERRED STOCK |
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PREFERRED STOCK [Abstract] | |||
PREFERRED STOCK |
The Company has authorized and designated 200,000 shares of convertible preferred stock (the “Preferred Stock”). Pursuant to the Exchange Agreement, the Company subscribed for 500,000 Units of Class B Preferred Membership units of GSI in exchange for 200,000 shares of the Company’s Series A Preferred Stock (the “Preferred Shares”). In addition, the Company subscribed for and purchased 100,000 Units of SPP in exchange for the issuance by the Company of a Warrant to acquire 275,000 shares of the Company’s Common Stock at an exercise price of $15.00 per share. The Exchange Agreement provides that as long as the dividend payment on the Preferred Shares in each calendar quarter is equal to the aggregate distribution with respect to the GSI Units, such payments and distributions shall be offset and neither GSI nor the Company need to make any cash payments to the other. The Company granted to GSI the right to repurchase up to 400,000 (in tranches of 50,000) of the Units at a valuation of $4,000,000. The Company granted to GSI registration rights with respect to the Preferred Shares, the Warrant, and the Common Stock underlying the Warrant. The Preferred Stock has the following rights and privileges: Voting – The holders of the Preferred Stock is not entitled to voting rights. Conversion – Each share of Preferred Stock, is convertible at the option of the holder into 1.85185 shares of Common Stock. The outstanding shares of Preferred Stock automatically convert into Common Stock upon the occurrence of (i) the trading of the shares of Common Stock is equal to or greater than $15.00 per share for any 20 days in a 30 day trading period, or (ii) when there is a change in control and the holder would receive consideration equal to or greater than the preferred liquidation preferences. Dividends – The holders of the Preferred Stock in preference to the holders of Common Stock, are entitled to receive, if and when declared by the Board of Directors, dividends at the rate of $2.00 per share per annum. Liquidation – In the event of any liquidation, dissolution, winding-up or sale or merger of the Company, whether voluntarily or involuntarily, each holder of Preferred Stock is entitled to receive, in preference to the holders of Common Stock, a per-share amount equal to the original issue price of $25.00 (as adjusted, as defined), plus all declared but unpaid dividends. Redemption – The Company may redeem any or all of the shares at any time by paying in cash $27.50 per share plus any accrued and unpaid dividends solely at the Company’s option. |
SUBSEQUENT EVENTS |
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SUBSEQUENT EVENTS [Abstract] | |||
SUBSEQUENT EVENTS |
The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. Registered Direct Offering On January 8, 2021 we entered into a Securities Purchase Agreement with two institutional investors providing for the issuance and sale by the Company of an aggregate 840,000 shares of our Common Stock in a registered direct offering at a purchase price of $12.50 per Share for gross proceeds of approximately $10.5 million before deducting fees and offering expenses. Agreement and Plan of Merger and Reorganization On January 19, 2021, the Company entered into an Agreement and Plan of Merger and Reorganization with iSun Energy LLC. iSun Energy LLC became a wholly-owned subsidiary of the Company. iSun Energy, LLC is a provider of products and services designed to support the electric vehicle market. In connection with Merger, Sassoon Peress, the sole member, will receive 400,000 shares of the Company’s Common Stock over five years, 200,000 shares of which were issued at the closing, warrants to purchase up 200,000 shares of the Company’s Common Stock, and up to 240,000 shares of the Company’s Common Stock based on certain performance milestones. The Company has issued an aggregate of 300,000 shares of the Company’s Common Stock in connection with the Merger as the provisions of the Warrant with respect to 100,000 shares of Common Stock have been met. Exercise of Public Warrants On various dates from January 1, 2021 through March 12, 2021, certain holders of the Company’s Public Warrants exercised the Public Warrants to purchase shares of Common Stock. As of March 12, 2021, a total of 2,598,902 Public Warrants were exercised resulting in an issuance of 1,299,451 shares of Common Stock with net proceeds of $14,943,687 being received by the Company. At March 12, 2021, the number of Public Warrants available to exercise totaled 1,565,380. Equity Incentive Program On February 25, 2021, the Company held a Special Meeting of Stockholders (the “Special Meeting’) to approve the Company’s 2020 Equity Incentive Plan, as amended (the “Plan”) The Company had previously provided Notice of the Special Meeting and a Proxy Statement dated February 2, 2021. The plan allows the Company to grant stock awards and options based on certain annual revenue and EBITDA targets. The Company has issued 129,414 shares of Common Stock under the provisions of the Plan. Conversion of Preferred Shares On February 22, 2021, the Board of Directors of iSun, Inc. (the “Company”) and the holders of a majority of the Company’s Series A Convertible Preferred Stock, approved the First Amended and Restated Certificate of Designation of Preferred Stock of iSun Inc. Series A Convertible Preferred Stock (the “First Amended Certificate of Designation”) that amends and replaces in its entirety the Certificate of Designation of Preferred Stock of iSun Inc. Series A Convertible Preferred Stock dated April 28, 2020. The First Amended Certificate of Designation was filed with the Delaware Secretary of State on February 22, 2021. The First Amended Certificate of Designation designates two hundred thousand (200,000) shares of the Company’s authorized preferred share capital as Series A Convertible Preferred Stock (the “Series A”) and provides for certain preferences to holders of Series A. The Series A is convertible on a mandatory basis into shares of the Company’s Common Stock as soon as practicable after the date on which the closing price of the Company’s Common Stock is equal to or greater than $15.00 per share for any twenty (20) days within a thirty (30) days trading window. The Series A conversion rate is 1.851852. Pursuant to the First Amended Certificate of Designation, on February 22, 2021 the Company notified all holders of the Series A of the mandatory conversion of the Series A. A total of 370,370 shares of Common Stock have been issued pursuant to the conversion. Exercise of Warrant On February 9, 2021, the Company issued 117,376 shares of Common Stock in connection with a warrant issued to GreenSeed Investors, LLC. The warrant was exercised on a cashless basis with net shares issued based on the Warrant. Exercise of the Unit Purchase Option On January 25, 2021, a certain holder exercised the right to convert 292,500 units into 133,684 shares of Common Stock on a cashless basis. Stock Redemption On January 25, 2021, the Company purchased 34,190 shares of Common Stock from certain executives at $19.68, which was the 5-day average of the closing prices for the Common Stock as reported by the Nasdaq Capital Market for the five trading days immediately preceding January 22, 2021, for a total of approximately $675,000. |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Exchange Agreement | On February 26, 2019, Peck Electric Co., a privately-held company, entered into a Share Exchange Agreement (the “Exchange Agreement”) with Jensyn Acquisition Corp. (“Jensyn”), a publicly-held company whose primary business objective was to acquire, through a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination (the “Reverse Merger and Recapitalization”), with one or more target businesses (a special purpose acquisition company or “SPAC”). On June 20, 2019, with the approval of the stockholders of each of Peck Electric Co. and Jensyn, the Reverse Merger and Recapitalization was completed. In connection with the Reverse Merger and Recapitalization, Jensyn issued 3,234,501 shares of Jensyn’s Common Stock, par value $0.0001 per share (the “Common Stock”), to the stockholders of the Peck Electric Co. in exchange for all of the equity securities of Peck Electric Co., and Peck Electric Co. became a wholly-owned subsidiary of Jensyn. While Jensyn was the surviving legal entity, iSun, Inc. (formerly known as The Peck Company Holdings, Inc.) was deemed the acquiring entity for accounting purposes. Concurrent with the completion of the Reverse Merger and Recapitalization, Jensyn changed its name from “Jensyn Acquisition Corp.” to “The Peck Company Holdings, Inc.” Unless the context otherwise requires, “we,” “us,” “our,” “iSun” and the “Company” refer to the combined company. As a SPAC Jensyn had substantially no business operations prior to June 20, 2019. For financial accounting and reporting purposes the Exchange Agreement was accounted for as a “reverse recapitalization” in accordance with U.S. GAAP. Under this method of accounting, Jensyn was treated as the “acquired” company for financial reporting purposes. This determination was primarily based on Peck Electric Co shareholders having a majority of the voting power of the combined company, Peck Electric Co. comprising the ongoing operations of the combined entity, Peck Electric Co. comprising a majority of the governing body of the combined company, and Peck Electric Co.’s senior management comprising the senior management of the combined company. Accordingly, for accounting purposes, the Exchange Agreement was treated as the equivalent of the Peck Electric Co. issuing stock for the net assets and equity of Jensyn, consisting of $0 assets, accompanied by a recapitalization (referred to as “the Exchange Agreement”). The net assets of Jensyn were stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Exchange Agreement are those of Peck Electric Co. Prior to June 20, 2019, Peck Electric Co. was a “pass-through” (S-corporation) entity for income tax purposes and had no material income tax accounting reflected in its financial statements for financial reporting purposes since taxable income and deductions were “passed through” to Peck Electric Co.’s stockholders. As of the date of the completion of the Exchange Agreement, Peck Electric effectively became a C-Corporation, which changed the level of taxation from the stockholders to the Company. The deferred tax assets and liabilities that arise out of the change of tax status have been recorded to account for the temporary differences that existed on the date of the resulting in a deferred tax liability of $1,506,362. The financial statements of the Company now account for income taxes in accordance with Accounting Standards Codification (“ASC”) 740, Income taxes. |
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Principles of Consolidation |
The accompanying consolidated financial statements include the accounts of iSun, Inc. and its wholly owned operating subsidiary, Peck Electric Co. All material intercompany transactions have been eliminated upon consolidation of these entities. |
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Revenue Recognition |
The majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. 1) Revenue Recognition Policy Solar Power Systems Sales and Engineering, Procurement, and Construction Services The Company recognizes revenue from the sale of solar power systems, Engineering, Procurement and Construction (“EPC”) services, and other construction type contracts over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. Construction contracts, such as the sale of a solar power system combined with EPC services, are generally accounted for as a single unit of account (a single performance obligation) and are not segmented between types of services. Our contracts often require significant services to integrate complex activities and equipment into a single deliverable, and are therefore generally accounted for as a single performance obligation, even when delivering multiple distinct services. For such services, the Company recognizes revenue using the cost to cost method, based primarily on contract cost incurred to date compared to total estimated contract cost. The cost to cost method (an input method) is the most faithful depiction of the Company’s performance because it directly measures the value of the services transferred to the customer. Cost of revenue includes an allocation of indirect costs including depreciation and amortization. Subcontractor materials, labor and equipment, are included in revenue and cost of revenue when management believes that the Company is acting as a principal rather than as an agent (i.e., the Company integrates the materials, labor and equipment into the deliverables promised to the customer). Changes to total estimated contract cost or losses, if any, are recognized in the period in which they are determined as assessed at the contract level. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the customer. As of December 31, 2020 and 2019, the Company had $0 in pre-contract costs classified as a current asset under contract assets on the Consolidated Balance Sheet. Project mobilization costs are generally charged to project costs as incurred when they are an integrated part of the performance obligation being transferred to the client. Customer payments on construction contracts are typically due within 30 to 45 days of billing, depending on the contract. Sales and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. For sales of solar power systems in which the Company sells a controlling interest in the project to a customer, revenue is recognized for the consideration received when control of the underlying project is transferred to the customer. Revenue may also be recognized for the sale of a solar power system after it has been completed due to the timing of when a sales contract has been entered into with the customer. Energy Generation Revenue from net metering credits is recorded as electricity is generated from the solar arrays and billed to customers (PPA off-taker) at the price rate stated in the applicable power purchase agreement (PPA). Operation and Maintenance and Other Miscellaneous Services Revenue for time and materials contracts is recognized as the service is provided. 2) Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue based on the timing of satisfaction of performance obligations for the years ended December 31:
3) Variable Consideration The nature of the Company’s contracts gives rise to several types of variable consideration, including claims and unpriced change orders; award and incentive fees; and liquidated damages and penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in the Company’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. If the requirements for recognizing revenue for claims or unapproved change orders are met, revenue is recorded only when the costs associated with the claims or unapproved change orders have been incurred. Back charges to suppliers or subcontractors are recognized as a reduction of cost when it is determined that recovery of such cost is probable and the amounts can be reliably estimated. Disputed back charges are recognized when the same requirements described above for claims accounting have been satisfied. 4) Remaining Performance Obligation Remaining performance obligations, or backlog, represents the aggregate amount of the transaction price allocated to the remaining obligations that the Company has not performed under its customer contracts. The Company has elected to use the optional exemption in ASC 606-10-50-14, which exempts an entity from such disclosures if a performance obligation is part of a contract with an original expected duration of one year or less. 5) Warranties The Company generally provides limited workmanship warranties up to five years for work performed under its construction contracts. The warranty periods typically extend for a limited duration following substantial completion of the Company’s work on a project. Historically, warranty claims have not resulted in material costs incurred, and any estimated costs for warranties are included in the individual contract cost estimates for purposes of accounting for long-term contracts. |
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Accounts Receivable |
Accounts receivable are recorded when invoices are issued and presented on the balance sheet net of the allowance for doubtful accounts. The allowance, which was $84,000 at December 31, 2020 and $84,000 at December 31, 2019, is estimated based on historical losses, the existing economic condition, and the financial stability of the Company’s customers. Accounts are written off against the reserve when they are determined to be uncollectible. |
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Project Assets |
Project assets primarily consist of costs related to solar power projects that are in various stages of development that are capitalized prior to the completion of the sale of the project, and are actively marketed and intended to be sold. In contrast to contract assets, the Company holds a controlling interest in the project itself. These project related costs include costs for land, development, and construction of a PV solar power system. Development costs may include legal, consulting, permitting, transmission upgrade, interconnection, and other similar costs. The Company typically classifies project assets as noncurrent due to the nature of solar power projects (long-lived assets) and the time required to complete all activities to develop, construct, and sell projects, which is typically longer than 12 months. Once the Company enters into a definitive sales agreement, such project assets are classified as current until the sale is completed and the Company has met all of the criteria to recognize the sale as revenue. Any income generated by a project while it remains within project assets is accounted for as a reduction to the basis in the project. If a project is completed and begins commercial operation prior to the closing of a sales arrangement, the completed project will remain in project assets until placed in service. All expenditures related to the development and construction of project assets, whether fully or partially owned, are presented as a component of cash flows from operating activities. Project assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A project is considered commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. A partially developed or partially constructed project is considered to be commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. The Company examines a number of factors to determine if the project is expected to be recoverable, including whether there are any changes in environmental, permitting, market pricing, regulatory, or other conditions that may impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, we impair the respective project assets and adjust the carrying value to the estimated fair value, with the resulting impairment recorded within “Selling, general and administrative” expense. Project Asset were $0 for the years ended December 31, 2020 and 2019, respectively. |
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Property and Equipment |
Property and equipment greater than $1,000 are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the assets, required installation costs, and any expenditures that substantially add to the value or substantially extend the useful life of the assets. The solar arrays represent project assets that the Company may temporarily own and operate after being placed into service. The Company reports solar arrays at cost, less accumulated depreciation. The Company begins depreciation on the solar arrays when they are placed in service. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
Total depreciation expense for the years ended December 31, 2020 and 2019 was $585,690 and $621,233, respectively. The cost of assets sold, retired, or otherwise disposed of, and the related allowance for depreciation are eliminated from the accounts and any resulting gain or loss is included in operations. The cost of maintenance and repairs are charged to expense as incurred, while significant renewals or betterments are capitalized. |
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Long-Lived Assets |
The Company assesses long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances arise, including consideration of technological obsolescence, that may indicate that the carrying amount of such assets may not be recoverable. These events and changes in circumstances may include a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; a significant adverse change in the business climate that could affect the value of a long-lived asset; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; a current period operating or cash flow loss combined with a history of such losses or a projection of future losses associated with the use of a long-lived asset; or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. When impairment indicators are present, the Company compares undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. If the carrying value of the asset group exceeds the undiscounted future cash flows, the Company measures any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted cash flows for the asset group, (ii) third-party valuations, and/or (iii) information available regarding the current market value for such assets. If the fair value of an asset group is determined to be less than its carrying value, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs. Estimating future cash flows requires significant judgment, and such projections may vary from the cash flows eventually realized. The Company considers a long-lived asset to be abandoned after the Company has ceased use of such asset and they have no intent to use or repurpose the asset in the future. Abandoned long-lived assets are recorded at their salvage value, if any. |
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Asset Retirement Obligations |
The Company develops, constructs, and operates certain solar arrays with land lease agreements that include a requirement for the removal of the assets at the end of the term of the agreement. The Company recognizes such asset retirement obligations (“ARO”) in the period in which they are incurred based on the present value of estimated third-party recommissioning costs, and they capitalize the associated asset retirement costs as part of the carrying amount of the related assets. Once an asset is placed into service, the asset retirement cost is subsequently depreciated on a straight-line basis over the estimated useful life of the asset. Changes in AROs resulting from the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. The AROs were not deemed significant to the financial statements and were therefore, not recorded as a liability at December 31, 2020 and 2019. |
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Concentration and Credit Risks |
The Company occasionally has cash balances in a single financial institution during the year in excess of the Federal Deposit Insurance Corporation (FDIC) limit of up to $250,000 per financial institution. The differences between book and bank balances are outstanding checks and deposits in transit. At December 31, 2020, the uninsured balances were approximately $422,000. |
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Income Taxes |
Through June 20, 2019 (the date of the completion of the Reverse Merger and Recapitalization) the former Peck Electric had elected to be taxed as an S-Corporation under the Internal Revenue Code and similar codes in states in which the Company was subject to taxation. While this election was in effect, the income (whether distributed or not) was taxed for federal income tax purposes to former Peck Electric stockholders. Accordingly, no provision for federal income tax was required. However, the Company did calculate a proforma provision. The provision for income taxes for former Peck Electric was primarily for Vermont minimum taxes. As of the date of the completion of the Reverse Merger and Recapitalization, the Company effectively became a C-Corporation, which changed the level of taxation from the stockholders to the Company. The deferred tax assets and liabilities that arise out of the change of tax status have been recorded to account for the temporary differences that existed on the date of the change resulting in a deferred tax liability of $1,506,362. At December 31, 2020 and 2019, the deferred tax liability was $610,558 and $1,098,481, respectively. The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The financial statements of the Company account for deferred tax assets and liabilities in accordance with Accounting Standards Codification (“ASC”) 740, Income taxes. The Company also uses a more-likely-than-not measurement for all tax positions taken or expected to be taken on a tax return in order for those tax positions to be recognized in the financial statements. If the Company were to incur interest and penalties related to income taxes, these would be included in the provision for income taxes. Generally, the three tax years previously filed remain subject to examination by federal and state tax authorities. |
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Sales Tax |
The Company’s accounting policy is to exclude state sales tax collected and remitted from revenues and costs of sales, respectively. |
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Use of Estimates |
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates their estimates, including those related to inputs used to recognize revenue over time, investments, impairment on investments and valuation of deferred tax assets. Actual results could differ from those estimates. |
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Recently Issued Accounting Pronouncements |
Prior to June 20, 2019, the Company was defined as a non-public entity for purposes of applying transition guidance related to new or revised accounting standards under GAAP and was required to adopt new or revised accounting standards after the required adoption dates that applied to public companies. Subsequent to June 20, 2019, the Company maintains its emerging growth company status until no later than December 31, 2021. The Company will maintain the election available to an emerging growth company to use any extended transition period applicable to non-public companies when complying with a new or revised accounting standard. The Company retains its emerging growth status and therefore elects to adopt new or revised accounting standards on the adoption date required for a private company. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This ASU clarifies the interaction among accounting standards for equity securities, equity method investments and certain derivatives. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. This guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020 and adoption must be as of the beginning of the Company’s annual fiscal year. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In September 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470). This ASU amends SEC paragraphs pursuant to SEC release No. 33-10762. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. This guidance is effective for fiscal years beginning after December 15, 2021 with early adoption permitted. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either operating or financing, with such classifications affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. This standard is effective for the Company’s annual reporting period beginning after December 15, 2021. We are currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. In June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842), to provide a one-year deferral of the effective dates. We are adopting the deferral and currently assessing the provisions of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. In June 2016 the FASB issued ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326). This new guidance will change how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. The update will replace the current incurred loss model with an expected loss model. Under the incurred loss model, a loss (or allowance) is recognized only when an event has occurred (such as a payment delinquency) that causes the entity to believe that a loss is probable (that is has been “incurred”). Under the expected loss model, a loss (or allowance) is recognized upon initial recognitions of the asset that reflects all future events that leads to a loss being realized, regardless of whether it is probable that the future event will occur. The incurred loss model considers past events and conditions, while the expected loss model includes expectations for the future which have yet to occur. ASU 2018-19 was issued in November 2018 and excludes operating leases from the new guidance. The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. As an Emerging Growth Company, the standard is effective for the Company’s 2021 annual reporting period and interim periods beginning first quarter of 2022. The Company is evaluating the impact of ASU 2016-13 will have on its consolidated financial statements and associated disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740). This ASU reduces the complexity over accounting for income taxes by removing certain exceptions and amending guidance to improve consistent application of accounting over income taxes. We are currently assessing the provision of this guidance to determine whether or not its adoption will have an impact on our consolidated financial statements and related disclosures. The Company is currently evaluating the impact of ASU No. 2019-12 will have on its consolidated financial statements. |
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Deferred Finance Costs |
Deferred financing costs relate to the Company’s debt and equity instruments. Deferred financing costs relating to debt instruments are amortized over the terms of the related instrument using the effective interest method. The Company incurred $0 and $21,547 of deferred financing costs during the year ended December 31, 2020 and 2019, respectively, in connection with a refinance of its revolving line of credit. Amortization expense associated with deferred financing costs, which is included in interest expense, totaled $3,073 and $1,544 for the years ended December 31, 2020 and 2019, respectively. Debt financing costs relating to the equity credit line were offset against additional paid in capital as the shares issued were fully earned on the execution of the agreement. The Company incurred $0 and $413,032 of deferred financing costs that was recorded to additional paid in capital for the year ended December 31, 2020 and 2019, respectively. |
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Fair Value of Financial Instruments |
The Company’s financial instruments include cash and cash equivalents, accounts receivable, cash collateral deposited with insurance carriers, deferred compensation plan liabilities, accounts payable and other current liabilities, and debt obligations. Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value guidance establishes a valuation hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: (i) Level 1 - quoted market prices in active markets for identical assets or liabilities; (ii) Level 2 - observable market-based inputs or other observable inputs; and (iii) Level 3 - significant unobservable inputs that cannot be corroborated by observable market data, which are generally determined using valuation models incorporating management estimates of market participant assumptions. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Management’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Fair values of financial instruments are estimated using public market prices, quotes from financial institutions and other available information. Due to their short-term maturity, the carrying amounts of cash, accounts receivable, accounts payable and other current liabilities approximate their fair values. Management believes the carrying values of notes and other receivables, cash collateral deposited with insurance carriers, and outstanding balances on its line of credit and long-term debt approximate their fair values as these amounts are estimated using public market prices, quotes from financial institutions and other available information. At December 31, 2019, the earnout provision of the Share Exchange was considered a Level 3 measurement. Given that the earnout provision was not met, it is no longer considered a Level 3 investment at December 31, 2020. The Company determined that it was unlikely that the earnout provision would be met, therefore no value was assigned. |
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Debt Extinguishment |
Under ASC 470, debt should be derecognized when the debt is extinguished, in accordance with the guidance in ASC 405-20, Liabilities: Extinguishments of Liabilities. Under this guidance, debt is extinguished when the debt is paid, or the debtor is legally released from being the primary obligor by the creditor. On December 1, 2020, the Company received notification from NBT Bank that the Small Business Administration has approved the forgiveness of the PPP loan in its entirety and as such, the full $1,496,468 has been recognized in the income statement as a gain upon debt extinguishment for the year ended December 31, 2020. |
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Segment Information |
Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding the method to allocate resources and assess performance. The Company currently has one reportable segment with different product offerings for financial reporting purposes, which represents the Company’s core business. |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates the Company’s revenue based on the timing of satisfaction of performance obligations for the years ended December 31:
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Estimated Useful Lives | Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
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EXCHANGE AND SUBSCRIPTION AGREEMENT (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
EXCHANGE AND SUBSCRIPTION AGREEMENT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in GSI |
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ACCOUNTS RECEIVABLE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts receivable consist of:
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Contract Assets and Liabilities | Contract assets were as follows at December 31, 2020 and 2019:
Contract liabilities were as follows at December 31, 2020 and 2019:
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CONTRACTS IN PROGRESS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONTRACTS IN PROGRESS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts in Progress | Information with respect to contracts in progress are as follows:
Included in accompany balance sheets under the following captions:
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LONG-TERM DEBT (Tables) |
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Long-term Debt | A summary of long-term debt is as follows:
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Maturities of Long-term Debt | Maturities of long-term debt are as follows:
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments | Future minimum lease payments required under all of the non-cancelable operating leases are as follows:
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UNION ASSESSMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNION ASSESSMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Assessments | During the years ended December 31, 2020 and 2019, the Company incurred the following union assessments.
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Multiemployer Pension Plans | Details of significant multiemployer pension plans as of and for the periods indicated, based upon information available to the Company from plan administrators as well as publicly available information on the U.S. Department of Labor website, are provided in the following table:
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PROVISION FOR INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROVISION FOR INCOME TAXES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes | The provision for income taxes for the year ended December 31, 2020 and 2019 consists of the following:
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Deferred Tax Assets and Liabilities | The Company’s total deferred tax assets and liabilities at December 31, 2020 are as follows:
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Statutory to Effective Tax Rate Reconciliation | Reconciliation between the effective tax on income from operations and the statutory tax rate is as follows:
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CAPTIVE INSURANCE (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPTIVE INSURANCE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Captive Insurance | Summary financial information on NCL as of September 30, 2020 is:
NCL’s fiscal year end is September 30, 2020.
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RELATED PARTY TRANSACTIONS (Tables) |
12 Months Ended | ||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||||||||
Related Party Transactions | The amounts below include amounts due to/from stockholders as of December 31, 2020 and December 31, 2019:
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EARNINGS (LOSS) PER SHARE (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) per Share | As a result of the Merger and Recapitalization, the Company has retrospectively adjusted the weighted average of shares of Common Stock outstanding prior to June 20, 2019 by multiplying such shares by the exchange ratio used to determine the number of shares of Common Stock into which they converted.
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Potential Share Issuances Excluded from Computation of Earnings (loss) Per Share | Below is a schedule of the potential share issuances arising from these contingencies that were excluded from the calculations above:
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SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Organization (Details) - USD ($) |
Jun. 20, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Organization [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Deferred tax liability | $ 1,506,362 | $ 610,558 | $ 1,098,481 |
Jensyn [Member] | |||
Organization [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Shares issued (in shares) | 3,234,501 | ||
Net assets and equity acquired | $ 0 | ||
Goodwill | 0 | ||
Intangible assets acquired | $ 0 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Accounts Receivable (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts Receivable [Abstract] | ||
Allowance for doubtful accounts | $ 84,000 | $ 84,000 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Project Assets (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Project Assets [Member] | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Additions | $ 0 | $ 0 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Property and Equipment (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Property, Plant and Equipment [Abstract] | ||
Minimum value to record property and equipment at cost | $ 1,000 | |
Depreciation expense | $ 585,690 | $ 621,233 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Useful life | 39 years | |
Vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Useful life | 3 years | |
Vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Useful life | 5 years | |
Tools and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Useful life | 3 years | |
Tools and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Useful life | 7 years | |
Solar Arrays [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Useful life | 20 years |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Concentration and Credit Risks (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Concentration and Credit Risks [Abstract] | |
Uninsured cash balances | $ 422 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Income Taxes (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
Jun. 20, 2019 |
---|---|---|---|
Income Taxes [Abstract] | |||
Deferred tax liability | $ 610,558 | $ 1,098,481 | $ 1,506,362 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Deferred Finance Costs (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Deferred Finance Costs [Abstract] | ||
Deferred finance costs | $ 0 | $ 21,547 |
Amortization expense | 3,073 | 1,544 |
Equity Credit Line [Member] | ||
Deferred Finance Costs [Abstract] | ||
Deferred finance costs | $ 0 | $ 413,032 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Debt Extinguishment (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Debt Extinguishment [Abstract] | ||
Gain on forgiveness of PPP loan | $ 1,496,468 | $ 0 |
SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, Segment Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020
Segment
| |
Segment Information [Abstract] | |
Number of reportable segments | 1 |
ACCOUNTS RECEIVABLE, Accounts Receivable (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Accounts Receivable [Abstract] | ||
Accounts receivable | $ 6,299,957 | $ 7,378,605 |
Allowance for doubtful accounts | (84,000) | (84,000) |
Total | 6,215,957 | 7,294,605 |
Bad debt expense | 164,292 | 69,000 |
Contracts in Progress [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable | 6,206,760 | 7,190,412 |
Retainage [Member] | ||
Accounts Receivable [Abstract] | ||
Accounts receivable | $ 93,197 | $ 188,193 |
ACCOUNTS RECEIVABLE, Contract Assets and Contract Liabilities (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Contract Assets [Abstract] | ||
Costs in excess of billings | $ 216,261 | $ 1,066,159 |
Unbilled receivables, included in costs in excess of billings | 1,138,341 | 206,213 |
Costs and estimated earnings in excess of billings | 1,354,602 | 1,272,372 |
Retainage | 93,197 | 188,193 |
Contract assets | 1,447,799 | 1,460,565 |
Contract Liabilities [Abstract] | ||
Billings in excess of costs | $ 1,140,125 | $ 126,026 |
CONTRACTS IN PROGRESS (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Contracts in Progress [Abstract] | ||
Contract costs | $ 9,943,490 | $ 6,108,915 |
Less billings to date | (10,867,354) | (5,168,782) |
Contract costs, net of billings | (923,864) | 940,133 |
Plus under billings remaining on contracts 100% complete | 1,138,341 | 206,213 |
Total | 214,477 | 1,146,346 |
Contracts in Progress, Net [Abstract] | ||
Costs and estimated earnings in excess of billings | 1,354,602 | 1,272,372 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,140,125) | (126,026) |
Total | 214,477 | 1,146,346 |
Expenditures on Uncompleted Contracts [Member] | ||
Contracts in Progress [Abstract] | ||
Contract costs | 7,764,622 | 4,699,855 |
Earnings on Uncompleted Contracts [Member] | ||
Contracts in Progress [Abstract] | ||
Contract costs | $ 2,178,868 | $ 1,409,060 |
LONG-TERM DEBT, Maturities of Long-term Debt (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Maturities of Long-term Debt [Abstract] | ||
2021 | $ 308,394 | |
2022 | 305,857 | |
2023 | 265,765 | |
2024 | 222,606 | |
2025 | 209,858 | |
Thereafter | 714,339 | |
Total | $ 2,026,819 | $ 2,412,304 |
LONG-TERM DEBT, Payroll Protection Loan (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 01, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Apr. 24, 2020 |
|
Long-Term Debt [Abstract] | ||||
Gain on forgiveness of PPP loan | $ 1,496,468 | $ 0 | ||
PPP Loan [Member] | ||||
Long-Term Debt [Abstract] | ||||
Face amount | $ 1,487,624 | |||
Gain on forgiveness of PPP loan | $ 1,496,468 |
LINE OF CREDIT (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Line of Credit Facility [Abstract] | |||
Line of credit | $ 2,482,127 | $ 3,185,041 | |
NBT Bank Working Capital Line of Credit [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | 6,000,000 | ||
Line of credit | $ 2,482,127 | 2,675,041 | |
Eligible accounts receivable on which borrowings are based | 80.00% | ||
NBT Bank Working Capital Line of Credit [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Debt service coverage ratio | 1.20 | ||
NBT Bank Working Capital Line of Credit [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Abstract] | |||
Interest rate | 3.25% | ||
NBT Bank Line of Credit [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 2,000,000 | ||
Line of credit | $ 0 | $ 510,100 | |
NBT Bank Line of Credit [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Abstract] | |||
Interest rate | 4.75% |
COMMITMENTS AND CONTINGENCIES, Future Minimum Lease Payments (Details) |
Dec. 31, 2020
USD ($)
|
---|---|
Future Minimum Lease Payments [Abstract] | |
2021 | $ 162,363 |
2022 | 145,561 |
2023 | 147,903 |
2024 | 150,291 |
2025 | 152,310 |
Thereafter | 1,070,016 |
Total future minimum lease payments | $ 1,828,444 |
EQUITY FINANCINGS (Details) |
12 Months Ended | ||
---|---|---|---|
Oct. 12, 2020
USD ($)
Warrant
shares
|
Sep. 26, 2019
USD ($)
$ / shares
shares
|
Dec. 31, 2020
USD ($)
|
|
Equity Financings [Abstract] | |||
Number of warrants exercised | Warrant | 30,218 | ||
Shares issued upon exercise of warrants (in shares) | shares | 15,109 | ||
Proceeds from exercise of warrants | $ | $ 173,751 | $ 173,753 | |
Lincoln Park [Member] | |||
Equity Financings [Abstract] | |||
Equity line of credit | $ | $ 15,000,000 | ||
Shares issued for equity line (in shares) | shares | 81,263 | ||
Fair value per share (in dollars per share) | $ / shares | $ 4.96 |
UNION ASSESSMENTS, Union Assessments (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Union Assessments [Abstract] | ||
Union assessments incurred | $ 1,436,967 | $ 1,755,183 |
Pension Fund [Member] | ||
Union Assessments [Abstract] | ||
Union assessments incurred | 310,023 | 374,020 |
Welfare Fund [Member] | ||
Union Assessments [Abstract] | ||
Union assessments incurred | 971,720 | 1,192,831 |
National Employees Benefit Fund [Member] | ||
Union Assessments [Abstract] | ||
Union assessments incurred | 90,993 | 131,982 |
Joint Apprenticeship and Training Committee [Member] | ||
Union Assessments [Abstract] | ||
Union assessments incurred | 20,233 | 17,829 |
401(k) Matching [Member] | ||
Union Assessments [Abstract] | ||
Union assessments incurred | $ 43,998 | $ 38,521 |
UNION ASSESSMENTS, Multiemployer Pension Plans (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Multiemployer Pension Plans [Abstract] | ||
Employer Identification Number | 530181657 | |
National Electrical Benefit Fund [Member] | ||
Multiemployer Pension Plans [Abstract] | ||
Plan Number | 001 | |
Contributions | $ 90,993 | $ 131,982 |
Expiration date of CBA | May 31, 2022 | |
Zone status | Green | Green |
FIP/RP Status | NA | |
Surcharge | No |
PROVISION FOR INCOME TAXES, Provision for Income Taxes (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Jun. 20, 2019 |
|
PROVISION FOR INCOME TAXES [Abstract] | |||
Deferred tax liability | $ 610,558 | $ 1,098,481 | $ 1,506,362 |
Current [Abstract] | |||
Federal | 0 | 0 | |
State | 750 | 6,359 | |
Total current | 750 | 6,359 | |
Deferred [Abstract] | |||
Federal | (369,705) | 751,432 | |
State | (118,218) | 347,049 | |
Total deferred | (487,923) | 1,098,481 | |
(Benefit) provision for income taxes | $ (487,173) | $ 1,104,840 |
PROVISION FOR INCOME TAXES, Deferred Tax Assets and Liabilities (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Jun. 20, 2019 |
|
Deferred Tax Assets (Liabilities) [Abstract] | |||
Accruals and reserves | $ 23,758 | $ 4,157 | |
Net operating loss | 812,996 | 421,940 | |
Total deferred tax assets | 836,754 | 426,097 | |
Property and equipment | (1,447,312) | (1,524,578) | |
Total deferred tax liabilities | (1,447,312) | (1,524,578) | |
Net deferred tax asset (liabilities) | (610,558) | (1,098,481) | $ (1,506,362) |
Income Tax Uncertainties [Abstract] | |||
Uncertain tax positions | 0 | 0 | |
Interest and penalties related to income taxes | $ 0 | $ 0 | |
Time period tax years previously filed remain subject to examination | 3 years |
CAPTIVE INSURANCE (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Captive Insurance [Abstract] | ||
Premiums paid | $ 189,958 | $ 189,337 |
Summary Financial Information [Abstract] | ||
Total assets | 19,623,077 | 15,671,819 |
Total liabilities | 10,616,395 | 11,655,058 |
Investment in NCL [Abstract] | ||
Total deferred tax assets | 198,105 | 140,875 |
NCL [Member] | ||
Captive Insurance [Abstract] | ||
Capital investment | 36,000 | |
Redeemable preference shares | 35,900 | |
Common shares | 100 | |
Summary Financial Information [Abstract] | ||
Total assets | 96,020,037 | |
Total liabilities | 46,176,680 | |
Comprehensive income | 8,820,830 | |
Investment in NCL [Abstract] | ||
Capital | 36,000 | 36,000 |
Cash security | 158,785 | 101,555 |
Investment income in excess of losses (incurred and reserves) | 3,320 | 3,320 |
Total deferred tax assets | 198,105 | $ 140,875 |
NCL [Member] | Fund A [Member] | ||
Captive Insurance [Abstract] | ||
Loss layer | 100,000 | |
NCL [Member] | Fund B [Member] | Maximum [Member] | ||
Captive Insurance [Abstract] | ||
Loss layer | $ 300,000 |
DEFERRED COMPENSATION PLAN (Details) - Minority Stockholder [Member] - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2018 |
|
Deferred Compensation Plan [Abstract] | ||
Minimum commitment for future compensation | $ 155,000 | |
Net present value of future compensation | $ 91,187 | |
Solar management fee | 24.50% |
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